Call me skeptical but in the world we all live in today, that’s called a saint. Very difficult to believe they are doing this out of the kindness of their heart. Gotta be more to this than meets the eye.
Small and big stockholders all benefit from a large share price increase.
1 Like
Even at zero interest, if the “generous” loan is being repaid through production/profits it is categorzied as a liability and, legally, needs to be reflected in the financials. There’s no such thing as a “handshake”, off the book, financing in publicly trading/reporting companies.
I just received this message from TDAmeritrade:
Recent SEC Rule amendments may impact your account
From: Notices
Date: 5:03pm ET 7/12/2021
Dear Timothy, On September 28, 2021 , new amendments adopted by the U.S. Securities Exchange Commission (SEC) go into effect to enhance investor protection and improve issuer transparency. These amendments restrict the ability of market makers to publish quotations for those companies that have not made required current financial and company information available to regulators and investors. Ahead of the regulatory enforcement date, we will only accept orders to liquidate positions (i.e. no new buy orders) starting August 13, 2021 . After the amendment officially goes into effect on September 28, 2021, it may be more difficult to liquidate these securities. Quoting and market liquidity may also be very limited. What this means for your account(s). You are receiving this notification because you currently hold one or more of the impacted securities in your account. We’re including the list below but be aware that it may not include all of your impacted securities. There is also a chance that the impacted companies could come into compliance with the regulatory requirements ahead of this date and be removed from the list. For a current list of all securities (which is subject to change), please visit www.tdameritrade.com/retail-en_us/resources/pdf/TDA101550.pdf. MDMN, You have multiple options to consider, such as:
- Take no action . You are not required to sell these securities; however, starting August 13, 2021 we will restrict these securities to liquidation-only transactions. You may continue to hold them, but you may have difficulty selling them in the future and there is no guarantee as to what their future value will be.
- Place trades to liquidate . You may place trades to liquidate these securities now. Due to the uncertainly, we cannot guarantee there will be sufficient liquidity to close your position(s) in the future.
- Transfer your positions to another financial institution . Other U.S. financial institutions are also impacted by this amendment so you may have difficulty transferring them out of TD Ameritrade. If you are interested in transferring the assets, please submit any outgoing transfers requests to us. (These transactions may incur fees or commissions, depending on the asset type.)
Have Questions? Need Any Help? We’re here for you. Just reply to this message to write us, or call Client Services at 800-669-3900. We’re available 24 hours a day, seven days a week. Sincerely, TD Ameritrade Client Service
Any idea how this will affect our MDMN shares.
It should be fairly obvious from all the info/events surrounding the recent failed attempt by the Bauman group to acquire the Medinah “shell” that the Sept 28 date will be a non-event for Medinah. I am confident that more details about resolution of this particular issue will be forth coming.
1 Like
Thanks. I was a little concerned about not being able to add if i wanted to, but that a slim option at this point unless it drop to .0020 (Not sure I got enough zero there).
And note that Firecreek is no longer owned by Klondex. It is owned by Hecla. And Hecla, one of if not the premier underground mining company in the U.S. shuttered the mine for now. The reason is that the veins are so narrow even with the high grades that it is difficult to mine at profit. The narrow veining is a risk to be sure.
But it is a recognized risk and obviously the reason why Auryn has mentioned the “previous reports provided by Robert Cinits (A.C.A. Howe) and Richard Sillitoe” and the importance of the current evidence that the veins get wider at depth. This is also part of why they have mentioned the structures “2 meters wide” encountered while digging the new tunnel. It will become an important question as to how deep they have to go to get to decent working widths. Developing deeper is more expensive and it takes longer to mine and is more difficult to manage the complexity of the mine.
It definitely won’t just be rainbows and butterflies. But with so many veins they have a lot of optionality to figure out the optimum way to bootstrap. They won’t need unbelievable amounts of tonnage to bootstrap but it remains to be seen how much tonnage is available for the longer term that isn’t locked up in very narrow sub 1/2 meter veins.
5 Likes
What would 2m x 3m x 2m of 40 AU g/t ore be worth?
1 Like
1 ton (40 cubic feet) = 1.133 cubic metres .
So 12 cubic meters grading 40gpt is about $28k and a strong cup of coffee
Should net about $10K of profit
12 cubic meters = 424 cubic feet
13 cubic feet = 1 ton
424/13. = 32.6 tons x 1.41 oz. = 46 oz. = $82,800. (assumes 100% gold recovery)
Approx. $50,000 net. (don’t think cost of recovery will be more than 40%)
2 Likes
The ore is generally emplaced in granodiorite at Lampa which has a density of 2650 kilos per cubic meter. Your measurements equal 12 cubic meters. This works out to 31,800 kilograms or 31.8 metric tons of ore. This yields 1272 grams of gold. Assume 90% gold recovery…no credits for silver/copper(silver probably adds about $2000 to the value of the ore)…yields 40.38 ounces or $73,128 dollars. Go with what I think would be a conservative cost estimate of $1000/ounce yields $40,380 cost or $32,748 net.
The amount of cubic yardage in your calculation is the amount that one work crew could do in one shift for one working face per day.
Assume 25 working days per month which would yield $818,750 net per month. Now that the production tunnel has pierced the original Lampa mine workings that come out to be about 1 kilometer in length if you add up all the shafts, drifts, chimneys etc, it would be easy to have more than one active face being worked on a time by other work crews. Add a second shift and you could double production as well.
3 Likes
They will get credit for all the metals when it is over 25g.
2 Likes
What accounts for the difference of projected worth of 12 cubic yards between Baldy’s “$10K of profit” and MG’s “$32,748 net”? Part of the answer may be on pg 29 of the “Geological Report on the Fortuna Gold Property Metropolitan Region for Cerro Dorado Inc.” July 12, 1999.
I like Mike’s estimate better, FWIW, but of course I’m favorably biased for a successful outcome to all shareholders! 
3 Likes
Mike’s response if probably more accutate (incorporating the density vs. my straight math). Either outcome would be a big positive for MDMN but both are making some pretty big assumptions.
2 Likes
I may also have been influenced by the summary Satellite Imagery Report by Clemente Sepulveda Perez (contracted by Vale and BHP Billiton) when he concluded (in the translated version):
2 PORPHYRIES ARE PRESENT AND A VARIETY OF MINERALIZATION TYPES WERE IDENTIFIED. AT LEAST “HUNDREDS OF MILLIONS OF TONS OF RESOURCES” ARE PRESENT IN THE UPPER PARTS OF THE PORPHYRIES AND SKARNS. HE SUGGESTS GEOLOGICAL MAPPING, GEOPHYSICAL STUDIES AND DRILLING. HE CITES THAT THIS IS WITHOUT A DOUBT A “WORLD CLASS” DEPOSIT.
I did like the conclusion of that report! 
3 Likes
Hey Sack;
As far as I can surmise, unless Medinah becomes up to date with their reporting (Financials, Company Info, etc.) You will not be able to buy the shares, only sell starting mid Aug. 2021. (with TDAmeritrade anyways, but I suspect most brokers will follow this.)
CHEERS,
ROD
From TDAmeritrade :
SEC Rule 15c2-11Restricted Securities
On September 28, 2021, new amendments to Rule 15c-211 under the Securities Exchange Act of 1934
go into effect to enhance investor protection and improve issuer transparency. These amendments restrict the ability of market makers to publish quotations for those companies that have not made required current financial and company information available to regulators and investors.
Ahead of the regulatory enforcement date, TD Ameritrade will only accept orders to liquidate positions -
(i.e. no new buy orders) starting in mid-August 2021.
Please note: After the amendment officially goes
into effect on September 28, 2021, it may be more difficult to liquidate these securities. Quoting and market liquidity may also be very limited.
The list is below as of June 30, 2021 and is subject to change at any time.
Symbol CUSIP Company Name
MDMN 58489M109 Medinah Minerals, Inc.
From : SEC Amends Rule 15c2-11, Form 211 Amendments
" On September 16, 2020, the Securities and Exchange Commission (the “SEC”) adopted amendments to Securities Exchange Act Rule 15c2-11… The object of the proposed changes was, according to the regulator, to ensure that over-the-counter issuers—better known as penny stocks—would make “current information” available to prospective investors."
In the end, non-registrants will have to make limited disclosure, which is a welcome change. If they fail to meet the requirement, they’ll be delisted to the Grey Market or (see below) the “Expert Market.” If a qualified IDQS determines that an issuer’s current information is no longer current, broker-dealers will have a grace period of 15 calendar days in which they may continue to quote the stock. This will give investors an opportunity to exit their positions, should they wish to take it.
Thanks Rod…
1 Like
Hi EZ,
Probably the most important paper ever published on porphyry deposits was done by Don Singer in 2008 (or 2009?). He studied the characteristics of almost every porphyry deposit on the planet and provided the findings to not only his colleagues in the profession but also to us investors that would like to capitalize on this knowledge. Here is a link:
https://pubs.usgs.gov/of/2008/1155/
I think that Perez’s assertion that there were two porphyries present has pretty well been borne out. The Singer paper tells us why. The presence of a Cu-Mo (type 21a) porphyry at the ADL is beyond compelling. This is due to the ridge crest sampling program orchestrated by Auryn. Recall that it revealed a massive area (3,600 meters in the N to S direction and 1,200 meters in the E to W direction) showing copper and moly anomalies RIGHT AT SURFACE and in intrusive breccias present there. These breccias bore high levels of tourmaline. Gold with the grades we’re seeing at the ADL mesothermal vein deposit are seldomly associated, spatially or temporally, with type 21a Cu-Mo deposits. In isolated porphyries, you tend to get one or the other, moly or gold, but you rarely get both. In fact, moly is pretty much ONLY mined in porphyry environments.
Next you need to overlay the C.S. Perez hyperspectral satellite imaging survey showing a 7 Km swath of “about a dozen” intrusives oriented in a SW to NE direction across the plateau and its southern downslopes. At the ADL, these “intrusives” include what clearly appear to be an ultra-rich mesothermal vein system, porphyries, skarns, breccias, mantos, etc. What all of these structures have in common, now we’re thinking on a “District” scale, is the same gigantic magma chamber (sometimes two magma chambers that are linked). The gold and copper/silver/moly bearing hydrothermal fluids and gases all came out of the same magma chamber. After the formative process is completed over tens of millions of years, the relict magma chamber and the area immediately above its former roof/carapace is referred to as a “porphyry”.
The more likely source for gold grades as insanely high as is found at the ADL is a Cu-Au (type 20c) porphyry. Keep in mind that some mesothermal deposits are of a metasomatic origin or associated with plutonic rock. When the Auryn geoscientists did the Re/Os dating study and found that the ore was about 91 million years old (Cretaceous) in origin matching the age of the Andacollo Cu-Au porphyry to its north near La Serena, immediately the Andacollo Mining District became the most likely template for the ADL Mining District’s deposits. The same basic rock formations underly both although they go by different names i.e. the Veta Negra and Las Chilcas formations. At the Andacollo deposit, abnormally high-grade gold tends to radiate out in a 5 Km radius from the centrally located porphyry. Sound familiar? So, I would definitely count on 2 separate porphyries (or porphyry-skarn complexes) at the ADL. Maurizio told us very clearly at the Las Vegas “informational meeting” that the porphyry areas are way too big for Auryn to take on solo. Back then, Freeport McMoRan, gave Maurizio permission to use their name as being a party of interest to the porphyry areas. He also mentioned that there were two mega-majors “even bigger than Freeport” that were interested. He couldn’t give us their name.
We need to keep in mind that were dealing with the ADL “Mining District”. The development of the various ADL deposits has occurred over time which typically involves many “phases”. Vein deposits, as well as skarns, breccias, mantos, etc., typically occur in conjunction with porphyries often above and lateral to the porphyry. Sometimes the porphyry and the adnexal structures can be linked temporally and/or spatially to each other but sometimes not. Sillitoe and his colleagues are still fighting over whether or not the Andacollo Mine is spatially or temporally linked to the underlying magma chamber. These adnexal structures are “related”. Recall the PR from management noting that the Merlin 1 Vein over at the Caren Mine was “related” to the Don Luis 1 Vein.
What we need to keep in mind is that due to the “related” nature of these various deposits, interested majors are definitely going to take notice of the grades being realized in the vein complexes even though they might be more interested in the adnexal structures especially the porphyry in the case of the mega-majors. We investors are not going to see the majors dive into the Medinah or Auryn markets just because of these insanely high grades. I would assume (but cannot confirm) that negotiations behind the scenes got accelerated coincident to these high-grade revelations. This is especially true with the recent price performances of copper and moly. We are living in a time period in which there have not been any major discoveries made for quite some time and the MR/MR on the balance sheets of the majors is getting pretty skinny.
We’re all obviously excited about the grades being found in the vein complexes around the Don Luis and other nearby veins. Keep in mind though that the mere presence of these super rich veins is highly suggestive and corroborative of the presence of all of these various other adnexal structures that also are derived from the same magma chambers and that all might be of a high-grade nature. It’s a “system”. Soon we’ll get a view of the cash flow that will emanate out of the development of the various vein complexes. I don’t sense that any of the various prognostications are even close to reality. I’d suggest trusting management and starting with the initial 40 tpd projection based pretty much on one or let’s say 1.5 working faces since management did say that this projection initially couldn’t be achieved until the new “Fortuna Adit” got to one of its various targets. This took longer than anticipated. Keep in mind that these projections are based on Santiago being in full quarantine status and the supply chains being somewhat hamstrung. Part of the purpose of the adit is to increase the number of “working faces” for the miners to go after at the same time. I think a more accurate way to gauge production is to multiply 40 tpd times the number of working faces in play at any given time. Back when the Caren Mine/Merlin 1 Vein system was the primary target for production, Maurizio anticipated somewhere around 6 working faces where simultaneous blasting and mucking would occur. The mining process is somewhat straight forward in one sense. You drill holes in the working face with a jackleg percussion hammer. You stuff the holes with explosives (often ANFO). You yell out the customary “fire in the hole”. You blast and let the dust settle and then you “muck” (scoop up) the ore and deliver it to the adit opening. The key is to get a lot of “working faces” going at the same time.
4 Likes
Just a heads up but when a vein “dips” at a 45-degree angle like the Don Luis 1 (the old Fortuna Centro Vein) does to the NE, the pay streak at the working face of a level adit goes diagonally in a 3 meter by 3 meter adit. It’s actually 4.24 meters of “pay” not 3 meters. That’s a 41% difference.
1 Like