The Mining Play

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


#1261

For the geo-dorks:

When you see slides like these keep an eye on the texture of the silica. In these systems, the gold presents in bonanza grades in the “boiling zone”. The boiling supplies the energy needed to dislodge the gold from the sulfur it is held in via “thiosulphate complexes”. The type of silica you tend to find in “boiling zones” is chalcedonic. This is a cryptocrystalline (hidden crystals) form of quartz. The texture of chalcedonic is that of milk; you can’t make out the large quartz crystals that most veins display. It is “aphanatic” (super small indistinguishable crystals) because the fluids cooled fast and there wasn’t time to build fancy crystalline structures like you did in your high school chemistry lab. These “boiling zones” can be several hundred meters thick. When you get below the “boiling zones” the quartz will go back to the large crystal form we’re used to seeing in samples of veins.

It’s kind of a weird concept to picture the hydrothermal fluids needing to cool in order to “boil”. Why do they cool? It’s because the fluids depressurize as they find faults in the rocks. The fault structures, although difficult to mine, are what provides the plumbing system to get the metal bearing hydrothermal fluids closer to surface where they can be economically mined.

Just like in the LDM adit that Nuoco drifted, AMC is running into these systems of “Spanish tunnels”. The Spanish probably didn’t recover 1% of the gold in the mountain but they sure did leave us a roadmap as to where the highest grade gold (visible to their eyes) is located.


#1263

It’s really quite simple. If there are no substantial discoveries that increase money flow from the Caren and Fortuna mines to self fund the projects, there is no future for Medinah and it’s shareholders. Exploitation of the claims by AURYN, and not legal entanglements, are the future for Medinah shareholders to gain an ROI. It is unclear at this point what facts are being uncovered by the current BOD with the assistance of AURYN and MASGLAS. Reread my post if you must to see what the company has stated it is doing. The most important thing you state in your current post:

[quote=“Baldy, post:1244, topic:1377”]
We can all thank our lucky stars, Buddha, or whomever, that AMC/Masglas fell into the same trap and ended up with 300Mish shares. Without them, none of this would have been uncovered and we wouldn’t have the money to go after these crooks. Fortunately, they have too much skin in the game to let the public entity fail. [/quote]

I trust that both of us will be asking the tough questions at the morning session, along with other affected shareholders. All common shareholders have a great deal riding on the successful outcome of efforts to redress the past malfeasance. It is current management that can use legal means to recover that which can be recovered to the benefit of all shareholders. I don’t expect that to be accomplished quickly, but I do expect to hear facts, and what is being done. Progress by AURYN on production efforts presented at the afternoon session will be very welcome news. I would welcome any plans presented for an accelerated production schedule facilitated by increased permitting limits.


#1265

Our attorney poster can elaborate more on this concept, but when there is current/pending litigation, the company can’t really disclose all the details. So temper expectations.

JMO


#1266

RE disclosure of info from litigation, unless the Court has issued a gag order (rare unless you are dealing with potential issues of spiking the jury pool for example in a terrorism case or dealing with trade secrets which could harm a company through disclosure, etc.), the parties are free to disclose anything they would like to anyone as long as they are facts. Many a lay person have issues distinguishing between facts and opinion. Facts are good, opinions can get you into trouble. The reason most stay silent or do not comment on litigation, the attorneys do not want the client’s words to be used against them in the litigation or information which could hurt them being disclosed. Plus as an attorney, you want to control the flow of statements and docs which can be used at any trial. An attorney’s nightmare consists of calling your client and/or witness to the stand having him testify to “ABC” then under cross examination the opposing counsel says “Well that sounds great, but didn’t you just say “XYZ” about three weeks ago to CNN or in your press release?” Makes both you and your client look like idiots. So the general rule is don’t comment on anything.

In our case, MDMN recently stated a facts of “determined that there have been ongoing share issuance discrepancies with what was reported on MEDINAH’s 15c211s regarding the actual outstanding shares. Today we contacted the SEC and FINRA and are filing formal complaints regarding these discrepancies.” Facts, plain and simple. However, then MDMN started to walk the line RE stating opinions “Although the investigation is not complete, it appears that the representative of Medinah Mining Chile was engaged in the sale and/or allocation of primary shares without the knowledge of past and present Directors and Officers of the Company. Additionally, it does not appear that these inappropriate transactions were for the financial benefit of MEDINAH.” MDMN conditioned these borderline opinions with although investigation not complete and it appears. They got about as close as they could to saying “Les did it.” Now if Les’ recent backdoor statements can be taking as accurate (a big, huge, Everest-size “if”), then MDMN could have an issue referencing the transaction they way they did. He could say they lied about him, harming his reputation, etc. Maybe it would have been better to say, for example, “the current investigation has uncovered documents which may show a representative of MMC sold or allocated primary shares without MDMN authority and these documents may show the inappropriate transactions did not financially benefit MDMN. MDMN will continue its investigation to verify the accuracy of these documents.” Now MDMN would be referencing the documents and not the person as the focal point of the statement. The statement now becomes more fact based. The documents say MMC rep did it, not MDMN saying the MMC rep did it. The MMC rep could never say you lied about my behavior because MDMN talking about the docs, not the person. I understand why they needed to make this statement; and, if what MDMN says is true, then in the long run truth acts as a defense. So it was a calculated risk.

Also, disclosing info can be antagonistic to the opposite side and potential harm the chance of settlement negotiations. Once you opponent takes an unreasonable position and refuses to budge, then you can take the gloves off.

In our case, IMO, MDMN shouldn’t have to worry about info releases coming back to hurt them because they should focus on the facts, not opinions. The documents speak for themselves. If the T/A report shows shares transferred and to party X and party Y, it’s hard to claim these as false. If the private placements contracts signed by X, Y, and MMC rep, it’s hard to claim these as false. If the wire transfer or other traceable payment goes to MMC not MDMN, it’s hard to claim this as false. MDMN doesn’t have to follow up these disclosures with the final statement “the MMC rep did it” Put out the facts, let the markets and shareholders put the pieces together, we are smart. Plus, in this case, the added exposure of X and Y to a potential lawsuit and disclosure of the facts (see above) would, IMO, act as a great incentive to settle with MDMN, return shares, pay extra funds, etc. to avoid the spotlight.

Sorry for the long post, but in essence, MDMN can, IMO, disclose factual info RE their investigation without causing harm to any potential litigation against the wrongdoers if the disclosures focus on the facts, not opinions.

Everyone have a great holiday weekend! Relax! Have fun with your family and friends and forget about this crap for a while. As Baldy said, Auryn/Masglas have found themselves duped like us. They have too much invested to walk away. They will, hopefully, take aggressive steps to get the MDMN ship righted and sailing straight.


#1267

&^%#&*&^$, my posts are starting to get a long as Brecciaboy! LOL! :wink:

Actually, I really like your posts. Learned quite a bit from them. :slight_smile:


#1268

It’s very nice having a legitimate legal opinion on this matter. Based on many of this company’s past decisions they should probably hire you. Even if Les may appear to be painted in a corner, given the evidence, he’s a veteran snake in the grass who’s taken many folks around here for a ride. He’ll deny everything until he’s behind bars. Can’t happen soon enough.


#1270

New photos by Auryn up on FB


#1271

Chile Congress begins later this week.

http://cexr.cl/congreso-2016/wp-content/uploads/2016/07/programa_ingles.pdf

AURYN will be making presentations on Thursday.

Maurizio Cordova will present “Buying the Fear”, i.e. making acquisitions during a down market. Luciano Bocanegra will be speak about the consolidation of the ADL project.


#1272

Can’t wait. Sure would be nice to get our hands on a transcript.


#1273

More for the geo-geeks,

Understanding HOW porphyry deposits form can really help an investor evaluate the bona fides of a porphyritic mineral deposit. The story usually starts way down deep in the earth’s crust in a huge body of rock sometimes referred to as a “batholith” or “pluton”. These are made out of previously cooled “igneous rocks” (magma) and the top surface often takes on a dome shape.

So where did the heat come from to re-melt this blob of once molten magma? Through many millions of years the South American Oceanic “Nazca” crustal plate off the coast of Chile has been butting borders with the South American Continental plate. The more dense Nazca Oceanic plate which is migrating east slid under (“subducted under”) the less dense S.A. Continental plate and the heat from the friction caused a “partial crustal melt” of massive batholiths in the region. This “subduction” process provided the “heat engine” driving the entire process. The molten magma is less dense than the surrounding rock so it rises through the various layers of overlying rock similar to what you see in a lava lamp (ask your dad!).

As time went on, metal bearing fluids rose through these batholiths and accumulated under weak spots in the roof of their dome and an upward bulging “bleb” or “apophysis” projected out of the “roof” of the pluton. This activity continued and the apophysis elongates upward to form a finger-like projection called a “porphyritic stock”. Several porphyritic stocks can emanate out of the roof of any given batholith/pluton. Often they are collinear and they tend to line up in a N to S alignment. From here on, almost all of the action occurs in the center of these porphyritic stocks as if it were the flue of a “chimney” channeling the heated fluids upwards.

As the incredibly hot hydrothermal fluids rise and get funneled into this porphyritic stock/chimney all kinds of different phenomena can occur depending on the contents of the fluids and gases, the nature of the overlying rocks being “intruded” and the pressure and temperature dynamics playing out. Down deep in the earth’s crust it is super hot and there are super high pressures built up due to the weight of the overlying rock.

In their upward migration, sometimes the fluids will encounter ground water and tremendous amounts of “phreatomagmatic” explosivity will be induced that results in the host rock being literally blown to bits and converted into angular pieces of gravel. As the mixture of the gravel and the fluids and gases cools sometimes the pieces of gravel become glued together by the cooling fluids and they form a solid “breccia”. This often occurs directly above the chimney/porphyritic stock. “Breccias” are good things in that they suggest a lot of upward flow of hydrothermal fluids and the gravel-like consistency provides a wonderful “plumbing system”/conduit that helps the fluids flow to locations very close to surface where they can be detected and hopefully mined economically.

The ADL deposit has a very large number of these “breccias”. The ADL story started at the centrally located “Gordon breccia” which fortunately made it all of the way to surface. Medinah’s and ACA Howe’s drilling program revealed about 1.5 million ounces of gold equivalent in just the Gordon bx. AMC came along and found an entire network of breccias extending to the south and west of the Gordon bx. Further south, there are two main breccias at the Pegaso Nero referred to as the “tourmaline bx” and the “intrusive bx”. There are also breccias located north of the Fortuna Mine in the NE corner of the property complex.

What’s noteworthy to me is how collinear the PN breccias, the Gordon breccias and the Merlin 1 Vein are. These all seem to share a common “fault” system representing the space between two rock masses which often serve as the ultimate favorable “plumbing system”. In order to keep a sense of context, AMC’s current mining of the northern aspects of the 1.8 Km long Merlin 1 Vein (the “Caren Mine”) represents an extremely small portion of this entire N to S trending fault system.

In the idealized copper/gold and copper/moly porphyry systems breccias tend to be located directly above the porphyritic stocks. The areas directly above the porphyritic stocks/nucleus of the porphyry also typically have “advanced argillic” alteration (clay) present which is exactly what we have at the Merlin 1 Vein outcropping. In close proximity to the porphyritic stock is typically found molybdenite and potassic alteration (K feldspar). This is exactly what we have at the PN AT SURFACE AND NOT AT 2,000 METERS DEPTH AS IS THE NORM. This suggests a very favorable “vertical emplacement” (near surface) of the Cu-Mo porphyry.

I’m picturing the main porphyritic stock(s) as being under the area in between the Gordon breccia and the 2 main PN breccias. The epithermal vein systems that sometimes “telescope” out of porphyry systems often occur “distal” (away from) the centralized porphyritic stock(s). You can see how the Merlin/Fortuna epithermal system occurs to the north and east of the Gordon and PN brecciated areas. The ADL’s Merlin/Fortuna epithermal vein system is different than many others in that the 4 distinct vertical layers are all intact and have not been eroded.

The “porphyries” themselves represent what’s left of the relict magma chamber and its roof region that ruptured and emanated the hydrothermal fluids and gases that brought the metals closer to surface. The metals within the porphyry proper are usually contained in a nexus of tiny “veinlets” and/or “stockworks”. We know that the “South Road” going from the Gordon bx area to the PN area has road cuts that revealed over 2 Km of these “veinlets”. The geomodel of the ADL mining district derived to date becomes beyond compelling.

Sometimes the rising hydrothermal fluids come upon horizontal layers of limestone or dolostone especially if the deposit is of a “Cretaceous Age” (about 90 million years old). The fluids easily drive away the limestone and “replace” it with a “skarn” (a type of a “replacement deposit”) like we see at the LDM skarn. Skarns are often located well under the surface but thankfully the LDM skarns made it all of the way to surface at about the 1,300 meters above sea level elevation at the LDM. In order to form a “skarn” you need the hydrothermal fluids emanating out of a porphyritic stock. The skarns end up surrounding the porphyritic stocks like the battered crust of a corn dog surrounds the hot dog.

These porphyritic stocks, veins, breccias, mantos, skarns are constantly remelting and then resolidifying through time. There’s a concept called the “paragenesis” of a deposit like the ADL. This involves studying the order of events throughout the 91 million year history of this deposit. It’s akin to studying a 91 million year long “video” of this deposit if there were such a thing. For instance, our Merlin and Fortuna Veins show a lot of “banding” of the crystalline quartz and chalcedonic (noncrystalline quartz). Each linear and parallel “band” within the vein represents a new remelt/recool/resolidify cycle. The earlier linear “bands” of quartz get moved to the side of the vein as a new mineralization event takes place in the center of the vein. The sought after metals are often held in the darker areas in between the whitish quartz bands.

If there were a geo-fact regarding this deposit that I don’t think has gotten the attention it deserves it would probably be the significance of Aguilera dating the molybdenite samples from the PN. They came back at 91 million years of age which is the same age of the extremely large Andacollo deposit to our north. We now know that the ADL deposit represents the current southern terminus of Chile’s “Early Cretaceous Porphyry Belt” which we thought ended well to our north. Since the same underlying rocks gave rise to both of these deposits (the Lo Prado and Veta Negro formations) modeling efforts can be used to predict the current unknowns at the ADL deposit.

If there were a silver lining to the recent share structure developments involving Medinah it would be that Medinah had already been transformed into a “holding company” without any of their own “operations”. Medinah’s assets are 2 pieces of paper probably held in a safe deposit box somewhere. They are a share certificate for 25% of AMC and a share certificate for 15% of Nuoco. The “value” of these assets as recognized by the mining industry did not drop with these developments. Our individual share ownership percentages did get diluted by a yet to be determined amount pending the results of the efforts to clawback inappropriate share issuances.

Without having any ongoing operations Medinah didn’t suffer a black eye with any vendors of mining products, permitting authorities or anything that would affect the mining operations of AMC. One of the shareholders of a private company called AMC had some serious internal issues. The Chilean mining industry has relations with AMC only. We are fortunate that this transition to being a somewhat robotic “holding company” had already taken place.

From this time onwards, I believe that our focus should be on two items. The first is the “value” of those two pieces of paper as measured by mining industry standards and the second is the success of the clawback efforts to restore our shareholders’ original percentage ownership or as close thereto as possible. I don’t sense that the ability of this holding company/Medinah to sell any of its ownership interests have been compromised. I don’t think a mining major desiring Medinah’s assets cares a great deal about a holding company’s share structure issues. I do believe that the structure of any strategic alliance with a major in the short term would be more likely to be along the lines of an “asset sale” than a tender offer because of recent events at least until these events are fully addressed.

If anything, I would think that the financial incentives of Masglas/AMC and the average Medinah shareholder might have even tightened up a bit with this share structure issue. They have clearly taken the lead on addressing these issues in a professional manner and are highly financially motivated to rapidly seek redress for this behavior. Hopefully we can soon study the text of both Bocanegra’s dissertation on the ADL deposit and Maurizio’s dissertation on buying deposits in market downcycles.


Medinah Minerals (MDMN) - 2016 Q4- General Discussion
#1274

lol, i dont think these two are going for PHD’s so I would not expect dissertations.


#1275

http://cexr.cl/chile-explore-congress-2016?platform=hootsuite

Chile Explore Congress 2016: 30 speakers, 6 countries, 5 discoveries

“On September 8th, the speakers will focus on the financing of exploration projects, explaining how leading companies have survived the downturn and the advantages of Chile’s venture capital market. Kevin Heather, chief geologist of Regulus Resources, will explain the cyclical nature of the mining industry while Project Showcase will assess the region’s most exciting exploration opportunities, with presentations from Auryn Mining, Revelo Resources (TSX-V: RVL), Tinka Resources (TSX-V: TK), and Regulus Resources (TSX-V: REG).”


#1276

I’ve been out of the loop for a while, would it be possible for someone to send out the details regarding the upcoming SHM?


#1277

AURYN & MEDINAH Informational Meeting

August 6, 2016 @ 21:57
AURYN Mining Chile SpA and MEDINAH Minerals, Inc. (OTCMKTS: MDMN) invite our shareholders to an informational meeting on Saturday, October 1, 2016, at the Mirage in Las Vegas, Nevada.
AURYN is hosting the meeting and welcomes all AURYN, MEDINAH, and Cerro Dorado shareholders.
This is an opportunity to personally meet and hear from AURYN’s
leadership team and MEDINAH’s directors.
The meeting will include a full presentation on the status of the Altos de Lipangue project and
plans for its continued exploration, development, and exploitation.
The agenda for the meeting is as follows.
9:30 am Registration, Continental Breakfast, Meet & Greet
10:30 am MEDINAH Presentations
11:30 am MEDINAH Q & A
12:30 pm Lunch Break
2:30 pm AURYN Presentations
4:30 pm AURYN Q & A
5:30 pm End of Meeting
This is an informational meeting. An official MEDINAH shareholder meeting will be scheduled for a future date.
Space is limited and will be on a first come, first served basis. So please register in advance on our registration page.


#1278

This post was flagged by the community and is temporarily hidden.


#1279

When will we be able to read what Auryn is saying tomorrow and the day after at the conference in Santiago?


#1280

Gold hitting 1350


#1281

This post was flagged by the community and is temporarily hidden.


#1282

Oh, what the heck…I’ll go ahead and repeat myself…Bocanegra is going to knock it out of the park.


#1284

A thought came to me earlier today. Remember a few years back (circa 2012-2013) when Les was telling shareholders on the down low that CDCH was toast and had crippling debt amounting to a few million dollars? It is occurring to me that he could very well have been trashing CDCH and pumping MDMN in order to sell shares into it. And what better way to get the volume in MDMN up then by having CDCH shareholders move their investment over to MDMN? Not saying that’s what he did, but given recent events the scenario is certainly plausible.