15th May 2007 07:02
Medusa Mining Limited15 May 2007 15 May 2007 MEDUSA MINING LIMITED Co-O MINE DEEPS DRILLING - HIGH GRADE INTERSECTIONS CONTINUE WITHIN THE 1.5 KM LONG VEIN SYSTEM Medusa Mining Limited ("Medusa" or the "Company"), the Australian based companyoperating and developing gold mines in the Philippines, advises that it hascontinued to intersect high grade veins during the ongoing deep drillingprogramme of the Co-O Deposit within the 1.5 km long vein zone. The resultsconfirm extensions of high grade veins to depth below the Central Vein for over200 metres west of the Oriental Fault and along strike for over 300 metres eastof the Oriental Fault. In addition, the drilling is outlining the significantpotential of numerous parallel veins. The results from the new drill holes MD 25-34 (and MD 20-24 announced inFebruary 2007) re-inforce the Company's expectations for the potential size andgrade of the Co-O Deposit. Some of the new significant intercepts include: Intercepts Grade ------------- -------------- 2.70 metres 87.16 g/t gold ------------- -------------- 2.80 metres 15.35 g/t gold ------------- -------------- 2.30 metres 19.30 g/t gold ------------- -------------- 2.10 metres 15.65 g/t gold ------------- -------------- 1.40 metres 14.89 g/t gold ------------- -------------- 1.50 metres 13.73 g/t gold ------------- -------------- 0.60 metres 37.93 g/t gold ------------- -------------- 1.30 metres 16.45 g/t gold ------------- -------------- DRILLING RESULTS Programme description The Company commenced a diamond drilling programme in December 2006 which isdesigned to intersect the Co-O Mine vein system at approximately 100 metresbelow the current bottom of the mine (level 2950 metres) which, in turn, isapproximately 200 metres below the adit to the mine (level 3150 metres). Holesare being spaced at approximately 50 metre intervals along strike, but theintersection depth and position of each drill hole is dependent on topographicconstraints. Two deeper drill holes at approximately 250 to 300 metresvertically below the adit level have also been completed and other deeper tieredholes may be completed as required to confim vein orientations. Each drill holehas been surveyed every 50 metres downhole using a multishot digital camera. The first five holes (MD 20-24) were reported on 28 February 2007 andsubsequently holes MD 25-34 (excluding MD 33) have been completed. Drilling iscontinuing. Intersections of more than 4 g/t gold from all drill holes are presented inTable I. The lower grade intersections are important because of the variabilityof grades within the veins and because they define gold mineralised veinsrequiring further investigation. Numerous other intersections in the 2 to 4 g/tgold range are not included in Table I but these are used extensively todemonstrate vein continuity in interpretations. It is important to note that drilling of narrow epithermal veins at bestgenerally provides only an indication of the presence of the gold mineralisedvein and rarely provides good quantitative data with respect to accurate gradeand 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 is commonly erratic, in shoots or controlled by structures within the vein; and • Drill core recovery can 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 andoperates the policy of using drilling to locate the extent of the mineralisedveins. This is then followed by level development to support the drillingresults, to provide a more accurate estimate of vein grades and to facilitatethe estimation of resources. Table I: Summary of drilling results for holes MD 20 to MD 34 for intersectiongrades >4 g/t gold PREVIOUSLY REPORTED DRILL RESULTS (MD 20 - 24)MD 20 614099 913092 -51 214 230.10 1.50 16.75 250.25 0.85 4.22 265.90 0.45 7.19 290.70 0.60 4.92 311.40 4.70 57.66 323.10 1.70 15.76 333.10 1.50 4.65 337.05 4.55 6.98 352.20 0.80 11.41 359.60 0.80 4.14 361.55 1.55 15.23 381.95 0.35 15.56MD 21 614120 913134 -50 214 41.40 0.70 13.53 185.90 1.80 5.04 Hole stopped at 268.10 mMD 23 614120 913134 -56 214 45.20 1.70 8.30 190.80 1.40 14.77 349.10 0.40 7.98MD 22 614025 913188 -45 210 135.50 0.55 30.95 161.60 0.30 14.50 324.15 0.65 8.78 360.80 4.80 8.19MD 24 614026 913190 -55 210 281.25 0.55 21.47 357.75 1.25 12.38 407.60 0.60 4.76NEW DRILL RESULTS (MD 25 - 34)MD 25 614160 913120 -49 210 309.60 1.00 5.82 (*) 393.05 0.50 19.88 400.25 1.85 4.13 410.40 0.25 11.54MD 26 614003 913253 -48 211 165.00 1.50 5.13 359.75 0.65 8.74 364.20 0.25 16.02 412.70 0.85 6.15MD 28 614200 913075 -48.5 212 199.70 0.20 9.18 246.70 0.70 8.62 295.20 0.40 11.69 320.50 2.80 15.35 346.50 0.30 4.93 412.55 2.10 15.65MD 29 613942 913243 -45 211 356.70 0.30 9.47MD 31 613842 913223 -49 200 221.10 0.30 18.08 325.30 1.40 14.89 330.50 1.50 13.73MD 32 614254 913017 -51 217 282.10 0.80 5.75 313.80 2.30 19.30 321.10 1.30 16.45MD 33 613388 913279 -52 181 PendingMD 34 614285 912923 -50 227 242.40 0.60 37.93 (*) 304.20 1.10 8.18 (*) 354.30 2.70 87.16 (*) Note: McPhar Geoservices Inc. assays are quoted; and (*) Awaiting check assaysfrom McPhar. Drilling east of the Oriental Fault Results are contained in Table I. A description of the Co-O vein system iscontained in the 28 February 2007 announcement. MD 25 intersected 10 veins with grades over 2 g/t gold, most of which can becorrelated with the intersections in holes MD 20 and 23 on the next section tothe west. In general the grades are lower and the reasons for this will bedetermined when underground development along the veins is undertaken. MD 28/28B intersected twelve veins with grades over 2 g/t gold as well as thethree high grade veins. Again the lateral continuity appears to be good fromalong strike interpretations. MD 32 intersected a total of twelve veins with grades over 2 g/t gold includingthe veins with over 4 g/t gold as shown in Table I. MD 34 intersected a total of three veins with grades over 2 g/t gold includingthe veins with over 4 g/t gold listed in Table I and the highest grade drillintersection achieved to date at the project being 2.70 metres containing 87.16g/t gold. Drilling west of the Oriental Fault Results are contained in Table I. Hole MD 26 intersected a total of seven veins with grades over 2 g/t goldincluding the veins with over 4 g/t gold listed in Table I. Of particular noteare the high grade intersections adjacent to the lower boundary of the previousresource estimate. Hole MD 29 intersected two veins with grades over 2 g/t gold. Hole MD 31 intersected a total of seven veins with grades over 2 g/t goldincluding the veins with over 4 g/t gold listed in Table I. Of particular noteare the two high grade intersections near the previous resource boundary whichhighlight the potential for resource extensions. Drilling west of the Oriental Fault in the Tinago area Holes MD 27, 30 and 33 have been completed in the Tinago area seeking to extendthe intersection contained in TIN 3 of 3.80 metres at 21.15 g/t gold. To datethis has not been successful, except for 0.60 metres at 2.47 g/t gold in MD 30(MD 33 results pending), based on an interpreted westerly-trending gold bearingstructure. It is planned for drilling to be undertaken at a differentorientation as recent surface and underground work has identified possiblenorth-easterly and north-westerly mineralised structures. 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 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 nominal lessthan 200 mesh. Barren rock wash is used between samples in the preparationequipment. The samples were assayed by fire assay with Atomic AbsorptionSpectrometer (AAS) finish on a 30 gram sample. All assays over 5 g/t gold werere-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 were re-assayed by McPhar Geoservices Phils Inc ("McPhar"), a NATAregistered laboratory in Manila. The pulps were airfreighted to McPhar who fireassayed 30 grams of sample using AAS finish and a selected number of sampleswere checked using gravimetric fire assay techniques. 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 continue to support our view that the Co-O Mine will develop intoan exceptionally high grade gold mine with potential for a considerably enhancedresource base. A new resource estimate is scheduled for the next quarter." 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 / Daniela Hale This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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