Medusa Mining has announced that it has completed a new resource estimate for its Co-O property, says a report posted in the World Gold Council web site.

The estimated resource for the mine in the Philippines has increased by 40 per cent to 1.203 million ounces at 13.3 g/t gold, up 341,000 from a previous estimate of 862,000 ounces.

Medusa Mining has raised its grade at the Co-O mine by 23.7 per cent from a previously reported estimate of 10/7 g/t gold.

Geoff Davis, Medusa managing director, stated: "This resource increase to over 1.2 million ounces, at a very high grade, is a great start to 2009."

The company announced in December that it had discovered a new high grade mine at the property, named the Great Hamish Vein, through its Philippines operating company Philsaga Mining.

Listed on the AIM in London and the Australian ASX, Medusa Mining is an expanding gold producer that is bringing new multiple mines into production and conducting exploration activities for new gold deposits.