Medusa Mining intersects gold veins west of Tinago fault

Shares in Medusa Mining dipped Thursday after the gold miner said drilling west of the Tinago fault at its Co-O mine in the Philippines indicated weakening in the vein system.

While drilling continued to intersect gold veins with some indications that grades in places may be increasing at depth, grades have been generally below 3.0 grams per tonnes of gold.

"The Co-O Mine drilling continues to deliver high grade intersections over a strike length of approximately two kilometres and at depth," said Peter Hepburn-Brown, Managing Director of Medusa.

"The drilling indicates the vein system appears to be weakening to the west of the Tinago Fault particularly near surface with the possibility of some higher high grades at depth. Elsewhere drilling continues to return good values from infill and extensional drilling.

"Drilling is continuing with four surface and three underground rigs. The next resource update will be in the September quarter of 2013."

Shares fell 2.86% to 272.00p at 12:34.

RD