11 June 2008
MEDUSA MINING LIMITED
KAMARANGAN PERMITS GRANTED
Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
advises that permits have been granted for drilling over the
Kamarangan area, which has potential for gold, iron and copper
The potential mineralisation types are hosted by various skarns that
have been interpreted to cover an area approximately 1,200 metres by
up to 1,000 metres where alluvial gold workings are widespread. The
skarns are developed in shallowly dipping and banded limestones.
Detailed descriptions of gold, iron and copper sampling results from
21 iron-rich surface samples, which averaged 9.5g/t gold and 37.5%
iron, and which returned elevated copper values to 0.33% copper, are
contained in an announcement dated 25 February 2008.
Drilling is expected to commence within two weeks, initially in the
Dumaag area where the iron-rich samples were collected.
Geoff Davis, Managing Director of Medusa, commented:
"The Tambis-Barobo region, which includes Kamarangan, has all the
hallmarks of a mineral district that will host several different
types and styles of mineralisation.
"Drilling at Kamarangan is the start of investigating this potential
away from the known Bananghilig disseminated and vein style gold
mineralisation where work has been concentrated to date. We are very
optimistic about this prospect."
Figure 1 shows the location of the Kamarangan area in the
Tambis-Barobo region; Figure 2 shows the various geological and
geophysical features of the region and the detailed location of the
Kamarangan area; Figure 3 shows all gold assays above 1g/t gold for
all skarn types; Figure 4 shows the location of the iron assays and
Figure 5 shows copper assays above 0.05% copper for all skarn types.
Please see the link at the end of this announcement for all of these
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
Mirabaud Securities Limited +44 (0)20 7321 2508
Bankside Consultants +44 (0)20 7367 8888
Michael Padley / Louise Davis
The widespread occurrence of gold assays on Figure 3, which shows
only samples returning over 1g/t gold, indicates there may be
substantial open-pit gold targets associated with the skarns, in
particular the epidote-silica skarns and the iron-rich skarns.
Twenty one iron-rich samples that were assayed for iron also
returned an average of 9.5g/t gold.
Iron ore potential
Twenty one iron-rich, weathered surface samples were assayed for iron
(Figure 4) and averaged 37.54% iron. Only the Dumaag area of skarns
was assayed for iron, with the other outcrops appearing physically
similar at Layap Layap and Palm Oil. These other outcrops also have
returned anomalous copper and gold assays. Recent re-interpretation
of aeromagnetics using 3-dimensional inversion processing techniques
suggests that the magnetite component of the iron-rich skarns may be
The common occurrence of high background copper assays of >500ppm
(0.05% copper), as shown on Figure 5, is suggestive of a major copper
source, probably below the iron-rich skarns. It should be noted from
Figure 2 that the skarn area is situated almost central to the large
aeromagnetically defined alteration zone. The nearby outcropping
Sopon diorite intrusive to the north of Kamarangan is "fertile" as it
carries visible disseminated chalcopyrite (copper sulphide).
It is apparent that the Kamarangan area represents a major
metalliferous target for gold, iron and copper. Conceptually it is
interpreted that the mineralisation has originated from an underlying
intrusive porphyry copper body.
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.
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