TIDMMML
RNS Number : 6737V
Medusa Mining Limited
17 January 2012
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
ANNOUNCEMENT
17 January 2012
BANANGHILIG DEPOSIT DRILLING UPDATE
(ASX & LSE: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation, advises
that drilling is continuing at the Bananghilig Gold Deposit and is
now focussed on upgrading the resource to the Indicated category.
The Company is aiming to outline approximately 1 million ounces of
reserves to trigger the commencement of a feasibility study.
The Bananghilig Deposit is within the regional scale Tambis
intrusive-breccia complex where the mineralisation is associated
with a combination of multiple diatreme breccias,
northeast-trending structures and various intrusive rocks.
Highlights include:
Hole Number Width Grade (uncut)
(metres) (g/t gold)
------------- ---------- --------------
TDH 105 6.05 17.09
------------- ---------- --------------
TDH 115 28.55 1.54
------------- ---------- --------------
TDH 118 12.70 2.44
------------- ---------- --------------
TDH 127 14.05 1.20
------------- ---------- --------------
TDH 130 10.70 1.88
------------- ---------- --------------
TDH 140 11.95 1.19
---------- --------------
TDH 141 7.45 3.55
------------- ---------- --------------
The first drilling update for Bananghilig was published on 12
September 2011.
Peter Hepburn-Brown, Managing Director of Medusa commented:
"It is pleasing that drilling continues to provide positive
results in and around the existing resource which allows us to
progress to infill drilling and to upgrade the resource category to
predominantly Indicated, which will then be used for reserves
modelling later in the year.
We have seven rigs in the area and it is our intention to
continue drilling throughout this year."
BACKGROUND
The Tambis Project, containing the Bananghilig Gold Deposit is
operated under a Mining Agreement with Philex Gold Philippines Inc.
over Mineral Production Sharing Agreement ("MPSA") 344-2010-XIII
which covers 6,262 hectares.
Additional regional geological and mineralisation information,
and drilling results are contained in the announcements made by the
Company on 10 May 2011 and 12 September 2011.
AIM OF PROGRAMME
In July 2010, new regional and detailed mapping and drilling
programmes were commenced with the aim of validating the current
resource and extending it to provide a reserve of approximately
1,000,000 ounces of gold. This reserve would form the basis for a
feasibility study which would target production of 200,000 ounces
of gold per year from a new milling facility.
REGIONAL GEOLOGICAL SETTING
The Tambis regional geology (Figure 1 - please see the link at
the end of this announcement), termed the Tambis intrusive-breccia
complex, typifies a structurally complex intermediate-sulphidation,
epithermal gold, breccia-type system, including disseminated gold
overprinting the host Tertiary-age igneous package which had been
emplaced into an andesitic volcanic basement. The fertile igneous
suite comprises a multi-phase calc-alkaline, high level,
sub-volcanic intrusive package cut by extensive bodies of
phreatomagmatic diatremes and hydrothermal breccias.
BANANGHILIG DEPOSIT
Geological summary
The Bananghilig Deposit currently consists of three zones, each
approximately 1 kilometre long and open in all directions, locally
termed the Sorex, Garden and Malinao zones. These zones are broadly
defined on the basis of the projection in plan of >=0.5 g/t gold
drill hole intersections.
The mineralisation is located partly within the Bananghilig
diatreme breccia which measure at least 1,000 metres west to east
and still open to the south beneath the younger sediments, and also
around the diatreme margins and in the country rocks along
structural corridors.
The diatreme breccias contain unsorted fragments of the
andesitic basement as well as fragments of the later intrusive
rocks predating the diatreme events in a matrix of comminuted rock
flour and magmatic crystals. Fragment sizes range from
granule-sized to building-sized mega-blocks which have been torn
off the walls of the diatreme during the multi-episodal explosive
activity. The explosive activity also fractured the mega-blocks and
wall rocks, preparing them for subsequent mineralisation
deposition.
DRILL RESULTS
During the period 31 August 2011 to 31 December 2011, 8,568.95
metres of diamond drilling in 21 holes have been completed. Holes
TDH 131-134 inclusive have been drilled outside the Bananghilig
area.
Figure 1 (please see the link at the end of this announcement)
shows only the drill holes with new assays, being holes TDH 103 to
141 inclusive.
First pass assaying for gold has been undertaken on all samples
submitted to the laboratory. Additional assaying is on-going from
selected intervals for base metals, silver and other elements.
The results are summarised in Table I where significant
intercepts are defined on the following basis:
(i) lower cutoff grade of 0.5 g/t Au, and
(ii) >= 5 metres downhole intercept width at >= 0.5 g/t
Au, or
(iii) <= 5 metres downhole intercept width at >= 5
gram*metres, and
(iv) maximum of 3 metres of downhole internal dilution at
<=0.5 g/t Au.
Table I. Bananghilig surface drill hole results.
Hole number East North Dip Azimuth From Width Grade
([deg]) ([deg]) (metres) (metres) (uncut)
g/t gold)
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 103 945228 612334 -60 130 169.80 1.00 9.74
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 104 945477 613116 -60 130 406.70 8.95 0.69
------------- ------- ------- --------- --------- ---------- ---------- -----------
432.00 6.00 0.66
------------- ------- ------- --------- --------- ---------- ---------- -----------
450.00 9.00 0.57
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 105 945493 612520 -60 130 55.95 3.00 3.12
------------- ------- ------- --------- --------- ---------- ---------- -----------
62.95 6.05 17.09
------------- ------- ------- --------- --------- ---------- ---------- -----------
80.15 2.85 3.98
------------- ------- ------- --------- --------- ---------- ---------- -----------
111.50 8.75 0.96
------------- ------- ------- --------- --------- ---------- ---------- -----------
136.10 0.70 22.19
------------- ------- ------- --------- --------- ---------- ---------- -----------
177.60 5.30 0.80
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 107 945331 612443 -60 130 45.80 2.45 2.06
------------- ------- ------- --------- --------- ---------- ---------- -----------
103.60 3.05 2.59
------------- ------- ------- --------- --------- ---------- ---------- -----------
113.65 6.95 0.84
------------- ------- ------- --------- --------- ---------- ---------- -----------
136.70 1.30 43.75
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 108 945320 612748 -60 130 106.75 1.45 4.01
------------- ------- ------- --------- --------- ---------- ---------- -----------
122.80 14.35 1.09
------------- ------- ------- --------- --------- ---------- ---------- -----------
139.15 6.00 0.63
------------- ------- ------- --------- --------- ---------- ---------- -----------
231.00 6.60 0.64
------------- ------- ------- --------- --------- ---------- ---------- -----------
388.10 1.00 5.68
------------- ------- ------- --------- --------- ---------- ---------- -----------
402.10 1.00 13.20
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 109 945018 612911 -60 130 347.15 16.55 1.00
------------- ------- ------- --------- --------- ---------- ---------- -----------
406.70 10.25 1.13
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 110 945447 612974 -60 130 200.25 7.60 0.75
------------- ------- ------- --------- --------- ---------- ---------- -----------
349.70 24.00 0.84
------------- ------- ------- --------- --------- ---------- ---------- -----------
438.55 1.00 5.93
------------- ------- ------- --------- --------- ---------- ---------- -----------
455.45 1.00 20.19
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 111 945447 612463 -60 130 127.90 6.50 0.71
------------- ------- ------- --------- --------- ---------- ---------- -----------
158.95 6.85 0.76
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 113 945296 612481 -60 130 6.40 1.50 10.53
------------- ------- ------- --------- --------- ---------- ---------- -----------
116.65 4.25 2.20
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 114 944947 613088 -60 130 75.90 1.65 3.14
------------- ------- ------- --------- --------- ---------- ---------- -----------
94.15 5.95 1.26
------------- ------- ------- --------- --------- ---------- ---------- -----------
454.15 2.15 4.38
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 115 945367 612381 -60 40 89.95 0.70 9.23
------------- ------- ------- --------- --------- ---------- ---------- -----------
135.80 28.55 1.54
------------- ------- ------- --------- --------- ---------- ---------- -----------
TDH 116 945432 612663 -70 130 57.20 6.50 0.79
------------- ------- ------- --------- --------- ---------- ---------- -----------
East North Dip Azimuth From Width Grade
Hole ([deg]) ([deg]) (metres) (metres) (uncut)
number (g/t gold)
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 117 945619 612952 -60 130 16.60 9.30 0.57
---------- ---------- -------------------
41.90 6.75 0.91
---------- ---------- -------------------
116.90 0.80 8.51
---------- ---------- -------------------
140.45 5.45 2.75
---------- ---------- -------------------
181.25 3.55 10.03
---------- ---------- -------------------
201.20 4.75 1.20
---------- ---------- -------------------
292.65 3.45 6.98
---------- ---------- -------------------
332.80 1.40 4.48
---------- ---------- -------------------
518.05 5.10 0.81
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 118 945037 612514 -60 130 38.80 4.40 8.90
---------- ---------- -------------------
109.20 12.70 2.44
---------- ---------- -------------------
TDH 119 945294 612578 -60 130 37.55 2.00 5.54
---------- ---------- -------------------
TDH 120 945239 612383 -60 130 241.00 1.00 6.42
---------- ---------- -------------------
338.05 6.00 1.43
---------- ---------- -------------------
TDH 122 944983 612713 -60 130 139.00 4.70 1.87
---------- ---------- -------------------
TDH 123 945200 612496 -60 130 100.35 6.30 0.69
---------- ---------- -------------------
228.10 4.50 2.99
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 124 945108 612614 -60 130 107.20 3.50 2.30
---------- ---------- -------------------
249.50 5.00 0.73
---------- ---------- -------------------
279.00 6.65 0.53
---------- ---------- -------------------
295.50 5.00 0.76
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 125 945458 612567 -60 130 7.15 5.95 0.72
---------- ---------- -------------------
63.00 6.85 0.69
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 127 945259 612994 -60 130 22.30 5.10 1.76
---------- ---------- -------------------
114.90 6.55 0.73
---------- ---------- -------------------
232.35 1.00 10.87
---------- ---------- -------------------
242.60 6.65 2.17
---------- ---------- -------------------
265.40 7.50 1.92
---------- ---------- -------------------
275.90 14.05 1.20
---------- ---------- -------------------
299.95 7.00 1.01
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 128 945486 612351 -60 130 426.75 9.85 0.76
---------- ---------- -------------------
TDH 129 945280 612673 -60 130 217.30 5.00 0.66
---------- ---------- -------------------
230.30 5.55 0.94
---------- ---------- -------------------
248.55 5.00 0.58
---------- ---------- -------------------
256.80 7.60 0.56
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 130 945606 612511 -60 130 24.70 1.40 6.25
---------- ---------- -------------------
165.25 2.35 5.32
---------- ---------- -------------------
187.90 2.00 2.68
---------- ---------- -------------------
194.10 10.70 1.88
---------- ---------- -------------------
257.35 5.50 0.55
---------- ---------- -------------------
264.85 4.35 2.63
---------- ---------- -------------------
287.60 0.90 14.02
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 136 945588 612686 -60 130 40.30 6.00 0.58
---------- ---------- -------------------
68.60 6.00 0.68
---------- ---------- -------------------
92.10 5.20 0.80
---------- ---------- -------------------
260.25 7.85 0.51
---------- ---------- -------------------
317.25 9.65 1.50
---------- ---------- -------------------
331.90 5.00 1.41
--------- ------- ------- --------- --------- ---------- ---------- -------------------
TDH 137 945522 612397 -60 130 446.45 5.95 2.13
---------- ---------- -------------------
TDH 138 945278 613055 -60 130 12.55 5.80 0.83
---------- ---------- -------------------
116.70 6.25 0.81
---------- ---------- -------------------
151.30 5.80 2.36
--------- ------- ------- --------- --------- ---------- ---------- -------------------
Hole East North Dip Azimuth From Width Grade
number ([deg]) ([deg]) (metres) (metres) (uncut)
(g/t
gold)
--------- ------- ------- --------- --------- ---------- ---------- ---------
TDH 140 945406 612631 -70 130 3.25 8.75 3.01
---------- ---------- ---------
17.00 6.00 1.52
---------- ---------- ---------
67.00 4.70 3.04
---------- ---------- ---------
91.90 5.75 0.71
---------- ---------- ---------
108.15 11.95 1.19
---------- ---------- ---------
121.10 6.05 1.15
---------- ---------- ---------
138.40 6.60 0.70
---------- ---------- ---------
175.45 9.35 1.45
---------- ---------- ---------
285.90 6.25 1.33
--------- ------- ------- --------- --------- ---------- ---------- ---------
TDH 141 945630 612542 -60 130 41.50 15.90 1.18
---------- ---------- ---------
61.15 5.75 1.18
---------- ---------- ---------
127.00 2.65 6.18
---------- ---------- ---------
143.60 2.30 17.19
---------- ---------- ---------
262.15 7.45 3.55
--------- ------- ------- --------- --------- ---------- ---------- ---------
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) Assays denoted by (*) are by Philsaga Mining Corporation's
laboratory, all other assays are by McPhar Geoservices Inc. in
Manila;
(iii) Check surveying of collar positons in progress;
(iv) Grid coordinates based on the Philippine Reference System 92.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Drilling Procedures
Drilling, sampling and analytical methodologies are of
internationally acceptable standards. Drilling and analyses are
carried out by independent contractors, SBF Philippines Drilling
Resources Corp. ("SBF") and Intertek Testing Services Philippines,
Inc. ("Intertek") respectively.
Drilling is carried out by SBF using wireline diamond coring
techniques, with the core being predominantly HQ triple-tube (HQ3)
diameter (OD 61 mm). The holes are initially collared using PQ
drillbits (OD 123 mm) to recover PQ3 core (OD 83 mm) until the
drillbit encounters competent ground, then the coring bit is
reduced to HQ3 for the remainder of the drill hole. If difficult
conditions are encountered, then the drill bit is changed to NQ3
(core OD 45 mm) and the hole continued until the planned depth or
bad ground conditions prevent further drilling, whichever occurs
first. Core recovery is generally better than 95% and is considered
to be good.
Drill Core Sampling
Drill core is recovered from the inner tube and handled
carefully to preserve the integrity of the drill core. Structural
measurements are taken: Rock Quality Determinations ("RQD") and
Fracture Densities. The core is then placed in plastic core trays,
aligned, photographed and marked up for sampling.
The drill core is then cut in half by diamond core saw and
sampled at one metre intervals or at lithological boundaries. The
samples are placed in individually labelled plastic sample bags, a
sample number ticket included, and then sealed for despatch to
Intertek's Sample Preparation laboratory in Surigao City. The
integrity of the core samples are supervised at all times by the
geologist until despatch to the laboratory where they are
accompanied by company personnel until receipt by Intertek.
One Certified Reference Material ("CRM"), one Blank and if
possible, one Duplicate is included within each successive group of
twenty samples that are submitted to the laboratory. QA/QC
monitoring of the drilling program and the results is ongoing.
Analytical Procedure
Sample preparation is undertaken by Intertek at their Surigao
City laboratory, where each sample is registered, dried at 105 C
for 6 to 8 hours and crushed to 95% passing 2 mm by jaw crusher,
before a 1kg split is taken for fine pulverising, using a riffle
splitter or rotary sample divider. Pulverised sample is nominally
pulverised to 95% passing 75<MU>m (200 mesh).
Quality control procedures include a 1 in 15 resplit after
crushing for partial preparation and after pulverising for total
preparation. These resplits are also analysed and included in the
analysis report. Sizing tests are carried out on 1 in 20 assay
pulps at 75<MU>m (200 mesh) to monitor the pulverising stage.
Four 250 gram splits are obtained, one for sample analyses and the
remaining three for storage for future reference.
Standard laboratory procedure is to clean the crusher and
pulveriser after each sample treatment with barren material and/or
bowl wash, to minimise carry-over contamination.
Pulverised samples are analysed by classical fire assay
techniques on a 50 gram charge with Atomic Absorption Spectrometer
("AAS") finish. All assays over 5 g/t gold and other selected
samples are re-assayed using gravimetric fire assay techniques on a
50 gram sample.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Peter Hepburn-Brown,
Managing Director
Geoff Davis, Chairman
United Kingdom
Fairfax I.S. PLC +44 (0)20 7598 5368
Financial Adviser
& Broker
Ewan Leggat/Laura
Littley
Information in this report relating to Exploration Results has
been reviewed and is based on information compiled by Mr Geoff
Davis, who is a member of The Australian Institute of
Geoscientists. Mr Davis is the Chairman 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 "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" and is a "Qualified Person". 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.
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.
Figure 1. Geological interpretation map showing drill hole
locations.
http://www.rns-pdf.londonstockexchange.com/rns/6737V_-2012-1-17.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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