Medusa Mining (ASX:MML) repeated its production guidance for the half year to end December this year of 40 - 45,000 ounces of the yellow metal, as it posted a quarterly report.
For the three months to end September, the firm produced 21,018 ounces of gold from the Co-O mine in the Philippines at a head grade 5.02 grams per tonne (g/t) and cash costs of US$382 per ounce.
That's an improvement on the previous three months, which saw output of 17,615 ounces at a cost of US$431 per ounce.
The average gold price received in the latest quarter was US$1,272 compared to US$1,292 in the June quarter.
The mine operated as planned during the quarter, the firm said, adding that the L8 Shaft will be upgraded from December 21 to January 13 next year to improve the mine haulage to approximately 60,000 tonnes per month.
Currently, a comprehensive operations review is in progress focusing on the underground mine. This review will produce a life of mine plan and budget.
Last month, the firm said it was looking forward to an improved production performance in the 2014-15 year.
Most of the building blocks from the group's expansion programme are now in place for the expanded flagship Co-O mine in the Philippines, it said, and the new mill is operating satisfactorily with some additional improvements to come.
Exploration at the mine has focused only on underground drilling, extending and infilling the vein system at depth and across strike.
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