TIDMMML
RNS Number : 2953B
Medusa Mining Limited
02 April 2013
2 April 2013
MEDUSA MINING LIMITED
BANANGHILIG GOLD DEPOSIT:
STERILISATION DRILLING UPDATE
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippine's operating company, Philsaga Mining Corporation,
advises that a six hole sterilisation drilling programme completed
southeast of the Bananghilig Gold Deposit to test a possible mill
site has encountered significant gold mineralisation in the same
host rocks as the adjacent Bananghilig Gold Deposit. All six drill
holes have intersected numerous zones of gold mineralisation of
>=1 g/t gold over mineable widths. The tenor of mineralisation
is, to date, similar to, if not better than, the Bananghilig
Deposit, which contains in excess of one million ounces.
Drilling highlights >15 gram-metres include:
Hole Number Width Grade
(metres) (uncut)
(g/t gold)
------------- ---------- ------------
TDH279 12.40 7.69
------------- ---------- ------------
8.00 3.16
------------- ---------- ------------
TDH280 12.70 7.00
------------- ---------- ------------
8.85 1.54
------------- ---------- ------------
TDH284 31.60 7.33
------------- ---------- ------------
13.05 2.24
------------- ---------- ------------
43.70 2.48
------------- ---------- ------------
13.30 2.20
------------- ---------- ------------
TDH285 10.85 1.87
------------- ---------- ------------
12.00 5.47
------------- ---------- ------------
TDH286 5.40 20.64
------------- ---------- ------------
Peter Hepburn-Brown, Managing Director of Medusa, commented:
"It is quite exceptional to see every drill hole of the
sterilisation progamme encounter significant gold mineralisation
proximal to the Bananghilig Gold Deposit, which is itself open in
all directions.
The potential for significantly increasing the resource base for
the Bananghilig Project is highly probable based on the number of
gold mineralised zones encountered in each hole."
BACKGROUND
The Tambis Project, which includes the Bananghilig Gold Deposit,
is operated under a Mining Agreement with Philex Gold Philippines
Inc. over Mineral Production Sharing Agreement ("MPSA")
344-2010-XIII, which covers an area totaling some 6,262
hectares.
For additional information regarding regional geology,
mineralisation and mineral resources, reference can be made to
previous announcements released on 10 May 2011, 12 September 2011,
17 January 2012, 08 August 2012, 21 November 2012 and 29 January
2013.
STERILISATION DRILLING PROGRAMME
Drilling Programme
A sterilisation drilling programme was initiated in an area
located between 400 metres to 1,000 metres to the southeast of the
Bananghilig Gold Deposit. The area was selected as possibly hosting
gold mineralisation beneath the limestone cover sequence, and if
not, would provide suitable location for various infrastructure
requirements associated with the development of the Bananghilig
Gold Deposit.
During the period 13 November 2012 to 12 February 2013, six
diamond drill holes (numbered TDH279, TDH280 and TDH283 to TDH 286)
have been completed for a total advance of 2,214 metres.
Figure 1 (please see the link at the end of this announcement)
shows the current Bananghilig resource block model and relative
positions of the six sterilisation drill holes.
Due to all six sterilisation holes being mineralised,
alternative sites for various infrastructure requirements are being
investigated.
Drill Results
Assays have been received for all drill holes completed for this
Phase 1 programme apart from 60 assay results pending for drill
holes TDH285 and TDH286.
Drilling intersected predominantly andesitic diatreme breccia
rocks similar to the diatreme breccias hosting the nearby
Bananghilig Gold deposit. Other rock types include andesitic
intrusives, which are also mineralised at Bananghilig and within
the sterilisation drilling area. The mineralisation observed in the
drill core is analogous to the Bananghilig mineralisation.
To date, there is no indication as to the limits of
mineralisation which is currently open in all directions beneath
the overlying limestone sequence, including at depth (Fig. 2 -
please see the link at the end of this announcement). The diatreme
complex appears much larger than initially interpreted and thus
constitutes an extensive exploration target for defining additional
resources to add to the current Bananghilig Gold Deposit's resource
base.
Significant drilling results (>1 g/t gold) obtained to date
are summarised in Table 1.
Figure 1 (please see the link at the end of this announcement)
shows Bananghilig resource block model interpretation map and
location of recently completed sterilisation drill hole
locations.
Figure 2 (please see the link at the end of this announcement)
shows Bananghilig resource block model and sterilisation drill
holes projected onto section 10710Mn.
Table 1. Bananghilig sterilisation drill results >=1g/t
gold.
Hole East North Depth Dip Azimuth From Width Gold
Number (metres) (deg) (deg) (metres) (metres) Grade
(uncut)
(g/t
Au)
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH279 613838 944891 647.1 130 -60 125.40 6.05 1.03
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
137.85 1.20 5.15
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
143.05 4.00 1.47
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
198.30 7.70 1.15
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
288.55 5.60 2.11
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
325.40 1.70 10.89
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
422.70 12.40 7.69
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
466.10 6.90 1.35
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
554.10 6.00 2.03
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
572.85 1.20 4.22
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
599.70 1.00 5.85
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
617.60 8.00 3.16
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH280 613555 944594 317.6 130 -60 247.40 12.70 7.00
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
251.40 1.30 25.84
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
252.70 0.75 15.27
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
253.45 1.00 23.40
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
264.10 8.85 1.54
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH283 613668 944503 308.6 130 -60 147.90 7.00 1.06
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
229.10 5.00 1.17
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
281.10 2.00 7.19
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH284 613605 945083 309.3 130 -60 129.70 5.00 1.03
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
138.75 31.60 7.33
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
173.45 1.00 9.64
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
178.45 13.05 2.24
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
195.50 43.70 2.48
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
289.50 13.30 2.20
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH285
(1) 613727 944982 308.1 130 -60 117.65 6.45 2.11
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
150.80 10.85 1.87
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
175.10 12.00 5.47
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
206.10 2.00 2.80
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
228.60 4.00 2.74
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
TDH286
(1) 613939 944798 323.6 130 -60 273.80 8.10 1.73
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
306.25 5.40 20.64
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
318.70 2.00 3.51
--------- ------- ------- ---------- ------- -------- ---------- ---------- ---------
Notes:
1. Assays incomplete for holes TDH 285 and 286.
2. Composited intercepts' 'weighted average grades' calculated
by using the following parameters
(i)no upper gold grade cut-off applied, and
(ii)lower cut-off grade of 0.5 g/t gold, and
(iii)>= 5 metres down hole intercept width at >= 0.5 g/t
gold, or
(iv)<= 5 metres down hole intercept width at >= 5 gram per
metres, and
(v)maximum of 3 metres of down hole internal dilution at
<=0.5 g/t gold.
3. Intersection widths are downhole drill widths not true
widths;
4. Assays are by Intertek McPhar Mineral Services Inc. in
Manila;
5. Grid coordinates based on the Philippine Reference System
92.
DRILL HOLE SAMPLING AND ASSAYING PROCEDURES
Drilling Procedures
Drilling, sampling and analytical methodologies are of
internationally acceptable standards. Drilling and analyses are
carried out by independent contractors, SBF Philippines Drilling
Resources Corp. ("SBF") and Intertek McPhar Mineral Services Inc.
("Intertek") respectively.
Drilling is carried out by SBF using wireline diamond coring
techniques, with the core being predominantly HQ triple-tube (HQ3)
diameter (OD 61 mm). The holes are initially collared using PQ
drill bits (OD 123 mm) to recover PQ3 core (OD 83 mm) until the
drill bit encounters competent ground, then the coring bit is
reduced to HQ3 for the remainder of the drill hole. If difficult
conditions are encountered, then the drill bit is changed to NQ3
(core OD 45 mm) and the hole continued until the planned depth or
bad ground conditions prevent further drilling, whichever occurs
first. Core recovery is generally better than 95% and is considered
to be good.
Drill Core Sampling
Drill core is recovered from the inner tube and handled
carefully to preserve the integrity of the drill core. Structural
measurements are taken including Rock Quality Determinations
("RQD") and Fracture Densities. The core is then placed in plastic
core trays, aligned, photographed and marked up for sampling.
The drill core is then cut in half by diamond core saw and
sampled at one metre intervals or at lithological boundaries. The
samples are placed in individually labelled plastic sample bags, a
sample number ticket included, and then sealed for despatch to
Intertek's Sample Preparation laboratory in Surigao City. The
integrity of the core samples is supervised at all times by the
geologists until despatch to the laboratory, when they are
accompanied by company personnel until receipt by Intertek.
One Certified Reference Material ("CRM"), one Blank and if
possible, one Duplicate is included within each successive group of
twenty samples that are submitted to the laboratory. QA/QC
monitoring of the drilling program and the laboratory's results is
conducted as an on-going process.
Analytical Procedure
Sample preparation is undertaken by Intertek at their Surigao
City laboratory, where each sample is registered, dried at 105degC
for 6 to 8 hours and crushed to 95% passing 2 mm by jaw crusher,
before a 1kg split is taken for fine pulverising, using a riffle
splitter or rotary sample divider. Pulverised sample is nominally
pulverised to 95% passing 75<MU>m (200 mesh).
Quality control procedures include a 1 in 15 re-split after
crushing for partial preparation and after pulverising for total
preparation. These re-splits are also analysed and included in the
analysis report. Sizing tests are carried out on 1 in 20 assay
pulps at 75<MU>m (200 mesh) to monitor the pulverising stage.
Four 250 gram splits are obtained, one for sample analyses and the
remaining three for storage for future reference.
Pulverised samples are analysed by classical fire assay
technique on a 50 gram charge with Atomic Absorption Spectrometer
("AAS") finish by Intertek's Manila Laboratory.
For further information please contact:
Australia
Medusa Mining Limited +61 8 9367 0601
Peter Hepburn-Brown, Managing
Director
United Kingdom
SP Angel Corporate Finance
LLP (Financial Adviser & +44 (0)20 3463
Broker) 2260
Ewan Leggat/Laura Littley
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 Messrs Geoff
Davis and Gary Powell who are members of The Australian Institute
of Geoscientists. Mr Davis is the Non-Executive Chairman of Medusa
Mining Limited and Mr Powell is a Non-Executive Director and both
have sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which they are 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". Messrs Davis and Powell consent 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.
http://www.rns-pdf.londonstockexchange.com/rns/2953B_-2013-4-2.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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