MEDUSA Mining remains on track to achieve production guidance for the 2016 financial year of 120,000 to 130,000 ounces from the Co-O Gold Project. The first half of the period produced 61,169 ounces, which was a 27.8% increase on the corresponding period of FY 2015 and a 21.2% increase on the first six months of 2015.

Following record September quarter production, the company had an excellent December quarter with 29,674 ounces produced at a head grade of 6.79 grams/tonne and average gold recovery of 94%. The quarterly cash cost was US$435 per ounce, down from US$439 per ounce in the previous quarter.

The L8 shaft at Medusa Mining’s Co-O Gold Project in northeast Mindanao.

Medusa chairman Andrew Teo said the strong December performance came despite challenges associated with L8 shaft repairs and ongoing work to de-bottle-neck the haulage shaft. “This is testament to the dedication of our men underground in the Philippines.

“An independent review is under way, which reflects current ore and waste development and stoping practices to date. The review is also examining deepening the Service Shaft to Level 10, sinking of 7-8 additional winzes (on vein), from Level 8 to Levels 9 and 10, and their impact on mine waste scheduling and ore production in the short term.

“Approximately 12,105 metres of horizontal and vertical development were completed during the half year to December 31, a 20.7% increase on the 10,032 metres achieved in the same period of 2014.

The extension of the service shaft to Level 10 will be completed in June 2017. We have continued our efforts to provide a safe and healthy workplace for our employees, with the installation of a new ventilation exhaust rise and a Howden centrifugal fan, which will significantly improve the working conditions at Levels 6 to 10.”

Underground drilling is at present targeting resource extensions from Levels 8 to 16.

Medusa has appointed Boyd Timler as CEO. He replaces Geoff Davis who retired last November.

The new CEO has more than 30 years of international mining experience, having most recently served as chief operating office of Beadell Resources. He also brings extensive operational experience to Medusa, having spent the first 15 years of his career working in underground narrow high grade gold projects culminating at Kinross Gold’s Hoyle Pond mine in Canada and subsequently as Placer Dome following a joint venture between the two. He has held senior level positions at operations in Canada, USA, Australia, Tanzania, Zambia and Brazil.

 

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