MEDUSA MINING LIMITED
ABN: 60 099 377 849
Unit 7, 11 Preston Street
Como WA 6152
PO Box 860
Canning Bridge WA 6153
Telephone: +618-9367 0601
Facsimile: +618-9367 0602
Email: admin@medusamining.com.au
Internet: www.medusamining.com.au
KAMARANGAN COPPER PROJECT UPDATE
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation, advises
that ten scout drill holes totalling 5,423 metres have been completed
over part of the large Kamarangan aeromagnetic anomaly with
outcropping copper-gold mineralised magnetite skarn rocks. The
anomaly is approximately ten kilometres in diameter.
The drilling has located the western edge of a buried "fertile"
diorite intrusive containing primary copper (+ molybdenum)
mineralisation which is open to the east. The diorite is located on
the eastern side of the prospect. Near the centre of the prospect, an
elliptical deep seated magnetic anomaly has been tentatively
interpreted as a possible "pencil" porphyry-style target which may be
responsible for some of the skarn hosted mineralisation in this area.
Geoff Davis, Managing Director of Medusa, commented:
"These initial results for copper, gold and molybdenum are very
encouraging and confirm that the previously identified regional-scale
features may be linked to a potentially major mineralised porphyry
system. Further drilling will be conducted to follow-up these strong
indications. The first two holes drilled last summer reported 11
metres at 0.50 g/t gold and 0.66% copper and 29 metres at 0.15%
copper with 3.2 metres at 1.49g/t gold and, 0.52% copper whilst
highlights from the more recent drilling include 16 metres at 0.43g/t
gold and 0.59% copper, 24 metres at 0.64g/t gold and 0.12% copper and
2 metres at 7.21g/t gold."
BACKGROUND
The Tambis project is operated under a Mining Agreement with Philex
Gold Philippines Inc. over MPSA application APSA-000022-XIII which
covers 6,262 hectares. Permits allowing drilling were received in
June 2008.
Figure 1 shows the location of the Kamarangan prospect in the
Tambis-Barobo region. (please see the link at the end of this
announcement). Figure 2 shows the geological interpretation and the
drill hole locations. (please see the link at the end of this
announcement).
Detailed descriptions of previous work are contained in the
announcements of 29 February 2008, 11 June 2008 and 14 August 2008.
GEOLOGICAL SETTING
The Kamarangan prospect is centrally located in a large aeromagnetic
anomaly approximately ten kilometres in diameter.
The area is underlain by a steeply dipping, well-banded calcareous
sequence that appears to be at least 1,600 metres wide. The
calcareous sequence has been intruded by a complex of fine to
coarser-grained diorites and some andesite bodies. The intrusives
have changed the calcareous rocks to skarn rocks over an approximate
area of 1,600 metres by 1,400 metres. The skarn area is open to the
east under the younger overlying limestone. The surface geology
outcrops are limited mainly to magnetite-rich horizons with secondary
hematite.
Some of the skarn rocks may contain variable amounts of garnet,
diopside, epidote and pyrite. Areas of siliceous hornfels and
unaltered massive limestone were also intersected in the drilling.
DISCUSSION
Table I contains a summary of significant results.
The intersection of a "fertile" diorite and other vectors from the
drilling indicate a possible porphyry copper source to the
east-northeast of the drilling conducted to date based on:
(i) Copper and gold values in dioritic rocks tend to be
higher in holes KAM 1 and 2, and while visible copper minerals are
present in KAM 4 although at a lower level than in KAM 1 and 2;
(ii) Molybdenum mineralisation is visible in KAM 1 to a
maximum value of 244 ppm and averages 37 ppm over the last 74 metres
of the hole from 357.70 metres depth;
(iii) Molybdenum mineralisation is visible in KAM 2 to a
maximum value of 138ppm and averages 41 ppm over the last 46 metres
of the hole from 405 metres depth. Other less coherent zones are
present higher up in the hole.
(iv) Skarn hosted gold with minor copper mineralisation is
strongest in KAM 7 in the northeast of the drilled area, suggesting
this hole is close to a mineralisation source.
The well mineralised magnetite skarn in KAM 1 (26 to 42.3 metres) and
in KAM 2 (40 to 44.2 metres) and the wide skarn style mineralisation
in KAM 7 (0 to 19.5 metres, 211.1 to 267.1 metres and 410.8 to 426.8
metres) could also be interpreted to be a halo above and around the
250 by 130 metres elongate deep magnetic anomaly shown on Figure 2.
This anomaly could possibly be interpreted as a pencil porphyry style
target.
Drill hole magnetite-rich samples will be submitted for estimation of
the magnetite contents and preliminary metallurgical testing if
further assessments regarding the prospect's magnetite potential are
positive.
Further assessment will continue including additional field work.
Table I. Summary of significant drill hole results (KAM 6 -
abandoned, KAM 9 - no significant results)
+-------------------------------------------------------------------------------------------------+
|Hole | East | North |Azimuth|Dip | From | Width |Gold |Copper|Lithology |
| | | | (°) | (°) |(metres)|(metres)|(g/t)| (%) | |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 1 |612304| 942837 | 90 | -60 | 26.00| 16.30| 0.43| 0.59|Magnetite skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | |including| | | 29.00| 4.30| 1.21| 1.44|Magnetite skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 147.90| 11.80| 0.03| 0.10|Hornfels |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 173.70| 14.00| 0.06| 0.16|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 457.70| 30.00| 0.05| 0.15|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 495.70| 22.00| 0.03| 0.11|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | | | | |Diorite with |
|KAM 2 |612307| 942736 | 90 | -60 | 2.00| 49.20| 0.16| 0.16|magnetite lense |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | |including| | | 40.00| 4.20| 1.17| 0.43|Magnetite skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 210.00| 12.00| 0.03| 0.14|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 282.00| 18.00| 0.06| 0.11|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 3 |612304| 942837 | 270 | -60 | 239.90| 10.60| 0.17| 0.13|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 4 |612305| 942597 | 87 | -60 | 31.00| 10.00| 0.06| 0.14|Andesite porphyry |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 110.00| 14.00| 0.07| 0.20|Andesite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 5 |611936| 942847 | 110 | -90 | 360.75| 11.00| 0.11| 0.02|Andesite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 7 |612215| 943161 | 90 | -50 | 0| 19.50| 0.12| 0.01|Calcareous sediments |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 157.10| 16.00| 0.18| 0.09|Skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | | | | |Skarn with magnetite 239.10 |
| | | | | | 211.10| 56.00| 0.26| 0.09|- 241.10 |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | | | | |Skarn with magnetite 410.80 |
| | | | | | 410.80| 16.00| 0.22| 0.27|- 418.80 |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 446.85| 24.00| 0.64| 0.12|Skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | |including| | | 452.85| 2.00| 7.21| 0.01|Skarn |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 8 |612308| 942561 | 273 | -58 | 50.00| 18.00| 0.17| 0.06|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
|KAM 10|611724| 942581 | 156 | -50 | 132.15| 13.05| 0.09| 0.01|Diorite |
|------+------+---------+-------+-----+--------+--------+-----+------+----------------------------|
| | | | | | 397.50| 10.30| 0.13| 0.24|Andesite |
+-------------------------------------------------------------------------------------------------+
Notes:
(i) Assaying by McPhar Geoservices Phils Inc. Au by fire assay
with AAS finish; Ag, Cu, Pb, Zn and Mo by AAS; and
(ii) Magnetite contents not yet determined
(iii) Grid co-ordinates based on the Philippine Reference System
92
CORPORATE
The Company's Philippines subsidiary company, Mindanao Mineral
Processing and Refining Corporation has received notification that it
has been granted a four year tax concession.
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
Lothbury Financial +44 (0)20 7011 9411
Michael Padley/Libby Moss
CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
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.
---END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
