Medusa Mining posts higher gold output

MANILA, Philippines - Australian miner Medusa Mining Ltd. has reported higher gold production from its Co-O mine in the province of Surigao del Sur on the back of development works being undertaken in the site to support future increase in output.

In its quarterly activities report for the period ended March 31, Medusa said that gold output from the Co-O mine reached 18,258 ounces, 12 percent higher than the 16,270 ounces produced in the previous quarter.

The company said gold output was affected by the accelerated development in the site as well as the tilting of tanks due to an earthquake.

“Production [was] influenced by accelerated development and operational disruptions by leach tank tilting and continued torrential rainfall over the New Year period,” it said.

Medusa’s financial year starts in July and ends in June.

For the nine-month period of July to March, gold output from the mine has reached 45,038 ounces, already 69 to 75 percent of Medusa’s 60,000 to 65,000 ounces production forecast for the current financial year.

Medusa earlier expected gold production for the current financial year to reach 75,000 ounces but it was cut to 60,000 to 65,000 ounces due to the repair of tanks in the mine.

It said tremors triggered by the magnitude 6.9 earthquake near eastern Negros Island in February has caused four large leach tanks constructed in the mine site to tilt.

Medusa is undertaking development in the site through mill expansion to prepare for a future increase in production in the site as part of its expansion plans.

The company said mill expansion activities being undertaken in the site include the repair work on the leach tank tilting, construction of a new large leach tank, construction of new crushing and grinding sections and of a tailings dam.

Medusa intends to hike gold output in the site to 120,000 ounces in the next financial year, as well as to raise production to 200,000 ounces in financial year 2014.

The firm is likewise aiming to increase gold output further to 400,000 ounces by 2016.