4 June 2008
MEDUSA MINING LIMITED
(AIM: MML)
Co-O VEIN SYSTEM DRILLING UPDATE
Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
advises the latest results from the on-going diamond drilling at the
Co-O Gold Mine. This report summarises the drilling since the last
report of 7 April 2008. The drilling continues to extend the known
vein system which is now drilled over approximately 1,000 metres
along strike and with indications that it is up to approximately 300
metres wide across strike.
New significant intersections include:
Hole Number Intercepts Grade
(metres) (g/t gold)
MD 68 3.10 15.37
MD 72 3.00 18.94
15.90 32.85
MD 77 1.75 22.53
MD 80 10.20 13.53
The drill programme is continuing with four surface rigs and two
underground rigs operational.
Discussion
Figure 1 shows the location of the Co-O Mine and Figure 2 shows all
the diamond drill holes holes from MD 46 upwards drilled and in
progress around the Co-O Mine. These are the holes that will be
added into the next resource estimation. Figure 3 shows the updated
three dimensional model of the vein system including the newly
discovered Catto West Veins whilst Figure 4 shows the conceptual
model for the Co-O vein system in comparison to the Diwalwal Mine.
Please see the link at the end of this announcement for these images.
Drilling has continued to define veins to the west of the Agsao River
but has been discontinued to the east for the time being. The
drilling is designed to extend the West Catto and other veins to the
west as this is where the current mining infrastructure is situated.
Hole MD 66 was abandoned due to bad ground conditions and MD 76 was
abandoned at 104.10 metres due to severe hole deflection.
Low Angle Veins and Siter Hole for the Hill View Shaft
The previously reported wide intercept in MD 61 (14.60 metres at 5.29
g/t gold) has now been intersected by development on the 3050 metre
level (100 metres below adit level) and found to be a second low
angle vein approximately 2 metres wide, named the Godfrey Vein, (in
addition to the previously reported low angle vein associated with
the Catto West Veins on the 3050 metre level). Development is now
underway to the east and west on this vein where the initial bulk
development grades returned well above the drill hole intersection
grade.
Hole MD 74 was drilled as a siter hole for the Hill View Shaft. It
encounted poor ground conditions in the upper levels resulting in the
loss of 280 metres of PQ sized casing (which will now be used as a
compressed air line into the western end of the mine). As a result,
a new position for the Hill View Shaft will be chosen once additional
drilling has been completed and suitable ground conditions have been
delineated.
This hole intersected three low angle veins, including the
intersection listed in Table I of 1.05 metres at 7.53 g/t gold,
located approximately 15 metres below the 3100 metre level.
Development is underway to intersect this vein. Two other
intersections of between 1 and 3 g/t gold in low angle veins were
made at 301 metres and 476 metres vertical depth which demonstrates
that other low angle veins are present in the Co-O system.
Deepest intersection
The end of hole MD 68 passed below the 400 metres below (at 2750
metre level) adit level (at 3150 metre level) and intersected the top
of a new vein (3.10 metres at 15.37g/t gold from 612.30 metres
downhole) approximately 60 metres to the north of the Central Vein.
Other shallower holes along strike appear to confirm that this is
the top of a new vein.
Drill results
Table I lists the surface diamond drilling results greater than 3 g/t
gold from the Co-O Mine for drill holes MD 46 to MD 80. Previous
announcements on the Co-O drilling on 9 July, 15 May and 28 February
2007 contain information regarding drilling and surveying techniques,
comments on vein interpretation and methodologies and assaying
protocols.
Table I. Drill hole results > 3 g/t gold for holes MD 46 to 80.
+--------------------------------------------------------------------------------+
|Hole |East |North |Dip|Azimuth|From |Width |Grade |
| | | |(º)|(º) |(metres)|(metres)|(uncut) |
| | | | | | | |(g/t gold)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|EAST | | | | | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD46 |614,047|912,472|-48|41 | 489.30| 0.85| 8.51|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 501.40| 0.40| 4.50|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 542.90| 1.40| 20.62|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD48 |614,257|912,704|-60|253 | 212.45| 1.95| 22.02|
|(Agsao Shaft pilot | | | | | | | |
|hole) | | | | | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD49 |614,129|912,487|-50|40 | 449.85| 2.05| 6.61|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 463.90| 1.00| 4.24|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD55 |614,134|912,495|-45|35 | 361.60| 3.45| 12.48|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 421.20| 0.70| 12.23|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 486.25| 0.70| 3.89|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD64 |614,175|912,505|-45|41 | 405.80| 1.00| 3.19|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD67 |614,173|912,504|-52|43 | 278.00| 0.80| 7.20|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 398.30| 1.30| 6.55|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD71 |614,360|912,502|-55|11 | 574.40| 1.15| 7.81|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|WEST | | | | | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD47 |613,805|912,788|-55|30 | 153.30| 1.10| 7.01|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD51 |613,749|912,798|-53|17 | 130.50| 1.30| 6.50|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 155.75| 0.25| 41.06|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD52 |613,754|912,816|-50|14 | 75.25| 0.55| 3.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 157.60| 0.30| 5.31|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 170.40| 0.30| 14.93|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD54 |613,830|912,745|-47|29 | 174.00| 1.80| 14.59|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD56 |613,809|912,706|-54|29 | 390.85| 1.00| 3.11|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD57 |613,739|912,767|-54|16 | 152.55| 0.45| 39.64|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 191.90| 3.45| 26.26|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 194.80| 0.40| 18.47|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD58 |613,739|912,767|-58|16 | 176.10| 0.40| 43.46|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 207.00| 0.70| 7.45|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 280.40| 0.90| 6.18|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD61 |613,662|912,804|-47|347 | 249.10| 14.60| 5.29|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 308.20| 1.45| 12.64|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD62 |613,723|912,767|-56|2 | 184.65| 2.10| 9.07|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 238.55| 0.60| 3.28(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD65 |613,663|912,802| | | 115.60| 0.65| 25.42|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 153.05| 2.75| 8.80|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD68 |613,723|912,766|-57|344 | 370.40| 3.40| 6.07|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 612.30| 3.10| 15.37|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD72 |613,607|912,785|-54|347 | 56.50| 1.35| 18.29|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 146.60| 4.30| 15.20(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 169.50| 3.00| 18.94|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 188.90| 34.70| 16.70|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | |Incl | 188.90| 15.90| 32.85|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | |Incl | 209.80| 2.65| 7.17|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | |Incl | 217.90| 3.90| 4.11|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD74 Hill View Shaft |613,747|912,843|-90|0 | 217.95| 1.20| 29.04|
|Siter hole | | | | | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 229.65| 1.05| 7.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 476.90| 0.35| 3.00|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD75 |613,735|912,727|-54|135 | 181.00| 0.20| 6.48|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 240.75| 0.90| 8.71|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD77 |613,734|912,727|-54|358 | 92.35| 0.60| 13.81|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 212.45| 0.45| 6.01|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 214.50| 0.60| 10.52|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 220.55| 0.45| 5.18|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 230.40| 1.75| 22.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 237.65| 1.40| 5.60|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 247.65| 1.20| 5.66|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 313.00| 0.90| 5.76|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD78 |613,568|912,747|-50|347 | 258.20| 1.20| 4.97(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD79 (in progress) |613,534|912,696|-47|336 | | | |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD80 (in progress) |614,294|912,937|-60|206 | 271.30| 10.20| 13.53(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 277.50| 1.00| 8.33|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
| | | | | | 298.05| 0.65| 3.73|
+--------------------------------------------------------------------------------+
Notes:
(i) (*) denotes Philsaga assays;
(ii) Independent laboratory McPhar assays are quoted in
preference to Philsaga assays;
(iii) Grid coordinates based on the Philippine Reference
System 92;
(iv) Intersection lower cut-off grade is 3 g/t gold in line
with current resource estimation parameters;
(v) Some previously reported intersection widths and grades
may have changed as a result of check assaying by McPhar.
Geoff Davis, Managing Director commented:
"These results confirm the presence of additional veins, with some
holes showing excellent grades. The ongoing drilling will better
define these and, we believe, further extend the system westward."
Information in this report relating to Exploration Results is based
on information compiled by Mr Geoff Davis, who is a member of The
Australian Institute of Geoscientists. Mr Davis is the Managing
Director of Medusa Mining Limited and has sufficient experience which
is relevant to the style of mineralisation and type of deposits under
consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the
"Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Davis consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
For further information, please contact:
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
Fairfax I.S. PLC +44 (0)20 7598 5368
Nominated Adviser / Joint Broker
Ewan Leggat
Mirabaud Securities Limited +44 (0)20 7321 2508
Joint Broker
Peter Krens
Bankside Consultants +44 (0)20 7367 8888
Michael Padley / Louise Davis
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