The total budget for the project was reduced by around 10% compared to the January 2020 estimates
Tigerway decline project costs are estimated at $54m. (Credit: Erik Stein from Pixabay)
Australia-based Medusa Mining has awarded a contract to Mount Rock Powder (MRPC) for the Tigerway decline project at the Co-O Gold Mine (Co-O) in the Philippines.
Philsaga Mining (PMC), an affiliate of Medusa Mining, has signed and executed the contract with Philippines-based contractor MRPC.
According to a detailed study at Co-O, which was completed in early 2020, establishing decline is identified as the best strategy for effective future production from deeper levels of the mine.
Medusa managing director Andrew Teo said: “The Co-O Gold Mine has been in production for 13 years and has been a consistent producer which continues to replace reserves as the orebody extends at depth.
“While the hoisting and shaft infrastructure has served the mine well over its life to date, we believe this is an important investment in the future efficiency of the operation.
“MPRC has been a trusted contract partner at Co-O with responsibility for blasting activities for the past 10 years and we are confident in their ability to deliver the decline project.
The Tigerway decline project costs are estimated at $54m, including $43m of box cut excavation and underground development and $11m new mining infrastructure and equipment.
The total budget for the project was reduced by around 10% compared to the January 2020 estimates of $49m and $11m respectively.
The construction of the decline was approved in January 2020. However, appointing an Australia-based underground mining contractor was delayed due to the Covid-19 pandemic.
MRPC, a contractor which has safely fulfilled the blasting contract at Co-O, has been selected following a competitive bidding process, said the company.
Medusa plans to fund the costs internally from its current cash balance and future operational cash flows.
Teo added: “The decline will be constructed by a dedicated contract workforce and we do not expect this activity to have any impact on ongoing operations.
“Our strong financial position means the project will be funded from our existing cash balance and future cash flows while maintaining flexibility to consider future dividend payments, dependent on the performance of the operation and the prevailing gold price.”