Medusa Mining increased gold output during the June quarter at its flagship Co-O Gold Project in the Philippines. The company produced 25,429 ounces during the quarter, up from 21,980 ounces in the previous quarter.
The average head grade was 6.32 grams/tonne (g/t) gold, up from 5.47 g/t in the March quarter. Gold recovery averaged 94%. The all-in-sustaining-costs were US$1088 per ounce compared to US$1033 per ounce in the first quarter.
In the 12 months ending June 30 the company produced 108,578 ounces, which was higher than then guidance of 108,000 ounces.
For the 2016-17 financial year the company’s guidance is for between 105,000 and 115,000 ounces, and all-in-sustaining-costs between US$1000 and US$1100 per ounce. The production guidance profile, quarter by quarter will be slightly back-end loaded for the financial year, driven by the higher level of development ore and infrastructure project waste rock required in the first two quarters.
The total advance in the underground mine was 4501 metres of horizontal and vertical development compared to 5266 metres in quarter one.
At the new service shaft blind sinking was completed to 83 metres from the collar. Sinking activities have stopped while the winder house and headframe are being erected.
The company is developing three internal winzes from Level 8 to Level 10 while the 29E and 17E Winzes are developed to L9 and the 12E winze will be developed to L10 this quarter.
New primary fans are operational at 50% capacity, doubling the mines ventilation flow while the remaining development between levels is completed.
The Co-O mine remains hoist capacity constrained until the E15 Service Shaft is completed by June 2017. Once completed this shaft will take over 100% of manpower and materials movement, freeing up the L8 Production Shaft to be a 100% dedicated skipping shaft.
Exploration continues at Co-O and in the region around the mine. Level 8 resources and reserve drilling program continued throughout the second quarter with three dedicated drills and 6487.6 metres completed. Results include 0.35 metres @ 267 g/t gold, 3.2 metres @ 28.8 g/t, 7.45 metres @ 10.1 g/t, 2.8 metres @ 23.6 g/t and 1.8 metres @ 31.9 g/t.
Medusa is undertaking reconnaissance activities within the mine environs while at the Bananghilig deposit resource modelling was completed. A resource estimate is nearing completion and is expected to be reported during the current quarter.