Medusa Mining has successfully raised Aus$3.356 million to help fund its major expansion program of the Co-O gold mine on the sourthern Philippines Island of Mindanao.

The funds will help expand the company's known resource base, new underground exploration and develop and define its porphyry copper-gold target.

The completion of the 3W shaft in the Co-O Mine will enable the cutting of drilling positions on the 3050m level (approximately 100 metres below adit level) to facilitate drilling of the Central Vein at a depth below this level.

Drilling will also be conducted to search for parallel veins north and south of the known Co-O veins. Drilling of extensions to the west and east of the Co-O Mine vein zone and new veins will be undertaken.

Underground exploration is starting on the Tambis and Anoling projects and on veins adjacent to the Co-O Mine with the aim of defining new resources and developing additional ore sources. This work will involve exploration winzes, adits and shafts.

Investigation of the known Lingig porphyry copper target and extensive areas of alteration and veining at Co-O and Tambis, and alteration only at Saugon will be undertaken to determine if drill targets are present. Work will involve collation of old data, mapping, surface geochemistry and possibly ground geophysics. The company is earning an 84% interest in the Masapelid Island project which was an underground narrow vein mine pre-World War II. Data collation and surface work will be followed by first pass drilling.