Co-O Mine Resources Now 1.38 Million Ozs

 
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 
 
1st July 2009 
                        MEDUSA MINING LIMITED 
                             (AIM: MML) 
              Co-O MINE RESOURCES NOW 1.38 MILLION OZS 
Medusa Mining Limited ("Medusa" or the "Company"), through its 
Philippines operating company, Philsaga Mining Corporation 
("Philsaga"), advises that a new resource estimation for the Co-O 
Mine has: 
*       Increased the JORC compliant total resources in the last 6 
  months by 15% to 1,380,000 ounces at 10.8 g/t gold (annual increase 
  of 60%), excluding mine depletion since December 2008, and 
  importantly, boosted the Indicated Resources category by 25.6% to 
  603,000 ounces; and 
*       Set the stage for significant resource extensions to the east 
  of the mine with further drilling. 
Table I. Resource estimate to 14 June 2009: 
 
+------------------------------------------------+ 
| Category    |           > 0 g/t gold           | 
|             |----------------------------------| 
|             |  tonnes   | g/t gold |  ounces   | 
|-------------+-----------+----------+-----------| 
| Indicated   | 1,250,000 |     15.0 |   603,000 | 
|-------------+-----------+----------+-----------| 
| Inferred    | 2,730,000 |      8.9 |   777,000 | 
|-------------+-----------+----------+-----------| 
| Grand total | 3,980,000 |     10.8 | 1,380,000 | 
+------------------------------------------------+ 
 
 
Geoff Davis, Managing Director of Medusa, commented: 
"The continuing growth of the Co-O Mine resource at a very robust 
gold grade testifies the quality of this asset. We expect resource 
growth to continue, especially to the east as more drilling is 
undertaken. This work will focus primarily on extending Co-O's 
shallower resources where mine infrastructure can be expanded at low 
capital costs. In addition drilling will focus on nearby vein systems 
where there is the real opportunity to make new discoveries." 
 
RESOURCE ESTIMATIONS 
Discussion 
Diamond drilling has continued since the past resource estimate 
announced on 19 January 2009 with the aim of infilling and extending 
the Co-O vein system to depth and along strike. A total of 51 drill 
holes have been completed (as announced on 22 June 2009) since the 
previous resource estimation and included in the current resource 
estimation in conjunction with available underground sampling data 
and excluding mined material. 
The first modelled vein (East Agsao Vein) east of the Agsao River has 
been included in this estimation. It is anticipated that significant 
resources will be defined as drilling along the veins in this area 
progresses and continuity increases. 
The infill drilling has increased the confidence levels for vein 
interpretations and consequently an increase in the Indicated 
Resources to 603,000 ounces (from 480,000) as shown in Table I. This 
increase in Indicated Resources is expected to translate into a 
significant upgrade of the mine's reserve base. 
Figure 1 ((please see the link at the end of this announcement) is 
the composite map of the Co-O Mine area showing the location of drill 
holes MD 114 to 165 and the projection of veins onto Level 5. 
Table II is a summary of the veins containing more than 50,000 ounces 
of resources. 
Resource drilling is continuing with the aim of defining several 
poorly defined veins within the mine area, to expand the resources to 
the east and to undertake first pass drilling on other vein systems 
adjacent to the Co-O Mine. 
Table II. Co-O Mine resource estimates for the veins containing 
>50,000 ounces 
 
+-------------------------------------------------------------------+ 
| Vein name   | Category  |              > 0 g/t gold               | 
|             |           |-----------------------------------------| 
|             |           |    tonnes    |   g/t   |   contained    | 
|             |           |              |  gold   |     ounces     | 
|-------------+-----------+--------------+---------+----------------| 
| Central     | Indicated |      484,000 |   11.17 |         174,00 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Inferred  |      481,000 |    5.83 |         90,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Sub-total |      964,000 |    8.51 |         264,00 | 
|-------------+-----------+--------------+---------+----------------| 
| Jereme      | Indicated |       71,000 |   14.90 |         34,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Inferred  |      155,000 |   10.33 |         51,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Sub-total |      225,000 |   11.77 |         85,000 | 
|-------------+-----------+--------------+---------+----------------| 
| Jereme      |           |              |         |         24,000 | 
| West        | Indicated |       51,000 |   14.31 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             | Inferred  |      152,000 |    7.90 |         39,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Sub-total |      203,000 |    9.52 |         62,000 | 
|-------------+-----------+--------------+---------+----------------| 
| Great       |           |              |         |        202,000 | 
| Hamish      | Indicated |      179,000 |   34.98 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             | Inferred  |      250,000 |    9.79 |         79,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             | Sub-total |      429,000 |   20.32 |        280,000 | 
|-------------+-----------+--------------+---------+----------------| 
| Great       |           |              |         |        101,000 | 
| Hamish FW   | Inferred  |      385,000 |    8.19 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             | Sub-total |      385,000 |    8.19 |        101,000 | 
|-------------+-----------+--------------+---------+----------------| 
| Edphil      |           |              |         |         31,000 | 
|             | Indicated |      144,000 |    6.76 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |                | 
|             | Inferred  |      181,000 |    9.67 |         56,000 | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |         87,000 | 
|             | Sub-total |      325,000 |    8.38 |                | 
|-------------+-----------+--------------+---------+----------------| 
| New Catto 1 |           |              |         |         35,000 | 
|             | Indicated |       22,000 |   49.67 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |         92,000 | 
|             | Inferred  |       84,000 |   33.99 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |        127,000 | 
|             | Sub-total |      106,000 |   37.27 |                | 
|-------------+-----------+--------------+---------+----------------| 
| New Catto 3 |           |              |         |         52,000 | 
|             | Indicated |       49,000 |   33.12 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |         77,000 | 
|             | Inferred  |       47,000 |   51.17 |                | 
|-------------+-----------+--------------+---------+----------------| 
|             |           |              |         |        129,000 | 
|             | Sub-total |       96,000 |   41.89 |                | 
|-------------+-----------+--------------+---------+----------------| 
| Other veins | Sub-total |    1,280,000 |    5.93 |        245,000 | 
|-------------------------+--------------+---------+----------------| 
| Grand Total             |    3,980,000 |    10.8 |      1,380,000 | 
+-------------------------------------------------------------------+ 
 
   The resource estimations have been undertaken by Cube Consulting 
Pty Ltd. 
 
Vein modelling 
The 3D model of the veins in Figure 2 (please see the link at the end 
of this announcement) shows a strike persistent vein system which is 
open at depth and along strike. It should be noted that the new 
underground development work between the Agsao and 8E Shafts is 
indicating that vein orientations are more east-west. It is 
anticipated that additional north-south oriented faulting will be 
identified as the along-vein development proceeds. It expected that 
these orientations will be clarified in the next resource statement, 
and may not materially affect the resources in this area of the mine. 
Cube Consulting Pty Ltd of Perth, Western Australia was 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 14 June 2009.  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/Libby Moss 
 
 
 
 
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/1326377/312147.pdf 
 
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.