Medusa Mining (LON:MML, ASX:MML, TSE:MLL) reported that regional and detailed mapping has indicated “excellent potential” for additional discoveries at the Tambis project in the Philippines.
The mapping, which commenced in October last year, has shown excellent potential for additional discoveries of epithermal veins and quartz stockwork gold mineralisation within a large intrusive-breccia complex.
New outcrops of porphyry and related styles of copper mineralisation have also been located at the Sawahon Creek prospect, at the lower Bananghilig River prospect, and southwest of the Bananghilig gold deposit.
“This on-going mapping has significantly enhanced the regional potential of the Tambis district,” said managing director of Medusa Mining Geoff Davis.
“We see strong similarities with the Wafi Golpu Project in Papua New Guinea with respect to the regional setting, rock types, mineralisation styles and potential.”
Medusa also noted that there were many similarities to the richly mineralised Baguio District north of Manila, which has produced about 28 million ounces of gold and 2.8 million tonnes of copper.
Investors cheered the news, driving shares in the company up 2.4 percent to 525 pence in early deals.
Drilling is continuing with six drilling rigs at the Bananghilig deposit. Medusa expects to release a drilling report during the September quarter.
The Tambis project is operated under a mining agreement with Philex Gold Philippines over a production sharing agreement that covers 6,262 hectares. In addition to that, Medusa is earning a 70 percent interest in a joint venture through MRL Gold Phils with Apical Mining Corporation, which covers the adjacent mineral production sharing agreement application with an area of 2,084 hectares.
Philsaga Mining Corporation is Medusa Mining’s Philippines operating company.