TIDMMML
RNS Number : 6361Z
Medusa Mining Limited
18 January 2011
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
18 January 2011
Co-O DRILLING ADDS TO GROWTH POTENTIAL
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 holes MD 273
and MD 280 to 289 and new holes MD 290 to 299, and results from
underground drilling and regional drilling around the Co-O
Mine.
Highlights include:
Width Grade (uncut)
Hole Number (metres) (g/t gold)
-------------- --------- --------------
MD273 1.00 76.51
-------------- --------- --------------
MD288 1.00 69.90
-------------- --------- --------------
MD292 1.00 16.70
-------------- --------- --------------
L3-009 1.85 12.77
-------------- --------- --------------
L5-016 2.75 50.38
-------------- --------- --------------
EXP035 1.60 12.25
--------- --------------
EXP037 1.00 29.53
-------------- --------- --------------
EXP045 1.20 48.72
-------------- --------- --------------
The Royal Vein set continues to be delineated by drilling and
development along the northern side of the Co-O Mine resource
model.
Drilling of the North Tinago Veins has continued to return
encouraging drill hole intersections and surface delineation is
continuing.
Geoff Davis, Managing Director of Medusa, commented:
"These new results from the Co-O Vein system and continued
delineation of the Royal and North Tinago vein sets reinforce the
earlier results showing additional potential for growth at and
around Co-O. Early indications are that infill drilling and
development are confirming the Royal Vein set's continuity.
Drilling is continuing with the aim of increasing the confidence
levels of these two veins sets for inclusion in resource
estimations."
Co-O MINE DRILLING
Discussion
Figure 1 (attached) shows all the new Co-O Mine MD series
diamond drill holes from MD290 to MD299 totalling 6,997 metres
completed since the last announcement on 29 October 2010 up to 7
January 2011 and also previous holes MD273 and MD280 to MD289.
Figure 2 (attached) shows the recently completed underground
drilling totalling 5,933 metres in 26 holes.
Surface drilling on the mine area focussed mainly on the Royal
Vein set and other veins has continued with two rigs, and for the
regional drilling has continued with four rigs. This is planned to
be ongoing.
Table I lists the surface diamond drilling results greater than
3 g/t gold from the Co-O Mine for new drill holes MD290 to MD295 as
well as results not previously reported for some earlier holes.
Assays are awaited for MD297 to MD299 and additional assays are
awaited for MD295.
Previous reports were published for holes numbered MD261 to
MD289 on 29 October 2010, MD241 to MD260 on 30 June 2010, for MD217
to MD240 on 29 March 2010, for holes below MD217 on 18 January
2010, 10 December 2009, 1 July 2009, 22 January 2009, 1 December
2008 and 12 August 2008. In 2007 the announcements are dated 9
July, 15 May and 28 February.
Table II lists underground drill hole results since 29 October
2010. Completed holes drilled include L1-016 to L1-018, L2-032 to
L2-039, L4-09 and L5-014 to L5-027 and L1-001 to L1-004. Assays are
awaited for holes L1-018, L2-025 to L2-029, L2-031, L2-032, L2-036,
037, L2-039, L5-017, L5-019 and L5-027. Additional assays are
expected for holes L2-035, L2-038, L5-013, L5-022, L5-025 and
L5-026.
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 and which
results in the upgrading of the resource category from Inferred to
Indicated. The development supports the estimation of resources and
facilitates the conversion of resources to reserves.
Further information on narrow veins and the Company's policies
regarding exploration, development and resources-reserves is
contained on the Company's website www.medusamining.com.au
Table I. Surface drill hole results >3 g/t gold and >0.2
metres downhole for new holes MD 261 to MD 279 and complete assays
for a previously partly reported hole designated *
Grade
(uncut)
Hole Dip Azimuth From Width (g/t
number East North ([deg]) ([deg]) (metres) (metres) gold)
-------- ------- ------- -------- -------- --------- --------- -----------
MD273* 613328 913221 -85 180 109.65 0.60 3.86
--------- --------- -----------
468.25 1.00 76.51
-------- ------- ------- -------- -------- --------- --------- -----------
MD282* 614225 913119 -46 170 105.60 1.40 4.13 (*)
--------- --------- -----------
125.30 0.30 3.20
--------- --------- -----------
365.70 1.00 19.47
--------- --------- -----------
484.20 0.20 9.50
--------- --------- -----------
514.60 0.65 6.11
--------- --------- -----------
562.60 0.20 50.53 (*)
--------- --------- -----------
612.50 1.60 3.88
-------- ------- ------- -------- -------- --------- --------- -----------
MD283* 613381 913252 -66 180 302.85 1.00 9.27 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD284* 613626 913205 -56 167 500.35 0.30 7.37 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD285* 614450 912995 -63 202 361.55 0.25 4.23 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD286* 613381 913253 -87 180 150.80 0.60 3.88 (*)
--------- --------- -----------
155.20 0.25 15.54 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD287* 614225 913120 -56 168 130.30 0.20 4.85 (*)
--------- --------- -----------
608.85 2.20 4.02 (*)
--------- --------- -----------
643.85 0.30 4.91 (*)
--------- --------- -----------
761.95 0.35 3.00 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD288* 614448 912995 -50 217 430.75 0.35 22.80 (*)
--------- --------- -----------
454.70 0.30 16.27 (*)
--------- --------- -----------
478.90 1.20 5.29 (*)
--------- --------- -----------
489.50 1.35 6.83 (*)
--------- --------- -----------
493.10 1.00 69.90 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD291 614223 913120 -55 192 334.10 1.20 5.74 (*)
--------- --------- -----------
338.10 0.35 3.23 (*)
--------- --------- -----------
378.40 0.55 15.93 (*)
--------- --------- -----------
452.60 1.40 6.78 (*)
--------- --------- -----------
578.20 0.25 4.67 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD292 614448 912995 -61 217 278.10 1.25 5.40 (*)
--------- --------- -----------
283.20 0.60 11.77 (*)
--------- --------- -----------
338.10 0.45 5.40 (*)
--------- --------- -----------
450.55 0.85 16.70 (*)
--------- --------- -----------
533.20 1.00 16.70 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
MD295 614223 913120 -65 193 118.45 0.20 17.36 (*)
--------- --------- -----------
398.10 0.70 3.01 (*)
--------- --------- -----------
400.45 5.65 6.32 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
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 and complete assays for a previously partly
reported hole designated *
Grade
(uncut)
Hole Dip Azimuth From Width (g/t
number East North ([deg]) ([deg]) (metres) (metres) gold)
--------- ------- ------- -------- -------- --------- --------- -----------
LEVEL 1
L1-015* 613315 913065 3 209 64.00 0.20 14.00 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
LEVEL 2
L2-030* 614067 913007 3 53 54.30 0.20 5.87 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L2-033 613506 912893 3 338 111.50 0.30 5.17 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L2-034 613506 912892 3 309 52.15 1.00 10.97 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L2-035 613399 912882 3 47 60.60 0.40 17.62 (*)
--------- --------- -----------
85.40 0.90 14.50 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L2-038 613396 912881 3 320 13.45 0.30 10.02 (*)
--------- --------- -----------
42.80 0.20 7.27 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
LEVEL 5
L5-011* 613888 912793 -41 353 163.25 0.85 6.00 (*)
--------- --------- -----------
182.35 1.65 5.67 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-013* 613883 912791 3 315 73.60 0.50 22.10 (*)
--------- --------- -----------
97.30 0.35 3.73 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-014 613883 912791 -25 314 100.90 0.65 13.33 (*)
--------- --------- -----------
144.20 0.45 4.27 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-016 613882 912789 3 300 158.90 1.20 11.47 (*)
--------- --------- -----------
166.50 1.05 10.33 (*)
--------- --------- -----------
176.05 2.75 50.38 (*)
--------- --------- -----------
183.80 0.30 10.33 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-018 613943 912887 -29 187 60.70 0.60 3.42 (*)
--------- --------- -----------
98.80 0.70 3.85 (*)
--------- --------- -----------
103.40 0.70 4.77 (*)
--------- --------- -----------
134.70 0.65 44.67 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-020 613945 912887 -29 199 64.40 1.15 4.40 (*)
--------- --------- -----------
82.90 0.30 10.90 (*)
--------- --------- -----------
91.40 0.25 3.00 (*)
--------- --------- -----------
101.00 0.90 7.97 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-022 613944 912888 -29 160 130.00 1.00 8.33 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-023 614137 912904 0 337 79.20 0.60 17.27 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-024 614140 912900 0 47 64.70 0.50 36.63 (*)
--------- --------- -----------
278.05 0.35 10.88 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-025 613946 912888 -29 134 61.00 0.50 3.44 (*)
--------- --------- -----------
71.25 1.65 3.42 (*)
--------- --------- -----------
107.90 0.30 8.83 (*)
--------- --------- -----------
264.65 0.95 3.12 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
L5-026 614136 912893 -21 214 1.90 0.45 3.80 (*)
--------- --------- -----------
56.30 0.25 34.80 (*)
--------- --------- -----------
59.60 0.70 5.03 (*)
--------- --------- -----------
83.20 1.20 4.18 (*)
--------- --------- -----------
113.80 0.90 3.80 (*)
--------- --------- -----------
121.90 0.40 6.73 (*)
--------- --------- -----------
156.45 1.35 4.18 (*)
--------- --------- -----------
174.50 0.70 3.13 (*)
--------- --------- -----------
178.60 0.20 7.07 (*)
--------- ------- ------- -------- -------- --------- --------- -----------
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
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 Central Vein 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 on the
Central Vein start to increase significantly approximately 80
metres below surface.
It should also be noted that the drilling in the late 1980s and
early 1990s to locate the veins east of the Oriental Fault
intersected clay - minor silica alteration zones up dip from the
high grade veins, and returned assays up to 1 g/t gold which were
considered inconsequential at the time. Hence the Company carefully
evaluates the importance of low assays in geologically favourable
settings.
Figure 3 (attached) shows the positions of the 15 holes EXP038
to EXP053 for a total of 8,092 metres. Table III shows the results
>3 g/t gold over >0.2 metres. Results for EXP001 to EXP012
were announced on 17 December 2009, an update up to EXP022 was
provided on 19 March 2010, holes EXP022 to EXP028 were provided on
30 June 2010 and for holes EXP029 to EXP037 on 29 October 2010.
Table III. Regional drill hole EXP 038-053 results >3g/t gold
and >0.2 metres downhole.
Grade
(uncut)
Hole Dip Azimuth From Width (g/t
number East North ([deg]) ([deg]) (metres) (metres) gold)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP038 613651 913505 -50 180 435.20 0.20 4.73 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP039 613691 913588 -50 180 354.85 0.45 8.73 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP044 614006 913328 -50 160 147.90 0.60 4.60 (*)
--------- --------- -----------
163.00 0.55 5.80 (*)
--------- --------- -----------
198.10 1.00 3.48 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP045 614272 913209 -50 167 126.80 0.90 9.33 (*)
--------- --------- -----------
379.25 1.00 59.57 (*)
--------- --------- -----------
395.15 0.55 4.03 (*)
--------- --------- -----------
414.55 0.25 23.66 (*)
--------- --------- -----------
424.65 0.95 7.77 (*)
--------- --------- -----------
479.75 1.20 48.72 (*)
--------- --------- -----------
555.50 1.15 5.03 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP046 613857 913420 -50 180 204.65 0.95 3.03 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP048 613846 913272 -50 160 261.90 0.70 21.82 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP050 614181 913420 -50 165 601.60 0.20 3.36 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
EXP051 613833 913305 -50 158 422.40 1.80 3.03 (*)
--------- --------- -----------
657.60 0.55 4.21 (*)
--------- --------- -----------
701.40 0.85 5.67 (*)
-------- ------- ------- -------- -------- --------- --------- -----------
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.
DISCUSSION
The drill results (Fig. 3) indicate the presence of multiple
veins in the Royal Vein - North Tinago area. On-going drilling aims
to ascertain the continuity of the gold mineralisation, and the
lateral and vertical and extent of the vein systems.
Development from the new Saga Shaft would be able reach the NT3A
and NT3B vein areas.
ON-GOING DRILL PROGRAMME
It is intended that two surface rigs will continue drilling on
the Co-O Mine area and four rigs will continue regional drilling.
Four drill rigs will continue operating underground.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Samples were taken from mainly HQ sized (hole outside diameter
96 mm, hole inside diameter 63.5mm) and some NQ sized (hole outside
diameter 75.8 mm, hole 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 the Company laboratory. In a
small number of cases to confirm the geological logging, the
selected interval was re-split and [1/4] core re-submitted for
assay.
Initial sample preparation and assaying was undertaken at the
Company's on-site laboratory. Samples were dried at 105 C 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
Financial Adviser and Broker
Ewan Leggat/Laura Littley
Lothbury Financial Services
Limited +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 Sedar in August
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.
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