Co-O Mine Resources Increased
January 19 2009 - 1:01AM
UK Regulatory
TIDMMML
MEDUSA MINING LIMITED
ABN: 60 099 377 849
Unit 7, 11 Preston Street
Como WA 6152
PO Box 860
Canning Bridge WA 6153
Telephone: +618-9367 0601
Facsimile: +618-9367 0602
Email: admin@medusamining.com.au
Internet: www.medusamining.com.au
19 January 2009
MEDUSA MINING LIMITED
(AIM: MML)
Co-O MINE RESOURCES INCREASED 40% TO 1.2 MILLION OUNCES
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company, Philsaga Mining Corporation
("Philsaga"), advises that it has completed a new resource estimation
at the Co-O Mine, which has increased the JORC compliant resources by
40% to 1,203,000 ounces at 13.3 g/t gold (from 862,000 ounces).
The key points are:
* The resource estimation has increased the contained
ounces by
341,000 ounces (excluding mining depletion since
July 2008); and
* The grade has increased by 23.7% from the previously
reported grade of 10.7 g/t gold.
Resource estimate to 15 December 2008:
+------------------------------------------------+
| Category | > 0 g/t gold |
| |----------------------------------|
| | tonnes | g/t gold | ounces |
|-------------+-----------+----------+-----------|
| Indicated | 1,110,000 | 13.4 | 480,000 |
|-------------+-----------+----------+-----------|
| Inferred | 1,710,000 | 13.2 | 723,000 |
|-------------+-----------+----------+-----------|
| Grand total | 2,820,000 | 13.3 | 1,203,000 |
+------------------------------------------------+
Geoff Davis, Managing Director of Medusa, commented:
"This resource increase to over 1.2million ounces, at a very high
grade, is a great start to 2009. As the vein system is open at
depth, and new veins are being found across and along strike, we
expect the resource to continue to grow. Drilling will continue for
the foreseeable future."
RESOURCE ESTIMATIONS
Discussion
Diamond drilling has continued since the resource estimate announced
on 12 August 2008 with the aim of extending the known Co-O vein
system to depth and along strike. A total of 28 drill holes have been
completed since the previous resource estimation and considered for
the current resource estimation in conjunction with available
underground sampling data.
Figure 1 (attached) is the composite map of the Co-O Mine area
showing the location of drill holes MD 85-113, the Level 3 (3050
metre level) workings and the projection of veins onto Level 3.
Please see the link at the end of this announcement for images.
The main contributor to the resource increase is the recently
discovered Great Hamish Vein ("GHV") which was announced on 1
December 2008. It currently contains 318,000 ounces at a grade of
37.3 g/t gold in 265,000 tonnes of ore.
Vein modelling
The 3D model of the veins in Figure 2 (attached) shows a strike
persistent vein system which is open at depth and along strike,
consistent with recent surface work to the west.
Cube Consulting Pty Ltd of Perth, Western Australia were contracted
to undertake the resource estimations. A wireframe model of the vein
system and the mine depletions were based on all available
information as at 15 December 2008. A 2D longitudinal modelling
approach was used and is based on an accumulation variable
incorporating mineralised vein horizontal width and intercept grade.
Variography was used to analyse the spatial continuity of the
horizontal width and accumulation variables within the mineralised
veins and to determine appropriate estimation inputs to the
interpolation process. The accumulation variables were interpolated
into blocks using Ordinary Kriging. High grade limits were applied
to gold prior to the calculation of the accumulation variable.
Mineral resources have been reported in accordance with The 2004
Australasian Code for Reporting of Mineral Resources and Ore Reserves
(JORC Code).
For further information, please contact:
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
Fairfax I.S. PLC +44 (0)20 7598 5368
Nominated Adviser/Joint Broker
Ewan Leggat
Mirabaud Securities Limited +44 (0)20 7321 2508
Joint Broker
Peter Krens
Lothbury Financial +44 (0)20 7011 9411
Michael Padley/Louise Davis
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results, is based
on information compiled by Mr Geoff Davis, who is a member of The
Australian Institute of Geoscientists. Mr Davis is the Managing
Director of Medusa Mining Limited and has sufficient experience which
is relevant to the style of mineralization and type of deposits under
consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the
"Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Davis consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has
been estimated and complied by Mark Zammit of Cube Consulting Pty
Ltd. Mr Zammit is a member of The Australasian Institute of Mining &
Metallurgy and has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the "Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Zammit consents to the inclusion in the report of the
matters based on his information in the form and context in which it
appears.
Cube Consulting is an independent Perth based resource industry
consulting firm specialising in geological modelling, resource
estimation and information technology.
=--END OF MESSAGE---
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