Medinah Minerals (MDMN) - 2016 Q3 - General Discussion (recovered)

Individual Stocks Medinah Minerals (MDMN)
82

A prospective buyer will likely be interested in PN copper. The PN will need to be more than just speculation. It will need to be shown to be economically feasable. The PN is only in early stages of defining:

Regarding the Pegaso Nero (Copper-Moly area), AURYN is looking forward to reaching an agreement with the surface rights owners in the near future so that we can prepare the area for a campaign of Induced Polarization. This will help us clearly define the drilling targets.

Medinah is a holding company, not a private mining company and has Alternative Reporting Standards. A miner will be more interested in the geology and compare it to similar deposits before purchasing an equity interest in the deposits than an audited f/s. There will need to be cash flow from the early exploitation gold deposits to pay for the exploration work needed on the PN. AURYN has announced it plan of how to “pay as it goes” and do everything “by the book” regarding current mining standards. MASGLAS/AURYN compares the age of the deposits and composition to be similar to the Andacollo mine (among others) porphyry system 480 KM to the North of Santiago.

The Andacollo gold deposits cover a north-south elongated area of ~7 x 3 km, located on the NW and western periphery of the Carmen de Andacollo porphyry copper system which is central to the district and represents the root zones of a strato-volcano that was intruded by a high level 98 Ma mineralising stock.

The Andacollo Gold mine was a 20 000 tpd open pit, heap leach operation owned by Compañía Minera Dayton Limitada in 2000. Life of mine cash costs were $US220 per oz. The mine commenced operation in late 1995. ‘Reserves’ in 1990 were estimated to be ~15 Mt @ 1.5 g/t Au (Reyes, 1991) or 29 Mt @ 1.2 g/t Au (Oyarzun et al., 1996, quoting Bernstein, 1990).

The gold content in the vein selvages is generally ~0.2 to 5 g/t in andesite and 5 to 20 g/t in dacite. Pyrite is the predominant sulphide in the veins, commonly occurring as two generations i). barren, pyrite-I (Muller, 1986), and ii). gold bearing pyrite-II, accompanied by chalcopyrite, sphalerite, galena and cinnabar (Llaumett, 1983). The principal gangue mineral is quartz, which is sometimes amethystine.
Gold is located in pyrite-II, chalcopyrite and aikinite-bismuthinite intergrowths, along galena and sphalerite crystal margins with quartz, and in the interstices of hematite-quartz assemblages. Grains range from a few microns to >100”m (Reyes, 1991; Oyarzun et al., 1996).
All of the mineralised veins have been oxidised to depths of 40 to 60 m, with average grades of 5 to 6 g/t Au, and local highs of 100 to 300 g/t. The underlying hypogene sulphide zone within these veins extends to depths of ~250 m, with grades that zone range from 1 to 5 g/t Au (Llaumett, 1983).
PorterGeo Database - Ore Deposit Description

AURYN’s early exploitation projects may well bring up PPS as cash flow increases from that already projected. Bring your concerns and voice them at the SHM.

Copper mining is not a short term operation. Here is an example of the type of copper mining done in this formation:

The Andacollo porphyry is being mined by Minera Carmen de Andacollo (CDA), which outlined
33 400 000 t of recoverable ore at 0.76% Cu within a roughly north–south elongated body of 1800 m ®1200 m. The mining and metallurgical procedures are typical of modern operations in Chile, comprising an open-pit mine and integrate bacterial leaching–solvent extraction–electrowinning, which outputs high-grade copper cathodes (99.99% Cu).
https://www.researchgate.net/publication/233557069_Andacollo_copper-gold_district_La_Serena_Chile_Preliminary_data_from_the_porphyry_copper_and_possible_relationships_between_Cu_and_Au_mineralization

83

I think there would be more defined signs of support at 1.5 cents if that were true
I remember thinking the same thing when we hung out at 7 cents for an extended period of time. It seems the good news is when I die I will receive total enlightenment
so I got that goin for me
which is nice

1 Like
84

IMO. Auryn bought the balance of JJ’s shares at the 1.5 cent level and is happy accumulating more shares, at a measured pace, as they become available. MDMN supporting a $20M market cap/AMC at $80M is not unreasonable given where we are today. Everybody holding (or adding) at this level, including myself, is obviously convinced that this value will dramatically appreciate as more data/production is reported/achieved.

MDMN as an investment and theminingplay as an investment forum are both going through their respective transitions. This almost reminds me on when AAPL’s investor base transitioned from growth to value play (2014). It was a bumpy road until people understood what “bucket” AAPL should fit into, after which point the stock went straight up. Similarly with MDMN and this board the “penny stock lottery seekers” are dwindling and people are slowly learning to ignore the groans of disconnects and evil market makers. MDMN is evolving into a legitimate mining play and, like it or not, this means we need INDUSTRY standard metrics to assign value.

Most of the precious metals stocks I follow are up 300-500% (see previous discussions on opportunity cost). At this point, I think MDMN represents a lot less risk (vs. the overextended GDXJ) and potentially more upside, for those who can wait.

It’s hard not to laugh at the excitement over the latest tweet or Facebook caption. The burden of becoming a legitimate mining play is that none of that nonsense will move the stock. Once the nonsense is replaced with production, ounces in the ground and credible financials, this stock will act accordingly.

6 Likes
86

[quote=“Baldy, post:84, topic:1377”]
The burden of becoming a legitimate mining play is that none of that nonsense will move the stock. Once the nonsense is replaced with production, ounces in the ground and credible financials, this stock will act accordingly.
[/quote]That’s why shareholders who are fully invested here need to put it in the sock drawer until we start seeing production numbers. :sunglasses:

There was much already known and in progress at the beginning of the year. Things are progressing incrementally and methodically to AURYN’s short and long term planning:
Continuing the discussion from Medinah Minerals (MDMN) - 2016-Q1 - General Discussion:

87

Funny that Medinah over the years has gone up and down hundreds of percent when there was no reserves, no gold production and none planned.

More recently, a lot of PM’s stocks have gone up hundreds of percent with no gold production and in fact, most of them will never produce a single ounce of gold.

Over the years, various posters have futilely tried to justify a current share price with what is going on with Medinah to no avail.

IMO, investors should key in the following:

  1. Medinah is a 25+% owner of a World Class Gold/Copper deposit potentially worth billions of dollars.
  2. This gold/copper deposit likely has a higher grade than normal.
  3. This cost to produce gold at this location will be lower than normal due to it being near surface, very close to infrastructure, and abnormally high grade.
  4. Mining friendly location. Environmental considerations for the location are probably less than normal with a mining friendly communities near by and location being a historic mining district.
  5. The combination of factors 2, 3 and 4 is very unusual in the World today allowing for the possibility that mine operations will be particularly profitable for the owners.
  6. Dilution is over for Medinah.
  7. Production to start before the end of Summer from what will be the highest grade gold mine in Chile.
  8. Ramp up should be relatively quick.
  9. Dividends are coming sooner than most think.
  10. More mines will be coming online short term.
  11. An aggressive drill campaign is being planned for the rest of the mountain.
6 Likes
89

Big mining players don’t like paper, they deal in properties. They can be nothing more than fractional owners of Medinah stock which is just a fractional owner of the property to begin with. Better bet would be to work with Auryn directly on the Alto. My guess, Auryn won’t seek a partner till one is needed for the porphyry or other large open pit targets.

3 Likes
91

It’s attractive enough to someone that has been accumulating for a lot longer time than is shown below.

Results for: 3 Month, From 07-APR-2016 TO 07-JUL-2016

Date
 Open
 High 
 Low
 Close
 Volume

07/07/2016 0.0129 0.0135 0.0129 0.0133 1,007,563
07/06/2016 0.0134 0.014 0.0127 0.0131 2,834,614
07/05/2016 0.0138 0.0139 0.0131 0.0134 2,245,772
07/01/2016 0.0139 0.0141 0.0135 0.0141 2,797,807
06/30/2016 0.0135 0.014 0.0135 0.0138 246,142
06/29/2016 0.014 0.014 0.0135 0.014 964,105
06/28/2016 0.0135 0.0142 0.0135 0.0135 656,556
06/27/2016 0.0136 0.0139 0.0133 0.0139 1,831,904
06/24/2016 0.0149 0.0149 0.0135 0.014 1,701,893
06/23/2016 0.0143 0.0143 0.0135 0.0136 286,384
06/22/2016 0.0143 0.0143 0.0135 0.0143 95,200
06/21/2016 0.014 0.0149 0.0135 0.0143 999,629
06/20/2016 0.014 0.0144 0.0131 0.0131 1,285,924
06/17/2016 0.0145 0.015 0.014 0.0142 1,247,911
06/16/2016 0.0153 0.0153 0.0145 0.0145 178,790
06/15/2016 0.0142 0.0152 0.014 0.0151 566,838
06/14/2016 0.0146 0.0148 0.014 0.0145 531,538
06/13/2016 0.0148 0.0152 0.0145 0.0146 494,910
06/10/2016 0.0148 0.0153 0.0146 0.0148 3,076,453
06/09/2016 0.0146 0.0153 0.0146 0.0153 765,857
06/08/2016 0.015 0.0153 0.0146 0.0148 1,362,100
06/07/2016 0.0146 0.0155 0.0146 0.0153 243,041
06/06/2016 0.0159 0.0159 0.0146 0.0146 264,470
06/03/2016 0.0145 0.0158 0.0145 0.0152 461,199
06/02/2016 0.0145 0.0145 0.0145 0.0145 201,741
06/01/2016 0.014 0.0148 0.014 0.014 687,459
05/31/2016 0.0147 0.0149 0.0142 0.0148 3,141,835
05/27/2016 0.015 0.015 0.014 0.0145 189,328
05/26/2016 0.0152 0.0154 0.0145 0.015 747,393
05/25/2016 0.0143 0.0154 0.0143 0.0152 101,096
05/24/2016 0.0142 0.0155 0.014 0.0153 2,207,808
05/23/2016 0.0152 0.0156 0.0149 0.0156 389,384
05/20/2016 0.0163 0.017 0.0151 0.0151 766,393
05/19/2016 0.0159 0.017 0.0155 0.0168 655,940
05/18/2016 0.0151 0.0163 0.0151 0.0159 2,755,200
05/17/2016 0.0165 0.0171 0.015 0.017 1,429,423
05/16/2016 0.0176 0.0179 0.015 0.0158 5,271,781
05/13/2016 0.017 0.017 0.0169 0.017 624,678
05/12/2016 0.0179 0.0179 0.0167 0.017 998,060
05/11/2016 0.0166 0.0172 0.0162 0.017 1,580,675
05/10/2016 0.0169 0.017 0.0162 0.0166 3,661,594
05/09/2016 0.0168 0.017 0.0165 0.0169 607,213
05/06/2016 0.017 0.0178 0.0166 0.0169 1,072,328
05/05/2016 0.017 0.0179 0.0165 0.017 573,051
05/04/2016 0.0162 0.018 0.0162 0.0179 1,241,705
05/03/2016 0.0163 0.018 0.0157 0.018 1,488,400
05/02/2016 0.0168 0.0168 0.0165 0.0165 500,600
04/29/2016 0.0169 0.017 0.0157 0.017 1,371,466
04/28/2016 0.016 0.017 0.015 0.017 1,408,071
04/27/2016 0.0142 0.016 0.014 0.016 2,793,528
04/26/2016 0.014 0.0144 0.0139 0.0142 1,504,210
04/25/2016 0.0144 0.0144 0.0138 0.0138 760,427
04/22/2016 0.0143 0.0143 0.0138 0.0143 338,958
04/21/2016 0.0143 0.0143 0.0138 0.0139 452,488
04/20/2016 0.0147 0.0147 0.0135 0.0143 690,137
04/19/2016 0.0135 0.0141 0.0135 0.014 2,241,000
04/18/2016 0.014 0.014 0.0135 0.0135 687,220
04/15/2016 0.0138 0.014 0.0136 0.014 188,765
04/14/2016 0.0135 0.0142 0.0135 0.0141 308,787
04/13/2016 0.0136 0.0145 0.0135 0.0144 757,400
04/12/2016 0.015 0.015 0.0136 0.014 2,900,982
04/11/2016 0.0142 0.0147 0.014 0.0142 1,797,458
04/08/2016 0.0153 0.0153 0.0141 0.0141 488,159
04/07/2016 0.0155 0.0155 0.0141 0.0149 985,380

Read more: http://www.nasdaq.com/symbol/mdmn/historical#ixzz4DpJ2C2eY

93

What are you going to do about your theories?

95

Then it would appear that there is nothing to do at this time other than be aware and watchful. Regurgitating the same complaints multiple times a day does nothing to correct the issue, as you see it, but each time you do it’s like adding another dark brush stroke on the already dark cloud you continue to paint over Medinah.

2 Likes
96

[quote=“MikeGold, post:40, topic:1377”]
IMO, Auryn is going to use dividends to move money out of the Company and into Masglas so Masglas can explore/develop their other properties. Medinah will get their share of the dividends at the same time.
[/quote]FWIW, This is what I see likely to unfold once money flow reaches a sufficient level. Early gold extraction exploitation using a crushing circuit and Gravimetric Concentrators will allow expanded permitting at an accelerated pace. This is what I expect to hear in AURYN’s presentation at the SHM.

This is also what may be in store once the PN is shown to have economic value.

98

example of the biggest( for now :grin:) copper mine in Chile. Few months back someone posted how our alto compared in size to Escondida and we are much much larger. 10 bil in just 1 year.

"Escondida has become an important part of the Chilean economy. According to the CIA World Factbook, the mine’s 2007 sales of US$10.21 billion were 4.3% of estimated 2007 GDP of US$234.4 billion and about 15% of exports. At the end of 2006, the company employed directly some 2,951 workers and 3,158 contractors.

The average copper price in 2007 rose to US$3.23/lb compared with the mine’s total direct costs of only 60.8 cents/lb, which fell partly as a result of sharply lower treatment and refining costs charged by smelters. The operation was thus highly profitable and paid US$2.2 billion in taxes to the Chilean treasury.

When they bring in a major I say it will be FQM (First Quantum Minerals).

99

No. No deposit is worth that much until it is in or almost in production.

E.g. First Quantum bought Lumina copper and their 2000MT Taca Taca mine in Argentina in 2014. That was $470M.

Nobody buys a non-producing asset for $2B to $3B and then spends another $1B to $2B on construction before they see any return.

China’s MMG bought Las Bambas, one of the worlds largest copper mines, from Glencore in 2014 in mid-construction for $7000M ($7B), but over $1B had already been spent on construction and first revenue was less than 2 years away. Auryn will never have $1B to spend on their own attempt at large scale copper production. And this was some 10 years after exploration on Las Bambas began in earnest.

1 Like