- Written by ASIA Miner News
A major mine expansion and new treatment plant costing about US$80 million will see production at Medusa Mining's Co-O Gold Project more than double.
For the year ended June 30, 2010, the Co-O Mine and mill produced 89,679 ounces of gold. Once fully operational, the new plant is expected to provide processing capacity to annually produce 200,000 ounces of gold based on the current grade of the Co-O Mine's reserves.
The construction time for the new plant after the necessary regulatory approvals are granted is estimated at between 18 to 24 months, and the full benefits of the expansion are expected to be realised shortly thereafter.
Medusa's Philippines subsidiary Philsaga Mining is in preliminary discussions with engineering groups concerning the expansion program.
Medusa's managing director Geoff Davis says, “This decision heralds a new era for the Co-O project, and demonstrates the board's confidence in the future of its Co-O operations. It also confirms a measured approach to our growth strategy.
“The drill results released on October 29, 2010 reinforce the growth potential of the Co-O mine and surrounding area.
“It is also pleasing that the capital requirements of the new plant and expansion will be funded out of cashflow and that the cashflow generated from the new plant once it is operational is intended to in turn fund the company's next project, Bananghilig.”