Medusa Mining (LON:MML, ASX:MML) sold 20,000 ounces of gold in its latest quarter from its flagship Co-O mine – double the amount it sold in the March quarter.
In the three months to March 31 this year, the Philippines – focused company sold 10,000 ounces of the yellow metal, and in the year to June 30 so far, the firm sold 55,446 ounces.
Production for the quarter to June was 15,557 ounces, at an average grade of 8.10 g/t gold and costs of $283 per ounce – compared to $239 per ounce in the March quarter.
Medusa noted that, as previously reported, the Co-O mine continues to operate mainly in development mode as work continues to prepare for future expansion.
Because of limited shaft haulage capacity, all development ore mined so far has been treated through the mill, Medusa said.
And the increased amount of development ore treated is the main reason for the lower production levels compared to previous quarters, it added.
The saga shaft, currently at 306 metres, is due to sink to 350m by the end of August, and its completion in the December quarter with haulage capacity of 1,500 tpd is expected to solve the current haulage issues.
At Co-O, the construction of the new mill is on schedule with a new leach tank due to be completed by the middle of next month.
Medusa also noted the recent release of an Executive Order on mining in the Philippines from the president, which is designed to, among others, improve the fiscal return to the government from future products.
“The EO will have no effect on the Co-O operations and the status quo will be maintained for this existing operation as it is linked to an existing mining agreement,” the company said today.
Medusa’s managing director Peter Hepburn-Brown said today the group had made “pleasing progress” with mill construction during the quarter.
“At the mine, the pace of ancilliary activities is picking up in preparation for the Saga Shaft reaching target depth at the end of August.
“This includes the imminent arrival of the winder, completed manufacturing of the new skips and loading pockets, commencement of manufacturing of the permanent headframe, and finishing the installation of the surface electricals to accommodate the new winder and then complete the re-wiring of the Co-O Mine.
“The commencement of haulage from the Saga Shaft in the December quarter will mark a major achievement in the Co-O expansion programme. This means that this FY’s production guidance of 100-120,000 ounces will be weighted into the second half of the year,” he said.