Medusa Mining Ltd. February 2005

Transcription

1 February 2005

2 COMPANY SNAPSHOT Listed Dec 2003 ASX Code: MML Strategy Explore & mine high grade gold deposits Focus Philsaga Mining acquisition in the Philippines Gold exploration assets in Australia & Philippines Financial Market Cap $27m Cash $1.5M Capital Structure 39.56m shares 21.48m options

3 BOARD & MANAGEMENT Geoff Davis Managing Director Ted Mein Mining Engineer - Director Roy Daniel Chief Financial Officer Sammy Afdal Manager administration, milling and processing Bill Phillips Manager Mining Ernie Apostol Manager Exploration Jerry Baguio Resident Mine Manager Rudy Vega Mill Superintendent

4 PRESENTATION OVERVIEW Strategy and focus Acquisition opportunity Philsaga Mining Corp Philsaga s Co-O mine history Co-O mine key points Philsaga acquisition terms Benefits of the acquiring Philsaga Mining Corp

5 STRATEGY AND FOCUS Acquire Philippines based Philsaga Mining Corporation Scale up the production from the high-grade underground Co-O gold mine Explore for new high grade gold deposits along the highly prospective Diwata Range

6 PHILSAGA MINING OPPORTUNITY Operating high-grade underground gold mine 550 tpd CIP plant with crushing/grinding capacity to 1000tpd Robust cash flow 250,000 oz indicated and inferred high-grade resource base +500 sq km of world class exploration ground

7 PHILIPPINE GOLDFIELDS and FOREIGN INVESTORS

8 CO-O SAUGON REGIONAL TENEMENTS 100% owned Joint ventures Royalty ag ts More wanted

9 CO-O MINE HISTORY Developed in 1989 as trackless mine on narrow quartz veins, incurred severe dilution Capex approx. US$21M (mill, mine, power etc) Closed in 1991 after 60,000 oz production Care and maintenance to August 2000 Sold to Philsaga Mining Corporation specialising in narrow vein mining Operated by Philsaga for koz/year

10 CO-O MINE KEY FEATURES Vein strike length of >2km Increasing vein width and grade with depth open in all directions High grade strike extensions located Multiple targets Potentially + 1 million ounces with additional exploration

11 CO-O ACQUISITION TERMS Cash payment of A$9 million Deferred payment of A$5 million over 2 years Issue of 25 million new shares A$2 million over 2 years to mine contractors US$20/oz produced east side of Oriental Fault, capped at US$10 million

12 BENEFITS OF CO-O ACQUISITION Seamless transition to producer status with increasing production to approx 60,000 oz by end 2005 Anticipated 80,000 oz/year in 2006,07 from 2 shafts only High-grade mine > high margin > profitable Scaleable plant that can support new mine development 537km2 of very prospective tenements Funded joint ventures, regional exploration approach

13 MEDUSA S FILIPINO EXPERIENCE MD has 25 years Filipino experience Excellent network of professionals (technical, legal, tenement, mining) Excellent local support at all levels of government and community Continuity of mine management Minimal expatriate involvement

14 TENURE & SECURITY Mix of granted titles and applications Mining Leases are for 25 years renewable Small Scale Mining Permits give quick access for underground exploration/development Security ensured by community support Strong local authorities support Additional local community benefits

15 SUMMARY The Philsaga Mining acquisition is expected to re-rate Medusa from explorer to miner. The high-grade Co-O mine is scaleable and with production to increase from 25,000-80,000+ ozs pa. Strong cash flow from mining operations to fund ongoing exploration The Board and Management have significant Filipino experience

16 TECHNICAL APPENDICES

17 COMPARATIVE PRODUCTION COSTS

18 CO-O SURFACE & LEVEL PLAN

19 CO-O GOLD CONTOURS

20 CO-O CROSS SECTIONS

21 CO-O GOLD MINE LONGITUDINAL PROJECTION

22 REGIONAL MINERALISATION MODEL Veins commonly > 1km long Increasing grades with depth Increasing widths with depth

23 MEDUSA SHARE TRADING $0.75 $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $ , , ,000 Jan 04 Mar 04 Jun 04 Sep 04 Jan 05 Share Price Volumes