The Mining Play

Medinah Minerals (MDMN) - 2016 Q4- General Discussion


The response was A Merry Xmas and a denial of any wrongdoing!

I need not tell you what I told him to be ashamed of himself for screwing the shareholders, and how he could live with himself after what he had done and then I called him pure evil.


I think Thurl Ravenscroft said it best!!


Did anyone else get the Amarant Merry Christmas email? Priceless kick in the nuts.


Yes…I got the amarant merry Christmas email also



Thank you Auryn for the update as you promised on a monthly basis. Thank you and the miners for the extra efforts during the holidays. It’s very much appreciated. Based on the last days of updates I’m of the opinion we are in good hands. I have now moved this sock drawer investment from my old holely sock drawer to the dress sock drawer. It’s a start. I look forward to many rewarding years in the future.


I don’t know about others here GC, and no offense intended, but I find that to be way too “PG” for how I’m feeling about the guy. I’m sure I could say it better, but I won’t seeing as this is a family board and it’s Christmas. :slight_smile:


Things do look positive, although I like most, have a long way just to get back to even. Maybe with better news it will shoot up fast back to the 0.10 level but that is over 1900%. But at this point I am not quite ready to put in dress sock draw. It has moved from the stinky sock , dirty laundry pile.
Merry Xmas everyone !!!


7.7 magnitude earthquake Chile


The epicenter was 800 miles south of Santiago…Tsunami warnings are in effect…


So, the referenced test production run, which will start tomorrow, is the first of the three such runs which we expected to start back in November (and which were delayed by permitting/equipment issues). I wonder what the time expectations will be for evaluating those test runs and then commencing with live production - can any of you GEOs shed any light?


I understand completely, I could definitely flush my last post and say what was really on my mind​:smiling_imp:, but I usually leave that to my good friend geoly :fearful:was just trying to keep it light before the holidays​:smirk:…

Enjoy Everyone


First load shipped, thanks for letting us know



First gold shipment passing through Lampa.

What a great day for Auryn/Medinah/Cerro shareholders…


It would be great if les would stop selling


Mike do you know how long the test production will take before we get results?


Thanks Mike, nice pic! What a wonderful Boxing Day Present!


Hi Mike,

Congratulations on the recent nuptials. Your comment on the importance of this day in Medinah’s and AMC’s history scratches the tip of a very large iceberg in this industry. In order to fully appreciate this accomplishment I think we need to go back to Pierre Lassonde’s paper presented in NYC at one of the recent Jim Grant seminars. This will provide us some context. The link is:

On page 4 we can see that there are pretty much NO NEW DISCOVERIES out there. Page 5 tells us that the average grade being mined is now close to 1 gpt gold. Page 7 reveals to us that the average amount of time it currently takes to go from “discovery” (for the rare junior able to make one) to day 1 of production is an insane 27 years.

MORE CONTEXT: The majors are producing like crazy but they’ve been unable to replace their ever-dwindling RESERVES. Many juniors remain unfunded and most majors shut down their own exploration efforts due to overspending during the good years. There are next to ZERO new producers for the majors to choose from if they want a producing asset. In this environment, a young producer with a decent-sized stake in a deposit with good grades in a favorable infrastructure is going to get offers to be taken out. PERIOD. It’s a SUPPLY and DEMAND situation.

I’ve been writing a book on Medinah and the ADL mining district for a while now. In one chapter I listed out what I thought were the 7 most important repercussions of AMC/Medinah finally shipping ore from the Caren Mine/Merlin 1 Vein. Below is a brief snip-it of the 7th most important repercussion which I figured a geo-geek like yourself might appreciate:


In addition to any positive cash flow from the Caren Mine, these production efforts might provide us a peak at the grades that might be anticipated elsewhere in the mining district or even further ahead (to the south)in these particular adits. The metal-bearing hydrothermal fluids that made it closer to surface all came from underlying enormous calc-alkalic magma chambers within which these fluids were allowed to mix thoroughly.

Note the difference between AMC recently expanding the extent of veins discovered making it to surface from 400 meters to, let’s say, 500 meters versus from 400 meters to the over 5,000 meters they did reveal. As you study the list of individual assets on Schedule A, in addition to any JV entered into at the Pegaso Nero, the one MILESTONE that I’m looking forward to the most is the release of the average grades being mined and shipped from the Caren Mine/Merlin 1 Vein. Since the SURFACE GRADES have been very consistent along the 1.8 Km north-south strike of the Merlin 1 Vein (about 3 gpt gold converting to 7 to 10 gpt gold where the plateau starts its downward descent to both the north and south) I’m going to assume that whatever grades they mine at the 150 meter or so depth level at the Caren Mine’s adit 3 of the Merlin 1 Vein will be fairly consistent (no promises as Mother Nature can be fickle) at similar depths across the plateau unless and until proven otherwise. This is based on how epithermal vein systems form. I will grant that you won’t know with 100% certainty until the mining process gets there or drilling is done.

If you think of the 6 main “sheeted” veins that all (except for the Merlin 3) strike to the NNW as gigantic sheets of plywood we know the most about the Fortuna Centro Vein which is the second one in from the east. Historical production from this vein down to about the 75 meter depth level down dip averaged 64 gpt gold. This Fortuna Cengtro “sheet of plywood” is clearly very impressive and we know a lot about it and its areas of “supergene enrichment”.

From the trenching and sampling program,we learned that the surface grades of gold for the whole system averaged a very impressive 2 to 3 gpt gold RIGHT AT SURFACE. The Lassonde article refers to 1 gpt gold at depth and we know from Sillitoe’s 1974 work that the average “vertical depth of emplacement” for the TOP of porphyry deposits is 1.5 to 4 Km below surface.

AMC’s trenching findings found a lot of gold right AT SURFACE. So the top edges of these 6 “sheets of plywood” are very impressive. From the adit sampling of the Merlin 1 Vein, AMC found the “bonanza” grades in adits #2 and #3 at about the 110 meter and 150 meter depth levels below the plateau. THE GRADES WERE INCREASING WITH DEPTH IN A FAIRLY LINEAR FASHION. Thus the deeper portions of the Merlin 1 Vein seem to parallel those found at the Fortuna Centro Vein at similar depths. In essence, everywhere anybody has looked at these intermediate sulfidation epithermal vein system they’ve pretty much found good results.

The question becomes, with the data available to date can we statistically infer that similar grades at similar depths might be expected or might they be expected to be higher or lower than those about to be reported for the Caren Mine? First of all, why did the geoscientists find these “bonanza” grades at adits #2 and #3 at these depth levels? It’s because the Merlin 1 Vein exited the mountain here and the outline of the vein could be visually seen from above and below by the original artisanal miners that drifted the adits. Is there a geoscientific reason why the grades at these depth levels below the mid-plateau area which can’t be visualized should be higher or lower if the surface grades are so consistent along the full extent of the vein? In a definitive sense, we won’t know until we get there or drill it out but as the mining efforts progress towards the south we should get a better feel for “continuity”. Another way to pose that same question is do we expect the “boiling zone” where the higher grade “bonanza” gold is typically deposited in these types of deposits somewhat flat across the mountain underneath a flat plateau (relict peneplain).

The fact that there is a lot of “banding” in these veins suggests that there were many “phases” to the hydrothermal mineralizing events. Each phase results in a light and a dark band within the vein in which the light band is typically made up of quartz and/or chalcedony and the darker bands contain the gold and/or copper. At surface especially towards the eastern plateau, the significant width of the overlying argillic and advanced argillic alteration corridors suggest a tremendous upwards flow of hydrothermal fluids emanating from underlying magma chambers. These fluids are capable of converting the native rock (granodiorite and/or andesite) to wide swaths of alunite and kaolinite clays. As far as the recently completed trenching and sampling program, the lineal dimensions of the veins making it to surface were indeed increased from 400 meters to over 5,000 meters. Whatever the “average grade” turns out to be within these 5,000 lineal meters of veins we do know that there is “likely” to be a significant amount of tonnage present not even factoring in the veins visible on the CSAMT that didn’t make it to surface.


Shipment Arriving At Enami