Medusa Mining Ltd (AIM: MML) said Phase I expansion of its Co-O mine in the Philippines to raise gold production to 60,000 ounces per year in the third quarter of 2009 is nearing completion and Phase II for raising production further to 100,000 oz per annum in early 2010 is progressing on schedule.
In an update covering the third quarter to March 31 2009, the company said gold production at Co-O rose to 12,716 oz from 12,158 oz in the second quarter at an average grade of 13.05 grams per ton gold and average cash cost of US$211 per ounce.
Drilling at the Lingig Porphyry copper discovery is continuing, with the latest update included encouraging intersections of 125 metres at 0.26 percent copper, 267 metres at 0.62 percent and 224 meters at 0.77 percent.
Managing director Geoff Davis said: “The continuing increases in gold production and corresponding decreases in cash costs are a pleasing result of the Phase I expansion programme to 60,000 ounces annualised production. The Phase II expansion to 100,000 ounces annualised production is on track for completion in early 2010. The Co-O Deposit is continuing to exhibit its pedigree as a world class deposit in terms of potential financial returns."