A drilling program at Medusa Mining"s Co-O gold mine in the Philippines has intersected high grade mineralization 300 to 350 metres below the main adit level.

A new resource estimate will be based on the results of the 20 diamond drill holes. The mineralization remains open at depth.

Significant intersections include 2.4 metres @ 25.61 grams/tonne gold on the Edphil Vein, 5.2 metres @ 107.51 grams/tonne on the New Catto Vein 3 and 0.4 metres @ 160.6 grams/tonne on the New Catto Vein 4.

Modelling of the Co-O vein system is concentrating on the major veins, being Breccia, Edphil, North, Central, Jereme, and the New Catto Veins 1, 2 and 3.

It is apparent that there are numerous vein splits that could add to the resource inventory although at this stage they will not be included in the model.