The problem is the pps has been going down with no recovery.
It is disturbing that our pps has no bottom. It always seems like no matter where you decide to average down a better price will present itself it the future. I am still having difficulty grasping the idea that it “does not matter” what our price is. And that once we IPO our shares will be worth the “same” no matter where we were trading at that time. I think they will be worth close to what they were worth right before the merger. Of course, I do expect that we will go north from there…
Just because Auryn is a private company it doesn’t mean that they can jerk their shareholders (Mdmn)as they want! This is beyond ridiculous not informing the shareholders exactly where they stand. Also if someone wants to contact them they can’t, this is the first time I see a company where they have no contact info.
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Spot on Hulk.
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MDMN and CDCH exist only because Auryn was willing to carry us regarding the cash call. They have said that an event is to take place in the 4th qtr. ( IPO ). We are 23 days from the end of the Qtr., if we do not hear news by then, we can start to voice our objections.
We are dealing with professional miners who have a master plan to make themselves and us wealthier than we are today. Let them do their jobs! At the appropriate time I’m sure they will be more than happy to share things with us.
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Hey Hulk, didn’t know this. .
{ International Epithermal Expert, Dr. Richard Sillitoe, Issues Geological Report on Aurelian’s Fruta Del Norte Project }
So, I guess they didn’t hire this guy for nothing, we probably have something big, can’t wait to see that report.
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Yep, no kidding. I guess one thing we can say for these guys is they’re experts at keeping things secret.
Have you reached out to Gary Goodin?
Nice find - Yep, that was some major news in it’s day. Many remember Aurelian Resources from the past.
Dr. Richard Sillitoe is definitely a heavy hitter when it comes to mining.
Didn’t he spend 5 days on the ADL?
NEWS RELEASE Trading Symbol ARU:TSX-V August 23, 2006
Dr. Sillitoe spent 31⁄2 days at the project on behalf of Aurelian Resources, with the specific aim of aiding ongoing geological interpretation and exploration of the newly discovered Fruta del Norte epithermal gold prospect. The fieldwork focused on the construction of five cross sections through the Fruta del Norte mineralized zone based on 1:2,000-scale reconnaissance logging of core from 14 diamond drill holes. Maps, cross sections, photos and full gold and silver assay data from the FDN deposit may be viewed at www.aurelian.ca.
Things changed in 2008:
Kinross to acquire Aurelian Resources in $1.2B friendly deal
Aurelian’s main property is the Fruta del Norte discovery in south-eastern Ecuador. The company said in October 2007 that the property held an estimated 13.7 million ounces of contained gold and 22.4 million ounces of contained silver.
However, the situation for mining companies in Ecuador is unclear. Earlier this year, the country’s government imposed a six-month moratorium on mineral exploration while it developed new mining rules.
Things finally moving ahead the past couple of years, though:
Ecuador signs key deal with Lundin on Fruta del Norte gold mine
Dec. 15, 2016, 8:58 AM
Ecuador has signed a contract with Canada’s Lundin Gold (TSX:LUG) that allows the miner to move ahead with its Fruta del Norte gold project, the country’s largest.
The Vancouver-based company plans to build and operate an underground mine, along with a processing centre at the site, located in the southeastern Amazon province of Zamora Chinchipe.
The project, discovered in 2006, is one of the world’s biggest recent gold findings, with reserves estimated at about 4.8 million ounces of gold and 6.3 million ounces of silver.
The company stock was soaring this morning on the news, delivered after market close Wednesday. It was up 3.6% to Cdn$5.18 in Toronto at 11:40 am.
“In just under two years, working cooperatively with the Government of Ecuador, we have negotiated this key agreement and completed the Feasibility Study for FDN, paving the way for the development of this world-class asset," chairman Lukas Lundin said in a statement.
As part of the deal, Lundin Gold will have to pay advance royalties totalling $65 million to the Government of Ecuador, of which $25 million will be paid within the next few days.
The balance is expected to be delivered over the next two years, with $20 million due on the one-year anniversary and $20 million due on the second anniversary of signing.
A 5% NSR is also payable from production, and the advance royalty payment is deductible from future royalties payable.
Ecuador signs key deal with Lundin on Fruta del Norte gold mine - MINING.COM
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Maybe the heaviest of Heavy Hitters Look at the 2012 tribute by the Society of Economic Geologists, Inc & paid for by Rio Tinto
“Geology and Genesis of Major Copper Geology and Genesis of Major Copper
Deposits and Districts of the World: Deposits and Districts of the World:
A Tribute to Richard H. Sillitoe”
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Good find Whatever.
Trying to work out the kinks for a new poll. I’ll try again later.
This is why we like brecciaboy, as he schooled us on Dr. Sillitoe a LONG time ago.
I agree that it was a long time ago. I would guess the first mention of Sillitoe was about the time I bought my first shares, maybe 1998. The Medinah geologist, Gordon House, followed everything Sillitoe did. He said Sillitoe was the premier authority in the world as I remember
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Years ago, a client of mine insisted on investing in MDMN/CDCH. He asked me to help him by reading up and studying these companies. He had just gotten finished being hammered by a couple of Canadian companies, Logan Resources and International KRL - and was quite gun-shy. I studied/watched MDMN/CDCH for some 6 months, I shared with him MUCH of the information discussed/provided by brecciaboy, real substance, including the two times he hired independent geologists to take a trip down to Chile. Brecciaboy was NICE enough to SHARE this with everybody - one cannot underestimate the value of such SHARING (after PAYING for the services of a geologist, is that something others would do?). He has also written repeatedly about Sillitoe and his work. After all that, not to mention all the information obtained from other informed individuals on TMP, I gave my client the go-ahead, only to learn that he had beaten me to the punch. In addition, after juxtaposing the many advantages/disadvantages of an investment like MDMN/CDCH versus LGR/KRL, I decided to pull the trigger somewhat myself. I started investing at the 14 cent level and have “chased my tail” all the way down to a half cent. My client has since passed away. So, I’m still here partly out of loyalty and the desire to see this thing succeed. We’ll see what happens, but I can only hope he is monitoring this situation from above.
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whatever,
Thanks - a very nice tribute acknowledging contributions through 2012.
I found R. H. Sillitoe Career Highlights very impressive on pages xi-xii, even though it only covers highlights through 2011.
Perhaps an update will soon have a reference to the contributions made in defining and developing the ADL into a WCD! Something all here would certainly be interested in seeing.
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What a very sweet post, mrbubba… And what a nice reminder that there are hundreds or maybe even thousands of heart-wrenching stories behind this long and so far sad saga — many of them with fatal endings, but probably many more of them not-fatal at all, but with unknown endings… If in fact there is any such thing as an “ending” to this or any story…
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I am sure they took the name Auryn, because of the never ending story of MDMN 
I saw over a recent weekend where the conversation on “The Mining Play” centered on whether or not the 11,000 hectare ADL Mining District is likely to represent a “World Class Deposit” (WCD). The obvious place to start a discussion like this would be via formally defining a “WCD”. P. Geo Don Singer’s definition of a WCD is any deposit within the top 10th percentile in terms of reserves and resources. This ends up being any deposit meeting the threshold of containing 3.2 million ounces of “gold equivalent”. “Gold equivalent” includes not just the ounces of actual gold contained within a deposit but also weighted contributions from other contained metals (like copper, moly and silver) in polymetallic deposits like that at the ADL.
Keeping in mind the varied stages of development of the 5 main subdivisions of the ADL Mining District (PN, LDM, breccias,Merlin Veins, Fortuna Veins), perhaps the best we can do for the purposes of this discussion is to carefully study the vast GIS database (readily retrievable computerized information) collected to date and utilize statistical probabilities based on sound geoscientific principles in order to assess the “likelihood” (but by no means the certainty) of the ADL representing a “WCD” once fully drilled out. Blocking out MR/MR can be achieved by drilling, trenching and sampling, studying existing adits via channel sampling, drifting new adits or a combination thereof. Due to a vast network of preexisting artisanal adits, a lot of the learning in the ADL Mining District has been via channel sampling existing adits.
In our favor is the fact that porphyry deposits worldwide have been exhaustively studied and the work of Singer and Berger (through the USGS) as well as Berger and Drew represents a resource that facilitates advancing on this learning curve quite rapidly. Their work covers pretty much every porphyry deposit known to man. They list out the average grades and average tonnages of the various sub-types of “copper porphyries”. They then present scatter diagrams outlining the ranges of grade and tonnages of porphyry deposits by their sub-type as well as the most common intrusive and host rock types as well as the typical shapes of porphyry deposits (elliptical).
Also helpful is the homogenous nature of most porphyry deposits and how closely they tend to follow the Classic Sillitoe Model and the Lowell-Guilbert Model for the zones of alteration and mineralization surrounding centralized porphyry stocks. This creates opportunities to use “vectoring” by studying hard data acquired previously and relating this to the geomodels in order to hone in on target areas. AMC’s Luciano Bocanegra (also of “MinVec”) has written some of the best pieces available on “vectoring” in epithermal and porphyry settings. One of the best educators in the mining industry, Sprott’s Andrew Jackson, cites that as opposed to most mineral deposit types “a porphyry is a porphyry is a porphyry”. A high level of predictability is a good thing in economic geology.
In regards to this “WCD or not” issue, what I’d suggest is to study the historical work done by the dozens of different geoscientists on the ADL Mining District especially those well accepted experts in their geoscientific specialty that have made previous comments on contained ounces (“in situ” or “in place” ounces) at the ADL.
- “Remote sensor analyst” C.S. Perez was commissioned to prepare a somewhat exhaustive “summary report” relating everything previously known in regards to the ADL from the historical work of Alejandro Faunes of Shell Chile all of the way to that of ACA Howe and Gordon House to the results of his own hyperspectral satellite imaging report. His report cited: “AT LEAST TWO PORPHYRIES ARE PRESENT AND A VARIETY OF MINERALIZATION TYPES WERE IDENTIFIED. “HUNDREDS OF MILLIONS OF TONNES OF RESOURCES” ARE PRESENT IN THE UPPER PARTS OF THE PORPHYRIES AND SKARNS. HE CITED THAT THIS IS WITHOUT A DOUBT A “WORLD CLASS” DEPOSIT.” PEREZ DESCRIBES A “7 KM LONG SW TO NE ORIENTED SWATH OF ALTERATION CAUSED BY ‘ABOUT A DOZEN’ UNDERLYING INTRUSIVES ALONG THE SOUTHERN DOWNSLOPE OFF OF THE PLATEAU”.
Since his tonnage estimation was rendered in terms of “millions of tonnes of resources” we need to factor in estimated average/representative grades to VERY ROUGHLY convert those tonnes into “in situ” gold equivalent ounces in this current time period before the deposit is fully drilled out or fully mined. WARNING: Do not try to extrapolate the “bonanza” grades witnessed in the Merlin 1 Vein to an “average/representative” grade for the entire deposit. The epithermal veins are narrow and their collective volume is significant but de minimis in comparison to the volume of ore expected in a twin porphyry deposit especially if one is of the behemoth Cu/Mo sub-type. You need not resort to hyperbole in this analysis.
Substituting 200 million tonnes of resources present for “at least hundreds of millions of tonnes of resources”, even at a grade of only 1 gram gold equivalent per tonne average, represents 6.4 million ounces of gold equivalent present just in the “upper parts of the porphyries and skarns”.
If you closely study the GIS database accumulated to date you can get a better appreciation for “representative” grades at the 5 main subdivisions at the ADL. I think you might agree that firstly there is a lot more drilling, trenching and adit drifting needed to be completed in order make firmer MR/MR estimates but from the data received to date I feel that a 1 gpt gold equivalent average grade is EXTREMELY conservative. Note the assumptions being made in deriving that 6.4 million ounce figure. They are 200 MT of ore and a 1 gpt gold equivalent average grade. - Is substituting that 200 million tonne figure for Perez’s “hundreds of millions of tonnes” statement defensible? Let’s look at the statistical realities of these elephantine deposits referred to as “porphyries”. The worldwide average tonnage of a Cu/Mo (type 20C) porphyry (like that at the Pegaso Nero) is approximately 450 million tonnes (not 200 MT) depending on the author you read. The average tonnage of a Cu/Au porphyry (Type 21A) (like that closer to the LDM) is about 350 million tonnes.
If Perez and several other geoscientists are correct and there is indeed one porphyry of each sub-type present within the ADL Mining District then not only is the 1 gpt grade figure conservative so too might be the 200 million tonne figure. IT’S TOO EARLY TO DO SO NOW BUT IF YOU MAKE A MATRIX WITH THE ADL MINING DISTRICT ORE TONNAGE PRESENT RANGING FROM 200 MILLION TONNES TO PERHAPS 1.2 BILLION TONNES IN MULTIPLES OF 200 MILLION TONNES ON THE “X” AXIS AND THE AVERAGE/REPRESENTATIVE GRADE FROM 1 GPT GOLD EQUIVALENT TO PERHAPS 10 GPT GOLD EQUIVALENT ON THE “Y” AXIS YOU MIGHT GET A FEELING OF WHAT AMC MIGHT BE SITTING ON ADMITTEDLY AFTER MANY, MANY YEARS OF DEVELOPMENT. When dealing with deposits like porphyries, my message would be to not be afraid of using statistical probability analyses in conjunction with well accepted geomodels and the historical work done by the Singer and Bergers of the world as well as that done on the ADL.
Porphyry deposits (as well as the IOCGs) are the “elephants” of the mineral deposit types but they are usually of only moderate grade. It’s usually the size, extended mine lives and amenability to bulk mining methodologies that make an ECONOMIC porphyry deposit “ECONOMIC”. If you factor in a VERY FAVORABLE INFRASTRUCTURE then the average grade needing to be realized in order for a large porphyry deposit to be ECONOMIC isn’t very high. If you add in the presence of accessory skarns, stratabound deposits, high grade epithermals, breccias, etc. then the average grade needing to be realized in order for such a deposit to be ECONOMIC gets even lower. The importance of the favorable infrastructure at the ADL Mining District cannot be overstated because of its effect on the COST of extracting the ore that is present.
Another COST factor that stands out at the ADL has to do with the implied “vertical depth of emplacement” of the porphyries. The top of most porphyry deposits is located approximately 3 Km below surface (Sillitoe 1974) and any moly mineralization might occur at around 4,500 meters of depth. At the Pegaso Nero, however, the relatively high grade “moly anomaly” occurs RIGHT AT SURFACE. This is reminiscent of what one might find at the two mega-moly mines in Colorado (the Henderson and the Climax).
3) Over and above the “at least hundreds of millions of tonnes are present in the upper parts of the porphyries and skarns” cited by Perez, the ADL mining district also features a very well preserved (carbonate layer intact) intermediate sulfidation epithermal system in which the trenching and sampling program revealed over 5,000 meters of admittedly narrow veins having made it to surface. Luciano Bocanegra’s estimation was the presence of about 664,000 ounces of gold equivalent contained within just 2,900 meters of these veins. This estimate is just within the top 200 meters of this system. This does not include any of the veins that did not make it to surface or any below the 200-meter depth mark. Epithermal veins often widen with depth. Again, keep in mind the 3.2 million ounce threshold metric for a “WCD”.
Perez commented that the bulk of the mineralization present in the mountain was probably associated with the Cu/Mo porphyry at what is now referred to as the Pegaso Nero. Of this “7 Km swath of ‘about a dozen’ intrusives”, AMC has surface sampled the westernmost 1.2 Km. They encountered very favorable grades of both moly and copper RIGHT AT SURFACE in areas they refer to as the “moly anomaly” and the “copper anomaly” near the “tourmaline” and “intrusive breccias”. These two breccias were previously mined probably because they were in close proximity to the “South Road” and readily accessible. The question remains will the lesser explored easternmost 5.8 Km of this “7 Km swath of about a dozen intrusives” feature similar results. If the satellite view of the entire 7 Km swath is similar and we now know what was found at surface in the westernmost 1.2 Km of that swath then is there a geoscientific reason why one would expect lesser or greater results in the rest of the currently unexplored swath?
4) ACA Howe and Gordon House’s work on just the centrally located “Gordon” breccia pipe outlined an estimated 1.5 million ounces of gold equivalent consisting of 722,000 ounces of gold, 6.5 million ounces of silver and 180 million pounds of copper. Later AMC’s work vastly expanded this “breccia zone” to the south and west. AMC tendered a more conservative estimate of “at least 1 million ounces of gold equivalent present” in this entire new “breccia zone”.
5) I don’t feel comfortable offering any estimates for the in situ ounces that might be present at the LDM stratabound deposit or in the high grade gold areas near the historical Las Dos Marias Mine. The two nearest “stratabound deposits” to the ADL are the Lo Aguirre and El Soldado. Since El Soldado is ten times larger than Lo Aguirre it might be wise to wait for more information before throwing any numbers around.
The question remains to be asked, based on the work finished to date is there a very high STATISTICAL PROBABILITY that at the end of the day the ADL Mining District’s number of contained ounces of gold equivalent will exceed the 3.2 million ounce threshold? You make the call.
Until the deposit is fully drilled out, however, we need to deal with STATISTICAL PROBABILITIES after carefully studying the layers and layers of information garnered over the last 50 or so years. With the ADL Mining District forming the southern terminus of the Chilean Coastal Range’s “Early Cretaceous Porphyry Belt” we gain the ability to carefully scrutinize the nearby deposits within this belt which are made up of the same granodiorite/quartz monzodiorite rock types that intruded this area approximately 93 million years ago. The best fit to date is probably the “hybrid deposit” at the Andacollo Mine to the north with its copper/gold porphyry surrounded by a full 5 Km of relatively high grade gold deposits (stratabound mantos and epithermals just like the ADL) believed to have been derived from the same porphyritic source (Araya, Maldonado and Astudillo).
All of that being said, my message is to not even worry about whether or not the ADL Mining District will likely qualify as a WCD. The tried and true adage within the mining industry is that ALL OUNCES ARE NOT CREATED EQUAL. As investors we actually want not only a WCD but a very large mining district with WORLD CLASS ECONOMICS. Since gold topped out in 2011 at near the $1,900 per ounce level, mining firms are no longer buying in ground reserves and resources just for the sake of accumulating reserves and resources whether ECONOMIC or not.
Recently, the majors have been busy writing down previously acquired MR/MR. The new paradigm is for the majors to seek out “district scale” mineral assets that make ECONOMNIC sense NOW. To me, the ADL Mining District screams more about the potential for WORLD CLASS ECONOMICS than anything else. I FIRMLY BELIEVE THAT OUR FOCUS NOW SHOULD BE ON THE ECONOMICS OF THE EARLY PRODUCTION OPPORTUNITIES AT THE CAREN MINE. Why? Please read on.
THE SIGNIFICANCE OF AMC’S GOING INTO PROFITABLE PRODUCTION AT THE CAREN MINE
There is no arguing the critical importance of high grade, near surface, early production opportunities associated with “district scale” deposits like that at the ADL Mining District. Large deposits like these either have these opportunities or more likely they don’t. The infrastructure present, especially that in regards to preexisting access to WATER and POWER (a rarity in Chile), should be conducive to relatively low cost production. The preliminary view we have of the grades present in the overall Caren/Fortuna epithermal system look very encouraging from AMC’s somewhat exhaustive trenching and sampling program, the Larissa adit findings especially in those 28- and 42-meter wide “lenses” and the historical production results from the Fortuna Mine.
Although these are relatively narrow veins perhaps averaging somewhere around three-fourths of a meter or so, the 5,000 meters of veins detected as having made it to surface in the Caren/Fortuna area suggest decent tonnage nonetheless and possibly even open pitability near the confluence of the Merlin 3, Fortuna Oeste and Fortuna Centro veins. Other important factors related to early production opportunities include:
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Medinah’s $51 million Net Operating Loss (NOL) carryforward in combination with profitable Caren production and (hopefully) AMC’s willingness to at least temporarily dividend out profits to its Medinah and Cerro shareholders represents somewhere around a $15 million asset based on a 30% Medinah tax rate. The keys here would be PROFITABLE production (high grades and good infrastructure) and AMC’s willingness to temporarily forego rolling any Caren Mine profits into further development efforts at least until Medinah could take advantage of the NOL carryforward. AMC has previously stated that they would consider dividending out profits after their first quarter of full production had been achieved.
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These tax sheltered profits might then be deployed to buy back and cancel perhaps ridiculously cheap Medinah shares vis-a-vis the true value of Medinah’s assets IF THE MARKET FAILS TO ACCURATELY VALUE MEDINAH SHARES. The market cap of Medinah is currently less than that $15 million figure which discounts any value whatsoever being accorded to their 27% stake in the ADL mining district. Repurchasing and canceling shares mispriced by the market would help reverse prior dilution and if the mine life might be measured in terms of decades then future cash dividends would be that much higher on a “per share owned” basis. If the projected mine life might be extremely long then the benefits of an early buyback/cancellation program would match the mine life.
With nearly 3 billion shares outstanding one might anticipate Medinah share sellers seeking liquidity at levels below fair market value. It might as well be the company buying back and cancelling these shares if management is convinced that production and profits will ramp up with time. I THINK THE KEY HERE IS FOR MANAGEMENT TO KEEP AN OPEN MIND AND PERHAPS LET THE APPROPRIATENESS OF THE FUTURE MEDINAH MARKET CAP RENDERED BY “THE MARKET” DETERMINE CORPORATE STRATEGIES.
A corporation typically only has one shot at reversing prior dilution and this occurs when the cash is flowing and there exists a “disconnect” between the market cap and the value of the corporate assets. I believe that management needs to be prepared just in case the “stench factor” from past corporate governance miscues lingers despite the fact that Medinah now is merely a semi-robotic holding company with no operations. In essence, today’s Medinah is basically a safe deposit with a couple of share certificates in it as well as a big fat NOL carryforward. I don’t sense that the market has a clue as to the value of a $51 million NOL carryforward for a junior explorer about to go into production but of course AMC has to follow through with successful early production efforts.
If the cash is flowing and the “stench factor” lingers then that’s wonderful. It will provide an opportunity for some much needed share structure repair efforts. If the “stench factor” disappears and the market correctly values Medinah’s corporate assets then that’s just fine too. The issue is that we don’t currently know how “the market” is going to treat Medinah after AMC does their IPO and rolls out their battle plans. After factoring in the value of the NOL, I would assume that Medinah’s market cap would be approximately 30 to 31% of AMC’s.
3) Since the “Net Present Value” (NPV) of a mineral asset is measured using “Discounted Cash Flow” (DCF) analyses, a deposit featuring early cash flow opportunities PLUS a very long projected mine life can be assigned a significant NPV because of the projected length of that cash flow. Recall that the Caren/Fortuna epithermal system is still “open in all directions” and no trenching was done on the steep hillsides coming off of the plateau.
4) Early cash flow can also bolster the negotiating strength for AMC in regards to any strategic alliances entered into for developing massive assets like the Pegaso Nero Cu/Mo porphyry system and the LDM. AMC’s going public also sends a message to any future strategic alliance partners that other funding mechanisms are now available and low ball offers for alliances like a joint venture farm-in need not be entertained.
5) The recent positive “production decision” on the Caren/Fortuna epithermals as well as the 5,000 meters of epithermals having made it all of the way to surface suggest a well-developed “plumbing system” within the mountain. This system of dikes, porphyry stocks, and permeable rock formations may currently be containing ore at least somewhat similar to that already deemed to be ECONOMIC at surface within the overlying intermediate sulfidation epithermal system. High grade gold ore accumulations tend to exist in historical “boiling zones” wherein the “boiling” process provided the energy needed to separate the gold from the thiosulphate (sulphur containing) complexes it typically is transported with. The epithermal system at the ADL has been very well preserved with even the “carbonate” layer remaining intact.
6) AMC’s being in production at the Caren Mine at the time of going public should benefit their reception by the market and allow investors a much better view of Medinah’s value.
7) The early cash flow from the Caren/Fortuna epithermal system might attract the attention of “royalty streamers” that operate by forwarding cash in exchange for “streams” of income from production.
8) We might tend to forget that a private mining company developing an epithermal system like this often does NOT need to spend the time and money to fully drill it out and publish an NI 43-101 compliant “F-1 technical report” outlining Mineral Reserves/Mineral Resources or “MR/MR”. This is true especially if the project is not for sale and the junior explorer/developer/producer (AMC) has the financial and technical abilities to self-develop the project. However, a lot of the same information that is incorporated into a “bankable feasibility study” done by a publicly traded company does get reviewed by a private miner before rendering a positive “production decision”.
9) Three statistical realities indicate the importance and rarity of putting a deposit into production in today’s mining world. The first is the often-quoted statistic that 1-in-1,000 junior explorers will ever make a mineral discovery and accomplish what is needed to get it permitted and into production. The second is that for the explorers fortunate enough to put a deposit into production the average amount of time spent from the commencement of exploration efforts to the commencement of production (as per the World Gold Council) averages over 25 years. The third statistical reality is that the mining industry is currently in the midst of a 25 year low in new discoveries. If you factor in these realities with the fact that major miners must constantly replace the ore they mine, the CURRENT imbalance between the “supply of” and “demand for” new district scale deposits of this description is at historically unseen levels.
10) Until a junior explorer becomes cash flow positive the only mechanism available for management to reward shareholders is through share price appreciation in markets that can be very unforgiving especially if there were previous management miscues. With positive cash flow, all of a sudden management of corporations like Medinah with previous management miscues has the option to provide SHAREHOLDER REWARDS via share buybacks and cash dividends. In my opinion, the fact that AHC and associates as well as “Masglas” collectively have a position somewhere around 600 million shares (about 20%) is key in that the financial incentives of the average Medinah shareholder and the new management team are closely aligned.
11) The NPV of junior explorer/developers is notoriously difficult to estimate. Production numbers aid greatly in valuation efforts as “Discounted Cash Flow” analyses permit more accurate NPV calculations. A litany of hurdles (especially related to permitting) needs to be cleared before the first trucks are allowed to ship ore. Once gold production has commenced there is usually a ramp up phase and relatively low cost gravimetric concentration efforts can be deployed in order to concentrate the gold ore and thereby reduce transportation charges on a per ounce shipped basis. At the Las Vegas “informational meeting”, Maurizio noted that our ore was amenable to a gravimetric concentrator (Sepro/Falcon) that was able to increase the ore headgrade by a factor of 100-to-1.
The prospectus presented by AMC during their IPO should provide an in depth look at previously protected information. In a secrecy obsessed industry like mining, private mining firms have a distinct advantage over publicly traded firms during the exploration and development phases. Going public in the U.S. permits access to the U.S. markets and financing opportunities. For a “foreign private issuer” like AMC, the F-1 IPO process provides a myriad of advantages over similar U.S. corporations.
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Wish I’d said all that! 
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