16th Jul 2007 07:00
Medusa Mining Limited16 July 2007 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: [email protected] Internet: www.medusamining.com.au MEDUSA MINING LIMITED BAROBO MINERALISED CORRIDOR Medusa Mining Limited ("Medusa" or the "Company"), the Australian based companyoperating and developing gold mines in the Philippines, advises that it has nowreceived all sample results and assessments undertaken during the regionalevaluation of the northern section of tenements in the Company's portfolio. Theregional exploration initiative was referred to in the ASX announcement of 27June 2007 as being in progress. This work has identified the newly designated 16 kilometre long Barobo Corridorwhich has a combination of features suggestive of a regional scalemineralisation system capable of hosting several different styles of golddeposits as well as porphyry copper-gold and related deposits. These featuresinclude: •the intersection of the regional scale mineralised north-north west-trending Barobo Fault with the Lianga Bay Fault which is interpreted to be the major focal point for the extensive Tambis area 9.5 x 7.3 kilometre aeromagnetically defined intense argillic alteration zone; •the prominent Barobo Fault corridor exending southwards from the Tambis area appears to control numerous vein style and siliceous replacement gold occurrences with high grades in outcrops and boulders in favourable host rocks; and •the presence of diorite and dacite intrusives exhibiting porphyry copper style alteration and shedding associated anomalous stream sediment copper values. Geoffrey Davis, Managing Director of Medusa, commented: "These results show the presence of a major mineralised system potentiallycontaining significant gold and copper deposits. A number of porphyry copper andgold targets have been located along the Barobo Fault and we are now assessingvarious exploration methods that will provide us with detailed data foradvancing targets to the drilling stage." Barobo Corridor The Barobo Corridor has been defined from remote sensing techniques includingsatellite imagery, aerial photography and aeromagnetics, as well as regionalmapping, and surface sampling where appropriate. The aeromagnetics, regionalmapping, pan concentrate and surface sampling were completed by the Company. Allother information provided is historic. The Barobo Corridor is located at thenorthern end of the Company's tenements. The Barobo Corridor extends over approximately 16 kilometres (and open to thesouth) straddling a major fault named the Barobo Fault that parallels the mainPhilippine Rift Fault located approximately 25 km to the west. The Barobo Fault is a significant aeromagnetic feature and is topographicallydistinctive. The Tambis regional area is located within a bullseye 9.5 by 7.3 kilometreaeromagnetic anomaly indicative of and resulting from intense argillicalteration. This widespread alteration has been field verified in numerousplaces and is located to the south of the intersection of two regional scalefaults, the Barobo Fault and the major west-northwest trending Lianga Bay Faultand partly straddling the Barobo Fault. The fault intersection is to theimmediate west of the Bananghilig Gold Mine. It should be emphasised that reconnaissance field exploration to date has beenrestricted to mapping and sampling of outcropping rocks on ridges and in creeksand silica boulder trains with a large number of the outcrops being identifiedas potentially mineralised. Various exploration methods are being assessed toprovide detailed regional scale data for prioritising targets for additionalwork. (i) Porphyry targets At the northern end of the Barobo Corridor is the Sopon porphyry copper targetwhich consists of an altered and quartz veined diorite with visible copperminerals. The target is associated with an area of aeromagnetic complexitywithin the large intense argillic alteration anomaly. The diorite is associatedwith massive sulphide skarn-style mineralisation which is not yet fully defined.In the 1990s stream sediment sampling programme described below, one sample in asmall creek near the Sopon porphyry copper prospect recorded an anomalous valueof 124 ppm copper, and a stream sediment sample 2km to the west recorded 17.3ppm gold. A regional stream sediment sampling programme carried out in the 1990s over theentire strike length of the Company's tenements by a previous explorer locatedthe highest regional stream sediment copper values in three creeks draining theBananghilig Mine area, being 1,662 ppm, 616 ppm and 530 ppm. This programme wasnot systematic in that sampling was restricted to drainages accessible by road;as a result large areas were not sampled. The above stream sediment sampling programme post dates the large BLEG anomaly.The BLEG survey was a systematic programme carried out specifically to targetgold. The Sumugbong porphyry target consists of altered and quartz veined dioritelocated to the west of the Alikway and Guinhalinan Prospects located in thesouthern part of the Barobo Corridor. The 1990s regional stream sediment surveyreferred to above also sampled in two creeks distant from and drainingsouthwards from this porphyry target and recorded regionally anomalalous coppervalues of up 124 ppm. (ii) Gold targets A plethora of gold targets of several different styles have been located alongthe Barobo Fault over a strike length of over 10 kilometres and still open tothe south. Pan concentrates were initially employed to delineate gold targetsbut the presence of ubiquitous visible gold in all creeks has rendered panconcentrates sampling as essentially non-discriminating, hence other regionalmethods are being investigated. This is a very large area (approximately 21 by 8kilometres), encompassing the Bananghilig Mine and Sopon porphyry target andother prospective areas, of anomalous stream sediment BLEG gold values definedby an earlier explorer. The area partially overlaps the extensive argillicalteration zone. Some of the styles are: •Silica replacement style targets in sediments: These include the Guinhalinan Prospect and number of areas to the north of Guinhalinan where silicification of limestones and siltstones has occurred and where outcrops have returned up to 2.3 metres at 16.23 g/t gold and 1.85 metres at 8.86g/t gold, and grab samples returning up to 16.94 g/t gold. The silicified zones are commonly controlled by numerous northeast-trending structures which may result in the development of large areas of silicification. Some of the silicified zones are also brecciated such as south of Campagang where outcrops have returned up 80.26g/t gold. Gold mineralisation appears to be ubiquitous in the silicified zones, along with common lead and zinc mineralisation in potentially commercial quantities. Copper mineralisation has also been identified in some areas. •Skarn style targets in limestones: Some subtle aeromagnetic anomalies have been identified as containing skarn-style silica replacement in limestones with gold, lead and zinc and disseminated magnetite, including in the area slightly north east of Sumugbong Creek. •Veins: A large number of veins have been identified commonly with a northeast trend. The most consistent of these to date is the Alikway Vein where high grade mineralisation (including 1.40 metres at 33.89 g/t gold, 0.5 metres at 26.41 g/t gold and 0.4 metres at 15.73 g/t gold) has been identified over a distance of approximately 500 metres and is open in both directions. Numerous other veins in the Alikway vicinity, particularly to the south, have also been discovered, such as at Matanog where samples have returned up to 0.6 metres at 24.8 g/t gold.. It should also be noted that there is a very large area of anomalous streamsediment BLEG gold values defined by an earlier explorer covering an area ofapproximately 21 by 8 kilometres in the area encompassing the Bananghilig Mineand Sopon porphyry target and other prospective areas. Maps and cross sections which accompany this announcement can be viewed in theASX version of the announcement on the Company's website:www.medusamining.com.au The information in the above announcement was compiled by Geoff Davis, who hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the"Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves". Geoff Davis consents to the inclusion in the report of thematters based on his information in the form and context in which it appears. Enquiries: Medusa Mining Limited +61 8 9367 0601Geoffrey Davis, Managing DirectorRoy Daniel, Finance Director Ambrian Partners +44 (0)20 7776 6417Richard Brown / Richard Greenfield Bankside Consultants +44 (0)20 7367 8888Michael Padley / Louise Davis This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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