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Medusa Mining, New World Resources, Mwana Africa, Rambler Metals news briefs

Contributed by Fox-Davies Capital

Medusa Mining Ltd announced an update of the Co-O Mine surface and underground drilling completed from 30 June 2012 to 28 January 2013. Surface drilling since 30 June 2012 continues to provide resource infill and extension information for mine planning to the east and west of the Oriental Fault. Drilling west of the Tinago Fault has consistently intersected veins with some indications that grades in places may be increasing at depth although to date the grades in the upper levels have been generally below 3g/t gold. Underground drilling continues to confirm vein continuity and is providing additional information on vein splits and new veins not intersected by surface drilling.

FD Comment:
The grades reported were excellent and the widths were good, although they were down hole widths. The next resource update will be in the September quarter of 2013.

New World Resources PLC announced its unaudited financial results for the full year 2012, as well as an updated strategy to reposition the business as Europe's leading miner and marketer of coking coal. Revenues at Euro 1,299M were down 20% on the 2011 figure, whilst unit mining costs of Euro 81/t were down 1%. This gave an EBITDA of Euro 223M, down 51% on the 2011 figure. The net result was a loss per A share of Euro 0.02. This was achieved on coal production of 11.2Mt and extern A recent al sales of 9.7Mt. External sales were a mix of 51% coking coal and 49% thermal coal. A technical review of the Debiensko project was completed. EUR 10M CAPEX spend planned for 2013 on purchase of surface properties and value engineering. An expansion of the existing Karvina mine continues to plan. Production guidance for 2013 is for coal production of between 10 and 11Mt and coke production of 800kt.

Mwana Africa released an update on the Leach Tank Incident at Freda Rebecca Gold Mine (FRGM) yesterday afternoon.

In this news:
- All five employees injured have been discharged with four returning to work and one an outpatient at the mine clinic with a fractured ankle
- Cyanide levels breached permitted discharge levels in the mine's drainage canal, but has now returned to within operating limits. Canal clean up expected to be complete today
- Environmental Management Agency has levied a US$5k fine on FRGM for breach of permits
- Mines Inspectorate has completed investigation and work started on removing damaged structures
- Tank one will be re-commissioned and leach tank 2 repaired. FRGM is assessing the cause and integrity of the remaining tanks and steelworks
- Production recommenced, expects to achieve 50% throughput by end February reaching full restoration by end of March
- FY'12 production guidance 63koz from 70Koz.

FD Comment:
Fortunately the environmental impact of the failure looks to be very limited and according to the Company restoration should be complete by now. Although both management and the EMA have been very quick to say everything is OK, it will take longer term monitoring, which will be required not just on the site. Although the restoration costs will be limited, the failure has cost the Company 7Koz of gold in spilled cyanide slurry and on-going reduced recoveries, worth circa US$11.15M at current prices. However, there should be no further issues and indeed the Company may take this opportunity to put in larger tanks to improve recoveries further.

Rambler Metals has announced Non-Executive director Merfyn Roberts has resigned.

In this news:
- One of the original founding members of the Company
- Board will have eight remaining Executive and Non-Executive Directors
- Mr Roberts will not be replaced at this stage.

FD Comment:
As one of the original founding member this would appear to be a blow to the Company and the share price may come under pressure if he decides to dispose of his holding in the Company.