Co-O Mine Drilling Update
30 June 2010 - 4:00PM
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
ANNOUNCEMENT
30 June 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 previous hole MD 237 and new holes MD 241 to MD 260, results from
underground drilling and an update on regional drilling around the Co-O Mine.
Highlights include:
+---------------+------------+-----------------+
| Hole Number | Width | Grade (uncut) |
| | (metres) | (g/t gold) |
+---------------+------------+-----------------+
| MD 237 | 1.00 | 26.83 |
+---------------+------------+-----------------+
| MD 241 | 2.00 | 23.35 |
+---------------+------------+-----------------+
| MD 244 | 1.00 | 22.13 |
+---------------+------------+-----------------+
| MD 252 | 1.20 | 28.74 |
+---------------+------------+-----------------+
| L4-005 | 1.70 | 54.41 |
+---------------+------------+-----------------+
| L5-001 | 1.95 | 36.39 |
| +------------+-----------------+
| | 1.25 | 23.76 |
| +------------+-----------------+
| | 4.00 | 64.54 |
+---------------+------------+-----------------+
Several drill holes on the north side of the vein system to the north of the
Royal Vein indicate the possible discovery of a new vein(s) with intersections
including 0.40 metres at 17.30 g/t gold, 0.25 metres at 16.87 g/t gold, 0.20
metres at 16.11g/t gold, 0.35 metres at 10.59 g/t gold and 3.10 metres at 15.37
g/t gold.
Geoff Davis, Managing Director of Medusa, commented:
"These excellent surface and underground drilling results are being
incorporated into a new resource estimate expected to be completed and announced
in the latter part of July 2010. As an increasing amount of resource drilling
will be undertaken from underground at the Co-O mine some of the surface rigs
will be allocated to other projects. An updated reserve estimate is expected to
be announced in August 2010."
Co-O MINE DRILLING
Discussion
Figure 1 (please see the link at the end of this announcement) shows all the
new Co-O Mine MD series diamond drill holes from MD 241 to 260 totalling 13,993
metres completed since 29 March 2010, and Figure 2 (please see the link at the
end of this announcement) shows the recently completed underground holes
totalling 4,865 metres. Both sets of drill results are being incorporated into a
new resource estimation expected to be completed in the latter part of July
2010. Results are awaited for drill holes MD 258 and 259. A number of
underground holes (L2-001 to 10) were drilled for geological/pre-development
purposes and are not included in this report.
A significant amount of the drilling has been undertaken in the vicinity of and
east of the Tinago 3 -compartment shaft which is undergoing rehabilitation and
is expected to be connected with the Level 3 workings. The purpose of this
drilling is to determine if there is mineralisation nearby that can be accessed
from this shaft.
A possible new vein(s) discovery is indicated by intersections to the north of
the Royal Vein which have been returned from MED 244 (0.40 metres at 17.20 g/t
gold and 1.00 metre at 3.14 g/t gold), MED 252 (0.25 metres at 16.87 g/t gold
and 0.20 metres at 16.11 g/t gold), and EXP 028 (0.35 metres at 10.59 g/t gold,
1.00 metre at 1.37 g/t gold and 0.20 metres at 2.39 g/t gold)) in conjunction
with a deep intersection in MD 68 which intersected 3.10 metres at 15.37 g/t
gold at approximately 500 metres below Level 1 (announced 3 June 2008).
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 241 to MD 260 as well as results not
previously reported for some earlier holes. Drill hole MD 246 was terminated
early due to drilling difficulties.
Table II lists underground drill hole results. In Table II, hole L5-006 is the
siter hole for the new 6W inclined internal shaft which is expected to be
completed to a depth of 60 metres early in the next quarter.
Previous reports containing intersections for holes numbered MD 217 to 240 were
published on 29 March 2010, for holes 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.
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.
Drill hole collar positions are surveyed by a qualified surveyor and surface
drill holes are surveyed downhole at regular intervals using a digital
multi-shot downhole camera.
It is important to note that the drilling of narrow epithermal veins generally
provides an indication of the presence of the gold mineralised vein but may not
always provide good quantitative data with respect to accurate grade and volume
estimations for some or all of the following reasons:
* Veins commonly pinch and swell and may be brecciated or displaced by faults;
* Gold distribution may be erratic; and
* Drill core recovery may be reduced because of the brecciation and soft
unconsolidated material and hence the recovered material may not be
representative of the material drilled.
Consequently, the Company regards the initial drilling as indicative only and
operates the policy of using drilling to locate the position and extent of the
mineralised veins. This is then followed by on-vein development to support the
drilling results and to provide a more accurate estimate of vein grades which
can result in the upgrading of the resource category from Inferred to Indicated.
The on-vein development supports the estimation of resources and facilitates the
conversion of resources to reserves.
Table I. Surface drill hole results >3 g/t gold and >0.2 metres downhole for
new holes MD 241 to MD 260 and complete assays for a previously partly reported
hole designated *
+-----------+------+------+---+-------+--------+--------+-------------+
|Hole number| East |North |Dip|Azimuth| From | Width |Grade (uncut)|
| | | |( °)| ( °) |(metres)|(metres)| (g/t gold) |
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 237* |613812|913203|-49| 176 | 52.70| 0.30| 14.80 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 299.50| 1.15| 14.10 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 331.20| 1.00| 26.83 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 241 |614136|912992|-45| 193 | 278.10| 2.00| 23.35|
| | | | | +--------+--------+-------------+
| | | | | | 308.90| 0.60| 35.45|
| | | | | +--------+--------+-------------+
| | | | | | 351.90| 0.30| 46.08|
| | | | | +--------+--------+-------------+
| | | | | | 404.80| 0.65| 7.16|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 243 |613498|913330|-64| 180 | 629.40| 0.25| 4.59 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 244 |614130|913231|-60| 180 | 65.90| 0.40| 17.20|
| | | | | +--------+--------+-------------+
| | | | | | 77.75| 1.00| 3.14|
| | | | | +--------+--------+-------------+
| | | | | | 143.00| 0.20| 3.82|
| | | | | +--------+--------+-------------+
| | | | | | 198.70| 0.25| 11.80|
| | | | | +--------+--------+-------------+
| | | | | | 205.20| 0.50| 4.52|
| | | | | +--------+--------+-------------+
| | | | | | 256.40| 0.75| 17.95|
| | | | | +--------+--------+-------------+
| | | | | | 276.80| 1.00| 7.60|
| | | | | +--------+--------+-------------+
| | | | | | 356.50| 0.80| 15.52|
| | | | | +--------+--------+-------------+
| | | | | | 380.10| 1.00| 22.13|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 245 |613721|913204|-47| 180 | 130.60| 0.20| 17.73 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 298.60| 0.95| 8.82 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 469.00| 0.35| 4.50 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 502.70| 0.25| 8.82 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 247 |613640|913131|-45| 191 | 376.00| 1.15| 5.50 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 248 |613392|913196|-45| 190 | 481.30| 0.30| 98.03 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 251 |613704|913778|-47| 179 | 231.70| 0.40| 89.17 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 252 |614292|913157|-45| 200 | 65.75| 0.25| 16.87|
| | | | | +--------+--------+-------------+
| | | | | | 77.10| 0.20| 16.11|
| | | | | +--------+--------+-------------+
| | | | | | 220.90| 1.50| 5.86 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 441.70| 0.60| 4.23 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 495.30| 1.20| 28.74 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 531.30| 1.40| 4.54 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 254 |613644|913082|-46| 184 | 434.80| 0.45| 3.87 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 443.20| 0.30| 9.47 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 498.05| 0.35| 22.60 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|MD 260 |613450|913207|-67| 148 | 413.50| 1.00| 6.57 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
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) Grid coordinates based on the Philippine Reference System 92.
Table II. Underground drill hole results >3 g/t gold and >0.2 metres downhole.
+-----------+------+------+---+-------+--------+---------+-------------+
|Hole number| East |North |Dip|Azimuth| From | Width |Grade (uncut)|
| | | |( °)| ( °) |(metres)|(metres) | (g/t gold) |
+-----------+------+------+---+-------+--------+---------+-------------+
|LEVEL 2 | | | | | | | |
+-----------+------+------+---+-------+--------+---------+-------------+
|L2-011 |613875|913054| 3 | 72 | 46.30| 0.25| 12.53 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 92.20| 0.40| 29.30 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 103.30| 0.30| 10.60 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L2-014 |613350|912801| 3 | 0 | 69.75| 0.40| 28.27 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 86.00| 0.70| 38.16 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 152.05| 0.65| 18.33 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L2-015 |613368|912785| 3 | 10 | 86.00| 0.70| 29.00 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 89.65| 0.30| 13.10 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 159.70| 0.35| 7.80 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|LEVEL 3 | | | | | | | |
+-----------+------+------+---+-------+--------+---------+-------------+
|L3-003 |613258|912846| 3 | 59 | 3.20| 1.55| 4.31 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 121.00| 0.25| 7.25 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L3-004 |613376|912985| 3 | 327 | 21.20| 0.90| 3.09 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L3-005 |613477|912930| 3 | 42 | 87.25| 1.35| 7.20 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L3-006 |613475|912929| 3 | 322 | 8.10| 0.25| 21.83 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L3-008 |613913|913028| 3 | 23 | 87.70| 0.20| 4.00 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 103.10| 4.20| 4.98 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|LEVEL 4 | | | | | | | |
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-002 |613923|912905| 3 | 157 | 56.25| 0.75| 5.03 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 98.30| 0.30| 7.53 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-003 |613924|912905| 3 | 167 | 95.70| 0.35| 18.80 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-004 |613923|912905| 3 | 157 | Wait| | |
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-005 |613758|912749| 3 | 32 | 22.30| 1.70| 54.41 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 27.70| 0.90| 10.07 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-006 |613760|912748| 3 | 47 | 31.50| 1.10| 11.53 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 137.20| 1.20| 5.41 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L4-007 |613757|912749| 3 | 352 | 12.60| 1.00| 10.22 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|LEVEL 5 | | | | | | | |
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-001 |613880|912749|-60| 346 | 28.00| 0.30| 9.67 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 29.95| 1.95| 35.39 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 34.50| 0.20| 33.80 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 39.45| 1.25| 23.76 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 44.80| 4.00| 64.53 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 51.45| 1.25| 5.36 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-003 |613888|912794| 3 | 0 | 57.40| 2.30| 12.40 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 82.15| 0.25| 11.60 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 99.00| 2.00| 3.70 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-004 |613885|912794| 3 | 342 | 90.50| 3.10| 14.61 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 116.00| 0.40| 5.60 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-005 |613883|912793| 3 | 330 | 55.80| 2.05| 6.43 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 58.50| 0.60| 14.37 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 258.90| 1.40| 3.20 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-006 |613885|912789|-70| 168 | 48.20| 0.70| 56.87 (*)|
| | | | | +--------+---------+-------------+
| | | | | | 50.45| 2.80| 18.11 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
|L5-007 |613885|912789|-56| 168 | 37.75| 6.50| 12.24 (*)|
+-----------+------+------+---+-------+--------+---------+-------------+
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) Grid coordinates based on the Philippine Reference System 92.
Co-O REGIONAL DRILLING
Discussion
Using the Co-O Mine as a model, drill testing commenced 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 start to increase
significantly approximately 80 metres below surface.
Figure 3 (please see the link at the end of this announcement) shows the
positions of the 28 holes completed to date. Results for EXP 001 to 012 were
announced on 17 December 2009 and an update to EXP 022 was provided on 19 March
2010. A total of 5,189.6 metres have been completed in the seven holes EXP 022
to 028. Table III shows the results >1g/t gold for holes EXP 022 to 028.
Table III. Regional drill hole results >1g/t gold and >0.2 metres downhole for
holes EXP 22-28.
+-----------+------+------+---+-------+--------+--------+-------------+
|Hole number| East |North |Dip|Azimuth| From | Width |Grade (uncut)|
| | | |( °)| ( °) |(metres)|(metres)| (g/t gold) |
+-----------+------+------+---+-------+--------+--------+-------------+
|EXP 024 |613551|914075|-47| 270 | 547.40| 1.00| 2.48 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|EXP 027 |613941|913554|-55| 155 | 683.00| 0.25| 2.12 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
|EXP 028 |614180|913559|-56| 157 | 704.70| 0.35| 10.59 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
| | | | | | 707.80| 1.00| 1.37 (*)|
| | | | | +--------+--------+-------------+
| | | | | | 724.90| 0.20| 2.39 (*)|
+-----------+------+------+---+-------+--------+--------+-------------+
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) Grid coordinates based on the Philippine Reference System 92.
ON-GOING DRILL PROGRAMME
It is intended that the number of rigs which will continue drilling on the Co-O
Mine and surrounding area will be rationalised to four or five rigs over the
next few months as some of the rigs are planned to be transferred to commence
feasibility study related drilling at the Bananghilig Deposit.
An increasing amount of resource drilling in the vicinity of the Co-O Mine will
be undertaken using the four underground drill rigs as drill stations and
positions are opened up.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Samples were taken from mainly HQ sized (hole outside diameter 96mm, hole
inside diameter 63.5mm) and some NQ sized (hole outside diameter 75.8mm, hold
inside diameter 47.6mm) drill core. The selected sample intervals were halved by
diamond saw and half the core was bagged, numbered and sent to the Company's
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.
Check assaying of the majority of samples used in the resource estimate update
and which contain more than 0.5 metres at more than 2 g/t gold have been
undertaken by McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO 9001/2000
accredited laboratory in Manila. The pulps were airfreighted to McPhar who fire
assayed 30 grams of sample using AAS finish and a selected number of samples
were checked using gravimetric fire assay techniques. Duplicate samples and
standards are 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 Services +44 (0)20 7868 2010
Michael Padley/Libby Moss
Canada
Nicholas Sayce, Investor Relations +1 416 822 4404
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 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 "Australasian 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 on 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.
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#1428340]
Co-O Mine Drilling Update Accompanying Images: http://hugin.info/138050/R/1428340/375734.pdf
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Source: Medusa Mining Ltd via Thomson Reuters ONE
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