20th Jun 2007 07:01
Medusa Mining Limited20 June 2007 20 June 2007 MEDUSA MINING LIMITED Positive Drill Results from Anoling Project Medusa Mining Limited ("Medusa" or the "Company"), the Australian based companyoperating and developing gold mines in the Philippines, advises that it hasreceived encouraging diamond drill intersections from the Anoling Project'son-going exploration programme which commenced in March 2007, following thegrant of two Small Scale Mining Permits. Diamond drilling along the Hope Vein has returned potentially economicintersections over a strike length of 300 metres to date and the mineralisationis still open at depth and to the east. A shorter strike length ofmineralisation on the Alcorn Vein has been indicated to date. Some of the significant diamond drill hole intersections include: ------------- -------------- Intercepts Grade (metres) (g/t gold) ------------- -------------- 2.70 13.96 ------------- -------------- 0.60 13.10 ------------- -------------- 1.60 10.08 ------------- -------------- 4.00 17.17 ------------- -------------- 1.50 7.39 ------------- -------------- Project Background On 19 March 2007 the Company announced that two Small Scale Mining Permits hadbeen granted over prospective areas at the Anoling Gold Project which is locatedapproximately eight kilometres, by road, from the Co-O Plant. The Anoling Project consists of a large number of artisanal workings and oldmines dating back to pre-World War II in the area of the American Tunnel. Theworkings are generally located on westerly trending vein systems, with someindications of a conjugate northeast trending vein set. The veins generallyconsist of banded quartz-carbonate material within clay-chlorite-pyrite gougezones with both types of material carrying gold values. Examination of oldworkings shows that the veins pinch and swell up to approximately 2 metres wideand appear to occur in shoots of between 50 to >300 metres in length. In someareas the veins have been brecciated, resulting in a mix of vein fragments andgouge. Typical grades are anticipated by the Directors to be in the 8-12g/t goldrange although a 1980s mine at the eastern end of the property to approximately100 metres depth is reported to have produced ore at approximately 30g/t gold. Diamond Drilling and Geology Two parallel veins trending westerly have been defined to date over respectivestrike lengths of approximately 650 metres for the Hope Vein and approximately750 metres for the Alcorn Vein. Both veins are open to the east. Within the longstrike lengths, drilling and surface sampling has started to define potentiallyeconomically mineralised zones. There are also northeast trending vein segments,such as was explored in the Alcorn exploratory shaft, but the veins on thisorientation, from current information, appear to have shorter strike lengthsthan the westerly-trending veins. Indications of other parallel veins haverecently been located during routine mapping and drilling. Table I summarises all the diamond drill hole intersections greater than 2g/tgold. Table I: Summary of drilling results for holes ANL 01 to ANL 20 for intersectiongrades >2 g/t gold Hole East North Dip Azimuth From Width Grade (uncut) (meters) (meters) (g/t gold) -------- ---------- -------- ----- ------- ------- -------- ----------ANL 05 614662 922889 -56 3 190.25 0.95 4.39 (*) ------- -------- ----------ANL 06 614552 922989 -65 0 66.80 0.50 4.07 (*) ------- ------- ----------ANL 08 614601 922987 -60 0 59.00 0.95 2.95 (*) ------- ------- ----------ANL 09 614508 922984 -60 0 55.90 2.70 13.96 (*) ------- ------- ----------ANL 11 614480 922980 -50 0 65.45 0.45 7.77 ------- ------- ----------ANL 14 614395 923137 -55 0 84.50 1.90 2.86 ------- ------- ---------- 87.40 0.65 2.33 ------- ------- ----------ANL 15 614445 923123 -55 0 99.40 0.60 13.10 ------- ------- ----------ANL 16 614498 923140 -68 0 88.95 1.00 2.09 ------- ------- ----------ANL 17 614545 923143 -70 0 57.30 1.40 4.20 ------- ------- ---------- 62.70 1.60 10.08 ------- ------- ----------ANL 18 614595 923143 -60 0 59.70 0.90 9.30 ------- ------- ----------ANL 19 614644 923139 -60 0 91.50 4.00 17.17 ------- ------- ---------- -60 0 147.70 0.55 7.26 ------- ------- ----------ANL 20 614692 923139 -60 0 92.50 1.50 7.39 ------- ------- ---------- 104.60 0.30 24.30 ------- ------- ---------- Note: (*) denotes assays conducted by the Philsaga on-site laboratory. All other assays undertaken by McPhar Geoservices Inc. On the Hope Vein, exploratory diamond drilling in holes ANL 14-20 inclusive hasachieved potentially economic intersections over a strike length of 300 metresto date, open to the east and at depth. Further infill drilling is in progressprior to a decision on whether to commence underground exploration. On the Alcorn Vein, the Loring Shaft area has been tested by undergroundsampling of old workings and by drill holes ANL 5-11, with good grades beingreturned from the underground sampling, and from drill hole ANL009. Whilst otherdrill holes have returned lower grades, owing to the pinch and swell nature ofthe veins, underground exploration has commenced through the refurbished LoringShaft, previously dug by local prospectors, which provides quicker and cheaperaccess to the vein for exploratory purposes. To date underground sampling hasestablished 54 metres of strike length of mineralised vein. Sampling and Assaying 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 degrees C for 6 to 8 hours, crushed toless than 1.25 cm by jaw crusher, re-crushed to less than 3 mm using a secondarycrusher, followed by ring grinding of 700 to 800 grams of sample to nominalparticle size of less than 200 mesh. Barren rock wash is used between samples inthe preparation equipment. The samples were assayed by fire assay with AtomicAbsorption Spectrometer (AAS) finish on a 30 gram sample. All assays over 5 g/tgold were re-assayed using gravimetric fire assay techniques on a 30 gramsample. The majority of samples which contained more than 0.5 metres at more than 2 g/tgold were re-assayed by McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO9001/2000 accredited laboratory in Manila. The pulps were airfreighted to McPharwho fire assayed 30 grams of sample using AAS finish and a selected number ofsamples were checked using gravimetric fire assay techniques. Duplicate samplesand standards are included in each batch of check samples. When reporting results, where available, the McPhar assays have given priorityover the Company laboratory's results. Geoffrey Davis, Managing Director of Medusa, commented: "These results support our view that the Anoling Project has the potential todevelop into another source of ore for the Co-O Plant. Work is continuing toincrease the extent of the known mineralised zones and to confirm potentiallyeconomic grades through underground exploration". 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. For further information, please contact: 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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