The Mining Play

MDMN - 2016-03-07 Weekly Discussion

MDMN discussion for week beginning 2016-03-07

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Good Morning!

Good morning, Pap, you must have been staring at the screen just waiting for me to open new topic! :coffee:

Reminder of most recent update as requested.

http://www.medinah-minerals.com/?p=3450

SHAREHOLDER UPDATE
Property Summary Report
February 25, 2016

Dear Medinah Minerals, Inc. Shareholders:

The Altos de Lipangue project in Chile has continued to deliver surprising results even to the world class geological team assembled and working on behalf of AURYN Mining Chile, SpA.

From the very early days of exploration on the Altos project, Directors of Medinah became aware that the potential of the plateau was enormous with significant implications to the Chilean economy. From the discovery of the copper gold breccia zones in early 2000s, to the continuous intersections of high-grade gold veins and structures, almost every time more work is initiated, additional and extensive mineralization has been discovered. The Altos de Lipangue claims are producing evidence of an ore deposit of world class proportions.

The Option Agreement entered into with AURYN Mining Chile, SpA in August of 2014 has offered new opportunities for shareholders of Medinah to follow the work of well-funded professionals as they explore and develop the Altos claims. AMC has announced that they are now moving from an exploration phase to a combined work project. This now includes planned production that covers an area over 2 km long of high:-grade gold zones identified from Fortuna to Caren.

The work done by the AMC team has discovered and developed very impressive and significant mineralization that has been reported on their website.

AMC geologists have identified extensive copper/gold mineralization throughout the Altos plateau. This mineralization is related to a porphyry intrusive body underlying the claims at the moly zone, Pegaso Nero targets. The extensive molybdenum anomaly, the presence of the hydrothermal breccia, the high Copper-Molybdenum results on that breccia and the age of the mineralization, are convincing to the AURYN Mining Chile, SpA team that there is a new Porphyry Copper system. This new discovery is opening the identified cretaceous porphyry belt to the south of Uahuin and Andacollo porphyries that also lie within the IV region in Chile.

Highlights
• Over 5 kilometers of mineralized veins were mapped.
• Over 1,600 rock and trench samples were collected.
• High-grade Au ± Cu ±Pb± Zn mineralized veins.
• In Merlin I, the vertical zoning in quartz-carbonates textures suggest a preserved epithermal system.

On January 06th at 3:33:00 pm at ADL

Highlights
• Bonanza Gold Grades (>50 g/t) were discovered in Mina Caren sector. Mineralogical zonation suggests the preservation of epithermal system and its continuity.

On January 27th at 12:36:00 pm at Caren

Highlights
• Gravimetric Fire Assay results confirmed bonanza grades up to 124 g/t Au. Geochemistry and vein textures confirmed preserved low sulphidation epithermal system.

The extent of this copper/moly/gold porphyry intrusive and gold mineralization crosses the entire Altos plateau from the moly sector to the LDM/NUOCO/Mambo sectors on the other side of the plateau and the Fortuna to the Caren.
Work done by LDM/NUOCO team previously outlined a copper gold manto structure as well as another gold system within those properties. An Enami Engineer and a Geologist recognized the mineralization as significant. The Engineer commented that in this type of formation, we have the mineralized leads to follow for continuous mining towards the origin of the fluid enrichment. He also stated that additional high-grade gold content will begin to appear as we get further into the formation. Several areas of the copper zones sampled, returned grades of 3.2% copper over a 9–meter width.

Visual observation has determined the minimum size of this copper-gold structure to be 400x500x200 meters open to depth. Some assay results of channel samples taken by company geologist in the main copper zones are as follows:

Copper 5.85%, 3.13%, 4.53%, 6.52%, 2.42%, 4.26, 4.20%
Silver- 36g/t, 19g/t, 64g/t, 25g/t, 41g/t

LDM/NUOCO gold structures contain some veins and zones that are large, from 1-meter up to 11-meters wide. While on site, the mill/refinery Professional Geologist sampled an 11-meter width of the gold-bearing quartz vein that returned 7 grams of gold per tonne.

The discoveries at the Altos de Lipangue claims groups are significant and continue in all directions. In order to give full understanding of the value of the project to the AMC team and Medinah shareholders, we have attempted to outline key points in this generalized summary.

The properties will be put into production on the presently permitted area as AMC develops their plans. The first production phases are scheduled to begin set up in early April 2016.

As this potential “world-class” deposit of copper and separately of high-grade gold, Medinah shareholders benefit significantly on earnings as a 15% interest holder in the project. AMC is required to pay to Medinah $100,000,000 (one hundred million dollars) to finalize the Option Agreement and acquire the Altos properties. The most lucrative part of the contract will be the retained interest returning dividends for the entire life of the Altos de Lipangue mine properties.

Vittal Karra
Chairman/President – Medinah Minerals, Inc.

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Endeavor buying True Gold for $226M (all stock)
https://finance.yahoo.com/news/endeavour-mining-acquire-true-gold-135157273.html

True Gold “Karma” deposit:

just going into production
950 KOz Probable
0.89 g/t
97,000 Oz of Au / yr for 8.5 yrs

Spent about $70M in construction. Has about $20M in cash.

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This site has updated corp. info dated as recently as March 4th. Don’t know if it has been mentioned here.

http://www.otcmarkets.com/stock/MDMN/profile

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C, good catch, just another befuddling move by MDMN management. The only thing that was updated was the market cap. Not sure why they would not update o/s which simple math indicates is unchanged. Of course the real number of interest, the float, has not been changed for years.

It appears that other stocks on the OTC also had their market caps update on March 4 as well, fwiw

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Any positive report on PDAC???

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They have 950 KOz of Probable gold at 0.89 g/t and have spent $70M on a production facility that is now producing and have $20M in the bank.

How much gold does MDMN have in a 43-101? Zero (and now the LDM, other NUOCO properties, & Fortuna don’t count - ever)

How much cash does MDMN have? Zero

How much in capital equipment does MDMN have on its property ready to produce? Zero

MDMN has a contract that is complicated to interpret given the complexity of the property ownership - as per this weekend’s conversation. It is in the middle of some exciting action. But that this point we remain a speculative play, and so here we are at 1.5 cents while other more mature PM stocks are doing very well

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Obviously Auryn does not think $100 million is too much. Heck they agreed to a $100 million dollar MINIMUM just for 85% of the ADL.
Obviously the ADL is worth more than $100 million

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Hi comerciante,

The valuation history for this deposit has a colorful past. At the end of the day, the only valuation that really matters is what a party is willing and ABLE TO pay you for in this case 85% of your deposit. Dr. Steve Smith of Barrick fame was retained by Ulander and he signed off on an offer of $180 million for 85% of just the ADL concessions. It looks like they put in perhaps a couple of million dollars into due dili and legal fees in the process. Then the ABLE TO PAY YOU factor kicked in and Ulander was unsuccessful in raising the money due to a complex web of other issues. AMC basically then said to Medinah “told you so”. I THINK WHAT WE FORGET FROM THE ULANDER SITUATION IS THAT SOME VERY BRIGHT MINING GUYS OFFERED TO PAY $180 MILLION FOR AN 85% STAKE IN JUST THE ADL CONCESSIONS. We need to divorce this from the fact that they failed to raise the money.

Then AMC ponies up an offer for $100 million for 85% of JUST Medinah’s 4,500 ha ADL concessions. The kicker they threw in was that Medinah would get 15% of the ENTIRE 11,000 ha MOUNTAIN held within AMC. This includes the Nuoco discoveries, the Cerro properties and 4,000 new hectares that AMC found worthy of annexing. Now everybody is all excited about the high grade near surface early production opportunities in the Merlin/Caren/Fortuna areas. The question I’ve always had is what did AMC know about these early production opportunities 18 months ago at the initial negotiating table.

Perhaps the $100 million offer didn’t anticipate the grades encountered right at surface in this area. This would be all bonus to AMC if this were the case. The recent surface findings at the Pegaso Nero might represent yet another unanticipated “bonus” for AMC.

I think we might have a tendency to forget that the $100 million figure is just for 85% of Medinah’s 4,500 ha ADL concession and that the 15% stake is in THE ENTIRE MOUNTAIN WHOSE PROSPECTS ARE GROWING BY LEAPS AND BOUNDS.

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CERRO DORADO

SHAREHOLDER UPDATE
March 7, 2016
Salt Lake City, Utah

Cerro Dorado Inc., a Nevada Corporation (“the Company”), would like to provide shareholders with the following updates:

The Company’s trustee was in Santiago from January 17-24 meeting with representatives of Auryn Mining Chile SPA (“AMC”) as well as other claims holders of the Altos De Lipangue. The purpose of these meetings was to discuss ways to amalgamate the various properties, owned by several entities in order to streamline the process being conducted in the area by AMC and increase efficiency. As a result of these meetings, the Company is pleased to announce an agreement by and between it, Sociedad Contractual Minera Cerro Dorado Chile (“CDC”) and AMC which has resulted in the transfer of CDC’s ownership of the Lonco Millarepu and Fortuna claims to AMC in exchange for a 5% equity ownership of AMC and, in turn, all of the claims now owned by AMC on the ADL. This ownership is represented by a certification which is in the Company’s possession. Furthermore, management has determined that it is in the interestof both the Company and its shareholders that any proceeds directly resulting from this transaction be used to return value to the shareholders directly rather than using them for exploration of new projects.

With that in mind however, the Company remains open to the pursuit of additional projects and opportunities, both domestically and internationally, which stand to increase the value of the Company and benefit its many shareholders. In that regard, management, in conjunction with various knowledgeable advisors, will review any such projects as may be presented to the Company. In the event a project is deemed worth pursuing, based on its merits and amount of risk, the Company will explore all feasible funding options outside of any proceeds from the ADL project.

Additionally, during this trip the Company’s trustee met with Juan Jose Quijano Fernandez, who overtime has become a significant owner of CDC. The purpose of this meeting was to negotiate the return of ownership of CDC to the Company and, as a result of these meetings, 2,490 shares of CDC have been returned to the Company at no additional cost to the Company.

Lastly, the Company regrets to announce that it has accepted the resignation of Christopher Day as its President and Director. Mr. Day’s resignation comes as he is no longer able to dedicate the time required by the Company and is not the result of any disagreement with the Company.

Management wishes to thank Mr. Day for his time, dedication and service.
Kindest Regards
Cerro Dorado Inc.

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One think to remember, if I recall correctly, is that the Ulander offer had payments over 10 years!

5% is OK!!!

moved to cdch thread

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Now the question becomes if this Cerro purchase and maybe JJ’s exit needed to be done prior to AMC being willing to exercise the last option i.e. Medinah’s. You certainly wouldn’t hand $100 million to Medinah without buying Cerro first. That would have given Cerro an incredible amount of leverage if they held out on selling until after AMC built up the infrastructure and asked for a bigger chunk of the action because the Cerro properties all of a sudden represent an EXTENDED MINE LIFE TO HELP JUSTIFY THE CAPEX.

You wonder if at the very beginning of the ADL option AMC said OK Medinah we’ll give you the $100 million BUT YOU NEED TO DO ALL OF THE GRUNT WORK IN CONSOLIDATING ALL OF THE VARIOUS MINING CONCESSIONS INTO ONE PACKAGE. It’s one thing for Medinah to say no problem, we work good with the Nuoco and Cerro guys; we’ll do all of the consolidating chores with no sweat so that you don’t need to deal with the Quijanos. It’s another thing for AMC to say OK then you wouldn’t mind us holding off on cutting the check UNTIL you do what you said is no sweat.

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I always had the suspicion that JJ’s entanglement with 50% of Cerro was preventing progress from moving the mountain forward! Not really a surprise.