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Medusa Mining Limited (“Medusa” or the “Company”), a public company listed on the Australian Stock Exchange (ASX) under the code MML, is an Australian based gold producer, focused solely in the Philippines.
Medusa Mining increases resource inventory to 2 million ounces of goldAugust 12 2009, 7:40am
High grade, low cost gold producer, Medusa Mining (ASX: MML) has defined a maiden JORC inferred resource at the Bananghilig Gold Deposit in the Philippines of 650,000 ounces of gold at 1.3 g/t.
Medusa's main asset is the Co-O gold mine on the southern Filipino island of Mindanao, which has a JORC resource of 1.38 million ounces of gold at an average grade of 10.8 g/t.
Managing Director of Medusa, Geoff Davis said, the "650,000 ounce resource at Bananghilig has the potential to grow and propel the Company to upper mid-tier gold producer status through the development of a second mine."
Davis said "he believes that Bananghilig is the first of a number of potential disseminated deposits that may be found either in the northern section of the Company’s tenements and/or to the south of Bananghilig in the favourable 18 kilometre long corridor of carbonate-rich host rocks along the Barobo Fault. Strong indications of disseminated mineralisation have already been discovered at a number of locations."
Apart from the profitable C0-O mine, Medusa has upside from copper potential of Lingig.
Drill hole intersections in the Bananghilig Gold Deposit include: 205.90 metres at 2.42 g/t gold, 182.00 metres at 2.13 g/t gold, 116.50 metres at 3.96 g/t gold, 64.00 metres at 8.40 g/t gold and 569.90 metres at 0.64 g/t gold. Importantly, the main zone of mineralisation, which is open in all directions, is defined over 850 metres by 550 metres and to variable depths of 100 to 150 metres.
Bannanghilig will boost Medusa's total resource inventory to approximately 2.03 million ounces of gold. Main focus will be on expanding this resource and establishing other disseminated gold deposits along the Barobo Fault Corridor for 18 kilometres to the southeast where mineralisation is associated with favourable calcareous host rocks from which scout drill hole results include 7.30 metres at 2.72 g/t gold, 8.15 metres at 1.30 g/t gold and 6.70 metres at 2.08 g/t gold.
Annual gold output from the Co-O mines was 47,000 ounces in the 12 months to June 2009; but having achieved its phase 1 annualised production rate of 60,000 ounces ahead of time (16,009 ounces in the 3 months to 30th June 2009), Medusa could be producing at its phase 2 expansion target of 100,000 ounces per annum in the first quarter of 2010.