Australian mining group Medusa Mining (LON:MML) reported this morning that it had discovered new areas of mineralisation at its Co-O gold mine in the Philippines. The news comes a day after Medusa switched its AIM listing for a move onto London’s Main Market and was enough to send the shares up by 1.6% to 354p. The company gave details of surface drilling results for previous hole MD 259 and new holes MD 261 to MD 279, results from underground drilling and an update on regional drilling around the Co-O Mine.

Medusa is currently using six surface rigs and four underground rigs for resource definition, delineation of new veins to the north of the current resources and extension of known veins. The Royal Vein set is now being delineated by drilling and development along the northern side of the Co-O Mine resource model and has been extended westwards to the Tinago Shaft. Elsewhere, a new vein set named the North Tinago Veins and located to the north of the Royal Vein set is currently being delineated on surface following initial drill intersections of up to 2.90 metres at 8.08 g/t gold, and on a different vein, 1.00 metre at 29.53 g/t gold.

Yesterday, Medusa reported quarterly production figures from the Co-O mine of 25,004 ounces at an average grade of 15.77 g/t at cash cost of US$187 per ounce
The company is planning to ramp production up to between 300,000 and 400,000 ounces per year over the next three to five years.

Geoff Davis, the managing director of Medusa, said: “The Co-O Vein system continues to grow, as evidenced by the recognition and delineation of the North Tinago Vein set. Drilling of the Royal Vein set indicates they start at shallow depths and extend the full distance along the north side of the mine resource model from east of the Saga Shaft westward to the Tinago Shaft area, although infill drilling and development is on-going to confirm this interpretation. In addition, surface work is delineating new veins at West Tinago and the vein system at Gamuton is shaping up to be more extensive than previously thought. These will be systematically drilled to determine their potential. These new discoveries have the potential to significantly increase the mining area.”

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