Medusa Mining is on track to meet its target of 120,000 to 130,000 ounces of gold in the current financial year after a 19% increase in September quarter production to almost 35,000 ounces at its Philippines operation.
All-in-sustaining costs in the quarter were US$953, down from US$1076 and in line with the target for the current year of between US$900 and $1100. The head grade rose to 6.8 grams/tonne from 6.1 grams/tonne while recoveries held steady at 94%.
In the three months to September 30, Medusa sold 31,176 ounces at an average price of US$1121 per ounce compared to 29,350 ounces at an average of US$1197 in the June quarter.
The increasing production reflects recent work to turn around the performance at the Co-O mine in northeast Mindanao. Implementation of a stoping protocol and payment system helped improve stope grades drawn.
Recent development work at Co-O has been on deeper underground resources and included a new service shaft. The shaft headframe, main winder and sinking equipment are scheduled to arrive this quarter. They will be used to widen the shaft to its final dimensions from Level 2 to Level 8.
The ASX-listed company also intends to start an underground drilling program this quarter to extend the mine down from level 8 to level 16.
New estimates show indicated resources and probable reserves remain essentially constant at 604,000 ounces @ 12.2 grams/tonne gold and 427,000 ounces @ 7.33 grams/tonne respectively.
Meanwhile, in the Tambis region at Bananghilig deposit resource modelling is due to commence while at the Guinhalinan prospect scout drilling will start this quarter.