9th Jul 2007 07:00
Medusa Mining Limited09 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 NEW DISCOVERIES at Co-O Medusa Mining Limited ("Medusa" or the "Company"), the Australian based companyoperating and developing gold mines in the Philippines, advises that it hasdiscovered new veins with consistent and exceptionally high gold grades at itsCo-O Mine. The new discoveries, named the Jereme and New Catto Veins 1 to 5 ("NCV 1 to 5"),are located to the south of and parallel to the known 1.5 km long Co-O Mine veinsystem and are still open in three directions. Results include: Hole Intercepts (metres) Grade (g/t gold) JEREME --------- -----------MD 41 1.00 198.84----------- --------- -----------NEW CATTO VEIN 1 --------- -----------MD 34 2.70 92.03----------- --------- -----------MD 35 1.70 55.77----------- --------- -----------MD 43 2.15 58.88----------- --------- -----------NEW CATTO VEIN 2 --------- -----------MD 28 0.90 32.32----------- --------- -----------MD 44 0.50 18.23----------- --------- -----------NEW CATTO VEIN 3 --------- -----------MD 35 0.60 75.39----------- --------- -----------MD 41 1.35 75.98----------- --------- -----------MD 44 0.70 42.29----------- --------- -----------NEW CATTO VEIN 4 --------- -----------MD 44 4.50 20.05----------- --------- -----------NEW CATTO VEIN 5 --------- -----------MD 44 1.90 79.05----------- --------- ----------- Geoffrey Davis, Managing Director of Medusa, commented: "These results confirm our belief that the Co-O Mine is highly prospective withexceptionally high grades throughout, and that it has the potential for us toincrease the resources in the August-September estimate considerably via theongoing drill programme." DRILLING RESULTS Programme description The Company commenced a diamond drilling programme in December 2006 which isdesigned to define the Co-O Mine vein system in preparation for a new resourceestimation due for completion by late August to early September andincorporating all relevant holes from MD 20 to MD 44. The first five holes (MD 20 to 24) were reported on 28 February 2007 andsubsequently holes MD 25 to 34 (excluding MD 33) were reported on 16 May 2007.The next full drilling update report will be provided in August 2007. Drillingis continuing. Current interpretations are based on 3D plotting and modelling of the dataavailable, and future interpretations may be subject to change as more databecome available. The tops of the New Catto Veins are presently believed to be between the sameelevation as the bottom of the 3W shaft at 3050 metres and the new sublevel atthe 3000 metre elevation. All veins are open in at least three directions. It isnow apparent that some of the early holes have drilled over the top of some ofthe veins or were not deep enough. The Jereme Vein has been identified on the 3050 metre level to the south of the3W shaft but was not previously recognised as a coherent high grade vein. Table I: Initial Drill Results greater than 4g/t gold from the Jereme and NewCatto Veins Hole East North Dip Azimuth Vein From Width Grade (degrees)(degrees) name (metres) (metres) (uncut (g/t gold) MD 28 614003 913253 -48 211 NCV 2 413.00 0.90 32.32 MD 32 614254 913017 -51 217 Jereme 313.80 2.30 16.97 Jereme 321.90 0.50 38.55 South Split NCV 2 371.10 0.70 6.66 MD 34 614285 912923 -50 227 NCV 2 304.20 0.50 18.92 NCV 1 354.30 2.70 92.03 MD 35 614243 912851 -58 297 Jereme 198.30 0.30 34.59 (*) NCV 3 209.30 0.60 75.39 (*) NCV 2 253.50 0.90 9.34 NCV 1 268.50 1.70 55.77 MD 38 614240 912815 -47 237 NCV 1 187.90 0.30 65.56 MD 39 614240 912850 -58 205 Jereme 209.70 0.20 64.56 (*) NCV 3 233.55 0.45 33.24 (*) MD 40 614173 912951 -52 245 NCV 4 312.90 1.70 10.19 (*) NVC 5 324.25 1.80 10.41 (*) MD 41 614240 912849 -65 205 Jereme 240.60 1.00 198.84 (*) NCV 3 261.55 1.35 75.98 (*) MD 43 614273 912908 -60 221 Jereme 277.90 0.40 19.74 (*) NCV 2 360.07 0.60 6.06 (*) NCV 1 383.50 2.15 58.88 (*) MD 44 614212 912983 -54 209 Jereme 262.80 1.95 15.39 (*) NCV 3 270.45 0.70 42.29 (*) NCV 2 359.60 0.50 18.23 (*) NCV 1 376.90 0.20 57.19 (*) NCV 4 413.60 4.50 20.05 (*) NCV 5 436.90 1.90 79.05 (*) Notes: McPhar Geoservices Inc. assays are quoted when available; (*) Awaitingcheck assays from McPhar; and MD 28, 32 and 34 results previously reported. Sampling and Assaying All samples were taken from mainly HQ sized and some NQ sized drill core. Theselected sample intervals were halved by diamond saw and half the core wasbagged, numbered and sent to the Company laboratory. In a small number of casesto confirm the geological logging, the selected interval was re-split and 1/4core re-submitted for assay. Initial sample preparation and assaying was undertaken at the Company's on-sitelaboratory. Samples were dried at 105(o)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 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. The majority of samples which contained more than 0.5 metres at more than 2 g/tgold are re-assayed by McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO9001/2000 accredited laboratory in Manila for the purpose of JORC Code compliantresource estimations. The pulps are airfreighted to McPhar who fire assay 30grams of sample using AAS finish and a selected number of samples are checkedusing gravimetric fire assay techniques. When reporting results, where available, the McPhar assays are given priorityover the Company laboratory's results. 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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