Medusa Mining produced more gold from its Co-O project on Mindanao during the March quarter than in the previous quarter but was short of production forecasts due to flooding in January.
The company produced 16,200 ounces of gold in the quarter ended March 31, at an average head grade of 4.20 grams/tonne and cash costs of US$398 per ounce. It said that production for the quarter was higher than the December quarter due to the continuous operation of its new SAG Mill although it was less than forecast due to disrupted production from flooding in January. It also said that cash costs for the quarter were lower primarily due to increased production.
The average gold price of US$1299 was higher than the previous quarter but lower than the US$1630 of the corresponding quarter of 2013.
Medusa said in its quarterly report that all mine shafts continued to operate during the quarter. It said parts of the mine were flooded in January due to unseasonal heavy rains and some development headings that were temporarily stopped due to the flooding had since been re-opened. It said that production from stoping is now increasing and a greater percentage of stope ore is expected to be mined and trucked to the mill in the June quarter.
Despite the floods, the company said underground development at Co-O was able to be maintained at the monthly target rate of 1500 metres.
Exploration is also continuing with five underground drill rigs utilized at Co-O and three surface rigs at Tambis. The company is also planning to delist from the London Stock Exchange.