650,000 Ounces Maiden Resource at Bananghilig
August 12 2009 - 2:02AM
UK Regulatory
TIDMMML
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@medusamining.com.au
Internet: www.medusamining.com.au
Medusa Mining Limited
("Medusa" or the "Company")
(AIM: MML)
650,000 OUNCES MAIDEN RESOURCE AT BANANGHILIG
Medusa Mining Limited ("Medusa" or the "Company"), through its
Philippines operating company Philsaga Mining Corporation
("Philsaga"), announces a JORC compliant maiden Inferred Resource of
650,000 ounces of gold in 15,000,000 tonnes at a grade of 1.3 g/t
gold for the Bananghilig Gold Deposit located in the Tambis District.
Drill hole intersections in the 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. 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.
This new resource will boost the Company's total resource inventory
to approximately 2.03 million ounces of gold.
The Company will now focus 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.
Geoff Davis, Managing Director of Medusa, commented:
"This maiden 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. It also further strengthens
the Company's belief in the enormous prospectivity of its substantial
tenement package.
Management 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.
Together with the highly profitable Co-O Mine, with its resource base
of 1.38 million ounces (and expanding) and the exciting copper
potential of Lingig, the Company is very well positioned for future
growth."
12 August 2009
Contact details:
Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director
Fairfax I.S. PLC +44 (0)20 7598 5368
Nominated Adviser / Joint Broker
Ewan Leggat
Mirabaud Securities Limited +44 (0)20 7321 2508
Joint Broker
Peter Krens
Lothbury Financial +44 (0)20 7011 9411
Michael Padley / Libby Moss
Background
The Tambis project, currently comprising the Bananghilig Gold Deposit
and the Kamarangan copper porphyry prospect, is operated under a
Mining Agreement with Philex Gold Philippines Inc. over Mineral
Production Sharing Agreement ("MPSA") application APSA-000022-XIII
which covers 6,262 hectares.
In the 1980s and 1990s a large amount of diamond and reverse
circulation drilling totalling 29,477 metres in 344 holes was
undertaken by various explorers to investigate a large area of known
mineralisation.
From 2005 to 2007, Philsaga undertook underground exploration through
a 50 metre deep shaft and development, adits, and underground and
surface drilling totalling 7,715.50 metres in 31 holes.
Figure 1 (please see the link at the end of this announcement) shows
the location of the Bananghilig Deposit and Figure 2 (please see the
link at the end of this announcement) shows the surface geology.
Table I summarises some of the more significant drillhole
intersections 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 and
underground diamond drill holes
(ii) All other holes pre-date Philsaga.
Resource estimation
A global Inferred resource estimation for Bananghilig was undertaken
by Cube Consulting Pty Ltd of West Perth, Western Australia. The
estimation was based on historical and more recent Philsaga drillhole
data.
Table II summarises the resource at various cut-offs with 0.6 g/t
gold being taken as the base case resource estimate. The majority of
the 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 150
metres due to drill hole density constraints. The mineralisation is
also open in all other directions. A smaller domain (Domain 2) to the
northeast is approximately 375 metres long in a northeasterly
direction, approximately 100 metres wide and open beyond 75 metres
depth 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 of
factors 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 DEPOSIT
Regional Geology
The Bananghilig Gold Deposit is located on the northern edge of a
large aero-magnetically defined alteration zone measuring
approximately 9.5 kilometres by 7.3 kilometres and which also
contains the Kamarangan copper porphyry target. The Tambis District
is generally underlain by fine to coarse-grained andesitic and
dacitic flows of probable pre-Tertiary age that constitute the
basement rocks. Locally, the basement rocks show agglomeratic
features and in places are cut by andesite to dacite porphyry dykes
and bodies of hydrothermal breccias of various shapes and sizes.
The southeastern part of the Tambis District is covered by a younger
bedded sedimentary formation comprising basal mudstone, sandy
clastics and agglomerates with massive white limestone to
approximately 60 metres thick as the uppermost member. The limestone
bounds the Bananghilig area along the southeast and extends and
possibly dips to the southeast.
Structurally the Bananghilig Deposit is located near the intersection
of the Barobo Fault (parallel to the Philippine Rift Fault) and the
Lianga Bay Fault system.
Local Geology and Mineralisation
The Bananghilig Deposit is located partly within an elliptical-shaped
diatreme breccia body measuring approximately 1,000 metres long and
750 metres wide within a larger interpreted caldera measuring
approximately 10 kilometres by 6 kilometres.
The diatreme breccia is open to the south beneath the younger massive
white limestone rocks.
The gold mineralisation styles in the diatreme are generally
associated with pyrite and sphalerite along and around vein-like
zones, in fractures and/or breccia in-fill in milled/ fluidised muddy
matrix breccia bodies and coarsely brecciated/fractured
andesitic-dacitic wallrock. The mineralisation is also contained in
intensely altered coarse-grained porphyritic (colloquially "peanut
brittle") andesitic intrusive rocks located mainly on the northern
margin of the diatreme breccia.
Widespread silica-clay-sericite-pyrite hydrothermal alteration
affects the volcanic wallrocks, the various breccia bodies and the
hypabbyssal intrusives associated with them. The alteration
assemblage typifies that found in advanced argillic alteration
systems.
Rock hardness
Observations from the underground exploration activities conducted by
the Company, and observations from recent drilling, both indicate
that the deposit is likely to be "free dig" to well beyond 50 metres
from surface. The softness of the ore is due to the ubiquitous
argillic alteration. Further work is required to ascertain the extent
of these favourable characteristics.
Future work
Future 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 CORRIDOR
Figure 3 (please see the link at the end of this announcement) shows
the regional structure and geology highlighting the mineralisation
potential in favourable limestone and calcareous clastic rocks along
the Barobo Fault Corridor. Mineralisation has been located in
numerous outcrops and in drill holes which are summarised in Table I.
The mineralisation located to date is generally associated with
silica and sphalerite-galena replacement of the host rocks.
The calcareous sequence along the Barobo Fault Corridor is the same
sequence that has been extensively skarned and mineralised at the
Kamarangan copper porphyry prospect. This sequence is interpreted as
the oldest calcareous sequence known to date in the district and may
be up to 1,600 metres thick.
The sequence is regarded as favourable for hosting large disseminated
bodies of gold mineralisation.
Table III summarises some of the more significant drill hole
intersections from scout drilling (four holes at Guinhalinan, seven
holes at Saguilsuilan and six holes at Alikway). The focus of this
scout drilling was on potential high grade mineralisation, not
potentially open-pittable targets. All show that gold mineralisation
is contained with this calcareous sequence. It should be noted, as
also shown in soil sampling on Figure 3 (please see the link at the
end of this announcement), that zinc is commonly associated with gold
in this environment
Table III. Summary of scout drilling on Barobo Corridor limestone
hosted 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 PERSONS
Medusa Mining Limited
Information in this report relating to Exploration Results, is based
on information compiled by Mr Geoff Davis, who is a member of The
Australian Institute of Geoscientists. Mr Davis is the Managing
Director of Medusa Mining Limited and has sufficient experience which
is relevant to the style of mineralization 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
"Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". 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.
Cube Consulting Pty Ltd
Information in this report relating to Mineral Resources has
been estimated and complied by Mark Zammit of Cube Consulting Pty
Ltd. Mr Zammit is a member of The Australasian Institute of Mining &
Metallurgy and has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2004 Edition of the "Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Zammit consents to the inclusion in the report of the
matters based on his information in the form and context in which it
appears.
Cube Consulting is an independent Perth based resource industry
consulting firm specialising in geological modelling, resource
estimation and information technology.
=--END OF MESSAGE---
http://hugin.info/138050/R/1334050/316504.pdf
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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