Medusa Mining Limited ("Medusa" or the "Company"), a public company listed on the ASX and LSE, is an Australian based gold producer. Medusa's corporate strategy is to become a mid-tier, 400,000 ounce per year, low-cost gold producer.The Company has completed the two-phase expansion of its high grade Co-O Mine operations to a production level of 100,000 annualised ounces. The Company is in construction Phase 3 expansion of the mill to increase capacity to 200,000 ounces.Resource drilling at the Bananghilig Deposit has confirmed 1,100,000 ounces of Inferred Resources. Infill drilling to indicated status is nearing completion.Further potential upside exists for the discovery of copper and additional gold deposits within the tenement holding of more than 800km2.
Medusa Mining (ASX, AIM: MML; TSX: MLL), through its Philippines operating company Philsaga Mining Corporation, has advised that drilling will commence during May at the Saugon First Hit Vein Prospect. The project was last drilled by the company in 2004.
Geoff Davis, Managing Director of Medusa, commented “drilling in 2004 reported some tantalising results at Saugon. The high grade gold mineralisation is poly-metallic with some high silver and copper-lead-zinc values hosted by high-level, high energy epithermal quartz breccias and veins."
"The association of the veins and breccias with a large north-east-trending aeromagnetic demagnetised zone in combination with widespread surface alteration suggests that this mineralisation may be associated with a porphyry copper system laterally or at depth." he added.
Drilling is re-commencing at the First Hit Vein, and also at additional targets that have been outlined by recent field work. As the drill holes were not down hole surveyed in the early drilling, some holes will be repeated to establish the geometry of the mineralised system before step-out drilling is undertaken.
Two rigs will be involved in the programme which will be results-driven over the next 4 to 6 months.