The LSE’s lowest cost gold miner Medusa Mining (LON:MML, ASX:MML, TSE:MLL) reminded investors of the potential in its copper portfolio this morning. It has been carrying out renaissance sampling across its acreage in the Tambis district of the Philippines and it has added two new prospects – named Sawahon and Lower Bananghilig. “The recent discovery of two new copper prospects at Tambis confirms our strong belief that our tenement area will provide lots of opportunities for discoveries for many years to come, and that the Tambis District has the makings of a substantial mineralised district in its own right," managing director Geoff Davis said. At Sawahon samples had grades up to 0.44 percent copper and 0.10 grams per tonne gold, while samples from Lower Bananghilig prospect had grades to 0.16 percent copper and 0.35 g/t gold. There are now nine exploration prospects in Medusa’s copper portfolio – Sawahon, Lower Bananghilig, Kamarangan, Lingig, Co-O (copper targets in the gold mine’s vein system), Saugon, Lasang, Gamuton and the USA prospect. Medusa has now started a geophysical exploration programme – using inverse polarisation (IP) and resistivity – over 186 kilometres across these prospects. Drilling work is being planned for the 2011 - 2012 financial year. Davis added: “Whilst no drilling has been undertaken since February 2010, we have been working steadily to increase our knowledge of the Linigig, Usa and Kamarangan prospects while mapping has discovered several new outcropping copper areas, including the Sawahon and Lower Bananghilig prospects. “The IP programme and ground magnetics will assist to delineate and prioritise drill targets for drilling during 2011/12.” Medusa Mining was one of the outstanding performers among the medium-to-small cap stocks over the past year or so. Indeed with a market value just shy of £1 billion and its recent step up onto the LSE Main Market, the stock is no longer a ‘small cap’ or a ‘junior’ at all. Its strong performance has mainly been driven by expanding gold production from the Co-O gold mine in the Philippines. Last month it revealed it was on track for an annualised rate of production of 100,000 ounces of gold a year. Output was 25,114 ounces in the three months to March 31 at an average grade of 11.58 grams per tonne and a cash cost of US$191 per ounce. The cumulative total in the past three quarters was 76,241 ounces. Medusa’s gold production is very low cost (about US$185 per ounce) and it is un-hedged.

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