Medusa Mining
Medusa is an expanding gold producer in the Philippines, listed on the Australian Stock Exchange (ASX;MML), London AIM (AIM: MML) and Toronto Stock Exchange (TSX: MLL) markets. With an expanding resource base now at 1.2million ounces at 13.3g/t gold and production on track to achieve 60,000 ounces annualised in Q3 09 and 100,000 ounces annualised early 2010, it is anticipated that long term cash costs will be approximately US$200/ounce. Numerous new discoveries of gold and copper-gold are anticipated in the future within the large regional tenement package totalling 820km². The operations are an integral part of the local communities.
Medusa Mining achieves record gold production for the quarter
Philippines-focused Gold producer Medusa Mining (ASX: MML) has announced record gold production of 21,108 ozs at the Co-O Mine during the quarter.
This compared to 18,054 ozs in the previous quarter, with the latest gold production at an average grade of 18.68 g/t gold and average cash cost of US$184 per oz (US$136 per oz before taxes, royalties and local production taxes)
The Co-O mine expansion to raise production to100,000 ozs per annum in early 2010 has been completed, while mill construction wrapped up and commissioning commenced.
In the quarter, the New MPSA 299-2009-XIII with area of 2,200 hectares was granted abutting the east side of the Co-O Mine MPSA.
The re-interpreted resource model of the Co-O Mine, consistent with Agsao Shaft Level 5 development, now provides an accurate development based model for expanding the mine to the east.
It contains a conceptual target size range from 3 million ozs in 9.3 million tonnes to 7 million ozs in 22 million tonnes using a grade range of 9 to 11 g/t gold with a preferred average grade of the current resources of 10 g/t gold.
Meanwhile, planning is underway to commence a pre-feasibility study drilling campaign at Bananghilig deposit in July 2010, while drilling with three surface rigs at the Lingig Copper deposit is continuing.
The exploration budget for the full year increased to US$18M, with a consolidated cash balance of US$35.5 million.
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 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$200 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.
Other Medusa Mining articles
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08/03/10 Medusa Mining announces 1:10 bonus issue
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07/09/09 Medusa Mining reports 216% full year revenue hike, aims for growth in 2010
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12/08/09 Medusa Mining increases resource inventory to 2 million ounces of gold
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27/07/09 Medusa Mining on schedule to produce 100,000 ounces of gold from Co-0 Mine in 2010
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10/07/09 Geoff Davis, Managing Director of Medusa Mining talks to Proactive Investors
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28/01/09 Medusa Mining to increase gold production to 60,000 ozs in 2009
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19/01/09 Medusa Mining increases gold resource to 1.2 million ounces in Philippines
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24/10/08 Medusa Mining has a lot going for it as a low cost gold producer
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25/07/08 Medusa Mining reaffirms target of 100,000 ounces of gold production by 2010
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13/05/08 Medusa Mining – Interview Transcript
Other Medusa Mining news
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16/03/10 Fairfax positive on Medusa Mining following Co-O mill update
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16/03/10 Medusa Mining says on track to meet Co-O gold mine target production this quarter
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16/03/10 Medusa Mining's expansion of gold production on track at Co-O mill in Philippines
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24/02/10 Medusa Mining reveals record breaking first half, net profit up 201%
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19/01/10 Fairfax upgrades Medusa Mining after resource estimate revision for Co-O gold mine
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18/01/10 Medusa Mining completes re-interpretation of the resource model for the Co-O Mine
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14/01/10 Medusa Mining chairman resigns due to increased work commitments elsewhere
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10/12/09 Medusa Mining delivers high-grade drill results at Co-O Mine
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27/11/09 Medusa Mining starts trading on the Toronto Stock Exchange
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18/11/09 Shares in Medusa Mining increase 9c after 2010 vision revealed
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