Saugon Expands High-Grade Gold-Silver Potential
01 December 2010 - 6:00PM
UK Regulatory
TIDMMML
RNS Number : 1194X
Medusa Mining Limited
01 December 2010
+-------------------+------+----------------------------------------+
| | | 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
1 December 2010
SAUGON DRILLING EXPANDS HIGH-GRADE GOLD-SILVER POTENTIAL
Medusa Mining Limited (ASX and LSE - MML; TSX - MLL) ("Medusa" or the "Company")
through its Philippines operating company Philsaga Mining Corporation
("Philsaga"), advises that drilling at the Saugon Project's First Hit Vein
Prospect has confirmed previous results from 2004 and extended the mineralised
gold-silver zones to approximately 200 metres of strike and open along strike
and at depth.
Highlights include:
+--------------+------------+------------+------------+
| Hole Number | Width | Gold | Silver |
| | (metres) |(g/t gold) | (g/t |
| | | | silver) |
+--------------+------------+------------+------------+
| SDDH 37 | 2.15 | 13.30 | 179.85 |
+--------------+------------+------------+------------+
| SDDH 40 | 3.90 | 9.63 | 125.13 |
+--------------+------------+------------+------------+
| SDDH 41 | 3.35 | 11.71 | 154.23 |
+--------------+------------+------------+------------+
| SDDH 42 | 0.75 | 28.07 | 413.60 |
+--------------+------------+------------+------------+
| SDDH 43 | 1.50 | 15.81 | 232.50 |
+--------------+------------+------------+------------+
| SDDH 44 | 1.40 | 27.65 | 398.00 |
+--------------+------------+------------+------------+
| SDDH 64A | 4.55 | 9.75 | Not |
| | | | available |
+--------------+------------+------------+------------+
Geoff Davis, Managing Director of Medusa, commented:
"These new high-grade gold-silver drilling results, whilst confirming and
extending significantly the 2004 results, have the hallmarks of a substantial
mineralised structure. The mineralisation is hosted by epithermal quartz
breccias, stockworks and veins which may be linked to a porphyry copper system
as indicated by the large coincident argillic alteration area and aeromagnetic
low or demagnetised zone.
The deepest high grade intersection of 3.35 metres at 11.71 g/t gold and 154 g/t
silver at approximately 180 metres vertically below outcrop and the robust new
northern zone intersections indicate scope for substantial increases to this
mineralisation. Work is on-going to further evaluate its potential to develop
as a new deposit".
FIRST HIT VEIN
Background
Figure 1 (please see the link at the end of this announcement) shows the
location of the Saugon Project approximately 28 kilometres by road from the
Co-O Mill, and Figure 2 (please see the link at the end of this announcement)
shows the regional geology, the location of the First Hit Vein and the Paradise
& Mabas Prospects. Figure 3 (please see the link at the end of this
announcement) shows the location of the First Hit Vein drill holes.
Figures 4 and 5 (please see the link at the end of this announcement) show
interpreted cross-sections through the First Hit Vein and Figure 6 (please see
the link at the end of this announcement) shows gram per metre contours
projected onto a vertical plane looking northwest.
Work in 2004 involved drilling at the First Hit Vein (holes SDDH 1 to 35) in
conjunction with underground development via a 30 metre deep inclined winze down
the vein-breccia to assist in understanding the mineralisation.
The 2004 drilling indicated a well developed central zone (First Hit Vein) with
two possible splays partly developed as footwall and hanging wall zones. Further
details are contained in the announcement dated 20 April 2010.
Drilling
Drilling of 34 new drill holes totalling 7,493 metres (SDDH 36 to 68 inclusive)
has been completed at the First Hit Vein. Assay results for holes SDDH 55, 57,
60, 62, 63, 65 and 68 are awaited.
The aim of the drilling was to repeat the 2004 un-surveyed holes in order to
establish the geometry of the mineralised system and to gain a better
understanding of the mineralisation. Drilling is continuing.
The results broadly confirm the 2004 drill holes with some wider intersections
with mid-range grades as well as narrow zones of high grades. The style of
mineralisation appears to be quite variable, from some well formed veins to
hydrothermal breccias to stockworks. Strong silver values and base metals,
particularly lead and zinc appear to correlate reasonably consistently with the
main vein.
Table I. First Hit Vein drill hole results >1 g/t gold and >0.2 metres downhole
+-+------+-+-----+--+-----+--+--+----+----+----+-----+----+-----+---+----+--+------+-+-----+-+----+-+----------+-+
| Hole | East | North |Dip |Azimuth | From | Width | Assays | |
| number | | |( ) | ( ) |(metres) |(metres) | | |
+ + + + + + + +----------------------------------------------+-+
| | | | | | | | Au | Ag | Cu | Pb | Zn | |
| | | | | | | | (g/t) | (g/t) | (%) | (%) | (%) | |
+--------+-------+--------+-----+---------+----------+----------+--------+---------+-------+------+------------+-+
| | SDDH |616916 |899325 | -75 | 310 | 70.60 | 12.15 | 2.40 | 33.40 | 0.08 | 0.14 | 0.30 |
| | 36 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 78.90 | 1.00 | 9.47 | 119.00 | 0.27 | 0.37 | 1.12 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 81.95 | 0.80 | 3.22 | 43.00 | 0.17 | 0.28 | 0.40 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616939 |899314 | -75 | 310 | 101.75 | 2.15 | 13.30 | 179.85 | 0.19 | 0.81 | 1.00 |
| | 37 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616916 |899325 | -55 | 310 | 52.65 | 1.15 | 2.13 | 45.80 | 0.12 | 0.28 | 0.53 |
| | 38 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 76.95 | 0.55 | 4.48 | 7.90 | 0.06 | 0.17 | 0.23 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616908 |899307 | -55 | 310 | 62.05 | 6.50 | 3.73 | 63.62 | 0.12 | 0.21 | .0.70 |
| | 39 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 83.30 | 0.80 | 8.76 | 111.21 | 0.32 | 0.23 | 0.70 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616934 |899279 | -55 | 310 | 98.15 | 3.90 | 9.63 | 125.13 | 0.13 | 0.55 | 0.53 |
| | 40 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616998 |899256 | -66 | 310 | 156.50 | 0.60 | 1.51 | 19.90 | 0.02 | 0.06 | 0.19 |
| | 41 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 179.30 | 1.00 | 1.44 | 24.50 | 0.13 | 0.44 | 0.82 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 182.20 | 3.35 | 11.71 | 154.23 | 0.35 | 1.19 | 1.80 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616934 |899338 | -50 | 310 | 52.30 | 1.00 | 1.35 | 22.20 | 0.33 | 0.12 | 0.21 |
| | 42 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 54.10 | 1.10 | 1.46 | 23.30 | 0.05 | 0.05 | 0.07 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 56.15 | 1.20 | 7.14 | 95.50 | 0.12 | 0.52 | 0.51 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | 70.65 | 0.75 | 28.07 | 413.60 | 0.42 | 1.91 | 3.52 |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616971 |899248 | -55 | 310 | 141.00 | 1.50 | 15.81 | 232.50 | 0.39 | 1.25 | 1.37 |
| | 43 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616977 |899302 | -75 | 310 | 131.25 | 1.40 | 27.65 | 398.00 | 1.42 | 4.65 | 3.72 |
| | 44 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616874 |899268 | -50 | 310 | 75.05 | 1.00 | 5.24 | 100.10 | 0.36 | 1.65 | 0.23 |
| | 46 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616977 |899303 | -50 | 310 | 108.20 | 0.85 | 2.46 | NA | NA | NA | NA |
| | 47 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |617006 |899330 | -59 | 310 | 104.20 | 5.55 | 2.51 | 40.24 | 0.05 | 0.18 | 0.29 |
| | 48 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616927 |899241 | -50 | 310 | 129.25 | 0.75 | 1.24 | 18.20 | 0.17 | 0.12 | 0.33 |
| | 49 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |617007 |899375 | -50 | 310 | 109.60 | 1.60 | 1.45 | NA | 0.08 | 0.41 | 0.27 |
| | 50 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |617006 |899330 | -72 | 310 | 121.90 | 1.55 | 1.19 | NA | 0.06 | 0.07 | 0.15 |
| | 51 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |616927 |899240 | -71 | 310 | 148.00 | 0.25 | 2.58 | NA | <0.01 | 0.28 | 0.40 |
| | 52 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | SDDH |617007 |899375 | -87 | 310 | 86.40 | 6.60 | 5.05 | NA | 0.04 | 0.15 | 0.15 |
| | 53 | | | | | | | | | | | |
+-+--------+--------+--------+-------+---------+----------+---------+-------+--------+-------+------+------------+
| | | | | | | | | | | | | | | | | | | | | | | | | |
+-+------+-+-----+--+-----+--+--+----+----+----+-----+----+-----+---+----+--+------+-+-----+-+----+-+----------+-+
+----------+-------+------+----------+------+----------+-----+---------+----------+----------+----------+------+-------------+----+------------+----+------------+----+----------+----+-----------+----------+
| Hole number |East | North | Dip ( ) |Azimuth | From (metres) | Width (metres) | Assays | |
| | | | | ( ) | | | | |
+ + + + + + + +----------------------------------------------------------------------------------+----------+
| | | | | | | | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | |
+------------------+------+-----------------+----------------+---------+---------------------+-----------------+------------------+-----------------+-----------------+---------------+-----------+----------+
| | SDDH | 616908 | 899202 |-45 | 310 | 158.75 | 0.40 | 2.55 | NA | NA | NA | NA |
| | 59 | | | | | | | | | | | |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | | | | | | 247.45 | 0.25 | 2.96 | NA | NA | NA | NA |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | SDDH | 617047 | 899398 |-87 | 310 | 88.10 | 1.10 | 3.75 | NA | NA | NA | NA |
| | 64A | | | | | | | | | | | |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | | | | | | 94.00 | 4.55 | 9.75 | NA | NA | NA | NA |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | | | | | | 100.25 | 2.15 | 5.02 | NA | NA | NA | NA |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | | | | | | 106.95 | 3.40 | 2.82 | NA | NA | NA | NA |
+----------+-------+-----------------+-----------------+-----+--------------------+---------------------+--------------------+-----------------+-----------------+---------------+----+----------------------+
| | | | | | | | | | | | | | | | | | | | | | |
+----------+-------+------+----------+------+----------+-----+---------+----------+----------+----------+------+-------------+----+------------+----+------------+----+----------+----+-----------+----------+
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) All assays are by McPhar Geoservices Inc laboratory in Manila except for
SDDH 47, 50-53, 59 and 64A which are by the Philsaga laboratory;
(iii) Grid coordinates based on the Philippine Reference System 92; and
(iv) NA means assays not yet available.
DISCUSSION
The drilling completed to date indicates that the mineralisation intersected in
the exploration winze in 2004 and the 2004 drilling may be the "neck" of a
hydrothermal system where it vented towards surface above more substantial zones
of mineralisation at depth and along strike. Whilst the distribution of the
gold-silver mineralisation is not yet fully understood, it is now apparent that
the controlling structure has potential to host zones of high-grade gold-silver
mineralisation with some areas of significant copper-lead-zinc mineralisation.
Drilling will continue with the purpose of exploring the structure along strike
and at depth.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Samples were taken from mainly HQ sized (hole outside diameter 96 mm, hole
inside diameter 63.5 mm) and NQ sized (hole outside diameter 75.8 mm, hold
inside diameter 47.6 mm) drill core. The selected sample intervals were halved
by diamond saw and half the core was bagged, numbered, and sent to Philsaga
Mining Company (PSMC) Laboratory. The laboratory prepared each drill core sample
into 4 pulp (200 gram, -200 mesh) splits. One pulp split was utilized for gold
assaying by fire assay on a 30 gram sample with an Atomic Absorption
Spectrometry ("AAS") finish while copper, lead, zinc, and silver assaying were
conducted by AAS in the latter stages following a concentrated acid leach on a 1
gram sample. The second pulp splits of all those samples were repacked and
retagged and sent to McPhar Geoservices Inc. ("McPhar"), a NATA and ISO
9001/2000 accredited laboratory in Manila, for arsenic assaying by ICP assay
method.
The third pulp splits of samples with above 1.00 g/t Au from PSMC Laboratory
were sent to McPhar Laboratory for re-assaying of gold, silver, copper, lead,
and zinc by assaying methods mentioned above.
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 |
+------------------------------+--------------------------------------+
| Financial Adviser and Broker | |
+------------------------------+--------------------------------------+
| Ewan Leggat/Laura Littley | |
+------------------------------+--------------------------------------+
| Lothbury Financial Services | +44 (0)20 7868 2567 |
| Limited | |
+------------------------------+--------------------------------------+
| Michael Padley/Libby Moss | |
+------------------------------+--------------------------------------+
| Canada | |
+------------------------------+--------------------------------------+
| Nicholas Sayce, Investor | +1 416 822 4404 |
| Relations | |
+------------------------------+--------------------------------------+
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 "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 on sedar 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.
Click on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/1194X_-2010-11-30.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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