Highlights include: |
Hole
Number |
|
Width (metres) |
|
Grade
(uncut) (g/t gold) |
EXP
087 |
|
1.40 |
|
28.02 |
EXP
092 |
|
1.45 |
|
56.23 |
|
|
1.55 |
|
33.55 |
EXP
093 |
|
2.50 |
|
72.80 |
|
|
1.00 |
|
21.53 |
EXP
094 |
|
1.10 |
|
14.73 |
EXP
095 |
|
2.35 |
|
10.61 |
|
|
2.05 |
|
15.97 |
Recent surface drilling continued to provide
mine planning and resource infill information mainly to the east of the
Oriental Fault, including the multiple East Agsao Veins and veins
associated with the Roysan Vein.
Underground drilling continues to confirm vein
continuity.
Geoff Davis, Non-executive Chairman of
Medusa, commented:
"The Co-O Mine drilling continues to
deliver confirmation of the extent of this vein system. Following on from
the new resource announced on 27 July 2011 of 1,960,000 ounces, we expect
positive drill results to continue as drilling expands the vein
system.
Drilling is continuing with six surface
rigs and five underground rigs."
Co-O MINE DRILLING
Discussion
This report lists the surface and underground
drill holes with new assay results returned since 30 June 2011 to 27
September 2011. The MD series of holes has been discontinued.
Previous detailed drilling reports were
published for MD holes, EXP holes and underground holes on 27 July 2011, 5
April 2011, 18 January 2011, 29 October 2010, 30 June 2010, 29 March 2010,
January 2010, 10 December 2009, 1 July 2009, 22 January 2009, 1 December
2008 and 12 August 2008. In 2007 the announcements are dated 9 July, 15
May and 28 February.
Results down to 0.2 metres wide are reported
since underground development shows that in many cases as the veins
approach cross-cutting faults, they narrow down on both sides of the fault
over 5 to 10 metres before widening out, and hence the narrower
intersections are important in defining vein continuity. There is also
some pinching and swelling of veins along strike. Most drilling is
sub-parallel to the cross-cutting fault direction (and perpendicular to
the strike of the veins) and rarely intersects these faults, which are
subsequently identified by underground on-vein development or underground
drilling.
It should also be emphasised that drilling of
vein systems rarely provides ore-grade intersections in every intersection
in a vein. As our data base grows, and the characteristics of each vein
become clearer, a statistical assessment of the percentage of ore-grade
drill hole intersections required in each vein will provide the levels of
certainty for turning exploration drill results into ore that can be
developed with confidence.
Drill hole collar positions are surveyed by a
qualified surveyor and surface drill holes are surveyed downhole at
regular intervals using a digital multi-shot downhole camera.
It is important to note that the drilling of
narrow epithermal veins generally provides an indication of the presence
of the gold mineralised vein but may not always provide good quantitative
data with respect to accurate grade and volume estimations for some or all
of the following reasons:
- Veins commonly pinch and swell and may be brecciated or displaced by
faults;
- Gold distribution may be erratic; and
- Drill core recovery may be reduced because of the brecciation and
soft unconsolidated material and hence the recovered material may not be
representative of the material drilled.
The Company regards the initial drilling as
indicative only and operates the policy of using drilling to locate the
position and extent of the mineralised veins. This is then followed by
on-vein development to support the drilling results, and to provide a more
accurate estimate of vein grades which results in the upgrading of the
resource category from Inferred to Indicated. The development supports the
estimation of resources and facilitates the conversion of resources to
reserves.
Further information on narrow veins and the
Company's policies regarding exploration, development and
resources-reserves is contained on the Company's website, www.medusamining.com.au.
Drilling Results
Figure 1 (attached) shows the locations of the
recently completed surface drill holes EXP 087 to 110 comprising 24 holes
for a total of 16,824 metres. Assay results are awaited for EXP102 to
EXP110.
Table I shows the results = 3 g/t gold over =
0.2 metres for holes EXP087 to EXP101. A number of these holes have been
drilled to define the upper limits of mineralisation in the structures
containing the veins and consequently some may not have intersected vein
mineralisation within the grade and/or width parameters in this
report.
Figure 2 (attached) shows the locations of the
recently completed underground drill holes totalling 6,900 metres in 33
holes. Table II lists underground drill hole results = 3 g/t gold over =
0.2 metres since 30 June 2011 for 8 out of 33 holes. Assays are awaited
for holes L2-042 and 43, L2-046, L5-068 to 083, L6- 003 to 010 and LM 001.
To view "Table I", please visit the
following link: http://media3.marketwire.com/docs/mml_tb1_1017.pdf
To view "Table II", please visit the
following link: http://media3.marketwire.com/docs/mml_tb2_1017.pdf
DRILL HOLE SAMPLING AND ASSAYING
PROCEDURES
Samples are taken from mainly HQ sized (hole
outside diameter 96 mm, hole inside diameter 63.5mm) and some NQ sized
(hole outside diameter 75.8 mm, hole inside diameter 47.6 mm) drill core.
The selected sample intervals are halved by Diamond saw and half the core
was bagged, numbered and sent to the Company laboratory. In a small number
of cases to confirm the geological logging, the selected interval was
re-split and 1/4 core re-submitted for assay.
Initial sample preparation and assaying is
undertaken at the Company's on–site laboratory. Samples are dried at 105ºC
for 6 to 8 hours, crushed to less than 1.25 cm by jaw crusher, re-crushed
to less than 3 mm using a secondary crusher followed by ring grinding of
700 to 800 grams of sample to nominal particle size of less than 200 mesh.
Barren rock wash is used between samples in the preparation equipment. The
samples are assayed by fire assay with Atomic Absorption Spectrometer
(AAS) finish on a 30 gram sample. All assays over 5 g/t gold are
re-assayed using gravimetric fire assay techniques on a 30 gram
sample.
Check assaying of approximately 50% of samples
used in the yearly resource estimates is undertaken by McPhar Geoservices
Phils Inc ("McPhar"), a NATA and ISO 9001/2000 accredited laboratory in
Manila. The pulps are airfreighted to McPhar who fire assay 30 grams of
samples using AAS finish and a selected number of samples are checked
using gravimetric fire assay techniques. Duplicate samples and standards
are included in each batch of check samples.
When reporting results, where available, the
assays of McPhar as an independent laboratory have been given priority
over the Company laboratory's results.
Information in this report relating to
Exploration Results has been reviewed and is based on information compiled
by Mr Geoff Davis, who is a member of The Australian Institute of
Geoscientists. Mr Davis is the Chairman of Medusa Mining Limited and has
sufficient experience which is relevant to the style of mineralisation 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 "Australasian 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.
DISCLAIMER
This announcement may contain certain
forward-looking statements. The words 'anticipate', 'believe', 'expect',
'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could',
'may', 'target', 'plan' and other similar expressions are intended to
identify forward- looking statements. Indications of, and guidance on,
future earnings and financial position and performance are also forward-
looking statements.
Such forward-looking statements are not
guarantees of future performance and involve known and unknown risks,
uncertainties and other factors, many of which are beyond the control of
Medusa, and its officers, employees, agents and associates, that may cause
actual results to differ materially from those expressed or implied in
such statements.
Actual results, performance or outcomes may
differ materially from any projections and forward-looking statements and
the assumptions on which those assumptions are based.
You should not place undue reliance on
forward-looking statements and neither Medusa nor any of its directors,
employees, servants or agents assume any obligation to update such
information.
To view "Figure 1", please visit the
following link: http://media3.marketwire.com/docs/mml_f1_1017.pdf
To view "Figure 2", please visit the
following link: http://media3.marketwire.com/docs/mml_f2_1017.pdf
ABN: 60 099 377
849