Gold miner Medusa Mining (ASX:MML) has updated its resource and reserve estimates, which show it has maintained a high level of reserves at its flagship Co-O mine.
Probable ore reserves - those economically and technically feasible to extract - at the mine in the Philippines are put at 1.92 million tonnes at a grade of 7.22 grams per tonne (g/t) gold for a total 450,000 ounces of the yellow metal.
That compares to an August 2013 estimate of 1.65 million tonnes at a grade of 10.7 g/t for 570,000 ounces of gold.
The change is put down mainly to depletion through mining and modified geological interpretations, the firm said.
Meanwhile, in terms of resources, the total inferred and indicated number at the mine is now estimated at 4.34mln tonnes at a grade of 10.1 g/t gold for a total of 1,410,000 ounces compared to the August 2013 estimate of 6.88 million tonnes at 9.9 g/t gold for a total 2,190,000 ounces gold.
Chief executive Geoff Davis said: “Despite a major continuing re-interpretation of the geology at the Co-O Mine, it is pleasing that the company has maintained a high level of probable reserves in line with the past 5 years, especially after allowing for total cumulative gold production in excess of 450,000 recovered ounces since 2007."
Earlier this month, the group said it expects production to increase for its third quarter running and the miner to start generating cash again.
Gold production from Co-O is expected to be above 20,000 ounces for the September 2014 quarter.
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