Medusa Mining says it has increased the indicated resource by 4 per cent to 603,000 ounces and increased the inferred resource by 36 per cent to 898,000 ounces (excluding production since December 9, 2009).

In a statement to the Australian Securities Exchange, it said additional information which supports the announcement dated January 18, 2010, containing estimates of the conceptual potential target sizes for the Co-O Mine using various parameters which indicate a range of 3,000,000 ounces in 9,300,000 tonnes to 7,000,000 ounces in 22,000,000 tonnes using a grade range of 9 to 11 g/t gold with a preferred average grade of 10 g/t gold.

Reuters