Saugon Drilling Commencing
April 20 2010 - 2:01AM
UK Regulatory
TIDMMML
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 <mailto:admin@medusamining.com.au>
Internet: www.medusamining.com.au <http://www.medusamining.com.au/>
ANNOUNCEMENT
20 April 2010
SAUGON DRILLING COMMENCING
Medusa Mining Limited (ASX and AIM - MML; TSX - MLL) ("Medusa" or the "Company")
through its Philippines operating company Philsaga Mining Corporation
("Philsaga"), advises that drilling will commence during May at the Saugon First
Hit Vein Prospect. This project was last drilled by the Company in 2004.
Selected previous intersections are listed below:
Highlights include:
+-------------+------------+------------+
| Hole Number | Intercepts | Grade |
| | (metres) | (g/t gold) |
+-------------+------------+------------+
| SDDH 2B | 1.00 | 35.75 |
+-------------+------------+------------+
| SDDH 27 | 1.00 | 16.30 |
| +------------+------------+
| | 5.95 | 9.63 |
+-------------+------------+------------+
| SDDH 28 | 2.05 | 20.54 |
+-------------+------------+------------+
| SDDH 29 | 0.90 | 15.32 |
+-------------+------------+------------+
Geoff Davis, Managing Director of Medusa, commented:
"Drilling in 2004 reported some tantalising results at Saugon. The high grade
gold mineralisation is poly-metallic with some high silver and copper-lead-zinc
values hosted by high-level, high energy epithermal quartz breccias and veins.
The association of the veins and breccias with a large north-east-trending
aeromagnetic demagnetised zone in combination with widespread surface alteration
suggests that this mineralisation may be associated with a porphyry copper
system laterally or at depth".
FIRST HIT VEIN
Discussion
Figure 1 (please see the link at the end of this announcement) shows the
regional geology, location of the First Hit Vein, and the Paradise and Mabas
Prospects. The First Hit drill hole locations are also shown. Figure 2 (please
see the link at the end of this announcement) shows the longitudinal projection
of the First Hit drill hole intersections.
Work in 2004 involved drilling of the First Hit Vein in conjunction with
underground development via a 30 metre deep inclined winze down the vein-breccia
to assist in understanding the mineralisation. By chance, the winze was sunk at
a contact between well banded and high grade vein on the north wall and
polylithic hydrothermal quartz breccias on the south wall containing fragments
of various different vein and silica types, and with lower grade gold values.
The drilling has indicated three zones of mineralisation as being partly
developed as footwall and hanging wall zones and a well developed central zone
(First Hit Vein) which has the highest grades and a more prominent
silver-polymetallic association.
The First Hit Vein in the drilling mainly consists of brecciated vein material,
generally with good gold grades, but somewhat erratic due possibly to the nature
of the material. Some intersections, such as in SDDH 2B, consist of brecciated
massive sulphide material including fragments of chalcopyrite and
galena-sphalerite. Sphalerite-rich breccias patches were encountered at the
south side of the bottom of the winze. The base metal breccia fragments suggest
that they may be derived from a source at depth with the breccia zone appearing
to be shoot-like with a northeast plunge.
Regional Setting
Subsequent to the drilling in 2004, an aeromagnetic survey was completed which
showed the First Hit Vein set are on the northern edge of a large,
northeast-trending demagnetised zone over 2,000 metres wide and approximately
8,000 metres long, part of which is shown on Figure 1(please see the link at the
end of this announcement). A number of features within this zone were
interpreted to be suggestive of intrusive bodies, possibly porphyry
copper-related. Field work has established that outcropping areas of the
northern side of this zone show intense clay-pyrite alteration, which is
presumed to extend across the bulk of the zone under cover to the south.
Sections of the demagnetised zone are covered by younger sediments, some grits
and shales at the base and capped by white, semi-massive to massive limestone.
This appears to be a remnant of the same younger sequence that occurs elsewhere
to the north in the Company's tenements.
Drilling
Drilling is re-commencing at the First Hit Vein, and also at additional targets
that have been outlined by recent field work. As the drill holes were not
downhole surveyed in the early drilling, some holes will be repeated to
establish the geometry of the mineralised system before step-out drilling is
undertaken. Two rigs will be involved in the programme which will be
results-driven over the next 4 to 6 months.
Table I. First Hit Vein drill hole results >3 g/t gold and >0.2 metres downhole
+------+------+------+----+-------+--------+--------+-----------------------------+
|Hole | East |North |Dip |Azimuth| From | Width | Grade (uncut) |
|number| | | ( °)| ( °) |(metres)|(metres)|(g/t gold, g/t Ag, % Cu, %Pb,|
| | | | | | | | %Zn) |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |616944|899267|-55 | 316 | 108.50| 1.00|35.75, 544, 0.38, 1.88, 1..62|
|2B | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH 4|616912|899318|-59 | 290 | 89.50| 0.20|9.76, 142, 0.30, 1.18, 0.40 |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH 5|616964|899344|-54 | 345 | 71.80| 0.95|3.26, 32, 0.20, 0.20, 0.61 |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH 9|616979|899250|-67 | 319 | 176.20| 0.20|4.97, 78, 0.74, 1.51, 1.54 |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |616921|899334|-73 | 300 | 60.80| 1.00|16.30, 244, 1.32, 2.65, 4.97 |
|27 | | | | | | | |
| | | | | +--------+--------+-----------------------------+
| | | | | | 71.05| 5.95|9.63, not assayed |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |616922|899307|-70 | 300 | 89.95| 2.05|20.54, not assayed |
|28 | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |616961|899315|-72 | 300 | 112.25| 0.90|15.32, not assayed |
|29 | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |616922|899254|-75 | 315 | 174.25| 0.75|3.94, not assayed |
|31 | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |617033|899279|-65 | 310 | 173.80| 0.40|6.87, not assayed |
|34 | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
|SDDH |617000|899305|-65 | 310 | 128.20| 0.85|5.05, not assayed |
|35 | | | | | | | |
+------+------+------+----+-------+--------+--------+-----------------------------+
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) All assays are by McPhar Geoservices Inc laboratory in Manila;
(iii) Grid coordinates based on the Philippine Reference System 92;
(iv) The drill holes have not been downhole surveyed.
OTHER PROSPECTS
Paradise Prospect
Holes SDDH 19 and 22 were drilled at the Pardise Prospect which consists of an
outcropping silica-barite cap with anomalous gold values. Drilling encountered a
1.60 metre wide barite vein containing 0.89 g/t gold. Extensive clay-pyrite
alteration of volcanics was uncovered in road cuttings to the south and
northeast of the silica outcrops.
Mabas Prospect
Holes SDDH 15,16,18,20, 21, 23 and 24 were drilled at the Mabas Prospect where
there were some existing workings. The best drillhole intersection below the
workings was 1 metre at 5.64 g/t gold in SDDH 24. The workings were re-opened
and developed. The mineralisation consisted of generally black chalcedonic
silica with some lead-zinc mineralisation and gold values in the 6 to 8 g/t
range. The silica appeared to be confined to a lens or boudin within the Mabas
Shear zone.
Mabas South Prospect
The Mabas South Prospect has been discovered by recent field work, and whilst a
narrow vein at <0.5 metres wide, has consistently returned gold values around
10 g/t gold in most samples. This vein will be drilled.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Samples were taken from mainly HQ sized (hole outside diameter 96 mm, hole
inside diameter 63.5mm) and some NQ sized (hole outside diameter 75.8 mm, hold
inside diameter 47.6 mm) drill core. The selected sample intervals were halved
by diamond saw and half the core was bagged, numbered and sent to the Company
laboratory. In a small number of cases to confirm the geological logging, the
selected interval was re-split and Å? core re-submitted for assay at the
laboratory of McPhar Geoservices Inc. ("McPhar"), a NATA and ISO 9001/2000
accredited laboratory in Manila.
The gold assaying used fire assay on a 30 gram sample with an Atomic Absorption
Spectrometry ("AAS") finish. A selected number of samples were checked using
gravimetric fire assay techniques. Duplicate samples and standards will be
included in each batch of check samples.
Copper, lead, zinc and silver assaying were conducted by AAS in the latter
stages following a concentrated acid leach on a 1 gram sample.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
United Kingdom
Fairfax I.S. PLC +44 (0)20 7598 5368
Nominated Adviser and Broker
Ewan Leggat/Laura Littley
Lothbury Financial Services Limited +44 (0)20 7868 2567
Michael Padley/Libby Moss
Canada
Nicholas Sayce, Investor Relations +1 416 822 4404
Information in this report relating to Exploration Results has been reviewed and
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" and is a "Qualified Person" as
defined in "National Instrument 43-101" of the Canadian Securities
Administrators. 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.
Refer to the Technical Report which was filed onwww.sedar.com
<http://www.sedar.com/> in March 2010 for further discussion of the Co-O
Deposit's geology, structural controls, drilling, sampling and assaying
information, and any known material environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issue.
ABOUT MEDUSA MINING LIMITED
Medusa Mining Limited ("Medusa" or the "Company"), a public company listed on
the ASX, AIM and the TSX, is an Australian based gold producer, focussed solely
on the Philippines.
With current mineral resources comprising indicated 580,000 ounces of gold and
inferred 1,310,000 ounces of gold, Medusa's corporate strategy is to become a
mid-tier, 300,000 to 400,000 ounce per year, low-cost gold producer.
The Company is currently expanding its high grade Co-O Mine operations
(indicated resources 580,000 ounces of gold inclusive of a probable reserve of
500,000 ounces of gold, and inferred resources 660,000 ounces of gold) to
increase its forecast production to 100,000 ounces per year in 2010, and is
conducting near mine exploration to assess the possibilities of further
expansion to 200,000 ounces per year. Current cash costs at the Co-O Mine are
approximately US$190 per ounce.
A pipe-line of deposits is now being established with the Bananghilig Deposit
(inferred resource of 650,000 ounces of gold) recently added and which is
expected to expand, potentially in conjunction with nearby discoveries.
Further potential upside exists in the discovery of substantial copper deposits
within the tenement holding of more than 800 km2.
DISCLAIMER
This announcement may contain certain forward-looking statements. The words
'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely',
'intend', 'should', 'could', 'may', 'target', 'plan' and other similar
expressions are intended to identify forward-looking statements. Indications of,
and guidance on, future earnings and financial position and performance are also
forward-looking statements.
Such forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors, many of which
are beyond the control of Medusa, and its officers, employees, agents and
associates, that may cause actual results to differ materially from those
expressed or implied in such statements.
Actual results, performance or outcomes may differ materially from any
projections and forward-looking statements and the assumptions on which those
assumptions are based.
You should not place undue reliance on forward-looking statements and neither
Medusa nor any of its directors, employees, servants or agents assume any
obligation to update such information.
[HUG#1405423]
Saugon Drilling Commences Images: http://hugin.info/138050/R/1405423/359216.pdf
Medusa (LSE:MML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Medusa (LSE:MML)
Historical Stock Chart
From Jul 2023 to Jul 2024
