Co-O Mine Resources Increased

 
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:  [phone] 
                                           Facsimile:  [phone] 
                                    Email:  [e-mail] 
                                    Internet: www.medusamining.com.au 
 
 
19 January 2009 
 
                        MEDUSA MINING LIMITED 
                             (AIM: MML) 
 
       Co-O MINE RESOURCES INCREASED 40% TO 1.2 MILLION OUNCES 
 
Medusa Mining Limited ("Medusa" or the "Company"), through its 
Philippines operating company, Philsaga Mining Corporation 
("Philsaga"), advises that it has completed a new resource estimation 
at the Co-O Mine, which has increased the JORC compliant resources by 
40% to 1,203,000 ounces at 13.3 g/t gold (from 862,000 ounces). 
 
The key points are: 
 
*              The resource estimation has increased the contained 
  ounces by 
                 341,000 ounces (excluding mining depletion since 
July 2008); and 
*              The grade has increased by 23.7% from the previously 
  reported grade of 10.7 g/t gold. 
 
Resource estimate to 15 December 2008: 
 
 
+------------------------------------------------+ 
| Category    |           > 0 g/t gold           | 
|             |----------------------------------| 
|             |  tonnes   | g/t gold |  ounces   | 
|-------------+-----------+----------+-----------| 
| Indicated   | 1,110,000 |     13.4 |   480,000 | 
|-------------+-----------+----------+-----------| 
| Inferred    | 1,710,000 |     13.2 |   723,000 | 
|-------------+-----------+----------+-----------| 
| Grand total | 2,820,000 |     13.3 | 1,203,000 | 
+------------------------------------------------+ 
 
 
 
Geoff Davis, Managing Director of Medusa, commented: 
 
"This resource increase to over 1.2million ounces, at a very high 
grade, is a great start to 2009.  As the vein system is open at 
depth, and new veins are being found across and along strike, we 
expect the resource to continue to grow.  Drilling will continue for 
the foreseeable future." 
 
 
RESOURCE ESTIMATIONS 
 
Discussion 
 
Diamond drilling has continued since the resource estimate announced 
on 12 August 2008 with the aim of extending the known Co-O vein 
system to depth and along strike. A total of 28 drill holes have been 
completed since the previous resource estimation and considered for 
the current resource estimation in conjunction with available 
underground sampling data. 
 
Figure 1 (attached) is the composite map of the Co-O Mine area 
showing the location of drill holes MD 85-113, the Level 3 (3050 
metre level) workings and the projection of veins onto Level 3. 
Please see the link at the end of this announcement for images. 
 
The main contributor to the resource increase is the recently 
discovered Great Hamish Vein ("GHV") which was announced on 1 
December 2008. It currently contains 318,000 ounces at a grade of 
37.3 g/t gold in 265,000 tonnes of ore. 
 
Vein modelling 
 
The 3D model of the veins in Figure 2 (attached) shows a strike 
persistent vein system which is open at depth and along strike, 
consistent with recent surface work to the west. 
 
Cube Consulting Pty Ltd of Perth, Western Australia were contracted 
to undertake the resource estimations.  A wireframe model of the vein 
system and the mine depletions were based on all available 
information as at 15 December 2008.  A 2D longitudinal modelling 
approach was used and is based on an accumulation variable 
incorporating mineralised vein horizontal width and intercept grade. 
Variography was used to analyse the spatial continuity of the 
horizontal width and accumulation variables within the mineralised 
veins and to determine appropriate estimation inputs to the 
interpolation process. The accumulation variables were interpolated 
into blocks using Ordinary Kriging.  High grade limits were applied 
to gold prior to the calculation of the accumulation variable. 
Mineral resources have been reported in accordance with The 2004 
Australasian Code for Reporting of Mineral Resources and Ore Reserves 
(JORC Code). 
 
For further information, please contact: 
 
 
Medusa Mining Limited                   [phone] 
Geoffrey Davis, Managing Director 
Roy Daniel, Finance Director 
 
Fairfax I.S. PLC                        [phone] 
Nominated Adviser/Joint Broker 
Ewan Leggat 
 
Mirabaud Securities Limited             [phone] 
Joint Broker 
Peter Krens 
 
Lothbury Financial                      [phone] 
Michael Padley/Louise Davis 
 
 
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. 
 
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http://hugin.info/138050/R/1282525/286970.doc 
 
 
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