MML Proactive article

Medusa Mining ups output by 19% as grades improve
27 Oct 2015

Medusa Mining (ASX:MML) is on track to meet its production target this year after a 19% rise in its first quarter to just shy of 31,500oz of gold.

The Philippines–based miner expects to produce between 120-130,000oz, versus 105,000oz, and repeated that with the latest numbers.

All-in-sustaining costs in the quarter were US$953, down from US$1,076 and in line with the target for the current year of between US$900-1,100.

The head grade rose to 6.8 g/t from 6.1g/t while recoveries held steady at 94%.

In the three months to September, Medusa sold 31,176 ounces at an average price of US$1,121 per oz compared to 29,350oz at an average US$1,197 in the preceding quarter.

House broker SP Angel said they were good numbers reflecting recent work to turn round the performance at Co-O.

As well as the higher grade, implementation of the new stoping protocol and payment system helped to improve stope grades drawn.

Recent development work at the Co-o mine 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.

An underground drilling programme to extend the mine down from level 8 to level 16 starts this quarter.

SP Angel added: “The freeing up of the L8 shaft once the service shaft is in place in the second quarter of 2016 will be another step in terms of ore availability and improved mill utilisation.

“This should help to bring down costs and improve cash flows.”

Shares in the Australia–listed group rose 6% to A$0.6.

hxxp://www.*.co.uk/companies/news/116694/medusa-mining-ups-output-by-19-as-grades-improve-116694.html