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.

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

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

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."

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.