TIDMMML
RNS Number : 5268W
Medusa Mining Limited
29 January 2013
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
29 January 2013
BANANGHILIG DEPOSIT MINERAL RESOURCE UPDATE
(ASX & LSE: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation announces
the update of the JORC compliant Mineral Resource estimation for
the Bananghilig Gold Deposit.
Following the completion of infill drilling last year (as
reported on 21 November 2012), the inferred resource reported on 28
August of 1,100,000 ounces at a grade of 1.63 g/t gold contained in
21,000,000 tonnes of ore using a lower cut-off of 0.8 g/t gold has
been re-classified using the same 0.8 g/t lower cut-off and
depleted for artisanal workings as follows:
Table I. Bananghilig Mineral Resource estimate at 16 January
2013
Category > 0.8 g/t gold
tonnes g/t gold ounces
Indicated
resources 11,900,000 1.59 608,000
Inferred resources 9,000,000 1.62 472,000
TOTAL RESOURCES 20,900,000 1.60 1,080,000
Resource estimated by Cube Consulting Pty Ltd, January 2013.
An additional 14 infill holes are commencing to convert
additional Inferred Resources to Indicated Resources.
Following completion of this second phase of infill drilling, an
updated resource estimate will be reported with the annual resource
updates in July to August 2013.
The above Indicated Resource estimate will be used for
Feasibility Studies.
Peter Hepburn-Brown, Managing Director of Medusa commented:
"The resource conversion has been very good where drilling
densities are sufficient. The conversion of Inferred Resources to
Indicated Resources is re-commencing with an additional 14 holes
planned. A new Indicated-Inferred Resource estimate will
subsequently be undertaken and published in the September quarter
of this year with the annual resource statement.
It is pleasing to note that the Company's Indicated Resources
now total 1,323,000 ounces and the Inferred Resources total
1,776,000 ounces."
Background
The Bananghilig Gold Deposit within the Tambis District is
operated under a Mining Agreement with Philex Gold Philippines Inc.
over Mineral Production Sharing Agreement ("MPSA")
MPSA-344-2010-XIII which covers 6,262 hectares.
In the 1980s and 1990s a large amount of diamond and reverse
circulation drilling totalling 29,477 metres in 344 holes was
undertaken by various explorers to investigate a large area of
known mineralisation.
From 2005 to 2007, Philsaga undertook underground exploration
through a 50 metre deep shaft and development, adits, and
underground and surface drilling totalling 7,715 metres in 31
holes.
From July 2010 to 21 November 2012, the Company has completed
258 holes for 78,873 metres of diamond drilling.
Resource estimation
A global Inferred Resource estimation for Bananghilig was
undertaken by Cube Consulting Pty Ltd of Western Australia and
announced on 28 August 2012 based on drilling results available to
31 July 2012, including a substantial amount of the 2012 infill
drilling.
A small amount of drilling was subsequently completed as
announced on 21 November 2012 which confirmed the geological and
grade model, but has not yet been incorporated into the resource
estimate.
Since October 2012, detailed surveying and plotting of artisanal
mine workings has been undertaken to facilitate an estimate for
depletion. Four areas of intense mine workings have been defined
and all Selective Mining Unit ("SMU") blocks within these volumes,
above the water table and greater than 5 g/t gold have been
depleted.
A re-classification of the 28 August 2012 resource estimate has
been completed incorporating the artisanal depletion, and has
highlighted two areas within the model requiring an additional 14
drill holes to upgrade the resource category in these areas. The 14
current new holes and the post 31 July 2012 drilling will be
incorporated into a new resource estimate for the annual resource
update in the September 2013 quarter.
The projection of the resources to surface is shown in Figure 1
(please see link at the end of this announcement) overlaying the
geology map, and a cross-section through the deposit is shown in
Figure 2 (please see link at the end of this announcement) where
each coloured dot represents a block size of 5 metres by 5 metres
by 2 metres.
Assaying for silver is incomplete and will be included in the
annual resource update in the September quarter.
As outlined in the 28 August 2012 resource announcement, the
Bananghilig Mineral Resource estimate is based on a number of
factors and assumptions, some of which are listed below:
-- All available drilling data as at 31 July 2012 was used for the Mineral Resource estimate.
-- Wireframes were generated on plan and cross sectional
interpretations based on available geology and assay data
available. A lower cut off of approximately 0.3 g/t Au was used to
define 4 mineralised envelope domains, Diatreme Breccia
Mineralisation Domains 1, 2 and 3, and Mudstone Mineralisation
Domain 2.
-- Upper cuts were applied to the 2 metre composites prior to
grade estimation. Top cuts used included 30 g/t for Domains 1 and
2, 10 g/t for Domain 3 and 5 g/t for Domain 4.
-- The bulk densities used range from 1.8 to 2.76 t/m3 depending
on the modelled lithology. A total of 2,562 bulk density
measurements have been completed.
-- The Resource has been estimated using Ordinary Block Kriging
and Uniform Conditioning ("UC"). UC is a mathematical method that
allows the discrimination of ore and waste at an assumed selective
mining unit size within an estimated panel of significantly larger
size. In theory, this provides a more correct prediction of
estimated resource grade and tonnes above a cut off than an
ordinary block kriging alone. The method draws information from the
composite data variogram model and Krige's Relationship.
-- The application of the UC technique at Bananghilig is based
on the premise that mining would be by open pit extraction. A
Selective Mining Unit ("SMU") of 5 metres by 5 metres by 2 metres
was evaluated within ordinary kriged panels Y = 25 metres; X = 25
metres and Z = 4 metres for the purposes of reporting recoverable
resources.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367
Peter Hepburn-Brown, Managing Director 0601
United Kingdom
SP Angel Corporate Finance LLP (Financial
Adviser & Broker) +44 (0)20 3463
Ewan Leggat/Laura Littley 2260
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS
Medusa Mining Limited
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 Non-Executive Chairman 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 "Australasian 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.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has
been estimated and compiled by Mark Zammit of Cube Consulting Pty
Ltd of Perth, Western Australia. Mr Zammit is a member of The
Australian Institute of Geoscientists and has sufficient experience
that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Zammit consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
DISCLAIMER
This report contains 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.
Please click on or paste in your browser the following link to
access figures:
http://www.rns-pdf.londonstockexchange.com/rns/5268W_-2013-1-28.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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