Medusa Mining Limited
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LSE : MML

Medusa Mining Limited

August 08, 2012 23:44 ET

Medusa Mining Limited: Bananghilig Deposit Drilling Update

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2012) - Medusa Mining Limited (ASX:MML)(LSE:MML) ("Medusa" or the "Company"), through its Philippines operating company Philsaga Mining Corporation, advises that infill drilling is continuing to the upgrade the resource to the Indicated category at the Bananghilig Gold Deposit. Drilling since the 17 January 2012 announcement continues to confirm continuity of mineralisation.

Drilling highlights include:

Hole Number Width
(metres)
Grade (uncut)
(g/t gold)
TDH 139 18.85 10.19
22.25 2.43
TDH 157 27.50 2.21
TDH 173 19.05 1.24
TDH 188 15.85 2.98
TDH 189 18.40 4.29
TDH 200 14.25 8.64
TDH 218 11.45 3.19
TDH 240 27.20 2.91
TDH 246 13.55 10.78

Peter Hepburn-Brown, Managing Director of Medusa commented:

"The end of the drilling campaign is approaching which is aiming to achieve a 1 million ounce resource target. The drilling results to 31 July 2012 are currently being incorporated into an Inferred Resource estimate. Following completion of the infill drilling program around the end of August, the receipt of all outstanding assays and completion of all updated interpretations, we will commence estimation of an Indicated Resource which will form the basis for pit optimisations and estimation of reserves followed by feasibility studies.

Some excellent results from well below practical open pit depths indicate the potential for extending high grade mineralisation to depth."

BACKGROUND

The Tambis Project, containing 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 6,262 hectares.

Additional regional geological and mineralisation information and drilling results are contained in the announcements released on 10 May 2011, 12 September 2011 and 17 January 2012.

AIM OF PROGRAMME

In July 2010, new regional and detailed mapping and drilling programmes were commenced with the aim of validating the existing resource and extending it to provide a reserve of approximately 1,000,000 ounces of gold. This reserve would form the basis for feasibility studies which would target production of 200,000 ounces of gold per year from a new milling facility.

REGIONAL GEOLOGICAL SETTING

The Tambis regional geology (Fig 1), termed the Tambis intrusive-breccia complex, typifies a structurally complex intermediate-sulphidation, epithermal gold, breccia-type system, including disseminated gold overprinting the host Tertiary-age igneous package which had been emplaced into an andesitic volcanic basement. The fertile igneous suite comprises a multi-phase calc-alkaline, high level, sub-volcanic intrusive package cut by extensive bodies of phreatomagmatic diatremes and hydrothermal breccias.

BANANGHILIG DEPOSIT

Geological summary

The Bananghilig Deposit currently consists of three zones, each approximately 1 kilometre long and open in all directions, locally termed the Sorex, Garden and Malinao zones. These zones are broadly defined on the basis of the projection in plan of ≥ 0.5 g/t gold drill hole intersections. The mineralisation is located partly within the Bananghilig diatreme breccia which measures at least 1,000 metres west to east and still open to the south beneath the younger sediments, and also around the diatreme margins and in the country rocks along structural corridors.

The diatreme breccias contain unsorted fragments of the andesitic basement as well as fragments of the later intrusive rocks predating the diatreme events in a matrix of comminuted rock flour and magmatic crystals. Fragment sizes range from granule-sized to building-sized mega-blocks which have been torn off the walls of the diatreme during the multi-episodal explosive activity. The explosive activity also fractured the mega-blocks and wall rocks, preparing them for subsequent mineralisation deposition.

To view Figure 1. Geological interpretation map showing drill hole locations, please visit the following link: http://media3.marketwire.com/docs/811083fx.jpg

DRILL RESULTS

During the period 31 December 2011 to 31 July 2012, 26,578 metres of diamond drilling in 105 holes have been completed. Holes TDH150, TDH170, TDH191, TDH220 and TDH250 have been drilled outside the Bananghilig area.

Figure 1 shows the drill holes completed. Assays are awaited for TDH245, TDH248, TDH249 and TDH251 to TDH255.

First pass assaying for gold has been undertaken on all samples submitted to the laboratory. Additional assaying is on-going from selected intervals for base metals, silver and other elements.

The results are summarised in Table I where significant intercepts are defined on the following basis:

(i) lower cut-off grade of 0.5 g/t Au, and
(ii) ≥ 5 metres downhole intercept width at ≥ 0.5 g/t Au, or
(iii) ≤ 5 metres downhole intercept width at ≥ 5 gram x metres, and
(iv) maximum of 3 metres of downhole internal dilution at ≤ 0.5 g/t Au.
Table I. Bananghilig surface drill hole results ≥ 1g/t gold. Results not previously reported are marked (t).
Hole number East North Dip (Degrees) Azimuth (Degrees) From (metres) Width (metres) Grade (uncut) (g/t gold)
TDH139(t) 612887 945049 -60 130 481.35 18.85 10.19
571.45 3.00 2.45
578.35 22.25 2.43
606.10 4.80 11.62
TDH143 612749 945658 -60 130 20.80 5.80 6.32
38.50 6.50 1.09
130.70 3.00 1.85
TDH144 613079 945248 -60 130 261.55 1.00 5.42
TDH146 612541 945535 -60 130 283.00 2.00 4.93
TDH148 612833 945612 -60 130 2.00 6.10 1.12
21.30 7.45 2.23
TDH149 613016 945224 -60 130 95.05 9.95 1.51
144.80 2.10 2.86
214.25 6.25 1.46
235.40 9.50 1.43
292.10 7.05 1.95
TDH151 612715 945423 -60 130 4.30 1.00 43.73
63.35 6.85 6.11
183.75 1.15 9.07
197.65 13.20 1.34
TDH154 612672 945539 -70 130 81.60 9.35 1.06
TDH155 612905 945523 -60 130 91.05 4.65 1.82
297.10 4.35 3.34
TDH156 613056 945500 -60 130 111.00 4.10 1.68
259.25 12.85 1.24
360.10 1.70 3.35
378.80 0.45 18.60
451.40 6.80 1.03
495.40 5.00 1.30
TDH157 612939 945229 -60 130 64.40 13.55 1.54
85.95 9.45 1.42
154.20 27.50 2.12
210.60 2.00 7.81
TDH159 612547 944929 -60 130 61.80 1.50 4.15
TDH160 612460 945174 -60 130 130.60 3.00 3.73
TDH161 612834 945040 -60 130 135.20 6.00 2.02
405.45 3.35 23.18
523.80 3.00 5.83
TDH162 612291 944989 -60 130 190.80 5.00 1.33
TDH165 612429 945461 -60 130 55.85 1.25 4.33
TDH166 612493 945117 -60 130 142.65 4.10 9.64
TDH167 612071 945299 -60 130 149.60 1.75 3.40
TDH171 612177 945245 -60 130 231.55 1.65 3.82
TDH172 612590 945049 -60 130 59.00 11.90 1.49
TDH173 612496 945386 -70 130 18.60 3.20 1.82
27.60 1.90 3.89
77.00 15.20 1.64
101.60 19.05 1.24
160.90 8.80 5.09
213.70 1.25 4.81
TDH174 612791 945115 -50 130 79.60 11.00 1.49
TDH175 612623 945243 -70 130 96.10 4.25 1.34
104.75 5.00 1.23
266.25 5.45 1.26
TDH176 612534 945308 -60 130 16.50 12.80 1.47
91.10 9.70 1.29
187.05 8.80 1.09
TDH177 612824 945195 -60 130 71.45 4.40 1.67
150.30 7.00 1.29
TDH179 612789 945153 -60 130 245.10 1.95 7.90
TDH180 613064 945194 -60 130 31.95 7.85 3.33
137.10 5.30 1.38
TDH181 613002 945164 -60 130 133.40 5.95 8.69
162.10 8.85 2.71
232.20 4.00 3.39
TDH182 612897 945139 -60 130 97.95 7.00 1.16
125.40 7.00 1.02
TDH183 612714 945218 -60 130 98.95 1.75 3.05
113.25 2.20 3.98
134.65 1.95 3.34
141.60 4.15 2.09
TDH184 612789 945230 -60 130 224.75 4.00 1.30
TDH185 612617 945371 -60 130 12.30 10.80 2.30
78.75 9.15 9.34
131.00 8.55 1.27
TDH186 612542 945561 -60 130 137.25 1.00 7.96
TDH187 612595 945353 -70 130 113.60 2.00 6.47
TDH188 612987 945220 -60 130 204.45 15.85 2.98
TDH189 612656 945067 -60 130 60.60 2.15 5.82
79.00 13.95 1.38
97.00 18.40 4.29
TDH190 612897 945182 -60 130 45.95 2.00 3.44
223.60 10.20 2.36
TDH192 612667 945143 -60 130 70.85 7.25 1.55
263.40 4.20 1.30
TDH193 612772 945279 -60 130 141.20 7.00 1.88
164.70 6.15 1.93
212.95 1.45 15.28
TDH195 612811 945291 -60 130 69.75 9.50 1.05
TDH196 612518 945387 -55 130 13.60 13.50 1.25
31.90 5.70 1.37
56.30 6.35 1.15
99.50 7.15 4.26
132.10 5.90 1.15
TDH197 612550 945426 -60 130 1.30 17.05 1.19
105.10 4.30 1.43
131.85 13.00 1.48
TDH198 612742 945269 -60 130 83.35 12.30 1.07
TDH199 613010 945200 -60 130 167.10 7.50 1.48
TDH200 612630 945014 -60 130 61.80 14.25 8.64
TDH201 612815 945394 -47 130 25.10 2.65 4.26
161.20 7.00 1.78
174.75 16.05 1.05
TDH202 612707 945336 -55 130 158.25 5.20 6.04
TDH203 612434 945691 -47 130 162.10 15.65 1.09
218.95 1.80 3.66
252.45 3.00 4.37
TDH204 612567 945472 -70 130 21.15 10.45 6.72
TDH206 612613 945459 -70 130 71.10 2.75 10.39
TDH207 612973 945192 -60 130 70.25 1.55 6.35
187.80 3.55 2.12
199.35 5.75 1.50
TDH208 612751 945110 -60 130 13.60 3.00 11.08
116.86 13.65 1.00
152.60 4.00 2.88
TDH209 612715 945059 -60 130 133.40 3.00 1.78
TDH210 612409 945392 -60 130 29.65 6.05 1.13
38.70 5.00 1.74
TDH212 612656 945098 -60 130 171.45 5.00 1.32
TDH213 612645 945168 -60 130 23.75 1.00 5.07
38.70 8.00 1.32
TDH214 612693 945427 -70 130 123.35 11.95 1.03
147.30 1.00 5.52
190.25 3.55 3.15
TDH215 612592 945069 -60 130 91.90 10.10 13.43
129.00 4.05 3.46
TDH216 612724 945016 -60 130 201.10 11.15 1.08
237.40 1.15 5.17
246.30 1.00 6.91
TDH217 612530 945676 -60 130 2.40 16.90 1.07
94.55 6.60 1.93
176.30 2.30 4.16
TDH218 612692 945013 -60 130 101.75 11.45 3.19
127.95 3.35 1.59
TDH219 613017 945269 -60 130 40.60 5.00 1.11
122.40 1.00 12.26
TDH221 612636 945493 -60 130 28.20 3.60 1.42
70.90 1.00 22.70
TDH222 612563 945047 -60 130 78.65 17.20 3.27
171.35 1.35 28.15
TDH223 612769 945409 -51 130 229.10 4.15 1.41
255.35 3.65 1.81
TDH224 612624 945136 -60 130 55.90 2.90 2.09
76.00 2.50 2.31
201.65 1.45 5.76
TDH225 612941 945303 -60 130 2.60 5.10 1.05
203.40 0.90 5.94
TDH226 612552 945700 -47 130 143.20 2.40 4.48
150.60 2.00 4.71
174.80 1.00 5.79
201.70 3.05 3.43
TDH227 612744 944950 -60 130 23.90 3.10 1.69
120.45 3.00 5.81
133.50 5.00 1.59
157.30 1.00 7.65
162.65 1.55 22.20
208.05 1.00 15.54
TDH230 612654 945663 -60 130 49.40 5.35 3.84
TDH231 612414 945356 -60 130 40.90 2.25 2.34
TDH232 612590 945167 -60 130 11.50 4.50 13.84
TDH234 612751 945422 -56 130 122.10 2.00 15.12
152.75 4.00 3.12
TDH236 612713 945736 -60 130 45.90 3.00 2.77
TDH237 612548 945585 -60 130 80.95 4.00 1.28
204.15 2.85 5.87
TDH239 612818 945797 -60 130 107.75 2.70 2.22
TDH240 612452 945362 -60 130 46.80 3.00 10.20
55.20 6.50 2.08
117.50 14.05 1.41
232.60 27.20 2.91
TDH241 612517 944962 -60 130 47.45 10.25 2.00
TDH244 612573 945220 -60 130 50.45 2.00 2.62
212.75 1.60 20.87
TDH246 612708 945496 -47 130 87.15 1.00 5.95
106.60 6.65 2.19
177.60 4.00 2.14
185.15 11.45 1.07
202.05 13.55 10.76
TDH247 612317 945099 -60 130 84.15 2.00 3.73
TDH248 612603 945621 -60 130 56.75 3.95 5.91
Notes:
(i) Intersection widths are downhole drill widths not true widths;
(ii) Assays are by Intertek McPhar Mineral Services Inc. in Manila;
(iii) 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 drillbits (OD 123 mm) to recover PQ3 core (OD 83 mm) until the drillbit 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 where 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 results is ongoing.

Analytical Procedure

Sample preparation is undertaken by Intertek at their Surigao City laboratory, where each sample is registered, dried at 105ºC 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 micrometre (200 mesh).

Quality control procedures include a 1 in 15 resplit after crushing for partial preparation and after pulverising for total preparation. These resplits are also analysed and included in the analysis report. Sizing tests are carried out on 1 in 20 assay pulps at 75 micrometre (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.

Standard laboratory procedure is to clean the crusher and pulveriser after each sample treatment with barren material and/or bowl wash, to minimise carry-over contamination.

Pulverised samples are analysed by classical fire assay techniques on a 50 gram charge with Atomic Absorption Spectrometer ("AAS") finish. All assays over 5 g/t gold and other selected samples are re-assayed using gravimetric fire assay techniques on a 50 gram sample.

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 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" and is a "Qualified Person". 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.

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.

ABN: 60 099 377 849

Contact Information

  • Australia
    Medusa Mining Limited
    Peter Hepburn-Brown, Managing Director
    +61 8 9367 0601

    United Kingdom
    Fairfax I.S. PLC
    Financial Adviser & Broker
    Ewan Leggat/Laura Littley
    +44 (0)20 7598 5368