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Medusa Mining boosts quarterly production at Co-O


Medusa remains on track to produce between 90,000 and 100,000 ounces of gold in 2019


Quick facts: Medusa Mining

Price: 0.785 AUD

Market: ASX
Market Cap: $163.12 m

The Co-O mine owned by Medusa Mining LTD (ASX:MML) produced 24,177 ounces of gold at an average head grade of 5.97 grams per tonne during the quarter to 30 September 2018.

That increase in production from the 22,835 ounce figure from June, combined with a higher grade to help cut cash costs back to just US$549 per ounce.

All-in costs rang in at US$1,126 per ounce, against a gold price that was pushing past US$1,200 during the period.

Investment in mine infrastructure continues

Meanwhile, infrastructure development continued. At the E15 service shaft the installation of the lower shaft steel work is complete. The internal hoisting winze at E43 and E48 have been completed to level 10.

The E35 winze has continued development past level 10  to level 12.

Medusa expects to produce between 90,000 and 100,000 ounces of gold at all-in sustaining costs of between US$1,050 to US$1,150 per ounce in 2019.

On mine exploration proceeding apace

Underground resource drilling for the quarter amounted to 10,471 metres, a 2% decrease from the last quarter. Around 3,160 metres of reserve drilling was undertaking at levels 5, 6 and 7 from 25 holes.

In addition, resource definition drilling at level 8 totalled 7,312 metres from 15 holes.

Among the drilling highlights were 0.7 metres grading 425.27 grams per tonne gold, 3.55 metres grading 60.28 grams, 1.50 metres grading 14.88 grams and 0.2 metres grading 210.40 grams.

Wider exploration ongoing

Reconnaissance activities within the mine environs identified two promising drill targets, the Royal Crowne vein and Durian.

The Royal Crowne vein lies 1.5km north of the Co-O mine and initial results of te current scout drilling campaign confirm gold mineralisation. Complete assay results are still pending receipt from the laboratory.

Elsewhere, the company also continues to target epithermal gold and porphyry copper-gold targets in Queensland, Australia. Negotiations for access agreements with landowners are ongoing.

The Medusa-Ellenkay Gold joint venture has also engaged with native title holders to prepare for clearance of the initial drill programs at both Mt Clark West, a copper porphyry prospect, and Hill 212, an epithermal gold prospect.

Cash in the bank provides strength in depth

At the end of the September quarter Medusa held cash and cash equivalents of US$11.8 million on its balance sheet.

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