Kamarangan permits for Medusa Mining

Australian company Medusa Mining Limited, which is operating and developing gold mines in the Philippines, has received permits for drilling over the Kamarangan area in the Philippines.

The company is likely to commence drilling within two weeks initially in the Dumaag area.

The company claims that the Kamarangan area represents a major metalliferous target for gold, iron and copper.

Conceptually it is interpreted that the mineralisation has originated from an underlying intrusive porphyry copper body.

The potential mineralisation types are hosted by various skarns that have been interpreted to cover an area approximately 1,200 metres by up to 1,000 metres where alluvial gold workings are widespread.

The skarns are developed in shallowly dipping and banded limestones.

The company has previously reported gold, iron and copper sampling results from 21 iron-rich samples which averaged 9.5g/t gold and 37.5% iron, and which returned elevated copper values to 0.33% copper.

Geoff Davis, Managing Director of Medusa Mining, said that the Tambis-Barobo region, which includes Kamarangan, has all the hallmarks of a mineral district that will host several different types and styles of mineralisation.

Drilling at Kamarangan is the start of investigating this potential away from the known Bananghilig disseminated and vein style gold mineralisation where work has been concentrated to date. We are very optimistic about this prospect, added Mr. Davis.

In the year, 2004, Medusa identified the Philippines (with its world class mineral endowment), as the country most likely to provide Medusa with the opportunity of achieving its stated objectives of developing a cash flow from high grade gold deposits.

The Company has witnessed an upsurge of government facilitation of mining investments for foreign companies in the Philippines, and has divested all its current mining interests in Australia to focus its activities in the Philippines.