Co-O Mine Drilling Update

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 22 June 2009 Co-O MINE DRILLING UPDATE Medusa Mining Limited ("Medusa" or the "Company"), through its Philippines operating company Philsaga Mining Corporation ("Philsaga"), announces an update of drilling results for holes MD 114 to MD 165 from the Co-O Mine subsequent to the announcement of 1 December 2008. High grade extensions have been intersected to the east of the Co-O Mine extending the vein system to around 1,400 metres long. These results will be incorporated into a new resource estimate due in July 2009. Highlights include: +---------------------------------------+ | Hole Number | Intercepts | Grade | | | (metres) | (g/t gold) | |-------------+------------+------------| | MD 125 | 1.15 | 167.63 | |-------------+------------+------------| | MD 126 | 1.50 | 140.52 | |-------------+------------+------------| | MD 130 | 1.30 | 33.86 * | |-------------+------------+------------| | MD 132 | 0.95 | 52.18 | |-------------+------------+------------| | MD 133 | 1.00 | 40.94 | |-------------+------------+------------| | MD 134 | 2.60 | 56.08 * | |-------------+------------+------------| | MD 138 | 1.05 | 26.93 | |-------------+------------+------------| | MD 139 | 1.50 | 19.08 * | |-------------+------------+------------| | MD 146 | 0.50 | 100.27 * | |-------------+------------+------------| | MD 148 | 1.65 | 32.73 | |-------------+------------+------------| | MD 153 | 2.30 | 12.13 * | |-------------+------------+------------| | MD 156 | 2.85 | 19.63 * | |-------------+------------+------------| | MD 158 | 3.05 | 18.76 | +---------------------------------------+ * Intersection east of Agsao River Discussion Figure 1 (please see the link at the end of this announcement) shows all the diamond drill holes from MD 114 to MD 165 totalling 28,985 metres which have been completed around the Co-O Mine since 1 December 2008. The recent programme has concentrated on infill and extensional (up and down dip, and laterally) drilling within the current resource model which allows us to firm up the model. In addition, extensional drilling to the east of the Agsao River for continuation of the veins has commenced and is providing good initial results. The drilling east of the Agsao River has been deep to date to ensure intersections are achieved and to demonstrate that the veins are present. Shallower drilling will also be conducted to ascertain the top of the mineralisation. Drill results Table I lists the surface diamond drilling results greater than 3 g/t gold from the Co-O Mine for drill holes from MD 114 to MD 165. These drill hole results are the accepted results that will be incorporated into the new resource estimate due in July 2009. Other reports containing intersections for holes numbered below MD 114 in 2008 are dated 1 December and 11 August 2008. In 2007 the announcements are dated 9 July, 15 May and 28 February. The 2007 announcements also contain information regarding drilling and surveying techniques, comments on vein interpretation and methodologies and assaying protocols. Results down to 0.2 metres wide are reported as underground development shows that in many cases as veins approach cross-cutting faults, they narrow down on both sides of the fault over 5 to 10 metres before widening out, and hence the narrower intersections are important in defining the vein continuity. Most drilling is sub-parallel to the fault direction and rarely intersects the faults, which are subsequently identified by underground on-vein development. Table I. Drill hole results >3 g/t gold and >0.2 metres downhole for holes MD 114 to MD 165. +-------------------------------------------------------------------------+ | | | | | | | | Grade | |Hole | East | North | Dip | Azimuth | From | Width | (uncut) | | | | | (*) | (*) | (metres) | (metres) | (g/t | | | | | | | | | gold) | |-------+--------+--------+-----+---------+----------+----------+---------| |EAST of| | | | | | | | |AGSAO | | | | | | | | |-------+--------+--------+-----+---------+----------+----------+---------| |MD 127 | 614352| 912938| -45| 160| 243.45| 0.30| 26.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 362.70| 1.00| 25.14| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 448.10| 0.65| 5.23| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 130 | 614426| 912939| -57| 157| 332.60| 0.60| 4.07| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 422.70| 0.75| 6.03| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 587.45| 0.25| 7.53| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 597.90| 1.30| 33.86| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 604.70| 0.70| 9.23| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 134 | 614450| 912991| -60| 159| 442.30| 2.60| 56.08| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 620.00| 1.00| 3.27| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 636.00| 1.75| 5.00| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 725.05| 0.25| 14.87| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 139 | 614426| 912941| -60| 185| 225.95| 0.30| 8.92| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 355.40| 1.30| 5.18| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 382.40| 1.50| 19.08| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 386.35| 0.30| 6.12| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 399.75| 0.50| 8.83| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 487.30| 0.25| 44.67| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 145 | 614351| 912939| -62| 159| 204.55| 0.25| 3.38| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 208.90| 0.45| 18.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 325.75| 0.65| 4.61| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 593.45| 0.30| 22.40| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 609.65| 0.20| 4.60| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 146 | 614432| 912959| -58| 158| 328.35| 0.50| 100.27| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 153 | 614450| 912994| -64| 159| 338.35| 0.20| 14.61| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 380.70| 0.25| 105.02| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 388.40| 0.20| 14.20| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 403.80| 0.35| 54.89| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 478.05| 2.30| 12.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 500.90| 1.00| 3.77| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 635.75| 0.2| 3.60| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 668.60| 1.35| 3.77| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 775.40| 1.00| 3.36| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 156 | 614512| 912991| -60| 158| 678.95| 2.85| 19.63| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 163 | 614351| 912939| -45| 165| 325.15| 0.85| 5.37| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 303.50| 0.35| 5.37| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 498.45| 1.95| 4.11| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 165 | 614627| 912956| -59| 166| 514.20| 2.30| 3.04| |-------+--------+--------+-----+---------+----------+----------+---------| |WEST of| | | | | | | | |AGSAO | | | | | | | | |-------+--------+--------+-----+---------+----------+----------+---------| |MD 115 | 613935| 913000| -77| 190| 51.20| 0.60| 4.05| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 141.85| 0.35| 7.19| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 194.30| 0.30| 14.93| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 198.40| 1.40| 3.82| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 283.35| 0.50| 3.84| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 332.35| 0.80| 3.06| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 347.35| 4.85| 3.91| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 509.40| 0.40| 3.03| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 116 | 613238| 912894| -50| 158| 137.60| 0.25| 27.93| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 118 | 613844| 912883| -69| 180| 242.20| 0.70| 14.70| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 321.40| 1.00| 3.09| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 119 | 613239| 912901| -67| 163| 171.40| 1.70| 10.34| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 120 | 614127| 912738| | | 246.90| 1.30| 16.54| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 121 | 613935| 913001| -73| 193| 76.00| 0.20| 4.43| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 95.65| 0.75| 13.53| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 161.80| 1.50| 3.13| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 124 | 613386| 912864| -79| 180| 136.50| 1.60| 16.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 198.75| 0.25| 9.87| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 294.80| 0.20| 3.09| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 125 | 613766| 912844| -77| 180| 69.35| 0.20| 6.61| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 169.70| 0.20| 3.72| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 232.95| 0.30| 6.60| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 267.60| 1.20| 7.95| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 452.95| 1.15| 167.63| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 126 | 614116| 912750| -72| 159| 253.60| 1.50| 140.52| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 348.95| 0.70| 3.02| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 129 | 614091| 912783| -63| 205| 238.55| 0.25| 3.44| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 131 | 613720| 912874| -72| 180| 239.10| 2.35| 6.23| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 287.80| 0.70| 5.12| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 336.65| 0.35| 4.23| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 341.70| 1.75| 11.35| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 346.10| 1.50| 7.72| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 355.80| 0.65| 3.07| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 445.60| 4.50| 7.50| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 132 | 613403| 912867| -52| 150| 116.05| 0.30| 55.97| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 188.50| 0.20| 26.87| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 206.10| 0.95| 52.18| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 208.30| 2.50| 9.55| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 133 | 613532| 912849| -77| 196| 68.35| 1.00| 40.94| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 132.55| 0.35| 51.29| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 223.20| 0.20| 8.17| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 232.95| 2.45| 4.37| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 274.70| 0.50| 11.02| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 290.10| 1.60| 5.38| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 294.85| 1.25| 3.92| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 299.45| 0.20| 11.96| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 301.00| 0.25| 6.59| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 306.10| 0.25| 4.60| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 347.05| 0.20| 17.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 440.10| 0.20| 5.41| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 135 | 613904| 912923| -68| 203| 124.45| 3.55| 4.36| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 377.10| 1.45| 3.92| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 386.85| 0.20| 8.67| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 418.75| 0.25| 89.12| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 466.70| 0.80| 13.03| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 137 | 613710| 912859| -81| 180| 64.15| 0.45| 3.19| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 181.70| 0.20| 12.58| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 204.80| 0.25| 81.48| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 384.00| 0.65| 4.04| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 521.10| 1.00| 8.74| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 533.70| 5.45| 4.65| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 138 | 613513| 912859| -84| 178| 59.75| 0.40| 4.44| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 73.95| 0.35| 3.47| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 80.10| 0.25| 23.50| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 90.65| 0.20| 30.13| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 163.35| 1.05| 26.93| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 205.35| 0.45| 16.19| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 216.20| 0.30| 7.72| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 256.10| 2.00| 4.58| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 259.75| 0.20| 8.57| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 322.50| 0.30| 4.03| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 140 | 613400| 912866| -60| 187| 114.60| 0.20| 52.90| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 121.20| 0.20| 24.51| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 122.80| 0.25| 27.94| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 203.85| 2.00| 7.00| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 141 | 613709| 912874| -74| 221| 188.50| 0.30| 7.83| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 244.40| 0.55| 16.33| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 264.20| 0.50| 10.93| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 275.95| 0.40| 3.37| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 286.80| 0.60| 12.83| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 298.80| 0.20| 19.40| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 500.50| 1.00| 19.13| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 148 | 613400| 912867| -75| 187| 69.65| 0.30| 8.17| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 120.10| 0.45| 14.70| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 132.45| 0.25| 37.30| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 192.05| 0.20| 11.87| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 234..90| 1.65| 32.73| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 152 | 613422| 912801| -69| 190| 123.90| 1.25| 9.28| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 131.00| 0.80| 40.22| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 154 | 613875| 912807| -55| 190| 124.80| 0.70| 17.63| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 155 | 614281| 912742| -57| 206| 445.60| 1.00| 3.15| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 157 | 613286| 912952| -73| 197| 168.90| 0.40| 3.56| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 158 | 613587| 912873| -84| 180| 99.60| 2.50| 8.18| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 127.50| 0.40| 14.83| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 209.00| 1.15| 31.63| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 238.75| 3.05| 18.76| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 285.20| 1.80| 12.31| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 288.10| 1.00| 3.51| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 159 | 613788| 913252| -45| 190| 190.55| 0.45| 3.57| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 197.65| 0.70| 4.47| |-------+--------+--------+-----+---------+----------+----------+---------| | | | | | | 370.55| 0.55| 3.43| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 160 | 613932| 912868| -48| 165| 308.80| 0.70| 3.33| |-------+--------+--------+-----+---------+----------+----------+---------| |MD 162 | 613641| 913127| -55| 191| 156.90| 1.00| 3.23| +-------------------------------------------------------------------------+ Notes: (i) All above assays accepted for incorporation into a resource estimation; (ii) Grid coordinates based on the Philippine Reference System 92; On-going drill programme From early July, drilling with eight surface rigs will continue with three focussing on the main mine area, three on eastern extensions of the vein system, and two will start drilling other untested vein systems adjacent to the mine area. Geoff Davis, Managing Director of Medusa, commented: "These results continue to confirm the world class nature of the Co-O Deposit. At this stage they do not show any sign of weakening along strike to the east. We will continue to aggressively explore along strike to increase the opportunities for expanding the mine infrastructure. In addition, we are now moving towards exploring other vein systems in the immediate vicinity of the Co-O Mine which, if successful, will also contribute to the possibility of diversifying our sources of ore". 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.