Medusa Mining unveils results of Bananghilig gold deposit study

Medusa Mining's shares surged Tuesday after the company reported an encouraging first pass scoping study on its Bananghilig gold deposit in the Philippines.

Medusa Mining's shares surged Tuesday after the company reported an encouraging first pass scoping study on its Bananghilig gold deposit in the Philippines.

The study indicated capital expenditure of $220m and mill operating expenses of $12 per tonne.

Cash costs were pegged at $565 per ounce with mining operating expenses of $15.50 per tonne, a strip ratio of 5:1 and indicative diluted head grade of 1.3 grams per tonne (g/t).

A mill with a capacity of 5.0m tonnes per annum is expected to produce 200,000 annualised ounces.

The Bananghilig deposit currently comprises an indicated resource of 11.9m tonnes at 1.59 g/t gold for 0.61m ounces and an inferred resource of 9.0m tonnes at 1.62 g/t gold for 0.47m ounces using a cut-off of 0.8 g/t gold.

Fourteen additional infill drill holes are nearing completion which will be incorporated into the data base and used to estimate a revised resource and the initial reserve which will be published in September.

It will form part of a feasibility study undertaken by external consultants.

"We are very pleased with the progress of the Bananghilig Project and the positive outcome of the scoping study, such that work has already commenced on additional studies to progress the feasibility study," said Managing Director Peter Hepburn-Brown.

"We are optimistic that the feasibility study will enhance the project economics which we are aiming to complete in the September quarter. We are also very optimistic, especially based on the sterilisation drilling results announced last week, that there is a real opportunity to extend the mine life significantly."

RD

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021