Vein Extensions Discovered
21 January 2008 - 6:02PM
UK Regulatory
Vein Extensions Discovered
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
21 January 2008
MEDUSA MINING LIMITED
(AIM: MML)
NEW CATTO VEIN EXTENSIONS DISCOVERED
Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
advises that continuing diamond drilling at the Co-O Gold Mine has
located and extended the New Catto Vein system, previously discovered
on the east of the Oriental Fault, for approximately 200 metres to
the west side of the Oriental Fault. Development work is now in
progress to prepare these veins for stoping in the third quarter of
the year, which will result in mining being conducted from five
different levels in the mine.
Additional new significant intersections include:
Hole Number Intercepts Grade
(metres) (g/t gold)
MD 46 1.40 20.62
MD 48 1.95 22.02
MD 54 1.80 14.59
MD 57 3.30 26.09
MD 58 0.40 43.13
DBH 03 0.40 17.21
The drill programme is continuing with four surface rigs and one
underground rig currently active. A new interim resource estimate
will be completed in April 2008.
Drilling programme and results
Figure 1 (please see the link at the end of this announcement) shows
the location of the Co-O Mine and Figure 2 (please see the link at
the end of this announcement) shows all the diamond drill holes holes
drilled and those in progress around the Co-O Mine since December
2006. Figure 3 (please see the link at the end of this announcement)
shows the current three dimensional model of the vein system which
will be updated in April.
The resource estimate published in August 2007 (Table I) was based on
drill holes up to MD 45.
Table I: Resource Summary for the Co-O Mine
Category > 3 g/t gold
tonnes g/t gold ounces
Indicated 928,000 12.6 377,000
Inferred 1,106,000 9.5 336,000
Grand total 2,034,000 10.9 713,000
Notes:
- - A lower cut-off of 3 g/t gold is the designated lower cut-off based
on economic parameters;
- - An uppercut of 300 g/t gold has been applied; and
- - Resources are inclusive of reserves.
Since August 2007 a total of 13 new surface holes have been completed
with assays waited for hole MD 55. Hole MD 50 was abandoned due to
bad ground conditions in a fault zone. Drilling is continuing with
four surface drilling rigs and one underground rig.
Table II lists the diamond drilling results from the Co-O Mine for
drill holes MD 46 to MD 58 (excluding MD 50 and 55) and for
underground drill hole DBH 03. Previous announcements on the Co-O
drilling on 9 July, 15 May and 28 February 2007 contain information
regarding drilling and surveying techniques, comments on vein
interpretation and methodologies and assaying protocols.
Table II: Drill hole results greater than 3 g/t gold for holes MD 46
to 58 and DBH 03
Hole East North Dip Azimuth From Width Grade
(�) (�) (metres) (metres) (uncut)
(g/t gold)
EAST
MD 46 614,047 912,472 -48 41 489.30 0.85 8.96
501.40 0.40 4.50
542.90 1.40 20.62
MD 48 614,257 912,704 -60 253 212.45 1.95 22.02
(Agsao
Shaft pilot
hole)
MD 49 614,129 912,487 -50 40 449.85 0.85 14.69
463.90 1.00 4.24
WEST
MD 47 613,805 912,788 -55 30 153.30 1.10 7.01
MD 51 613,749 912,798 -53 17 130.50 0.85 9.31 (*)
155.75 0.25 41.06
286.65 1.00 3.00 (*)
MD 52 613,754 912,816 -50 14 75.25 0.55 3.53
157.60 0.30 5.31
170.40 0.30 14.93
MD 54 613,830 912,745 -47 29 174.00 1.80 14.59
MD 56 613,809 912,706 -54 29 390.85 1.00 3.11
MD 57 613,739 912,767 -54 16 191.90 3.30 26.09
MD 58 613,739 912,767 -58 16 176.10 0.40 43.13 (*)
207.00 0.70 7.15 (*)
280.40 0.90 6.20 (*)
DBH 03 613,918 912,909 -0.2 236 29.05 1.05 6.58
57.30 1.90 9.60
72.20 0.40 17.21
Notes:
(i) (*) denotes Philsaga assays;
(ii) Independent laboratory McPhar assays are quoted in preference to
Philsaga assays;
(iii) Grid coordinates based on the Philippine Reference System 92;
(iv) Intersection lower cut-off grade is 3 g/t gold in line with
resource estimation parameters; and
(v) MD 55 not yet assayed and MD 50 abandoned.
Discussion
All drill holes completed by the end of February 2008 will be
included in a new interim resource estimate that is expected to be
completed in April. However, drilling will continue after the
resource estimate is completed.
West of the Oriental Fault
The drilling has now successfully demonstrated that the three New
Catto Veins continue to the west of the Oriental Fault for
approximately 200 metres and may extend through to surface, similar
to the Central Vein. Consequently, development is underway to
intersect them on the 3150 metre or adit level, on the 3100 metre
level, and on the 3050 metre level as intersected in underground
drill hole DBH 3. It is anticipated that stoping should commence
from the west New Catto Veins on these three levels in the third
quarter of this year. These veins are still open along strike to the
west and at depth.
East of the Oriental Fault
Hole MD 48 (Agsao Shaft pilot hole) intersected one of the east New
Catto Veins and returned confirmatory high grades. Hole MD 46 (and
MD 49) drilled through the top of the New Catto Veins returning
anomalous values in the interpreted positions for these veins and
intersecting the Central Vein (1.40 metres at 20.62 g/t gold) at
approximately 400 metres below surface. Follow up drilling in this
position is expected to intersect the New Catto Veins below MD 46.
Geoff Davis, Managing Director, commented:
"These results confirm the existence of the high grade New Catto
Veins along strike to the west and demonstrates that the vein system
is more extensive than originally thought. The extensions are also
accessible from the existing workings, which will benefit production,
particularly from the 3150 metre adit level where shaft haulage is
not required . The gold grades obtained are again excellent and we
look forward to the next resource statement with continued optimism."
Enquiries:
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
Ambrian Partners +44 (0)20 7776 6417
Richard Brown / Richard Greenfield
Bankside Consultants +44 (0)20 7367 8888
Michael Padley / Louise Davis
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 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". Mr Davis consents to the inclusion of
the matters based on his information in the form and context in which
it appears.
- ---END OF MESSAGE---
http://hugin.info/138050/R/1183659/236549.doc
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