Medusa Mining (LON:MML) has set a new production record at the Co-O gold mine as the 25,233 ounces produced it produced it the fourth quarter took total output to 101,474 ounces. It has been expanding the mine in the Philippines, which is one of the cheapest gold mines to run in the world (on a per ounce basis). In the 12 month period, ended June 30, Medusa produced 101,474 ounces of gold, at an average recovered grade of 11.05 grams per tonne and a cash cost of US$189 an ounce. It then sold 96,217 ounces at an average price of US$1,371. The Co-O mine expansion continues, as evidenced by yesterday’s 30 per cent uplift in resources, as Medusa aims for its next production target of 200,000 ounce a year, after the next expansion phase. "I am pleased to report that annual production of 101,474 ounces for this financial year is a new record,” said managing director Peter Hepburn-Brown. “The forecast production of 100,000 to 110,000 ounces for the forthcoming financial year will allow the Company to balance production with increasing development rates. He added: “During July 2011 we commenced changes to the majority of our existing haulage shafts to facilitate the increasing rate of development and set the mine up for longer term benefits. “It is also pleasing to report an estimated US$10 million reduction in Capex for our proposed new Co-O Mill. “We are in the final stages of preparing for the extensive remodelling and expansion of our current millsite and expect to commence re-location and construction of facilities during the September quarter".

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