The Mining Play

Medinah Minerals (MDMN) - 2017 Q3 General Discussion


#312

Just sent him an email.


#313

Keep this in mind:

From the CEO
The From the CEO page will contain posts from me regarding things that are not relevant to the public nor are they considered a notification regarding corporate information. Think of this as a Medinah blog of sorts. ::: most of you will find this quite boring :::
It will also be a place where you can interact with me and help guide the conversation. You can do so by emailing me at from-the-ceo@medinah-minerals.com. Although I will not be able to reply to every email, I will read them.
My intention is to make brief posts (unlike this one) once or twice a month depending on how things flow. It may end up being less frequently as time goes on due to there being less to communicate about. We will see how it goes.


#314

Copper over $3 now, maybe higher copper price will make our properties a hot commodity.


#315

Can the CEO tell us what previous reports to us are still operative and how the others have changed?


#316

10% drop in Cu price possible https://agmetalminer.com/2017/07/18/copper-price-forecast-south-america-mines-london-metal-exchange/


#317

which could take 10% or more off copper prices in the next several months.

In several months, Price of Copper could be around 3.30 or more, remove 10%, still around 3.00 or more


#318

World Class Deposit


#319

Sure is, just waiting for the confirmation.


#320

Is there a possibility of rare earth minerals on our property?


#321

Hi Ed,

Although technically a “transition metal” and not a rare earth element “Rhenium” is often associated with copper/moly porphyries.


#322

Furthermore, one sample of molybdenite from the breccia was sent to the ALS laboratory in Quebec, Canada, for Re/Os dating, the result was 91 ± 0.4 Ma, which is the age of several known Copper, Gold and Molybdenum porphyry deposits in Chile, such as Andacollo, Dos Amigos, Johana and Frontera.
http://aurynmining.com/preliminary-exploration-at-pegaso-nero-target-suggests-the-discovery-of-a-copper-molybdenum-porphyry-system-within-the-altos-de-lipangue-project/

The trace amount of Rhenium present was of value for determining the age of the deposit only. The method used for dating the deposit uses the isotope 187 Re that “transitions” to 187 Os via beta decay. The big prize for the ALTO at this time is primarily CU in the long run. New high grade deposits are needed to replace declining grades in existing mines such as the world’s largest CU mine at Escondida.

In common with other well-established copper mines around the world, the quality - or grade - of the metal at Escondida has declined with time. Copper is used in electrical wiring for houses, cars and gadgets such as smartphones, meaning it is likely to stay in demand for decades. As such it is highly prized by the big diversified miners - London-listed firms BHP, Rio, Glencore and Anglo American have made the metal a priority - but fresh deposits are scarce.
http://www.telegraph.co.uk/business/2017/01/25/strike-threat-brews-escondida-worlds-largest-copper-mine

Last year the mine was “upgraded” at great expense.

Chile’s Escondida, the world’s biggest copper mine, said it is banking on a new $4.2 billion concentrator, its third, and $3.0 billion water desalination plant to counteract falling ore grades and help boost production over the coming years.
http://uk.reuters.com/article/chile-copper-escondida-idUKL2N17A2A8


#323

That can’t be Doc! He replied with a single sentence


#324

I ask Kevin, to give us an update, because it’s been a very long time we didn’t get one,that was his answer,at least he answered me.

You must have missed the financial disclosures that were filed one month ago.

https://www.otcmarkets.com/stock/MDMN/filings

Read them thoroughly and you will see all the activity that we are able to report at this time.

Sincerely,


#325

Hey brecciaboy, not hearing from you in such a long time was starting to make me think you know something we don’t (which I was starting to think was not very positive). And, maybe you do, because if I was that Sillitoe guy, one of the first people I would call on would be YOU (with a close second to Mr. Gold). Thanks for letting us know you still lurk.


#326

Time to hear from Auryn should be fairly close. The Summer doldrums for mining news ends the day after labor day. Also, if Auryn completed a JV with FCX or another Major, the work program should start by the end of September so would make sense they put out an announcement just before it commences.

Regarding the work program, not clear to me if it would involve starting to drill immediately or if they still need to do more geochemistry and/or geophysics to better define targets prior to drilling the porphyry targets or perhaps the LDM. (LDM probably already has enough info for drill targets, the Pegaso Nero much less likely.) This would push back drilling by at least a month. They certainly have enough info to continue to drill the breccia but that probably isn’t a priority target anymore based on the last round of drilling that Auryn completed on it.

Since it would be fool hardy not to start the exploration at the beginning of Spring, I think a JV will precede the IPO, not they other way around.


#327

Did you miss the entire discussions following Peter’s post July 21, the day the OTC filings were posted?

Kevin did put a very short notice out on the MDMN site announcing the filings:


#328

I guess I did.


#329

Hi MrB,
Actually I’ve been writing nonstop on the ADL mining district during this hiatus involving the Medinah litigation. Here are some thoughts about some recent topics addressed on TMP regarding our “cone of silence” treatment, the Sillitoe report and “world class deposits”. As punishment for Elrac’s wisecrack I offer the following:
I think there is a general lack of appreciation for two subject matters in this never ending saga of ours regarding Medinah. The first has to do with the myriad number of legitimate reasons for management to be so tight lipped (despite how painful it is for us) UNTIL all litigation matters are 100% wound up and the second has to do with Dick Sillitoe’s ADL mining district analysis remaining confidential until (IMO) any follow up opportunistic moves made by Maurizio subsequent to the analysis (if it was extremely positive) are completed i.e. tie down every mining claim that Sillitoe suggests we tie down.

In regards to Sillitoe’s 4 to 5 day visit with Maurizio and Dr. Jannas, we were advised on two separate matters. We were prewarned that the analysis was to be kept confidential and was to be used “for internal purposes” only and secondly that the study was to involve the ADL mining district “within an historical/regional context”. I’m a very big fan of this “wide-angled lens” approach at this point in time as it is indeed time to draft a master plan and execute on it.

Quite a while back we were provided with the “historical/regional” bread crumb (full blown bakery?) from Dr. Aguilera that Re/Os studies confirmed that the age of our rock (about 93 million years old) matched that of the famous Andacollo Mining District well to our north. Historically the Andacollo Mine (along with Escondida and Chuqui-) were the 3 most productive mine complexes in all of Chile. It was the flagship mine for the entire approximately 93 million year old “Early Cretaceous Porphyry Belt” hosted in the Chilean Coastal Cordillera. Other famous porphyry belts in Chile include the Eocene-Oligocene porphyry belt, the Maricunga-Miocene belt and the El Indio belt.

Now we realize that the ADL Mining District appears to be the new southern terminus of this prolific porphyry belt. This could be of tremendous significance because of the potential for discoveries north of us and south of the previously assumed southern terminus of this porphyry belt. We also can’t rule out the belt extending even further south of the ADL towards Lo Aguirre and La Africana and any opportunities represented there. Maurizio, a master consolidator of mining concessions, is obviously thinking along these terms as Masglas recently acquired the Empressa Caballo mine at Colliguay to our north near what was originally thought to be this belt’s southern terminus.

We need to keep in mind the potential “scale” implied when we’re talking in terms of the extension of a famous “porphyry belt” and the potential significance of holding much sought after information relevant to the actual extent of this “belt” that contradicts what was previously held as fact for hundreds of years.

The concept of an “area play” is a possibility once the regional geology is better appreciated after debriefing experts like Sillitoe. Mother Nature has a habit of acting in a similar fashion in nearby locales perhaps measured in many hundreds of kilometers at similar historical ages often measured in dozens of millions of years. This holds especially true if the same “subduction” process is occurring on the plate tectonics level i.e. the much denser Nazca Oceanic Plate migrating east and subducting under the less dense South American Plate which is migrating west. The immense levels of friction generate the heat needed to melt the nearby crust (“crustal melt”) and induce magmatic activity resulting in the sought after metals rising through the rock strata. The operative concept here might be POTENTIAL SCALE.

In their various communication efforts, the Andacollo Mine appears to have been chosen by AMC as a potential model for our own ADL Mining District. The Andacollo District features a centrally located copper/gold porphyry that was responsible for providing the hydrothermal fluids that fed stratabound and epithermal gold deposits at a distance of 5 Km (over 3 miles!) from the porphyritic source through tensional fractures. This is very reminiscent of what we know so far about the layout of the ADL Mining District with the epithermals and stratabound deposits existing distal to the Cu/Mo porphyritic showings at Pegaso Nero. Again, we’re potentially talking in terms of “porphyry belts” and “mining districts” and not just a “mineral deposit”.

The “blue sky” potential at the ADL is thus significant but we have to be careful in throwing around the term “World Class Deposit”. The best paper I’ve seen in the mining literature in regards to “world class deposits” was presented by Richard Schodde of Minex Consulting at a conference in Australia. He reminds us that “WCD” is a very subjective term. One of the most universally accepted definitions of WCD was written by Don Singer in his famous treatise summarizing the study of pretty much every porphyry deposit on the planet. He suggested treating the mineral deposits in the top 10 percentile from an ounces of gold equivalent basis as “WCDs”. The threshold limit ended up being 3.2 million ounces of gold equivalent to qualify as a “WCD”.

I’ve always favored throwing in a fudge factor based on the mining reality that “all ounces are not created equal”. In an infrastructure like that at the ADL, when factoring in economics and very roughly projected “all in sustaining costs” Singer’s 3.2 million threshold ounce figure might look more like 2.7 to 2.8 million ounces. Chilean mining operations are famous for the lack of both WATER and POWER in both the Andes and in the Atacama Desert. The ADL mining district was blessed with both. Perhaps the metric we should be stressing is “world class earnings potential”.

With what we know today, where does this put the ADL mining district? First of all, it should be made clear that due to the lack of a formal Pre-Feasibility Study (PFS) the ADL has no “Proven or Probable Reserves”. AMC’s Bocanegra estimated that there are about 664,000 ounces of gold equivalent in the top 200 meters within just 1,900 of the over 5,000 meters of epithermal veins that made it to surface in the Caren and Fortuna Vein areas. This doesn’t include those that didn’t quite make it to surface. As an aside, my hope is that the density and grades of the epithermal veins is such that an open pit approach is advisable as deemed by an authority like Sillitoe. On the other side of that coin, I would like to see some high grade production in the very near term partially because I’d like to see some earnings thrown at Medinah so that they can use up some of their massive tax loss carryforwards they’ve been accruing forever and a day.

In the breccia areas to the west of the Caren/Fortuna epithermal veins Gordon House and ACA Howe estimated the presence of about 1.5 million ounces of gold equivalent (again not “reserves”). Via their drill program, AMC extended House and Howe’s findings well to the south and west but took a more conservative stance suggesting that this brecciated area contained about 1 million ounces of gold equivalent outlined to date. Personally, I mentally group these two areas (the breccia area and epithermals) and consider that there is PROBABLY about 2 million ounces contained there. So this puts us over half way to Singer’s 3.2 million ounce threshold limit in order to be considered a “WCD”.

In the LDM area, I feel that the stratabound deposit and the gold zones will add significant MR/MR but I can’t assign a potential number here yet. I feel that by far and away, the ounces to be outlined at the Cu/Mo porphyry area near the Pegaso Nero will dwarf that found in the LDM, the brecciated areas and the Caren/Fortuna areas combined. Why do I suggest this?

The hyperspectral satellite imaging study done by Perez outlined an approximately 7 Km swath of “about a dozen intrusives” stretching from SW to NE just south of the plateau’s southern border. The question arises as to what in the heck is the average metal content in these “about a dozen intrusives”. AMC tested the westernmost region of this “swath” via soil sampling. They identified an area of 3.6 Km north to south from the plateau down its southern downslope by 1.2 Km east to west that featured very impressive grades of copper and moly RIGHT AT SURFACE. This appears to have come from two separate intrusives i.e. the “tourmaline breccia” and the “intrusive breccia”. The $64,000 question: Can we extrapolate that the areas east of the sampled area along that 7 Km swath that appear similar on the satellite survey will have similar sampling results? I can’t think of any geologic reason why they would be expected to be higher or lower than the area already sampled but it’s best to wait until this sampling is done. .We need to go back to the work of both Singer’s group and Mutschler’s work revealing that the copper/moly type of porphyry is the behemoth of all of the porphyry subtypes. They average around 500 million tonnes of ore.

The big question is if the surface grades are that high what might the drill results show. There are no guarantees in mining but the hydrothermal fluids that did all of that “surface alteration” and carried those metals to the surface came from below. Due to the extremely high melting point of moly, the moly nearly always hugs the porphyry stock because it is the first metal to solidify during cooling.

The major miners direly in need of replacing MR/MR in favorable geopolitical settings usually deal in the “probability” of a deposit becoming a “World Class Deposit”. They seek “scalability” (like at Andacollo) especially in deposits with high grade near surface early cash flow opportunities. The important metric today in this mining environment in the midst of a 25 year low in new mineral discoveries is the SUPPLY OF and DEMAND FOR deposits of this description within the infrastructure present.

Sillitoe was the perfect epithermal/porphyry specialist to seek guidance from as he consulted on the Lo Aguirre Mine just south of the ADL. With Sillitoe, it’s easier to list the worldwide porphyries that he did NOT play a role in discovering or developing than to list the ones he DID discover or help guide the development of. If Sillitoe confirms Aguirre’s diagnosis as to the ADL representing the new southern terminus of this belt then you can see why “mums the word” as far as screaming it from the mountaintops today until the economic leverage is properly leveraged.

The same reasoning holds in regards to the various Medinah litigations now appearing to be finally winding up. If Medinah were to tell the world (including the litigants we’re fighting) that we APPEAR TO BE (no promises in this business) sitting on a monster deposit then of course the various litigants on the opposite side of the bargaining table are going to hold out for better terms because they would be in a position to stall the development of a lucrative project and of course time is money.

Now the flip side of this “glass half full” coin is that management’s silence could have to do with nothing going on and perhaps Sillitoe yawned when he studied the ADL. Who knows? I could, however, easily see Maurizio crossing his arms and sending the message to the various litigants that he’s not going to lift a finger in developing this project UNTIL they settle. Recall that “AHC and associates” bought an awful lot of Medinah stock in the 5 to 10-cent range finishing up this buying spree at a dime which is 20-25 times the current price. A lot of the shares they bought were no doubt sold by those guilty of the corporate malfeasance.

With an AMC IPO perhaps within spitting distance, it will be interesting to watch the communications pendulum swing from a very professional “cone of silence” mode in which secrecy is critical to shouting from the mountaintops mode when there is an incentive to support the share price of AMC which becomes its new “currency” to do deals with.


#330

Nice move in gold today up to 1307


#331

Thank you, sir!