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MLL.TO Medusa

There wasn't much reaction one way or anotherr to this recent news. Do any of you want to share thoughts on Medusa. They are a low cost producer with cash flow and potential new deposits.........

Kipp


Medusa Mining Limited: Saugon Drilling Expands High-Grade Gold-Silver Potential

MLL.TO 6.66 -0.02


{"s" : "mll.to,mml.ax,mml.l","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Medusa Mining Limited On Wednesday December 1, 2010, 4:06 am EST
COMO, WESTERN AUSTRALIA--(Marketwire - Dec. 1, 2010) - Medusa Mining Limited (TSX:MLL - News; ASX:MML - News; LSE:MML - News; "Medusa" or the "Company") through its Philippines operating company Philsaga Mining Corporation ("Philsaga"), advises that drilling at the Saugon Project's First Hit Vein Prospect has confirmed previous results from 2004 and extended the mineralised gold-silver zones to approximately 200 metres of strike and open along strike and at depth.

Highlights include:


---------------------------------------------------------------------------Hole Number Width (metres) Gold (g/t gold) Silver (g/t silver)---------------------------------------------------------------------------SDDH 37 2.15 13.30 179.85---------------------------------------------------------------------------SDDH 40 3.90 9.63 125.13---------------------------------------------------------------------------SDDH 41 3.35 11.71 154.23---------------------------------------------------------------------------SDDH 42 0.75 28.07 413.60---------------------------------------------------------------------------SDDH 43 1.50 15.81 232.50---------------------------------------------------------------------------SDDH 44 1.40 27.65 398.00---------------------------------------------------------------------------SDDH 64A 4.55 9.75 Not available---------------------------------------------------------------------------
Geoff Davis, Managing Director of Medusa, commented:

"These new high-grade gold-silver drilling results, whilst confirming and extending significantly the 2004 results, have the hallmarks of a substantial mineralised structure. The mineralisation is hosted by epithermal quartz breccias, stockworks and veins which may be linked to a porphyry copper system as indicated by the large coincident argillic alteration area and aeromagnetic low or demagnetised zone.

The deepest high grade intersection of 3.35 metres at 11.71 g/t gold and 154 g/t silver at approximately 180 metres vertically below outcrop and the robust new northern zone intersections indicate scope for substantial increases to this mineralisation. Work is on-going to further evaluate its potential to develop as a new deposit".

FIRST HIT VEIN

Background

Figure 1 shows the Saugon Project located approximately 28 kilometres by road from the Co-O Mill, and Figure 2 shows the regional geology, the location of the First Hit Vein and the Paradise & Mabas Prospects. Figure 3 shows the location of the First Hit Vein drill holes.

Figures 4 and 5 show interpreted cross-sections through the First Hit Vein and Figure 6 shows gram per metre contours projected onto a vertical plane looking northwest.

Work in 2004 involved drilling at the First Hit Vein (holes SDDH 1 to 35) in conjunction with underground development via a 30 metre deep inclined winze down the vein-breccia to assist in understanding the mineralisation.

The 2004 drilling indicated a well developed central zone (First Hit Vein) with two possible splays partly developed as footwall and hanging wall zones. Further details are contained in the announcement dated 20 April 2010.

Drilling

Drilling of 34 new drill holes totalling 7,493 metres (SDDH 36 to 68 inclusive) has been completed at the First Hit Vein. Assay results for holes SDDH 55, 57, 60, 62, 63, 65 and 68 are awaited.

The aim of the drilling was to repeat the 2004 un-surveyed holes in order to establish the geometry of the mineralised system and to gain a better understanding of the mineralisation. Drilling is continuing.

The results broadly confirm the 2004 drill holes with some wider intersections with mid-range grades as well as narrow zones of high grades. The style of mineralisation appears to be quite variable, from some well formed veins to hydrothermal breccias to stockworks. Strong silver values and base metals, particularly lead and zinc appear to correlate reasonably consistently with the main vein.

To view Table I. First Hit Vein drill hole results greater than 1 g/t gold and greater than 0.2 metres downhole, please visit the following link: http://media3.marketwire.com/docs/medusa_12_01_2010_table.pdf.