Medusa Mining has met its production guidance for the year to the end of June at the Co-O Gold Project in northeast Mindanao, the Philippines. Output from the underground mine in the 12 months was 98,539 ounces, which was well within the guidance for between 95,000 and 100,000 ounces.
During the current 12 month period to June 30, 2016, the company expects to produce between 120,000 and 130,000 ounces as operations at the project are optimized and improved.
In the three months to the end of June, Medusa produced 26,542 ounces at a head grade of 6.01 grams/tonne gold with all in sustaining costs (AISC) of US$1076 per ounce. This was an improvement on the previous quarter, which saw 23,940 ounces generated at 5.84 grams/tonne with AISC of US$1073 per ounce. Gold recovery averaged 94%.
The company sold 29,350 ounces in the quarter compared to 17,169 ounces in the March quarter, while the average gold price received in the latest three months was reduced to US$1197 from US$1217 per ounce in the March quarter.
There was a total of 21,150 metres of horizontal and vertical development completed in the financial year. All stopes will be new design stopes by early in the December quarter. The first Level 8 rail loop line is in use.
Extensive underground drilling between Levels 12 and 16 is due to commence in the December quarter. Drilling is planned for West Road 17 veins in that quarter while surface exploration is continuing at the South Agsao veins.
Medusa expects to produce new resources and reserves estimates in the current quarter. Recent underground drilling results include 0.95 metres @ 61.6 grams/tonne gold, 1.0 metres @ 31.8 grams/tonne, 1.0 metres @ 23.4 grams/tonne, 1.05 metres @ 22.4 grams/tonne and 1.2 metres @ 15.6 grams/tonne.
In the Tambis region to the north of Co-O, resource modelling is expected to begin at the Bananghilig deposit by the end of the September quarter while field work continues to delineate extensions of the potentially mineralized stratigraphy beneath soil cover at the Guinhalinan prospect.