27th Nov 2006 10:00
Medusa Mining Limited27 November 2006 MEDUSA MINING LIMITED Update on Co-O Mine Medusa Mining Limited (AIM: MML) ("Medusa" or "the Company"), the Australianbased company operating and developing gold mines in the Philippines, announcesthat it has been advised by its operating partner at the Co-O Mine, PhilsagaMining Corporation ("Philsaga"), that the Co-O Mine 3W shaft has reached 118.6mdepth of its final 120m inclined depth (from the 3150m level down to the 3050mlevel*). Following completion, Philsaga will immediately proceed to cut the plat (shaftaccess chamber), install rail, air, water and power, as well as the sump,tipping bay and tipping chute. This work should be completed in approximately 3weeks time. In addition Philsaga is well advanced with the development of a new sublevel atthe 3010m level which is 40m below the current bottom of the mine. This newsublevel will be accessed through two newly completed 40m deep shafts whichprovide ore haulage and ventilation. New electric winders will be installed in the second week of December. Thesehave been under development during the last 6 months specifically for the Co-Oand associated operations. On completion of the 3W shaft, a new 2 compartment shaft will commence from the3150m level adjacent to the bottom of the 3W shaft to access the 2950m level anddeeper sections of the mine. Co-O MINE DEEPS DRILLING Philsaga has also advised that a new drilling rig has arrived on site at theCo-O Mine and is currently being commissioned ready to commence drilling theCo-O Mine deeps, initially on the east side of the Oriental Fault. Drilling willbe systematically undertaken westwards towards the Tinago Shaft area at thewestern end of the mine and will aim to intersect where possible (subject totopographic and other constraints) the vein system at approximately the 2950mlevel which is 100m below the current bottom of the mine (or 200m below aditlevel*). * Note that the mine adit level is at 150m above sea level and that a nominal3000m is added (hence 3150m level) to avoid negative levels as the mine depthincreases. Geoffrey Davis, Managing Director of Medusa, commented: "We continue to make steady progress towards increasing production significantlyand we remain on schedule to meet our target of producing 100,000 ozs of gold bythe end of 2007- early 2008. "We have the funds in place to capitalise on the outstanding quality of the goldprojects within the tenements that we have acquired and a number of porphyrycopper-gold targets have been identified for drilling in 2007. We believe thatthey have the potential to enhance our resource/reserves substantially, and wewill provide updates on progress as appropriate". For further information, please contact: Medusa Mining Ltd +618 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:
MML.L