Medusa Mining (ASX: MML) is an Australian based gold producer, focused solely on the Philippines. Medusa's corporate strategy is to become a mid-tier, 300,000 to 400,000 ounce per year, low-cost gold producer.
Medusa Mining on schedule to produce 100,000 ounces of gold from Co-0 Mine in 2010
Expanding Philippines gold producer, Medusa Mining (ASX/AIM: MML) is ahead of production schedule at the Co-O Mine.
Phase 1 expansion has been completed, ahead of schedule - and on track to produce annualised gold production of 60,000 ounces.
Adding to the promise, Medusa is debt free with long term cash costs of only US$200 per pound. And recently was added to the S&P/ASX200 Index on 8 July 2009.
Bullish gold investor, Sprott Asset Management has not missed the potential upside on this low cost, high margin gold producer, holding almost 5.4% of the issued shares in Medusa.
With Medusa earning Net Profit After Tax of (6 months to 31 December 2008) A$12.0 million with cash at bank of almost A$33 million, the cash pile can only increase in 2010 with output expansion.
Total indicated and inferred Resources at the Co-O Mine are 1,380,000 ounces at 10.8 g/t gold, with total probable reserves of 500,000 ounces at 14.9 g/t gold.
Phase 2 expansion is on schedule according to Medusa CO-O mine and is targeted to produce 100,000 annualised ounces from Q1 2010.
Lest investors perceive Medusa as without exploration upside, there are still significant high grade vein and disseminated bulk gold targets - and six porphyry copper targets.
Co-O is located in a region of world class gold-copper deposits and south of the typhoon belt - important in the Philippines.
