Co-O Mine Resources Now 1.38 Million Ozs
July 01 2009 - 3:16AM
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
1st July 2009
MEDUSA MINING LIMITED
(AIM: MML)
Co-O MINE RESOURCES NOW 1.38 MILLION OZS
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company, Philsaga Mining Corporation
("Philsaga"), advises that a new resource estimation for the Co-O
Mine has:
* Increased the JORC compliant total resources in the last 6
months by 15% to 1,380,000 ounces at 10.8 g/t gold (annual increase
of 60%), excluding mine depletion since December 2008, and
importantly, boosted the Indicated Resources category by 25.6% to
603,000 ounces; and
* Set the stage for significant resource extensions to the east
of the mine with further drilling.
Table I. Resource estimate to 14 June 2009:
+------------------------------------------------+
| Category | > 0 g/t gold |
| |----------------------------------|
| | tonnes | g/t gold | ounces |
|-------------+-----------+----------+-----------|
| Indicated | 1,250,000 | 15.0 | 603,000 |
|-------------+-----------+----------+-----------|
| Inferred | 2,730,000 | 8.9 | 777,000 |
|-------------+-----------+----------+-----------|
| Grand total | 3,980,000 | 10.8 | 1,380,000 |
+------------------------------------------------+
Geoff Davis, Managing Director of Medusa, commented:
"The continuing growth of the Co-O Mine resource at a very robust
gold grade testifies the quality of this asset. We expect resource
growth to continue, especially to the east as more drilling is
undertaken. This work will focus primarily on extending Co-O's
shallower resources where mine infrastructure can be expanded at low
capital costs. In addition drilling will focus on nearby vein systems
where there is the real opportunity to make new discoveries."
RESOURCE ESTIMATIONS
Discussion
Diamond drilling has continued since the past resource estimate
announced on 19 January 2009 with the aim of infilling and extending
the Co-O vein system to depth and along strike. A total of 51 drill
holes have been completed (as announced on 22 June 2009) since the
previous resource estimation and included in the current resource
estimation in conjunction with available underground sampling data
and excluding mined material.
The first modelled vein (East Agsao Vein) east of the Agsao River has
been included in this estimation. It is anticipated that significant
resources will be defined as drilling along the veins in this area
progresses and continuity increases.
The infill drilling has increased the confidence levels for vein
interpretations and consequently an increase in the Indicated
Resources to 603,000 ounces (from 480,000) as shown in Table I. This
increase in Indicated Resources is expected to translate into a
significant upgrade of the mine's reserve base.
Figure 1 ((please see the link at the end of this announcement) is
the composite map of the Co-O Mine area showing the location of drill
holes MD 114 to 165 and the projection of veins onto Level 5.
Table II is a summary of the veins containing more than 50,000 ounces
of resources.
Resource drilling is continuing with the aim of defining several
poorly defined veins within the mine area, to expand the resources to
the east and to undertake first pass drilling on other vein systems
adjacent to the Co-O Mine.
Table II. Co-O Mine resource estimates for the veins containing
>50,000 ounces
+-------------------------------------------------------------------+
| Vein name | Category | > 0 g/t gold |
| | |-----------------------------------------|
| | | tonnes | g/t | contained |
| | | | gold | ounces |
|-------------+-----------+--------------+---------+----------------|
| Central | Indicated | 484,000 | 11.17 | 174,00 |
|-------------+-----------+--------------+---------+----------------|
| | Inferred | 481,000 | 5.83 | 90,000 |
|-------------+-----------+--------------+---------+----------------|
| | Sub-total | 964,000 | 8.51 | 264,00 |
|-------------+-----------+--------------+---------+----------------|
| Jereme | Indicated | 71,000 | 14.90 | 34,000 |
|-------------+-----------+--------------+---------+----------------|
| | Inferred | 155,000 | 10.33 | 51,000 |
|-------------+-----------+--------------+---------+----------------|
| | Sub-total | 225,000 | 11.77 | 85,000 |
|-------------+-----------+--------------+---------+----------------|
| Jereme | | | | 24,000 |
| West | Indicated | 51,000 | 14.31 | |
|-------------+-----------+--------------+---------+----------------|
| | Inferred | 152,000 | 7.90 | 39,000 |
|-------------+-----------+--------------+---------+----------------|
| | Sub-total | 203,000 | 9.52 | 62,000 |
|-------------+-----------+--------------+---------+----------------|
| Great | | | | 202,000 |
| Hamish | Indicated | 179,000 | 34.98 | |
|-------------+-----------+--------------+---------+----------------|
| | Inferred | 250,000 | 9.79 | 79,000 |
|-------------+-----------+--------------+---------+----------------|
| | Sub-total | 429,000 | 20.32 | 280,000 |
|-------------+-----------+--------------+---------+----------------|
| Great | | | | 101,000 |
| Hamish FW | Inferred | 385,000 | 8.19 | |
|-------------+-----------+--------------+---------+----------------|
| | Sub-total | 385,000 | 8.19 | 101,000 |
|-------------+-----------+--------------+---------+----------------|
| Edphil | | | | 31,000 |
| | Indicated | 144,000 | 6.76 | |
|-------------+-----------+--------------+---------+----------------|
| | | | | |
| | Inferred | 181,000 | 9.67 | 56,000 |
|-------------+-----------+--------------+---------+----------------|
| | | | | 87,000 |
| | Sub-total | 325,000 | 8.38 | |
|-------------+-----------+--------------+---------+----------------|
| New Catto 1 | | | | 35,000 |
| | Indicated | 22,000 | 49.67 | |
|-------------+-----------+--------------+---------+----------------|
| | | | | 92,000 |
| | Inferred | 84,000 | 33.99 | |
|-------------+-----------+--------------+---------+----------------|
| | | | | 127,000 |
| | Sub-total | 106,000 | 37.27 | |
|-------------+-----------+--------------+---------+----------------|
| New Catto 3 | | | | 52,000 |
| | Indicated | 49,000 | 33.12 | |
|-------------+-----------+--------------+---------+----------------|
| | | | | 77,000 |
| | Inferred | 47,000 | 51.17 | |
|-------------+-----------+--------------+---------+----------------|
| | | | | 129,000 |
| | Sub-total | 96,000 | 41.89 | |
|-------------+-----------+--------------+---------+----------------|
| Other veins | Sub-total | 1,280,000 | 5.93 | 245,000 |
|-------------------------+--------------+---------+----------------|
| Grand Total | 3,980,000 | 10.8 | 1,380,000 |
+-------------------------------------------------------------------+
The resource estimations have been undertaken by Cube Consulting
Pty Ltd.
Vein modelling
The 3D model of the veins in Figure 2 (please see the link at the end
of this announcement) shows a strike persistent vein system which is
open at depth and along strike. It should be noted that the new
underground development work between the Agsao and 8E Shafts is
indicating that vein orientations are more east-west. It is
anticipated that additional north-south oriented faulting will be
identified as the along-vein development proceeds. It expected that
these orientations will be clarified in the next resource statement,
and may not materially affect the resources in this area of the mine.
Cube Consulting Pty Ltd of Perth, Western Australia was 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 14 June 2009. 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/Libby Moss
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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