Medusa Mining plans to produce 90,000 to 100,000 ounces (oz) of gold from its high grade Co-O mine in the 2019 financial year.
This will be achieved at a cost of $US1050-1150 ($1450-1590) per ounce, including mine development costs, capital works and exploration expenditure.
A significant increase was budgeted on its exploration expenditure to test potential extensions of the Co-O orebody and high grade priority targets near the mine.
Co-O is the number two gold-focused producer in the Philippines. The mine was redeveloped following ASX-listed Medusa’s merger with privately-owned Filipino corporation, Philsaga, in 2006.
The production guidance was built on the anticipation that its key infrastructure E15 service shaft would finish construction in October for commissioning, hence contributing to production significantly in the second half of the 2019 financial year.
The E15 shaft is expected to take the burden of manpower and material movements from the L8 shaft, allowing for a significant increase in L8’s expediting development and production on the lower mine levels.
All critical parts of the E15 shaft have arrived on site, and final assembly is well under way.
The Co-O gold mine is in the Rosario-Bunawan district on the East Mindanao Ridge in the Philippines.