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Gold & silver

Medusa Mining fourth-quarter gold production in line with guidance, mine development continues

Medusa's resource development drilling has hit some high grades

Medusa Mining LTD (ASX:MML) produced 23,120 ounces of gold in the quarter to December 2018 from its Co-O mine in the Philippines, down slightly on the previous quarter but in line with plan following a scheduled shut down over Christmas and New Year.

Production came from 124,623 tonnes of ore processed, at an average head grade of 6.11 grams per tonne of gold.

READ: Medusa Mining boosts ​quarterly production at Co-O

Tonnes processed were restricted by mine ore hoisting. Total ore mined for the quarter was down on the previous quarter due to the planned shut down and major maintenance work was carried out in the L8 and Agsao shafts during this period.

Meanwhile, a total of 6,920 metres of horizontal and vertical development was completed at the mine, 11% higher than the budget.

All-in sustaining costs for the quarter were US$1,156 per ounce of gold - up 2.7% on the previous quarter.

In exploration, the underground resource drilling total reached 12,503 metres, a 19% increase from last quarter.

High-grade results from the resource drilling completed include 9.75 metres at 11.76 grams per tonne gold, 2.2 metres at 7.47 grams, 0.5 metres at 256.13 grams and 0.7 metres at 198.26 grams.

Total cash and cash equivalent of gold on metal account at the end of the quarter increased to approximately US$14.6mln from US$11.8mln in the September quarter.

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