Medusa Mining, the Australian-based company operating and developing gold mines in the Philippines, anticipates production of 10,000 ounces from the Co-O mine for the June quarter.

Continuing development on the 3050 metre level confirms the vein interpretations from the first deep drill holes on the east side of the Oriental Fault. Driving north from the bottom of the 3W shaft has intersected the North Vein, which was known on the west side of the Oriental Fault, and the new Edphil Vein which have both returned good grades.

At the 3010 metre level development on the Central Vein has shown it is up to four metres wide and generally averages in excess 20 grams/tonne gold. The Central Vein consists of dominantly colloform white to bluish to greyish-banded chalcedony, quartz and lesser calcite. It also contains natural cavities lined with quartz crystals.

The Co-O gold deposit is in the northern section of a large alteration anomaly delineated by airborne magnetics.

Medusa, in cooperation with the Centre for Exploration Targeting at the University of Western Australia, has contracted a postgraduate research geologist to undertake detailed studies, initially on the Co-O Mine followed by other deposits and prospects. The aim of the research is to understand the depth potential of the Co-O veins through determination of the temperature of vein deposition, vein and alteration mineralogies and other characteristics within the regional structural framework of the mineralising Philippine Rift Fault.

The Co-O underground mine is developed on a series of low sulphide, epithermal quartz veins and to date have been worked to approximately 270 metres below surface. The mine was developed over 600 metres of strike length of the veins with the main access through an adit for nearly 300 metres before encountering the mineralised veins.