The Mining Play

Medinah Minerals (MDMN) - 2017 Q2 General Discussion


#273

I read thru those series of emails with Ulander on my LinkedIn account. At the time we were waiting for his up front payment. His responses were vague. When I pressed him, I got the FOAD comment. Lessons learn as we move, hopefully, forward.


#274

I find it interesting that the very last update from Auryn was this:

http://aurynmining.com/dr-richard-sillitoe-evaluate-altos-de-lipangue-mining-district/ on March 14 followed up by a few pictures on FB on March 17 then silence for the last 60 days.

“Dr. Sillitoe will produce an evaluation report of the Altos de Lipangue Mining District at Auryn’s request. This report is for internal purposes. It will provide Auryn’s team with a fuller understanding of the diverse geological structures found at the Altos de Lipangue and help place them within an historical regional context.”

Is the silence the result of the Sillitoe visit?

Is Auryn simply holding up news till they receive/publish the Sillitoe evaluation?

Did Sillitoe recommend that Auryn change their focus on the Alto? Perhaps they moving their resources to do more drilling instead of working on the Caren? Focus more on the Fortuna or LDM instead? Stop work until partners are obtained? Stop work at the Caren because it simply isn’t economically viable?

Was Sillitoe so impressed that he told all his big Major contacts to come in and scoop up the Alto ASAP?

With Auryn recently offering Cerro a gift loan so they keep their 5%, it appears that Auryn is still in a generous mood suggesting whatever is going on…good things are happening.


#275

Great questions MG! Would be nice to hear from Auryn on where we are at with everything. Transparency that’s all


#276

We all hope so Mike.


#277

Ditto, ditto and ditto.


#278

Issue 3, 2017
Progress update for Amarant Mining AB (publ) for May 2017
Operationally, we are moving slowly and surely in the right direction. The last month saw good progress and I am pleased to say that things on the Sarakreek concession seem to be moving forward according to plan.

Update regarding the Executive Chairman
On a less positive note, our Executive Chairman, Johan Ulander, has had to temporarily step aside due to personal and legal reasons unrelated to the current Amarant Mining AB (publ).
The Board of Directors would like to assure you that there is no significant impact on the Company, our business, or your investment.
Operations are continuing as normal in the capable hands of our management led by CEO Peter Lindh in Sweden and Paul Manders, our Suriname Country Manager.

Progress at the “3MS at Sarakreek” Concession
We have completed our Flycamp at the river landing and it is now operational. Our next step will be to erect the actual camp in the area we call the “Three Valleys block”. The area is promising and historical testing by various Chinese geologists as well as the Company’s own test-work supports a location in the middle of this area.

Bernard Boygues and Niclas Martin at the “flycamp” on the river

The prefabricated camp will be ready for delivery in the third week of May and we expect to have it on site and operational by the end of June.

Johan Ulander, Niclas Martin and Paul Manders inspecting the assembly of the new prefab units

Production
In March, we saw 25.75 ounces of production and we expect us to see a total of 100 ounces from the Sarakreek concession during Q2. This production is being done by our local subcontractors who are mainly of Brazilian background. We have identified three groups on the concession which we have registered as our subcontractors.

The Amarant team is currently patrolling the concession and the registration of the persons working in the area is expected to be completed by the end of May. The registration will enable the persons working on the concessions to continue their work as legal subcontractors for Amarant Suriname N.V.

We expect the real jump in production to be in Q3 and Q4 2017 when the first commercial production lines begin operation. There will be more about that when we are closer to production.
From the initial geological work done on the concession, we have defined 5 areas of interest where we can commence immediate production. The total amount of gold in these initial blocks is estimated at approx. 26,000 ounces which is included in the initial mining plan for the first 18 months of operation. Needless to say the above number represents only a fraction of the total estimate of gold on the concession.
Amarant’s own unique SCC exploration methodology will ensure that the property will be well explored and we will be delivering quarterly updates on the exploration results.
Below you will find a map and some results from the earlier sampling programs, the sampling was undertaken in three different ways:
Grab sampling: 30 litres of dirt from the surface that was tested on site. The typical location has been a creek or smaller river bed. This program was carried out by panning.
Normal sampling: testing 500 litres of dirt to verify the smaller volume samples. This program was carried out by panning.
Concentrator test: to verify the older data the company ran a test program using a small 7,5 inch Knelsson concentrator testing 1000 litres of dirt per location.
This program was carried out in the field and the numbers are to be considered conservative as the methods used in programs 1 and 2 are traditionally accepted and the company is using the same Knelsson concentrator technology for it production as the number 3 program.
A summary of the existing reports is being worked on and it will be published in conjunction with the Q2 report. So far, one can say that the grade for the loose gold varies between 0.6 grams to 1.6 grams in the tested areas. We expect that as these are surface samples the grade is expect to increase the deeper we go. The areas with Saprolite have not been tested yet but occasional findings of a more yellow quartz indicates high grades of gold.

Progress on the financing
The Company has still not managed to fulfil the targeted offering and hence the management will most probably decide to extend the subscription period.
On a positive note the company has started the due diligence process with a London based private equity firm for an equipment funding solution. More about this at a later stage.

2016 Accounts & Annual General Meeting
We are in the final stages of finalising the audited 2016 accounts and expect to be announcing the date for our Annual General meeting before the end of June 2017.

If you have questions or concerns regarding develops, I would be delighted to speak with you at any time.

Peter Lindh, CEO

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Amarant Mining AB · Stora Fiskaregatan 9 · Lund 222 24 · Sweden

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#279

So everything is fine and dandy at Amarant despite the fact Ulander is in jail.


#280

So, our alluvia stocks might be worth something after all.


#281

Well Auryn could certainly throw something like this together and get it out there for the individuals who feel they need to hear something. But, I don’t think it would change much.


#282

The fact we have not heard anything from Auryn and MDMN not necessarily bad news. As other posters have indicated Auryn has no obligation to update us; however, MDMN silence and no movement on any of the civil cases for a few months would indicate, IMO, attempts at a settlement are actively occurring. Generally, a judge will allow the case to float along for a while if the parties both indicate they are actively attempting settlement and they are making progress. Settlement efforts conserves judicial resources and save the parties money. Only if a settlement fails will a judge actively push the case forward. If the news was not good from a settlement prospective, I feel we would see it in the civil cases, with increased motions, filings, etc. from both sides. Especially since MDMN’s last motion sought to remove Les’ attorney due to a conflict of interest, which Les response is two months overdue. You don’t force someone’s hands to file a response to your motion if you are trying to settle the case. IMO, the silence speaks volumes right now.

IMO, at this point, considering the info we have, and IMO the greater info MDMN has, I feel they are trying to balance the cost of litigation versus the amount of actual recovery from Les versus Auryn’s steps to go public. I feel MDMN does not want to be an anchor which drags at Auryn due to its poor reputation and active litigation. Smarter posters than me here have stated a strong case as to why MDMN may just fold up and pass on its Auryn shares to MDMN shareholders. I feel MDMN is going in this direction and it cannot happen until all the civil cases are settled and MDMN figures out how to clean up its share structure.

Since it has been roughly 3 months since the last legal actions on the case, hopefully we should hear something soon. I feel MDMN working with Auryn and MDMN working to resolve the civil litigation. IMO it won’t be the “pound of flesh” we all feel we should get from Les, but I feel anything at this point which closes the past improprieties and sets up MDMN and Auryn for future success would acceptable. I’d rather have Les gone, my portion of MDMN’s Auryn shares soon to IPO, than a worthless judgment against Les for 500 million, a payout to Auryn due in a few years, and my MDMN shares at .005 cents. If I don’t have any news to read about how they make the sausage to get to the end result, so be it. If nothing looks to get resolved, IMO we will see it with the case activity. Right now I like the sound of silence, but I reserve the right to change my opinion if the silence continues to drag on for months on end. :wink:


#283

I agree, right now, silence is not a bad thing. Not fun, but not bad.


#284

Hi Mike,

The magnitude of the ADL district and the variety of deposit forms at the ADL mining district (porphyries, stratabound/mantos, epithermal veins, skarn, IOCG?, etc.) almost necessitates the role of a Dick Sillitoe type of figure working with a Ray Jannas type of figure to design a very complex multi-phase battle plan. If the density of the veins and lenses that they’re running into at the Caren Mine is significant then Sillitoe might even recommend cooling our jets for a moment there on the underground efforts and consider open pitting the whole enchilada if the financial resources are present and that approach resonates with any interested major(s).

I’d be curious as to who hired Sillitoe, was it AMC (Sillitoe’s “host”) or some other interested party. With Sillitoe, it’s much easier to list out the worldwide porphyries that he did NOT play a role in discovering or drafting the battle plan to exploit than it would be to list out his massive number of accomplishments in the porphyry world i.e. Bajo de La Alumbrera, Los Pelambres, Gaby, Ministro hales, Yanacocha, Lo Aguirre (our next door neighbor stratabound deposit), Lepanto, etc.

You’re not going to get a Dick Sillitoe figure to come out and spend 4 days on site unless he has a lot of respect for the deposit and/or for Maurizio or he was retained by an interested major. I was a little disappointed with the statement that his report was going to be used for “internal purposes only” but this is consistent with the all-encompassing “cone of silence” that had dropped a while back for whatever reasons. That got me thinking that perhaps AMC wasn’t the party paying him because his work product might belong to somebody else and is only to be viewed by the hiring firm and AMC management and not us shareholders.

Despite the enormous amount of complexity in this industry, at this stage of development it still all boils down to whether the deposit or parts of the ADL mining district are “LIKELY TO BE ECONOMIC” or not. The formal calculations of things like Internal Rate of Return (IRR) and exactly HOW ECONOMIC the deposit is likely to be are a long way down the road when it comes to the overall deposit. The key question in my mind is whether or not the GIS database has enough information in it to attract a very large major or perhaps two to be willing to spend inordinate amounts of money to be able to calculate things like the IRR of the deposit.

This particular deposit is atypical in that although the amount of meterage drilled to date (about 10,000 meters) is moderate the bulk of the information has probably been obtained by the other two of the three most common sources for the geological information allowed in NI 43-101 technical reports i.e. “existing workings” (adits, tunnels, pits) and “trenching and sampling”. The meterage of existing adits that can be easily channel sampled is ENORMOUS at the ADL. AMC’s trenching and sampling project was exhaustive in the Caren and Fortuna areas. Think of a horizontal adit as a gigantic horizontal drill hole with much more information to offer than a 2.2 inch drill core.

The “open pitability” of especially the Pegaso Nero area is a key factor because of this “LIKELY TO BE ECONOMIC” concept and the relatively low costs typically associated with open pit mines. This kind of call is well within Sillitoe’s wheelhouse. When you have a 4.1 Km swath of relatively high grade moly right at surface found via “soil sampling” then the “ECONOMICS” might be (no guarantees) rather robust especially when found in an infrastructure like this one. Because of the presence of POWER and WATER (a rarity in Chile) and the proximity to Santiago and the relatively low elevation this is going to be a LOW CAPEX scenario compared to most other deposits.

You just don’t need very high “run of the mine” or “representative” grades in order to render a deposit as “LIKELY TO BE ECONOMIC” in an environment like this. It will be interesting to see how many holes need to be drilled (if any) before a JV strategic alliance might be landed at the PN and/or for the entire mining district. To a major, it’s a matter of “derisking”. The terms of any strategic alliance whether in the form of a JV or some other approach can easily accommodate proper risk management for the major at this or any stage of development.

To me, this whole industry right now is in the midst of a 25 year low in new mineral discoveries. Everybody and their brother is digging deeper and deeper going after lower and lower grades in more and more geopolitically risky environs. The supply of and demand for discoveries of this nature is currently way out of balance. It simply defies logic how you can have the corporate knuckleheadedness shown to date in combination with a discovery like this. But the flip side of that coin is that Medinah wouldn’t be around today UNLESS their discovery really was of merit.


#285

Interesting take by HR on share conversion. Ihub Post. Thanks HR.

Auryns doesn’t have public shares yet. Medinah owns about 27.5% of Auryn. Auryn has 100 million outstanding shares if I recall correctly, so MDMN would be entitled to 27.5 million Auryn shares to divide among its shareholders. Those would be divided up among the 3 billion MDMN shares. If my math is correct, then each share of Auryn equates to approximately 109 shares of MDMN (3 billion divided by 27.5 million).

So if you own 1 million shares of MDMN, that would convert into approximately 9,175 shares of Auryn shares. What that equates to in price per share is unknown at this point because Auryn does not trade publicly yet.

Let’s say that Auryn goes public with 100 million OS and is valued at $100 million or $1/share. Your 9,175 shares in Auryn have a value of $9,175. To measure the impact of the fraud perpetuated by Les Price, if there were only 1.5 billion MDMN shares outstanding, your shares otherwise would’ve been valued at $18,350.

Somebody please double check my math.

Some other things to consider that I didn’t take into account in my very rough conversion, MDMN has debt to take care of, operational costs and legal bills. The company is still clawing back shares and who knows what will come of the current lawsuits. As such, the share counts I estimated with will certainly be adjusted later on, so it is difficult and premature to make a determination in that regard. I’m just giving a back of the matchbook picture of the conversion formula.


#286

All of this and that share price just makes me sick to think about.
Thanks Lester…censored by poster


#288

No news , good news ? sure hope so.


#289

Silence continues .0041


#290

Can they tell us why at least .


#291

Does anyone know if they are currently working on the mountain? And although Auryn is in a quiet period, why can’t Kevin release any information on our current status? There has to be something of significance that he can release to the shareholders…


#292

I agree Auryn has no responsibility to us but Medinah does. I understand we don’t want them to to release non disclosure agreements but Medinah needs to give us a brief update with the OK from Auryn what is happening on the mountain.


#293

How about the civil cases??