Medusa Mining
Medusa Mining is an expanding gold producer in the Philippines, listed on the London AIM and the Australian ASX. Medusa's gold production operations are very robust due to its high grades and low production costs, and over the next 12 to 18 months should expand considerably from an initial annualised 40,000oz as new multiple mines are brought into production to feed a central milling facility. Medusa is focused on expanding its resource base and production profile to benefit not only shareholders but also its employees and local communities. The Company’s exploration upside is rated as excellent for the discovery of new gold and copper-gold deposits.
Medusa Mining reaffirms target of 100,000 ounces of gold production by 2010
Medusa Mining (AIM: MML), the owner and operator of the Co-O Mine in the Philippines confirmed that expansion of the mine towards 100,000 ounces annualised production was still on track for the early 2010.
Medusa is currently in the throes of Phase I expansion at the mine, and today announced quarterly production of 5,187 ounces at an average grade of 8.64 g/t gold and average cash cost of US$247 per ounce. The Phase I expansion includes the construction of a vertical ventilation shaft to a depth of 70 metres to link the current upper levels of the mine at the western end. The Beta Shaft and Agsao Shaft developments are also progressing smoothly.
Benefits from the current expansion program are expected to start generating benefits by the third quarter of 2008. Medusa has set a target of 38,000 to 45,000 ounces of production for the full year 2008-2009 period. Production is then forecast to rise to an annualised rate of 60,000 ounces by the third quarter of 2009, with 100,000 ounces arriving in early 2010 once the Phase II expansion is complete. Phase II will primarily encompass the sinking of the Hill View Shaft, and the sinking of an additional internal shaft off the bottom of the Agsao Shaft. Grid power to the mine is also anticipated to be connected by November at the latest, which will cut power costs by 25% as Medusa reduces its reliance on diesel generators.
As part of Medusa’s planned production expansion, four surface rigs and two underground rigs have been plodding away at the task of proving up additional reserves and resources. Today Medusa confirmed that it would be releasing an updated resource and reserve statement in August. Drill results released today also continued to confirm the narrow, very high grade nature of the gold mineralisation at Co-O.
On the wider exploration front, drill results from the Kamarangan Gold-Iron Ore Prospect are expected in August. Medusa is following up a number of encouraging signs, including artisanal gold operations and numerous iron-rich skarn rock samples identified at surface. Medusa may even find copper, as early exploration suggests there may be a copper source lying below the iron-rich skarns.
Meanwhile drilling on the Bananghilig area has been completed, results are pending. A maiden resource estimate may also be on the cards later this year if the drill results can demonstrate ‘good continuity’ of the mineralisation.
Drill results are also expected shortly for the Lingig Copper Porphyry discovery. Late last year Medusa Mining confirmed the potential at Lingig after reporting a 150 metre intersection of 0.4% copper than ended in mineralisation.
If this wasn’t enough for investors to chew on, Medusa also updated on its various agreements with third parties, reporting various degrees of progress.
Other Medusa Mining articles
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Other Medusa Mining news
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01/12/08 Medusa discovers new high grade vein at Co-O gold mine in Philippines
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31/10/08 Medusa Mining increases gold production by 35%
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24/09/08 Medusa Mining says Crosby Capital offer "inadequate and opportunistic"
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19/09/08 Medusa Mining leaps on approach from Crosby Capital
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26/08/08 Medusa Mining updates JORC reserve estimate for Co-O Mine
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15/08/08 Medusa Mining announces discovery of magnetite-copper-gold porphyry
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12/08/08 Medusa Mining increases gold resource to 0.862 million ounces
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11/06/08 Medusa Mining to drill at Kamarangan in two weeks
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04/06/08 Medusa Mining firms on discovery of more gold veins
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07/05/08 Medusa Mining hits wide, high grade gold vein