Medusa Mining, owner of Co-O Mine in the Philippines, is considering a deal with Tribune Resources which recently acquired the Diwalwal Project in Compostella Valley to solve the under-utilization of its mill.
Co-o Mine’s mill has been operating less than its full capacity of 2,500 tons per day. This is because of years of struggle by Medusa Mining to bring enough ore to the surface from its sole underground mine in the Philippines.
This inefficiency in operation caused Medusa Mining higher cash costs due to the mill’s high fixed costs being spread over fewer ounces as otherwise could be.
Although a newly installed service shaft will allow Co-O Mine’s Level 8 shaft be used solely for the transport of ore, the mill will still be unable to operate at full capacity particularly with the service portals coming to the end of their productive lives.
The nearby Diwalwal Project is eyed as a solution to Co-O mill’s under-utilization as the it does not have an access to a mill to treat its sizable gold prospect.
Prospects of rich veins of gold is expected of Diwalwal Project despite very little modern day mining and exploration conducted at the site. With the $ 30 million price Tribune Resources paid to acquire the gold project site in Compostella Valley, a fairly large, high-grade resource looks highly possible.
Medusa Mining’s Co-O processing mill and Diwalwal Project is 40 kilometers away from each other.
Meanwhile, Medusa Mining have also been studying other ways to address its dilemma in its Co-O mill by putting into consideration other nearby prospect such as the Royal Crown Vein and Durian prospect.
These two have recently been assessed as providing potential growth for the company, however, no major announcements were released.
