Gold miner Medusa raises resource to 1.38 million oz

Philippines gold miner Medusa Mining hs increased its JORC-compliant indicated gold resource to 1.38 million ounces at 10.8 g/t

LONDON - 

More positive news from Medusa Mining, the ASX and AIM listed gold producer operating the Co-0 underground gold mine in the Philippines.

Today the a company announced a revised JORC compliant resource statement for the mine, based on ongoing infill and exploration drilling of the vein system to both boost the confidence of the resource and extend the system along strike and at depth, ahead of the completion of a Phase I expansion to increase production to 60,000 ounces of gold per annum, and a further ramp up to 100,000 ounces of gold per annum from a Phase II development.  

The resource increased by 15% to 1.38 million ounces of gold at 10.8 grams per tonne gold, an increase of 60% in 12 months.  The indicated gold resource increased by 25.6% to 1.25 million tonnes at 15 grams per tonne (603,000 ounces) while the inferred category climbed to 2.73 million tonnes at 8.9 grams per tonne gold (777,000 ounces).

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."

51 drill holes were completed since the previous resource estimate, and this new resource included data from the East Agsao Vein.

"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," the company added.

Published courtesy of Proactive Investors - www.proactiveinvestors.co.uk

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