Medusa Mining (ASX/AIM :MML; TSX: MLL) has found a new porphyry copper-gold target named Usa at its Philippines Co-O Mine.
Rock chip values range up to 0.59% copper and 0.42 g/t gold. The target has so far been defined by reconnaissance outcrop sampling over an area of approximately 500 metres by 500 metres with possible extensions.
Geoff Davis, managing director of Medusa said, "The discovery of new mineralised outcropping copper-gold porphyry at Usa highlights the unquestioned prospectivity of our large tenement area. This discovery brings the total of copper targets to seven."
He said the company has no doubt that on-going exploration will uncover other targets based on its aggressive drilling programmes, adding additional value to the asset base.
The Usa prospect is contained within Mineral Production Sharing Agreement agreement with Corplex Resources Inc. whereby Corplex will receive a 4% gross royalty on all production.
Or, in the event of a major discovery and completion of a Scoping Study which demonstrates at least a five year mine life, Corplex can elect to buy back a 30% interest by re-imbursing to the Company a sum equal to four times the expenditure on the tenement; and contribute to 30% of all on-going expenditure from the point of buy-back forwards.
Should Corplex elect not to contribute to all on-going expenditure, then Corplex can elect once only to dilute to a 15% non-contributing free carried interest to commencement of production, at which point the Company shall provide a loan to Corplex to fund its 15% interest.
There are indications that the prospect extends eastwards into APSA XIII-00098 which is owned by Mindanao Philcord Mining Corporation which will receive a 1% Net Profits Interest from any production.