Co-O mine produces 108,578 ounces of gold

THE CO-O MINE in Agusan del Sur produced 108,578 ounces of gold in the fiscal year that ended June 30, 2016, just past the target output of 108,000 ounces, according to Medusa Mining Ltd.

The mine was originally gunning for a full-year gold output ranging from 120,000 ounces to 130,000 ounces, but the goal was lowered amid mine development activities that pulled down the overall grade of mined ore.

For the 2015-2016 fiscal year, production was 10 percent higher than the 98,539 ounces recorded in the fiscal year 2014-2015, when Co-O was aiming at 95,000 ounces to 100,000 ounces.

In the past four quarters, Co-O mine’s quarterly output ranged from a low of 21,980 ounces in the March quarter to a high of 31,495 ounces in the September 2015 quarter.

In the June quarter alone, the mine produced 25,429 ounces of gold at an average of 6.32 grams of gold per ton of material from 133,213 tons of ore.

“Compared to the March quarter, this is a 15-percent improvement on grade at similar tonnage throughputs, resulting in 16 percent more ounces,” Medusa said in a statement.

For the fiscal year that started this month, Co-O mine pencilled in an output goal of 105,000 ounces to 115,000 ounces —a decrease of 4 percent from the previous range.

Through Philsaga Mining, Medusa has embarked on a five-year thrust to expand its total output to 400,000 ounces of gold per year—half of which will come from Co-O.

Medusa’s portfolio also includes the Bananghilig deposit and the Guinhalinan prospect, both in Surigao del Sur.

This comes as the Department of Environment and Natural Resources formalized an audit of existing mines and suspended the approval for new ones.

Environment Secretary Regina Lopez issued Memorandum order No. 2016-01 dated July 8, which is in effect “until formally terminated.”

Lopez cited three reasons why operating mines should be audited.

First, to determine the adequacy and efficiency of the environmental protection measures of each mining operation.

Second, to identify gaps in environmental protection measures. And third, to determine the appropriate penalty or penalties in case of violations of the mining and environmental laws.