650,000 Ounces Maiden Resource at Bananghilig
(Thomson Reuters ONE) - 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(at)medusamining.com.au Internet: www.medusamining.com.au Medusa Mining Limited ("Medusa" or the "Company") (AIM: MML) 650,000 OUNCES MAIDEN RESOURCE AT BANANGHILIGMedusa Mining Limited ("Medusa" or the "Company"), through itsPhilippines operating company Philsaga Mining Corporation("Philsaga"), announces a JORC compliant maiden Inferred Resource of650,000 ounces of gold in 15,000,000 tonnes at a grade of 1.3 g/tgold for the Bananghilig Gold Deposit located in the Tambis District.Drill hole intersections in the deposit include 205.90 metres at 2.42g/t gold, 182.00 metres at 2.13 g/t gold, 116.50 metres at 3.96 g/tgold, 64.00 metres at 8.40 g/t gold and 569.90 metres at 0.64 g/tgold. The main zone of mineralisation, which is open in alldirections, is defined over 850 metres by 550 metres and to variabledepths of 100 to 150 metres.This new resource will boost the Company's total resource inventoryto approximately 2.03 million ounces of gold.The Company will now focus on expanding this resource andestablishing other disseminated gold deposits along the Barobo FaultCorridor for 18 kilometres to the southeast where mineralisation isassociated with favourable calcareous host rocks from which scoutdrill hole results include 7.30 metres at 2.72 g/t gold, 8.15 metresat 1.30 g/t gold and 6.70 metres at 2.08 g/t gold.Geoff Davis, Managing Director of Medusa, commented:"This maiden 650,000 ounce resource at Bananghilig has the potentialto grow and propel the Company to upper mid-tier gold producer statusthrough the development of a second mine. It also further strengthensthe Company's belief in the enormous prospectivity of its substantialtenement package.Management believes that Bananghilig is the first of a number ofpotential disseminated deposits that may be found either in thenorthern section of the Company's tenements and/or to the south ofBananghilig in the favourable 18 kilometre long corridor ofcarbonate-rich host rocks along the Barobo Fault. Strong indicationsof disseminated mineralisation have already been discovered at anumber of locations.Together with the highly profitable Co-O Mine, with its resource baseof 1.38 million ounces (and expanding) and the exciting copperpotential of Lingig, the Company is very well positioned for futuregrowth." 12 August 2009Contact details:Medusa Mining Limited +61 8 9367 0601Geoffrey Davis, Managing DirectorRoy Daniel, Finance DirectorFairfax I.S. PLC +44 (0)20 7598 5368Nominated Adviser / Joint BrokerEwan LeggatMirabaud Securities Limited +44 (0)20 7321 2508Joint BrokerPeter KrensLothbury Financial +44 (0)20 7011 9411Michael Padley / Libby MossBackgroundThe Tambis project, currently comprising the Bananghilig Gold Depositand the Kamarangan copper porphyry prospect, is operated under aMining Agreement with Philex Gold Philippines Inc. over MineralProduction Sharing Agreement ("MPSA") application APSA-000022-XIIIwhich covers 6,262 hectares.In the 1980s and 1990s a large amount of diamond and reversecirculation drilling totalling 29,477 metres in 344 holes wasundertaken by various explorers to investigate a large area of knownmineralisation.From 2005 to 2007, Philsaga undertook underground exploration througha 50 metre deep shaft and development, adits, and underground andsurface drilling totalling 7,715.50 metres in 31 holes.Figure 1 (please see the link at the end of this announcement) showsthe location of the Bananghilig Deposit and Figure 2 (please see thelink at the end of this announcement) shows the surface geology.Table I summarises some of the more significant drillholeintersections from the Bananghilig drilling.Table I. Summary of significant Bananghilig intersections+---------------------------------------------------------------------------+| | | | | | | | Gold ||Hole | East| North| Dip | Azimuth | From | Length | (uncut) || | | | (*) | (*) | (metres) | (metres) | (g/t || | | | | | | | gold) ||---------+--------+--------+-----+---------+----------+----------+---------||DD34-3 | 612486| 945509| -45| 130| 0.00| 170.10| 2.09||---------+--------+--------+-----+---------+----------+----------+---------||DD34 -46A| 612515| 945493| -45| 130| 0.00| 182.00| 2.13||---------+--------+--------+-----+---------+----------+----------+---------||DDH-G1 | 612541| 945476| -80| 90| 0.00| 116.50| 3.96||---------+--------+--------+-----+---------+----------+----------+---------||DDH-G3 | 612541| 945476| -80| 30| 0.00| 108.81| 2.03||---------+--------+--------+-----+---------+----------+----------+---------||RC38-35 | 612680| 945409| -60| 130| 0.00| 64.00| 8.40||---------+--------+--------+-----+---------+----------+----------+---------||RC40-16 | 612515| 945493| -45| 130| 0.00| 55.00| 4.14||---------+--------+--------+-----+---------+----------+----------+---------||TDH 10 | 612827| 945226| -50| 135| 10.50| 106.00| 1.60||---------+--------+--------+-----+---------+----------+----------+---------||TDH 11 | 612808| 945224| -55| 320| 0.00| 569.90| 0.64||---------+--------+--------+-----+---------+----------+----------+---------||TDH 12 | 612848| 945259| -50| 327| 0.00| 137.80| 0.94||---------+--------+--------+-----+---------+----------+----------+---------||TDH 18 | 612765| 945263| -45| 324| 0.00| 256.20| 1.30||---------+--------+--------+-----+---------+----------+----------+---------||TUG 05 | 612748| 945247| -1| 153| 0.00| 205.90| 2.42|+---------------------------------------------------------------------------+ Notes:(i) Holes pre-fixed TDH and TUG are Philsaga surface andunderground diamond drill holes(ii) All other holes pre-date Philsaga.Resource estimationA global Inferred resource estimation for Bananghilig was undertakenby Cube Consulting Pty Ltd of West Perth, Western Australia. Theestimation was based on historical and more recent Philsaga drillholedata.Table II summarises the resource at various cut-offs with 0.6 g/tgold being taken as the base case resource estimate. The majority ofthe resource is contained within a 0.2 g/t gold domain (Domain 1)which measures 850 metres east to west and 550 metres north south,with the mineralisation defined to variable depths of 100 to 150metres due to drill hole density constraints. The mineralisation isalso open in all other directions. A smaller domain (Domain 2) to thenortheast is approximately 375 metres long in a northeasterlydirection, approximately 100 metres wide and open beyond 75 metresdepth and has increasing grades towards the northeast.Table II. Resource estimate as at August 2009+------------------------------------------------------+| Cut-off (g/t gold) | tonnes | g/t gold | ounces ||--------------------+------------+----------+---------|| 0.50 | 20,000,000 | 1.1 | 730,000 ||--------------------+------------+----------+---------|| 0.60 | 15,000,000 | 1.3 | 650,000 ||--------------------+------------+----------+---------|| 0.70 | 12,000,000 | 1.5 | 580,000 ||--------------------+------------+----------+---------|| 0.80 | 10,000,000 | 1.7 | 530,000 ||--------------------+------------+----------+---------|| 0.90 | 8,000,000 | 1.9 | 480,000 ||--------------------+------------+----------+---------|| 1.00 | 7,000,000 | 2.1 | 440,000 |+------------------------------------------------------+The Bananghilig Mineral Resource estimate is based on a number offactors and assumptions, some of which are listed below: * All available drilling data was used for the Mineral Resource estimate. * There is no available Quality Assessment/Quality Control (QA/QC) information (sample duplicates, blanks and certified reference materials) for the historical drilling data. Drilling completed by Philsaga undergoes internal QA/QC and assays greater than 1 g/t gold are checked by an independent laboratory (McPhar). The average grade for drilling completed by Philsaga supports the average grade for the historical drilling data within the mineralised domains. * A theoretical bulk density of 2.6 t/m3 was used throughout the model, based on average bulk densities for the modelled lithologies. * The mineralisation has been defined using gold only assay data at a plus 0.2 g/t gold lower cut off. This interpretation has resulted in two broad domains, the principal one, domain 1 and a smaller domain 2 to the northwest. High grade assay cuts (30 g/t gold in domain 1 and 2 g/t gold in domain 2) have been applied to 2.5 metre downhole composite data. * 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 2.5 metres was evaluated within Ordinary Kriged panels Y = 25 metres; X = 25 metres and Z = 5 metres for the purposes of reporting recoverable resources.BANANGHILIG DEPOSITRegional GeologyThe Bananghilig Gold Deposit is located on the northern edge of alarge aero-magnetically defined alteration zone measuringapproximately 9.5 kilometres by 7.3 kilometres and which alsocontains the Kamarangan copper porphyry target. The Tambis Districtis generally underlain by fine to coarse-grained andesitic anddacitic flows of probable pre-Tertiary age that constitute thebasement rocks. Locally, the basement rocks show agglomeraticfeatures and in places are cut by andesite to dacite porphyry dykesand bodies of hydrothermal breccias of various shapes and sizes.The southeastern part of the Tambis District is covered by a youngerbedded sedimentary formation comprising basal mudstone, sandyclastics and agglomerates with massive white limestone toapproximately 60 metres thick as the uppermost member. The limestonebounds the Bananghilig area along the southeast and extends andpossibly dips to the southeast.Structurally the Bananghilig Deposit is located near the intersectionof the Barobo Fault (parallel to the Philippine Rift Fault) and theLianga Bay Fault system.Local Geology and MineralisationThe Bananghilig Deposit is located partly within an elliptical-shapeddiatreme breccia body measuring approximately 1,000 metres long and750 metres wide within a larger interpreted caldera measuringapproximately 10 kilometres by 6 kilometres.The diatreme breccia is open to the south beneath the younger massivewhite limestone rocks.The gold mineralisation styles in the diatreme are generallyassociated with pyrite and sphalerite along and around vein-likezones, in fractures and/or breccia in-fill in milled/ fluidised muddymatrix breccia bodies and coarsely brecciated/fracturedandesitic-dacitic wallrock. The mineralisation is also contained inintensely altered coarse-grained porphyritic (colloquially "peanutbrittle") andesitic intrusive rocks located mainly on the northernmargin of the diatreme breccia.Widespread silica-clay-sericite-pyrite hydrothermal alterationaffects the volcanic wallrocks, the various breccia bodies and thehypabbyssal intrusives associated with them. The alterationassemblage typifies that found in advanced argillic alterationsystems.Rock hardnessObservations from the underground exploration activities conducted bythe Company, and observations from recent drilling, both indicatethat the deposit is likely to be "free dig" to well beyond 50 metresfrom surface. The softness of the ore is due to the ubiquitousargillic alteration. Further work is required to ascertain the extentof these favourable characteristics.Future workFuture work at Bananghilig will involve: * Extensional drilling to increase the deposit size and determine its boundaries, * Infill drilling to upgrade the resource categories, extend and define higher grade zones, * Detailed metallurgical studies. * Detailed geotechnical studies, and * Preliminary engineering studies.MINERALISATION POTENTIAL - BAROBO FAULT CORRIDORFigure 3 (please see the link at the end of this announcement) showsthe regional structure and geology highlighting the mineralisationpotential in favourable limestone and calcareous clastic rocks alongthe Barobo Fault Corridor. Mineralisation has been located innumerous outcrops and in drill holes which are summarised in Table I.The mineralisation located to date is generally associated withsilica and sphalerite-galena replacement of the host rocks.The calcareous sequence along the Barobo Fault Corridor is the samesequence that has been extensively skarned and mineralised at theKamarangan copper porphyry prospect. This sequence is interpreted asthe oldest calcareous sequence known to date in the district and maybe up to 1,600 metres thick.The sequence is regarded as favourable for hosting large disseminatedbodies of gold mineralisation.Table III summarises some of the more significant drill holeintersections from scout drilling (four holes at Guinhalinan, sevenholes at Saguilsuilan and six holes at Alikway). The focus of thisscout drilling was on potential high grade mineralisation, notpotentially open-pittable targets. All show that gold mineralisationis contained with this calcareous sequence. It should be noted, asalso shown in soil sampling on Figure 3 (please see the link at theend of this announcement), that zinc is commonly associated with goldin this environmentTable III. Summary of scout drilling on Barobo Corridor limestonehosted prospects+---------------------------------------------------------------------------------------+| | | | | | | | Gold | ||Hole | East | North | Dip | Azimuth | From | Length | (uncut) | Zinc || | | | (*) | (*) | (metres) | (metres) | (g/t | (%) || | | | | | | | gold) | ||-------------+--------+--------+-----+---------+----------+----------+---------+-------||Guinhalinan | | | | | | | | ||-------------+--------+--------+-----+---------+----------+----------+---------+-------||DGN 002 | 615640| 936325| -55| 315| 22.60| 7.30| 2.72| 0.62||-------------+--------+--------+-----+---------+----------+----------+---------+-------||DGN 003 | 615639| 936323| -50| 275| 27.55| 8.15| 1.30| 0.27||-------------+--------+--------+-----+---------+----------+----------+---------+-------||DGN 004 | 615593| 936377| -45| 140| 15.40| 6.00| 0.67| 0.02||-------------+--------+--------+-----+---------+----------+----------+---------+-------|| | | | | | 27.40| 6.70| 2.08| 0.38||-------------+--------+--------+-----+---------+----------+----------+---------+-------|| | | | | | 41.10| 17.60| 0.81| 0.05||-------------+--------+--------+-----+---------+----------+----------+---------+-------||Saguilsilan | | | | | | | | ||-------------+--------+--------+-----+---------+----------+----------+---------+-------||SAG 006 | 613277| 939478| -45| 230| 36.60| 24.00| 0.52| No|| | | | | | | | | assay||-------------+--------+--------+-----+---------+----------+----------+---------+-------||Alikway | | | | | | | | ||-------------+--------+--------+-----+---------+----------+----------+---------+-------||ALK 001 | 616646| 934544| -50| 180| 116.40| 1.90| 21.20| 0.85|+---------------------------------------------------------------------------------------+JORC COMPLIANCE - CONSENT OF COMPETENT PERSONSMedusa Mining LimitedInformation in this report relating to Exploration Results, is basedon information compiled by Mr Geoff Davis, who is a member of TheAustralian Institute of Geoscientists. Mr Davis is the ManagingDirector of Medusa Mining Limited and has sufficient experience whichis relevant to the style of mineralization and type of deposits underconsideration and to the activity which he is undertaking to qualifyas a Competent Person as defined in the 2004 Edition of the"Australian Code for Reporting of Exploration Results, MineralResources and Ore Reserves". Mr Davis consents to the inclusion inthe report of the matters based on his information in the form andcontext in which it appears.Cube Consulting Pty LtdInformation in this report relating to Mineral Resources hasbeen estimated and complied by Mark Zammit of Cube Consulting PtyLtd. Mr Zammit is a member of The Australasian Institute of Mining &Metallurgy and has sufficient experience that is relevant to thestyle of mineralisation and type of deposit under consideration andto the activity which he is undertaking to qualify as a CompetentPerson as defined in the 2004 Edition of the "Australian Code forReporting of Exploration Results, Mineral Resources and OreReserves". Mr Zammit consents to the inclusion in the report of thematters based on his information in the form and context in which itappears.Cube Consulting is an independent Perth based resource industryconsulting firm specialising in geological modelling, resourceestimation and information technology.---END OF MESSAGE---http://hugin.info/138050/R/1334050/316504.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.08.2009 - 08:01 Uhr
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