Co-O Mine Drilling Update
March 29 2010 - 2:01AM
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 <mailto:admin@medusamining.com.au>
Internet:www.medusamining.com.au <http://www.medusamining.com.au/>
ANNOUNCEMENT
29 March 2010
Co-O MINE DRILLING UPDATE
Medusa Mining Limited (ASX and AIM - MML; TSX - MLL) ("Medusa" or the
"Company"), through its Philippines operating company Philsaga Mining
Corporation ("Philsaga"), announces an update of the Co-O Mine surface drilling
results for new holes MD 217 to MD 240 and some additional results from earlier
holes received subsequent to the announcement of 17 December 2009.
Highlights include:
+-------------+------------+------------+
| Hole Number | Intercepts | Grade |
| | | |
| | (metres) | (g/t gold) |
+-------------+------------+------------+
| MD 214 | 1.70 | 99.63 |
+-------------+------------+------------+
| | 6.40 | 23.36 |
+-------------+------------+------------+
| MD 218 | 0.65 | 58.66 |
+-------------+------------+------------+
| MD 227 | 1.40 | 20.63 |
+-------------+------------+------------+
| MD 228 | 1.60 | 22.48 |
+-------------+------------+------------+
| MD 231 | 2.00 | 16.49 |
+-------------+------------+------------+
| MD 232 | 1.15 | 35.18 |
+-------------+------------+------------+
| MD 239 | 4.90 | 20.27 |
+-------------+------------+------------+
Geoff Davis, Managing Director of Medusa, commented:
"On-going drilling results continue to confirm the quality of the Co-O Deposit.
Drilling will continue at the current intensity until around July when some
rigs will be diverted to the Bananghilig Deposit.
An updated resource followed by an updated reserve estimate is expected to be
announced in the July-August period".
Co-O MINE DRILLING
Discussion
Figure 1(please see the link at the end of this announcement) shows all the new
MD series diamond drill holes from MD 217 to MD 240 totalling 11,262 metres
which have been completed around the Co-O Mine since 9 December 2009. Results
are awaited for MDs 236 and 240.
Theon-going drilling programme has concentrated on infill and extensional (up &
down dip and lateral) drilling in and around the Co-O Mine.
Drill results
Table I lists the surface diamond drilling results greater than 3 g/t gold from
the Co-O Mine for new drill holes from MD 217 to MD 240 as well as results not
previously reported for some earlier holes. These drill hole results will be
incorporated into a new resource estimate which is expected to be completed in
July-August 2010. Other reports containing intersections for holes numbered
below MD 217 were announced on 18 January 2010, 1 July 2009, 1 December 2008 and
12 August 2008. In 2007 the announcements are dated 9 July, 15 May and 28
February. The 2007 announcements also contain information regarding drilling and
surveying techniques, comments on vein interpretation and methodologies and
assaying protocols.
Results down to 0.2 metres wide are reported since underground development shows
that in many cases as the veins approach cross-cutting faults, they narrow down
on both sides of the fault over 5 to 10 metres before widening out, and hence
the narrower intersections are important in defining vein continuity. There is
also some pinching and swelling of veins along strike. Most drilling is
sub-parallel to the fault direction and rarely intersects the faults, which are
subsequently identified by underground on-vein development.
Table I. Drill hole results >3 g/t gold and >0.2 metres downhole for new holes
MD 217 to MD 240 and complete assays for some previously partly reported holes
designated *
+-----------+------+------+---+-------+--------+--------+-------------+
|Hole number| East |North |Dip|Azimuth| From| Width|Grade (uncut)|
| | | |( °)| ( °) |(metres)|(metres)| (g/t gold) |
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 212* |614329|913256|-53| 180 | 301.80| 0.70| 3.09|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 337.80| 0.20| 16.27|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 387.15| 0.95| 9.67|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 468.10| 0.50| 10.23|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 486.30| 1.30| 3.46|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 494.20| 3.90| 3.75|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 213* |613320|912924|-80| 180 | 58.80| 2.25| 3.06|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 66.15| 4.25| 6.02|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 72.55| 1.15| 3.53|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 165.30| 0.25| 5.93|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 214* |614532|913022|-60| 160 | 427.65| 0.65| 23.50|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 479.80| 1.70| 99.63|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 590.10| 6.40| 23.36|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 215* |614498|913211|-65| 165 | 293.90| 0.20| 3.41|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 612.50| 1.00| 4.85|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 778.50| 0.20| 3.30|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 216* |613551|912780|-45| 220 | 126.80| 0.45| 15.07|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 217 |613284|912951|-74| 121 | 96.60| 2.55| 5.14|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 141.10| 3.00| 3.59|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD218 |614331|913241|-45| 177 | 377.10| 0.50| 13.83|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 558.95| 0.65| 58.66|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 626.70| 1.70| 4.42|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 219 |614048|913155|-60| 192 | 190.65| 0.30| 3.99|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 220 |613286|912950|-77| 162 | 87.40| 3.80| 8.34|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 96.95| 0.25| 7.20|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 221 |613366|913038|-45| 202 | 111.95| 0.25| 3.73|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 151.45| 2.45| 6.33|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 227.60| 0.20| 9.43|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 222 |613437|913229|-45| 340 | 605.80| 0.70| 3.60|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 226 |614331|913243|-47| 160 | 329.70| 0.30| 4.73|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 436.50| 1.05| 3.05|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 523.05| 0.55| 10.50|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 227 |614137|912987|-45| 180 | 241.10| 3.10| 3.61|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 322.25| 0.50| 25.63|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 332.85| 1.40| 20.63|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 228 |613388|913227|-45| 150 | 73.95| 1.35| 3.65|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 108.20| 1.00| 3.83|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 114.60| 0.30| 3.49|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 118.10| 4.75| 3.03|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 147.45| 0.85| 30.33|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 189.10| 2.50| 3.44|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 198.80| 1.60| 22.48|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 393.65| 0.30| 5.17|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 408.20| 0.60| 3.07|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 411.70| 1.85| 3.97|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 230 |613836|913239|-46| 170 | 218.80| 0.20| 8.10|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 232.00| 1.30| 3.67|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 266.60| 1.95| 3.34|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 372.30| 3.80| 6.36|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 380.10| 1.85| 7.38|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 445.90| 1.00| 5.67|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 468.45| 1.55| 3.43|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 533.60| 3.00| 10.00|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 231 |613969|913099|-46| 189 | 85.25| 0.75| 24.93|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 112.45| 0.20| 30.16|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 158.90| 1.70| 4.38|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 166.10| 0.25| 5.40|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 169.10| 2.00| 16.49|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 235.60| 1.65| 6.25|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 240.40| 1.50| 3.82|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 232 |614353|913191|-56| 154 | 46.10| 0.40| 12.77|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 350.20| 1.30| 17.59|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 366.80| 0.35| 12.60|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 456.20| 0.20| 5.97|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 590.65| 1.15| 35.18|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 704.80| 1.00| 6.27|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 233 |614137|912993|-60| 175 | 256.20| 0.25| 8.23|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 306.50| 2.05| 5.98|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 310.35| 0.20| 18.83|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 423.80| 0.50| 10.20|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 235 |614020|913156|-57| 200 | 142.20| 3.30| 3.69|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 158.60| 0.30| 8.97|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 475.45| 0.25| 6.90|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 237 |613812|913203|-49| 176 | 52.70| 0.30| 14.80|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 299.40| 1.20| 13.16|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 331.20| 1.00| 26.83|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 239 |613369|913037|-45| 168 | 97.30| 0.25| 22.13|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 110.90| 4.90| 20.27|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 125.10| 0.50| 8.76|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 156.80| 1.30| 4.84|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 195.75| 1.45| 8.91|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 233.00| 1.00| 10.70|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 244.80| 2.30| 9.53|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 281.25| 0.25| 8.57|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 291.80| 0.30| 7.17|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 374.70| 0.30| 19.30|
+-----------+------+------+---+-------+--------+--------+-------------+
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) All assays are by Philsaga Mining Corporartion's laboratory;
(iii) Grid coordinates based on the Philippine Reference System 92.
Co-O REGIONAL DRILLING
Discussion
Using the Co-O Mine as a model, drill testingcommenced in the September quarter
of 2009 on veins in the vicinity of the Co-O Mine.
The Co-O vein system outcrops at surface on the western side of the Oriental
Fault, where it was first discovered. The veins at surface rarely exceed 0.5
metres width and generally assay around 1 to 5 g/t gold(with possibly some
supergene enrichment which is an increased concentration of minerals due to
weathering of the near surface mineralisation ). Gold values started to
increase significantly approximately 80 metres below surface.
Todate 22 drill holes (EXP 1 to 22) as shown on Figure 2 (please see the link at
the end of this announcement) have been completed. Results for EXP 1 to 12 were
announced on 17 December 2009. Subsequent drill holes have not achieved any
significant results above 1g/t gold to date. Hole EXP 17 was re-drilled as EXP
18, and hole EXP 19 was re-drilled as EXP 21.
ON-GOING DRILL PROGRAMME
Drilling with six surface rigs is expected to continue on the Co-O Mine area
until June 2010 when some of the rigs are planned to be transferred to commence
feasibility study related drilling at the Bananghilig Deposit.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Samples were taken from mainly HQ (hole outside diameter 96mm, hold inside
diameter 63.5mm) sized and some NQ (hole outside diameter 75.8mm, hold inside
diameter 47.6mm) sized drill core. The selected sample intervals were halved by
diamond saw and half the core was bagged, numbered and sent to the Company
laboratory. In a small number of cases to confirm the geological logging, the
selected interval was re-split and Å? core re-submitted for assay.
Initial sample preparation and assaying was undertaken at the Company's on-site
laboratory. Samples were dried at 105 ºC for 6 to 8 hours, crushed to less than
1.25 cm by jaw crusher, re-crushed to less than 3 mm using a secondary crusher
followed by ring grinding of 700 to 800 grams of sample to nominal particle size
of less than 200 mesh. Barren rock wash is used between samples in the
preparation equipment. The samples were assayed by fire assay with Atomic
Absorption Spectrometer (AAS) finish on a 30 gram sample. All assays over 5 g/t
gold were re-assayed using gravimetric fire assay techniques on a 30 gram
sample.
Prior to completion of the next resource estimate, the majority of samples which
contain more than 0.5 metres at more than 2 g/t gold will be re-assayed by
McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO 9001/2000 accredited
laboratory in Manila. The pulps will be airfreighted to McPhar who will fire
assay 30 grams of sample using AAS finish and a selected number of samples will
be checked using gravimetric fire assay techniques. Duplicate samples and
standards will be included in each batch of check samples.
When reporting results, where available, the assays of McPhar as an independent
laboratory have been given priority over the Company laboratory's results.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
United Kingdom
Fairfax I.S. PLC +44 (0)20 7598 5368
Nominated Adviser and Broker
Ewan Leggat/Laura Littley
Lothbury Financial +44 (0)20 7011 9411
Michael Padley/Libby Moss
Canada
Nicholas Sayce, Investor Relations +1 416 822 4404
Information in this report relating toExploration Results has been reviewed by
and 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 mineralisation 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" and is a "Qualified Person" as
defined in "National Instrument 43-101" of the Canadian Securities
Administrators. 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.
Refer to the Technical Report which was filed onwww.sedar.com
<http://www.sedar.com/> in March 2010 for further discussion of the Co-O
Deposit's geology, structural controls, drilling, sampling and assaying
information, and any known material environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issue.
ABOUT MEDUSA MINING LIMITED
Medusa Mining Limited("Medusa" or the "Company"), a public company listed on the
ASX, AIM and the TSX, is an Australian based gold producer, focused solely on
the Philippines.
With current mineral resources comprising Indicated 580,000 ounces of gold and
Inferred 1,310,000 ounces of gold, Medusa's corporate strategy is to become a
mid tier 300,000 to 400,000 ounce per year, low cost gold producer.
The Company is currently expanding its high grade Co-O Mine operations
(Indicated Resources 580,000 ounces of gold inclusive of a Probable Reserve of
500,000 ounces of gold, and Inferred Resources 660,000 ounces of gold) to
increase its forecast production to 100,000 ounces per year in 2010, and is
conducting near mine exploration to assess the possibilities of further
expansion to 200,000 ounces per year. Current cash costs at the Co-O Mine are
approximately US$190 per ounce.
A pipe-line of deposits is now being established with the Bananghilig Deposit
(Inferred Resource of 650,000 ounces of gold) recently added and which is
expected to expand, potentially in conjunction with nearby discoveries.
Further potential upside exists in the discovery of substantial copper deposits
within the tenement holding of > 800km2.
DISCLAIMER
This announcement may contain certain forward-looking statements. The words
'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely',
'intend', 'should', 'could', 'may', 'target', 'plan' and other similar
expressions are intended to identify forward-looking statements. Indications of,
and guidance on, future earnings and financial position and performance are also
forward-looking statements.
Such forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors, many of which
are beyond the control of Medusa, and its officers, employees, agents and
associates, that may cause actual results to differ materially from those
expressed or implied in such statements.
Actual results, performance or outcomes may differ materially from any
projections and forward-looking statements and the assumptions on which those
assumptions are based.
You should not place undue reliance on forward-looking statements and neither
Medusa nor any of its directors, employees, servants or agents assume any
obligation to update such information.
[HUG#1398445]
Co-O Mine Drilling Update: http://hugin.info/138050/R/1398445/354256.pdf
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