TIDMMML
RNS Number : 8700K
Medusa Mining Limited
28 August 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
28 August 2012
BANANGHILIG DEPOSIT MINERAL RESOURCE UPDATE
(ASX & LSE: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation announces
the update of the JORC compliant Mineral Resource estimation for
the Bananghilig Gold Deposit.
The new Inferred Resource is estimated at 1,100,000 ounces at a
grade of 1.63 g/t gold contained in 21,000,000 tonnes of ore using
a lower cut-off of 0.8 g/t gold. This represents an increase of 69%
from the previous resource announced on 12 August 2009 of 650,000
ounces at a grade of 1.3 g/t gold, applying a cut-off of 0.6 g/t
gold.
Infill drilling is nearing completion and following receipt of
all outstanding assays and completion of updated interpretations,
an Indicated Resource estimate will be undertaken. The Indicated
Resource will be used for pit optimisation and subsequent
feasibility studies.
Peter Hepburn-Brown, Managing Director of Medusa commented:
"It is pleasing that since July 2011, drilling has achieved our
objectives of initially validating historical data and then
increasing the resource to our target of 1 million ounces. Infill
drilling is now nearing completion with the aim of converting the
Inferred Resources to Indicated Resources.
Whilst this drilling has been in progress, we have actively been
consulting with our host communities, undertaking land title and
land usage surveys and studies, investigating possible plant sites
and also advancing our metallurgical test work.
On completion of the infill drilling programme, two rigs will
begin sterilisation drilling on selected sites and four rigs will
be withdrawn. Our aim is to be well advanced with feasibility
studies by the end of this calendar year.
The Bananghilig resource increase takes the Company's total
resources to over 3 million ounces, a major milestone"
Background
The Bananghilig Gold Deposit within the Tambis District is
operated under a Mining Agreement with Philex Gold Philippines Inc.
over Mineral Production Sharing Agreement ("MPSA")
MPSA-344-2010-XIII which covers 6,262 hectares.
In the 1980s and 1990s a large amount of diamond and reverse
circulation drilling totalling 29,477 metres in 344 holes was
undertaken by various explorers to investigate a large area of
known mineralisation.
From 2005 to 2007, Philsaga undertook underground exploration
through a 50 metre deep shaft and development, adits, and
underground and surface drilling totalling 7,715 metres in 31
holes.
From July 2010 to 31 July 2012, the Company has completed 235
holes for 74,522 metres of diamond drilling.
Resource estimation
A global Inferred Resource estimation for Bananghilig was
undertaken by Cube Consulting Pty Ltd of West Perth, Western
Australia. The estimation was based on historical drilling and new
drill hole data since July 2010.
Table I summarises the resource at various cut-offs with 0.8 g/t
gold being taken as the base case resource estimate.
Table I. Inferred Resource estimate as at 31 July 2012
Cut-off tonnes g/t ounces
(g/t gold) gold
------------ ----------- ------ ----------
0.5 44,200,000 1.10 1,500,000
------------ ----------- ------ ----------
0.6 33,400,000 1.28 1,300,000
------------ ----------- ------ ----------
0.7 26,100,000 1.46 1,200,000
------------ ----------- ------ ----------
0.8 21,000,000 1.63 1,100,000
------------ ----------- ------ ----------
0.9 17,300,000 1.80 1,000,000
------------ ----------- ------ ----------
1.0 14,800,000 1.94 900,000
------------ ----------- ------ ----------
Note: Tonnes and ounces rounded down to nearest 100,000
The Bananghilig Mineral Resource estimate is based on a number
of factors and assumptions, some of which are listed below:
-- All available drilling data as at 31 July 2012 was used for
the Mineral Resource estimate.
-- Wireframes were generated on plan and cross sectional
interpretations based on available geology and assay data
available. A lower cut off of approximately 0.3 g/t gold was used
to define 4 mineralised envelope domains.
-- Upper cuts were applied to the 2 metre composites prior to
grade estimation. Top cuts used included 30 g/t gold for Domains 1
and 2, 10 g/t gold for Domain 3 and 5 g/t gold for Domain 4.
-- The bulk densities used range from 1.80 to 2.76 t/m(3)
depending on the modelledlithology. A total of 2,562 bulk density
measurements have been completed.
-- The Resource has been estimated using Ordinary Block Kriging
and Uniform Conditioning (UC). UC is a mathematical method that
allows the discrimination of ore and waste at an assumed selective
mining unit size within an estimated panel of significantly larger
size. In theory, this provides a more correct prediction of
estimated resource grade and tonnes above a cut off than an
Ordinary block Kriging alone. The method draws information from the
composite data variogram model and Krige's Relationship.
-- The application of the (UC) technique at Bananghilig is based
on the premise that mining would be by open pit extraction. A
Selective Mining Unit ("SMU") of 5 metres by 5 metres by 2 metres
was evaluated within Ordinary Kriged panels Y = 25 metres; X = 25
metres and Z = 4 metres for the purposes of reporting recoverable
resources.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Peter Hepburn-Brown,
Managing Director
United Kingdom
Fairfax I.S. PLC, Financial
Adviser and Broker +44 (0)20 7598 5368
Ewan Leggat/Laura Littley
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
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.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has
been estimated and compiled by Mark Zammit of Cube Consulting Pty
Ltd of Perth, Western Australia. Mr Zammit is a member of the
Australian Institute of Geoscientists and has sufficient experience
that is relevant to the style of mineralisation and type of deposit
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". Mr Zammit 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 contains 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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