You’re welcome Andy.
Even though I have more confidence in Patrick then all of the past BOD put together, it becomes almost impossible to envision any scenario where he is not at fault (implicitly or not). Christopher is already under microscope. There’s no way Patrick was completely oblivious, and to CHG’s point, he should have, at a minimum, noticed that the public filings were inconsistent with the numbers they had. It’s inexcusable.
Similar to Gary (maybe even more so), Patrick should NOT be running CDCH and, IMO, would be well-served to hand over the reigns to Kevin and crew (no need to have two BOD’s running shell companies with interest in the same company). I’ve been trying to relay the same to Patrick but he’s gone completely MIA. The longer he holds onto his title (and preferreds) the deeper the rabbit hole will go.
Give up any notion of pursuing a new project, forget about the spinoff of the AMC holdings, surrender the preferreds (like your brother), hand over the management of the company to Kevin & Co, cooperate with the investigation, and work towards minimizing your liability. Best course of action for Patrick.
If/when Kevin & Co take over CDCH there will be a significant opportunity to reduce the share count by reversing all of the shares that were given to Chapin, Les, JJ, etc. With CDCH there is a possibility to have less than 250M shares outstanding. Lot’s of upside here if things are executed proficiently.
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Assuredly this is correct. Although Patrick is reportedly fully cooperating with the investigations, it is very likely that legal entanglements of MDMN have affected the ability of CDCH to timely file with the OTC. I do not know the circumstances under which Mr. C. Day may have acquired the preferred shares shown in MDMN’s Annual report 2012 , but it has likely put CDCH and ARTCO under additional scrutiny. Meanwhile, shareholders are left in the dark and CDCH is left as unreporting “Common Stock Dark or Defunct” on the pink sheets with very limited liquidity.
Between February and March 2012, the Company offered and sold 7,350,000 shares of Class C
Note 18
Redeemable, Convertible Preferred Stock to a total of eighteen individuals. The shares were issued at $1 per share, and are convertible to Common Stock at the ratio of 5 cents for each share of Common Stock in year one, 10 cents for each share of Common Stock in year two, and 20 cents for each share of Common Stock in year three. They bear no voting rights, and accrue interest at ten percent per annum. The issuances were made to the following individuals:
Juan José Quijano Fernández, Larry Regis, Ian Dow, Vittal Karra, Pamela Fitzpatrick, Christopher M. Day, Paul Donnelly, Mick Shindell, Donald R. Johnson, David Dessecker, Anthony Arrigoni, John A. Toyer, Jr., Cynthia R. Shindell, Richard Bengard, Gregory A. Chapin, Leslie Price.
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Meet your John and Jane Does
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Don’t over think it, not that complicated. No one ever said he/she is returning 100% of his shares, just the illegitimate ones or whatever was negotiated. He/she probably has legitimate shares that will make them “whole” at that price. Holding back some for “insurance” until that happens?
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Very loose wording in the above Councel notes. In 2012 the authorized common and preferred share counts doubled! Likely, the “majority of the Directors” (3?) consisted of Juan José Quijano Fernández (President, Director and CEO of the Company). Maybe Larry Regis, Jr. who served as a Director and Secretary/Treasurer was included (in the “majority”), resigned in February 2013, but is now deceased. Mr. Kyle R. Kirkland became a Director upon the resignation of Mr. Regis, but left after a short period. Greg Chapin, a long time Director was appointed Secretary/Treasurer of the Company upon the resignation of Mr. Regis. It is unlikely, in my opinion, that Mr. Chapin or Kirkland were included in any detailed reviews of the newly issued “COMPANY INFORMATION AND DISCLOSURE STATEMENT Pursuant to Rule 15c2-11(a)(5”), but it is inexcusable that a thorough review and verification was not conducted by Mr. Chapin and Mr. Kirkland subsequent to it’s being published. Likely the “justification” for Mr. Chapin returning all shares, common and preferred. Similarly, Mr. Karra returned shares and both are likely to yield key testimony in the ongoing law suits. A verbal summary by Mr. Hackney of Mr. Jensen’s accounting would not be sufficient, IMO, nor failure to review and verify in subsequent publicly filed information in compliance and Pursuant to Rule 15c2-11(a)(5) .
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When I was about to get into MDMN for the first time in late 2006 I asked the board who these folks were and was basically told to not worry about it. There was very little if any public information on them other than a facebook/linkedin type of page so it was hard to do any due diligence on them. I always felt that there was something shady going on with this group especially since their names constantly came up in the “gave money to the company” for shares line. I guess I should have listened to that inner voice.
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The interesting view’s are a constant supplement to the ongoing investigation and move forward in the prosecution of certain parties involved in the improper distribution of shares. While I am sure our attorneys have a deliberate path they have chosen, open speculation oftentimes opens eyes to new avenues.
While so many things are in the works, We, theminingplay, will continue to be a source of information, involvement and social voice of the individual shareholders. This does come at a cost that would be much more minimal if when logging on theminingplay please check into the ads that in some way relate to you or you may have interest. Every time you do it decreases the actual cost that we have to pay…
Thanks in advance GC…
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Understood…will do.
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'This effort will help us refine our business plan as we consider the development of the entire project, including the possibility of bringing on additional partners for the porphyry targets."
Almost a certainty that one of the partners is going to be Freeport Mcmoran. They have the first pick.
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I’m not sure my wife would approve of Belize Cupid…can I blame you
Of course you can😉
GC…
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I am so glad that we are getting great news. After holding this stock for so long and all of drama, we all deserve every dollar we make. Thank you all for all the the research done. Thank you Kevin!
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Gee, elrac, I get ads for metal detectors, annuities and cars. What’s in your browser history?? 
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Now,we need production to go full throttle.
Well probably. Certainly Ian Dow has to be near the top of any list of John Does as he always been hand in hand with Les’s schemes to fleece shareholders. When I met him in Reno at a shareholders meeting years ago he came across as more of a con man than even Les if possible.
I should note however, that just about all the offending transactions obviously did not show up on financial statements(such as from the snip-it that you posted) as Les probably didn’t want to test fate that Greg, etc. might notice something that he didn’t approve of.
I believe the TA has already identified every single individual involved. (or at least those that got shares directly.) The only thing to sort out would be who were the ones that were knowing accomplices of Les in the fraud and those that simply were doing private placements to fund the Company while getting some cheap shares at the same time.
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MG, I agree that most of the shady transactions would not appear on statements.
Also, don’t the accountants and lawyers that sign off on corp. statements all have a disclaimer that basically says “hey, I just regurgitate and format the figures I have been given and do not guarantee their accuracy”? Thus relieving them of liability?
I sent kevin everything I saved. wasn’t much but there was a few jewels that kevin said were good. I never in my wildest dreams thought that I would need my emails to prove LES stole from us! I cant believe this man is still beating the drum of he did nothing wrong. All the while these men used the short position or Claro is selling as an excuse while they dumped billions on us!
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Thanks for the help geoly. Hopefully what you’ve provided helps our cause and gets MDMN back on track.
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This may be a stretch, but maybe FUlander bought some of these shares. This was a deal he would get into. I wouldn’t be surprised.
PARSING OF THE JAN. 30 PROJECT UPDATE OF AMC
First of all, it was a great update with a lot of information especially for those obsessive compulsive enough to have followed the ADL geological developments over the last 20 years. Some of the information, however, might need a little bit of deciphering. One thing we need to keep in mind is that the grades being reported are “mill grades” from ore delivered to the ENAMI mill by truck and not drill results. Most of us are used to reading drill intercept HIGHLIGHTS of perhaps 11.5 gpt gold, 1.6% copper and 31 gpt silver like these over “X” number of meters. We then tend to associate that deposit with the HIGHLIGHTS only ($560 “rock”) and tend to forget the fact that the high grade intersections only composed 2% of the drill core. There is a world of difference between shipping truckloads AVERAGING those kind of numbers and the sexiest drill intersection a drill program may have revealed in an unpermitted project on top of the Andes with no power and water and issues with the locals and conservation groups regarding glaciers.
On the VISUAL AIDS part of the PR showing the aerial view it’s important to keep in mind that “Level 2” (in blue) where “bonanza” gold gtrades were found and the “Larissa tunnel” (Level 3 in red) are vertically separated by about 45 meters. Even though they somewhat overlap on this aerial “plan view”, we don’t even know if those two structures that got intersected at L2 and L3 are the same vein or not. We don’t even know for sure if the “Merlin 1 Vein” referred to as being sampled at surface is the same structure encountered at any of the adits. A lot can happen to the course of a vein in that 45 meter vertical space in between L 2 and L 3.
The irregular shape of the Level 2 workings (noted in blue) from an aerial view suggest that this is the work of artisanal miners simply tracing out the mineralization they encountered visually. On the other hand the Larissa tunnel is more of a straight shot until they made that “elbow” near LC 3 and finally intersected a vein. As mentioned in the PR, the grade differential between L 2 and L 3 might even suggest that they’re two different veins or perhaps they represent two separate “pulses” of mineralization in the same vein in a “polyphasal” (more than 1 phase of mineralization) deposit. I’d continue to characterize the overall epithermal system as potentially very rich but still “complex”.
At the SE terminus of “Level 2” you can see how the structure having been mined there dilated out nicely into a wider structure. The spaces between rocks in localized areas of “tension” (a pulling apart of nearby rocks causing dilation of the space in between the rocks i.e. a good thing, as opposed to “compression” which lessens the dimensions of the intervening spaces) will be larger than in other areas. Maurizio informed us at the informational meeting how our mineralization occurs in lenses (areas of dilation) strung together by smaller channels similar to the beads of a rosary and the chain holding the beads.
That new 42 meters of “higher grade ore” distal to LC 6 recently discovered might represent the width of one lense/bead. It’s vertical height was postulated to be around 60 meters. I assume that measurement had to do with the “chimneys” that were raised in the area. The 4 meter space where the vein suddenly disappeared might represent the area between “beads” associated with the tiny chain holding together the rosary beads/lenses or an area of localized “compression” of nearby rock structures serving to pinch off the vein. This is very common and is why veins are referred to as being “discordant” which means they swell out and pinch off fairly regularly because of the surrounding rocks experiencing varying amounts of “tension” and/or “compression”.
What AMC is doing right now appears to be a cross between exploration, development and production. This approach results in the rapid “derisking” of the project from the point of view of a potential suitor. Going into production represents the accomplishment of a litany of tasks related to permitting, metallurgy, economics, etc. What AMC has been doing is taking a methodical approach and keeping their nose to the grindstone knowing that at any time in the process, they could conceivably get a tap on the shoulder from an interested party asking AMC/Medinah to pass on the baton and go sit in the grandstands. The two questions that might arise from this PR are what are the grades from the last 4 truckloads of the “test” and just how much “higher” are the grades from this new 42 meter lense/rosary bead than those shipped in the first truckload as part of the “test production” featuring 11.5 gpt gold, 1.6% copper and 31 gpt silver which represents $560 “rock” (dollar value per tonne).
I found it interesting that AMC chose to parallel the vein from L C 6 onwards instead of rushing in there and whisking that higher grade ore to the mill in order to receive a check that much sooner. A potential suitor looking over AMC’s shoulder doesn’t want to see that “make a quick buck” approach as much as the approach chosen. They want information so they can put together the broader geomodel. The fact that AMC is sampling every two meters in this 42 meter stretch to determine that the vein didn’t stray off in a different direction tells us that they know what the grade range is going to end up being and are comfortable with using the term “higher grade ore”. Of course the statistical certainty of average grades acquired through this lateral “drilling” goes back to that of a drill hole until the ore is shipped to the mill.
IT’S ALL ABOUT “CONTEXT”
As far as keeping a sense of CONTEXT, AMC/Medinah/Cerro has 5,000 meters of veins on the eastern plateau that have made it to surface. The workings to date at the Larissa adit are about 140 meters in length or about 3% of this 5,000 meter length. Of the 6 main veins on the eastern plateau we know the most about the Fortuna Centro Vein which averaged “mill grades” of in between 64 and 92 gpt gold. Today’s average grade of gold being mined worldwide is in between 1 and 3 gpt gold. Chile’s highest grade underground gold mine (the Pimenton Mine) averages 11.1 gpt gold but this is deceptive because it is closed half of the year due to its elevation. So these Larissa adit findings when added to the earlier Caren Mine adit samplings plus the Fortuna Centro historical results when viewed in CONTEXT, are pretty compelling.
The 5 “test truckloads” came from a 28 meter stretch in between LC 3 and LC 6 in the Larissa Vein or Level 3. We’re still waiting on the results from the last 4 truckloads which are expected to be similar to the first (but let’s wait until they arrive before jumping to any conclusions). The new 42 meter section past LC 6 is 1.5 times that length and if the average grade is considerably higher than the first 5 truckloads then the “weighted average” between the 2 groups of samplings could be interesting.
Again the question becomes, in between the stellar findings at the Fortuna Centro Vein (64 to 92 gpt gold) and the grades being SHIPPED from the Larissa adit and the sampling done at the other adits of the Caren Mine can we start to extrapolate with any level of geostatistical certainty what the average grade might be in the 5,000 lineal meters of veins that made it to surface at the eastern plateau. With each new data point being incorporated into the GIS database our geostatistical certainty level creeps up a bit. Another consideration might be are the veins that made it to surface as well as those that didn’t quite make it (but are visible on the CSAMTs) densely enough packed to make the project open pitable especially near the Fortuna Vein complex and Merlin 3.
THINK DEEPER
The reality is that these insanely high grades came from the hydrothermal fluids emanating from underlying magma chambers that are fed by gigantic masses of molten igneous rock known as plutons. Once the volcanic activity ceased about 91 million years ago the solidified relict magma chambers and the overlying rock become what are known as “porphyries”. Porphyries are gigantic but usually of moderate grade. The Cu/Mo type of porphyry that underlies the eastern part of the ADL mining district are the biggest of all of the porphyry subtypes and often average about 500 million tonnes of ore.
Again, keeping a sense of CONTEXT, the 5 truckloads of ore shipped to the mill so far from the Larissa adit amounted to about 75 tonnes (versus perhaps 500,000,000 tonnes). This massive disparity suggests the importance of keeping focused on what’s beneath i.e. THINK DEEPER. The host rock for the ADL Cu/Mo porphyry is what is known as monzodiorite which is similar to granite. This is different from the Cu/Au type of porphyry hosted mainly by “andesite” believed to be underlying the western aspects of the ADL mining district. The Cu/Au subtypes of porphyries average about 300 million tonnes of ore.
In the last section of the PR you’ll notice that Dr. Jannas and the team of engineers, P. Geos and consultants are going to be executing a “district wide” analysis in February (now). This will include the Fortuna area (epithermal veins that might be open pitable) as well as the LDM’s stratabound deposit/skarn. The representatives from Freeport McMoran also chose to make their examination on a “district wide” scale. Maurizio made it clear at the informational meeting that AMC will need help on developing the two porphyries.
At the beginning of the PR, AMC listed 6 bullet points. The last 3 all hinted at a new more “district scale” approach being deployed. This suggests to me that the overall geomodel is starting to firm up nicely and it’s time for the engineers to start using the data collected to date and construct a viable business plan as to just how to attack this behemoth. Potential suitors might want to provide some input at this stage as to just how their firm would prefer to attack this project.
To me this entire scenario is still all about supply and demand. In this current mining environment in the midst of a 25 year low in new discoveries, what is the SUPPLY OF and DEMAND FOR deposits of this description with the infrastructure present in a geopolitically favorable country. The need for major and mid-tier miners to replace their dwindling reserves on a regular basis is not an option, it is existential.
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