Medusa finds large mineralised zone in Phillipines

Australia-based gold mining company Medusa Mining Ltd said on Thursday it had found a "potentially large" mineralised zone, with visible copper and molybdenum at the first two drill holes at Kamarangan in the Philippines.

The potential size of the zone is estimated to be up to 2,000 metres east-west by over 800 metres north-south, Medusa said.

The AIM-listed company said the drill holes have also intersected zones of "massive" magnetite, with gold and copper mineralisation in the overlying skarn rocks.

Managing director Geoff Davis commented: "As soon as more rigs are available, Kamarangan, together with Lingig and the on-going drilling at Co-O, will be the major foci for some time to come."

At 10.09 GMT, shares in Medusa were trading up 3.87% at 47 pence.

by Kumar Alagappan in Bangalore, editing by Will Waterman.