MEDUSA Mining has posted another solid quarter of gold production in the Philippines as it moves towards 100,000 ounces per annum in the 2011 financial year.

Co-O Agsao shaft

The Co-O gold mine produced 25,012 ounces of gold at cash costs of $US182 per ounce, slightly lower than the March quarter result of 25,505oz gold at cash costs of $182/oz.

Ore milled soared to 60,611 dry metric tonnes from 40,943dmt, but the higher processing was offset by lower grades.

The head grade dropped to 13.65 grams per tonne gold from 20.61gpt gold while recoveries remained at 94%.

Medusa said the grade for the June quarter is within its expected long-term range of 12-15gpt gold.

For the 2010 financial year, the Co-O mine produced 89,679oz gold at 16.52gpt gold at cash costs of $184/oz, including taxes, royalties and production taxes of $46/oz.

Medusa is unhedged and during the June quarter the company sold 24,858oz gold at an average price of $1182/oz.

For the full year, Medusa sold 64,020oz at $1100/oz generating $US70.4 million ($A78.8 million).

The Perth-based company is forecasting production of 100,000oz at $190/oz for the 2011 financial year.

Medusa is debt-free and closed the 2010 financial year with $US62 million cash and bullion.

The company has set an exploration budget of $20 million for the coming year.

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