LEX CORP NEWS LETTER

Here is the other TSX Titan. Medusa Mining-MLL is a low cost gold producer. They are currently producing 25,000oz every quarter at a cash cost of $200oz.  I believe this is another producer that could be a take over target.  The stock is lightly traded on the TSX.  The word still has to get out and when it does institutional investors will be loading up the truck.  The same applies to Perseus Mining-PRU which is also lightly traded on the TSX and has been rumoured for months that a North American company has been knocking on it's door-see Perseus Mining coverage below.  Some of these Australian gold stocks are not receiving enough attention by North American investors.  I believe investors should take a very hard look these Australian Gold stocks that are now listed on the TSX.  Another Australian gold producer that you should pay attention to is  MDM-Minerals Deposits who is also a 170,000-180,000 gold producer trading around .90cents.  Remember, these are lightly traded stocks on the TSX which I believe will eventually get noticed. 

  http://www.medusamining.com.au/index.html

Research Reports: Medusa Mining

Sandfire Securities Target $5.00 http://www.medusamining.com.au/research/100128_sandfire.pdf

BNN- Interview: http://watch.bnn.ca/clip240065#clip240065

Investor Presentation: http://www.medusamining.com.au/newsroom/asx/100208_presentation.pdf 

About Medusa Mining:

Medusa Mining Limited ("Medusa" or the "Company"), a public company listed on the ASX, AIM and the TSX, is an Australian based gold producer, focused solely on the Philippines.

With current mineral resources comprising Indicated 580,000 ounces of gold and Inferred 1,310,000 ounces of gold, Medusa's corporate strategy is to become a mid tier 300,000 to 400,000 ounce per year, low cost gold producer.

The Company is currently expanding its high grade Co-O Mine operations (Indicated Resources 580,000 ounces of gold inclusive of a Probable Reserve of 500,000 ounces of gold, and Inferred Resources 660,000 ounces of gold) to increase its forecast production to 100,000 ounces per year in 2010, and is conducting near mine exploration to assess the possibilities of further expansion to 200,000 ounces per year. Current cash costs at the Co-O Mine are approximately US$190 per ounce.

A pipe-line of deposits is now being established with the Bananghilig Deposit (Inferred Resource of 650,000 ounces of gold) recently added and which is expected to expand, potentially in conjunction with nearby discoveries.

For those interested in Mineral Deposits-MLL here is a link to their site: http://www.mineraldeposits.com.au/ 

The TSX has opened it's door to 2 new Australian listed stocks. Medusa Mining Ltd-MLL and Perseus Mining-PRU.  Medusa Mining Ltd has been a Buy recommend.  The stock was trading around $2.80 only a few weeks back and is now trading around $3.37.  They expect produce 100,000 oz at a cash cost of $200.  Even you can buy the stock below $3.00, take advantage. It's lightly traded on the TSX.  Perseus Mining has 2 gold projects. The muliti-million oz gold deposit- Ashanti Gold Project and their Ivory Coast Project Tengrela. I am rating PRU.to as a Strong Buy and a 12mth target of $3.00.

About Perseus Mining: http://www.perseusmining.com/

Perseus Mining Limited (ASX Code: PRU) has forged a reputation as one of the world's most successful gold explorers.  Focused on under-explored gold belts in West Africa, Perseus has identified significant deposits in Ghana, and Ivory Coast and demonstrated a credible track record of resource growth.  

The Company's Central Ashanti Gold Project (formerly referred to as the Ayanfuri Gold Project) has reserves of 2.1 million ounces of gold and additional 1.03Moz Measured and Indicated and gold resources and 2.1Moz Inferred gold reserves.  A further 0.57Moz of Indicated gold resources and 1.21Moz Inferred gold resources are held on its other West African projects.

A feasibility study for the Central Ashanti Gold Project was completed in July 2009.  Gold production is targeted for 2011- they should be producing between 230,000-250,000oz per.

Rumours are spread about Perseus Mining being a take over target.  Management has admitted that they have been approached by North American suitors. See the link-http://www.miningweekly.com/topic/perseus-mining-company

Could Lihir Gold be the company who will take them out?

THE market has decided that Lihir Gold has Perseus Mining in its takeover sights as part of Lihir's plan to produce 1 million ounces a year from multiple mines in west Africa.

The prospect that a takeover of Perseus was part of Lihir's planning led to Perseus shares rising 17.5c or 19 per cent to $1.09, valuing Perseus at $340 million. A 30 per cent premium in a takeover bid would raise Perseus's value to $444 million.

Lihir has not said it has Perseus in its sights. But it did the next best thing when outlining its west African growth ambitions in an investor briefing last Friday.

Lihir already produces 1-1.2 million ounces a year from its namesake mine on Lihir Island in Papua New Guinea, Mount Rawdon in Queensland and the new Bonikro goldmine in Ivory Coast, West Africa.

Bonikro and Mount Rawdon were acquired last year through the $1 billion takeover of Equigold. Bonikro's planned output is an average of 120,000 ounces of gold a year, with Lihir telling analysts it wanted to grow its west African production base to close to 1 million ounces a year by 2018.

That growth would come from an expansion at Bonikro, opportunities created by the group's aggressive exploration program across west Africa, and from two unidentified merger and acquisition opportunities.

Analysts said Perseus ticked all of Lihir's ''strategic assessment criteria'' covering the scale of operations, the mine life, location and cost. Lihir said any acquisitions would have to be producers of more than 200,000 ounces of gold a year. Perseus plans to be producing 220,000 ounces a year from Ayanfuri when it is developed in 2011.

Ayanfuri is in Ghana, the most stable of the west African nations, ticking another box. Perseus would deliver Lihir the Tengrela gold project in the Ivory Coast, with its proposed 100,000 ounces a year, delivering the ''operational synergies'' Lihir wants.

Perseus fits Lihir's suggested cost for its proposed bolt-on acquisitions in west Africa of $US200-$700 million ($234-$818 million).

Source: The Sydney Morning Herald

What I Posted On My Stockhouse.com Blog

Mentioned on BNN- market call 2nd top pick.  By Robert Cohen -Around the 1min mark. http://watch.bnn.ca/#clip254648


SYDNEY - 8th January 2010
Australia's Perseus Mining has received takeover approaches from North American suitors as it gets ready to develop one of West Africa's largest gold deposits and list in Canada, its top executive said.

West African nations including Ghana, Mali and Ivory Coast are increasingly attracting prospectors seeking locations where production costs are lower, sometimes by more than half the cost in Australia, despite higher risks.

"We've definitely been approached and several times by some companies," Perseus' MD Mark Calderwood told Reuters in a recent telephone interview.

"We're not chasing them, they are chasing us," he said, adding the overtures were from gold miners based in Canada.

Calderwood said a "boots and all" offer would be needed to persuade shareholders to sell and in all likelihood would come from Canadian firms "that have the corporate currency to do it."

Perseus' shareholders, about half of which are institutions including Oppenheimer Fund, US Global and Front Street, were happy to see Perseus move into production on its own, he said.

This week Perseus was granted mining leases by Ghana's government for 15 years for its 93,13 sq km Central Ashanti gold project, which has a resource of seven-million ounces of gold.

US brokerage Rodman & Renshaw said in a report on Thursday it expects the Central Ashanti resource to increase to ten-million ounces.

Perseus has already signed a loan facility for the Ashanti project with Australia's Macquarie Bank and Credit Suisse, that includes hedging of 150 000 oz. It also holds 100 000 oz in gold put options with a strike price of $850/oz.

The project still needs environmental clearance by the Ghanian government, which Calderwood expects next month, before construction work on a processing plant handling 5,5-million tons annually will begin.

The company will try to start production of between 230 000 and 250 000 ounces a year ahead of the current target start date of the third quarter of 2011, according to Calderwood.

Listing of Perseus' shares in Toronto is scheduled for the end of January, when it will join other West Africa prospectors and miners, including Red Back Mining Inc, Equinox Minerals and Andean Resources.

Perseus's Australian shares have climbed tenfold since late 2008, helped by rising bullion prices and the promise of much lower production costs than those of gold producers in Australia. The stock closed on Thursday at A$1,99.

Perseus is in the early stages of developing a second mine in Ivory Coast, and this year plans to spend A$25-million overall on exploration, Calderwood said.