News

February 24, 2010

The Full Extent Of The Upside At Medusa Mining’s Co-O Mine In The Philippines Is Still Widely Unappreciated

By Our Man in Oz

Miners love them. Investors are never quite sure. The point of contention? - epithermal veins, those sometimes gold-rich seams of mineralised material which splay off in all directions in the geological aftermath of an ancient, and explosive, volcanic event. In places, the veins yield astonishingly rich grades of gold, but tracking them is the devil’s own job because nature rarely works in a straight line. Understand the tricky nature of “vein mining” and you start to understand why Medusa Mining took a while to catch the eyes of all but the most skilful stockbrokers. One money man did grasp the potential of Medusa’s Co-O mine in the Philippines early on was London broker, Bob Catto. Bob’s not only been a keen follower of the triple-exchange listed Medusa (AIM, ASX and TSX), but has even had a little bit of those far-away islands named after him.

The Catto 1 and Catto 2 veins are not big compared with some of the other 33 veins identified so far at Co-O. But they do jump out to the eye of a casual observer like Minesite’s Man in Oz as a good starting point for a conversation about what exactly Medusa has got at Co-O. So Minesite’s man duly called on Medusa’s management this week for a first-hand explanation of how the company has managed to become one of the gold sector’s top performers, with a share price that has soared from A$1.32 to...