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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: [email protected] Internet: www.medusamining.com.au
ANNOUNCEMENT
21 January 2015
EXPLORATION PIPELINE AND TENEMENT REVIEW
(ASX: MML)
Medusa Mining Limited ("Medusa" or the "Company"), through its Philippine operating company, Philsaga Mining Corporation ("PMC"), wishes to advise that an exploration and tenement review to 31 December 2014 has been completed.
The key points are:
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A substantial pipeline of pre-resource exploration prospects has been identified with the two current high priority exploration areas being;
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Co-O Mine environs, specifically the NT series of veins, East Agsao and West Road 17; and
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The Guinhalinan gold prospect.
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Tenement rationalisation has resulted in a reduction in tenement area to approximately 489 km² (from approximately 806 km²).
Geoff Davis, CEO of Medusa, commented:
"Our core tenements have many years of exploration ahead as our substantial pipeline of prospects is systematically assessed, and more are likely to be identified over time.
Rationalisation of our tenement areas has been undertaken now that sufficient regional to detailed knowledge is available regarding prospectivity, as well as considerations such as competing land use and accessibility.
This will reduce our holding costs and administrative requirements."
EXPLORATION AND DEVELOPMENT PIPELINE
Over the last eleven years the Company acquired a portfolio of tenements with numerous prospects that range in stages of advancement, from 'greenfields' through to 'resource definition'.
Currently only the Bananghilig and Saugon Deposits have resources besides the operating Co-O Mine. Bananghilig is undergoing further geological work prior to advancing the scoping studies. Saugon is yet to be prioritised with respect to scoping studies.
The principal aim is to advance each prospect towards resource definition, to build a resource base and contribute mill feed to the current Co-O Mill operations, and/or develop stand-alone mining/milling operations.
Whilst there are many tenement applications still in the process of approval, the majority of the prospects are located within the granted tenements, and are able to be advanced systematically.
The exploration status classifications for each prospect, up to Scoping Study, are defined as follows:
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Target Inventory: known prospects without any surface work;
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Target Reconnaissance: known prospects subjected to first pass field assessment, usually involving visual inspection, reconnaissance mapping and surface sampling;
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Target Generation: involves detailed mapping, trenching, possibly ground geophysics and data compilation to generate targets for drilling;
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Scout Drilling: Drilling to determine if mineralisation exists has been undertaken; and
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Resource Drilling: Current drill hole spacing is deemed sufficiently close to define a resource.
Figure 1 shows the current exploration status for each known prospect. In the Co-O Mine environs, the Tinago Vein set, East Agsao and West Road 17 are high priority.
In the Tambis region, whilst Bananghilig (B1) is undergoing additional geological work prior to re-visiting scoping studies, as B2 is an extension of B1, further work is dependent on the outcome of B1 studies.
Guinhalinan is the current high priority greenfields prospect in the Tambis region.
Figure 1. Exploration porfolio showing the current status of each target and the process of evaluation to progress each prospect towards resource definition.
Increasing font size indicates the priority ranking and symbol size indicate the increasing confidence level for each prospect.
Figure 2 shows the locations of the prospects within the northern group of tenements located to the north of the Co-O Mine, and Figure 3 shows the locations of the prospects in the southern group of tenements to the south of, and including the Co-O Mine.
Figure 2. Prospects located in the Tambis regional Group of tenements, north of the Co-O Mine