Drilling cheer for Medusa

22/06/2009 Robert Tyerman

Medusa Mining (MML) says new drilling results from Co-O in the Philippines confirm it as a ‘world-class’ gold deposit.

Based in Western Australia and quoted Down Under and on AIM, Medusa has been concentrating on infill and extension drilling at Co-O, partly to the east of the district’s Agao River. The company cites encouraging high-grade intercepts, ranging from 2.3 metres with 12.13 grammes of gold per tonne of ore and 3.05 metres with 18.76 grammes a tonne, to 1.5 metres with 140.52 grammes a tonne and 1.15 metres with 167.63 grammes a tonne.

Medusa says these drilling results will be incorporated into a new resource estimate due next month. Managing director Geoff Davis declares that the company ‘will continue aggressively to explore’ the Co-O site and is 'now moving towards exploring other vein systems in the immediate vicinity’.

Highlighted by Growth Company Investor three years ago at 27p and again last January at 48p, Medusa shares have now reached 110p, valuing the company at £186 million. Partial profit-taking might be prudent now, but there should be more mileage yet if Davis’s strategy pays off.