(miningweekly) The share cost of gold manufacturer Medusa Mining fell by almost 10% on Friday after the company cast concerns on the timing of its Co-O mill growth, whereas the company in charge of managing the expansion has gone into liquidation.
Medusa stated in a declaration that the ASX-listed Allmine Group, which is the parent business of Arccon, which manages the expansion, has appointed a manager.
“Medusa is actually unsure as to the timing, and the consequences on completion of the completing feels to the mill and full circuit commissioning as dedicated commissioning staff were arranged to mobilise to the site immediately,” the miner notified shareholders.
It added that the business anticipated talking about this with the manager and that direct connection with the personnel on site was underway to minimise disturbance to location undertakings.
The Co-O mill expansion was accepted in November 2010, with the mill anticipated making some 200 000 oz/y of gold, founded on the handling up to 750 000 t/y of ore reserves.
Overall capital expenditure for the expansion existed was aimed at at $70-million, through production initially scheduled for either one June or July.
Medusa’s portions on Friday were trading at a reduced of A$1.54 a share, down from a high of A$1.66 a share.