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mdmn is a scam, the inner family (decosta LP,and the shills)
all profit from keeping everything under covers. They will never open their books, no need to wonder why. Traders will profit, hence the need to act like medinah is not a scam.
"I was told today the North road is being worked on. Repairs will be completed in a manner of days.
From Les:
All the blasting and heavy equipment working on it and being completed as quickly as possible"
Get ready for another price drop. If the old pattern is followed we should hear shortly that they found more gold, copper etc while doing the work."
reminds me of Baldy's lemonade stand analogy. Hang in there Baldy, you can;t go up against that shill decotsa and his endless stream of excuses for MDMN. Glad you figured out he is the biggest shill of them all. After all, shareholders have bought 10's of millions of shares on his recommendation, and most likely told them to hold for the big one ROFLMAO
GUYS never been more comfortable with this play then today!!
WE are on the path that many said we will never reach!!
WE will hear about partners and other great things in the pipeline as they come up.
LES told all of us there are more then one partner but the head partner signs with MDMN
LDM NEWS will be out shortly
JJ found the best partner possible for the deal
LP said NDA would be lifted when amarant defaulted
more proof that LP is a compulsive liar.
you missed the rest of his forward thinking post
"
Medinah still owns a World Class Copper/Gold/Silver/Moly Deposit. Medinah will be signing a JV with a publically traded mining company to further develop it in the near future.
Medinah owns a large percentage of what is likely the best gold/copper skarn deposit owned by a Junior in S. America. Copper and Gold ore are ready to ship. A bonanza grade gold vein is close to being intercepted by the miners.
Medinah has money in transit from a new JV at the Circlon. A JV at the Jota is in the cards as well.
Medinah will benefit greatly from the Bogdan court verdict/settlement.
As always, some investors can't help themselves..always sell at the bottom and buy at the top..very sad especially considering the very obvious positive developments going on with Medinah currently."
last I heard you don't call a deposit world class until it is proven, but for the sake of a penny stock mining scam promoted by a a dentist, I guess we have a world class mining penny stock scam.
your losses were their gains
don't think for a moment these scammers like LP, JJ, decosta and the pose have not been raking it in all these years. Why do you think they are all retired? Why do you think they lie through their teeth about everything IE " shipping to enami is starting next week: ROFLMAO
And that scum bag decosta had the nerve to offer that the shipping to enami was delayed due to chilean red tape. I'm glad baldy is catching on that decosta is a shill disguised as an apologist.
"Not a lot to post right now. LDM news coming out soon, JJ and Les should be traveling to Europe sometime this month to meet with the BOD of the lead groups. Kirk"
that's great news! Last time LP and the BOD went to europe they met with the their criminal partner and a consortium of losers. I hope they team up with more ex cons, LP and them can share war stories over hard drinks and sausages.
great post!
let's see if decotsa can brainwash new blood into the stock
because amarant fit the scam bill
and if you know medinah, even supposed deals like polo evaporate in the wind. The funny part is the supposed DD masters are never willing to admit how the company lies through it's teeth about everything.
massimo
keep in mind that Rick H has always kept his position that it was a when not an if the adl got funded, and I always insisted it was a when not an if the adl deal went south. Guess who was always correct? When you do in depth DD on this company it is easy to see the outcome of every deal. When you have a couple of sociopaths like decotsa and LP running the show, the outcome is always predictable. They like to play good cop bad cop, kind of like their minions. What I really love is how decosta is trying to convince shareholders that the partner A and B deals having gone south is actually a blessing. ROFLMAO. It certainly was a blessing for him, lp and the crew, as they dumped much higher up knowing the deal would go south, and now they can start all over again. The latest ploy is the poly ore carrot. Lots of folks are noting decosta pulling excuses out of thin air as to why the company still doesn't deliver, while decotsa tries to brainwash the masses into thinking we are on the verge of being cash flow positive, which will lead to mythical cash dividend. Will never happen, mark it!
we have no cash to sue partner A
at least that's one explanation I got from Rick H. But soon we will be cash flow positive, so we will sue them and find out who they were.
It's a poly carrot scam!
game on! I think doctor slime was right, the partner A and B scams were a blessing. Partner C is the place to be!
doctor slime ball decosta has this to say about delays
From reading the last few updates and doing some mining biz in Chile I would think the "Spanish tunnels" played a role in the delays. In order to ship you need to get that compliance certificate. It sounds like the inspectors demanded 2 new chimneys in the Spanish tunnels and other safety measures before we could ship this ore. These are now completed. If we were just shipping from the new adit then I think we could have been easily going by now as the chimneys and safe rooms and the expanded explosive storage facilities were all done. After the 33 miners got trapped the regulations got tightened up big time. They hired more inspectors but I think they're stretched pretty thin. Before the 33 trapped miner debacle the ratio of inspectors to mines was pathetic, about 1 to a gazillion. It also sounds like there was a bit of a bidding process in place before we chose San Pedro for the copper and the other guys for the gold. Say a prayer for the poor guy that had to negotiate with JJ!
With the complexity of our ore i.e. hi and lo grade copper, copper oxides and sulfides, hi and lo grade gold some with arsenopyrite, etc. I could see where the metallurgy and design of the flow sheet took a bit of time for the 2 labs involved. I'm not sure if the mill will even look at your ore until you get your compliance certification. I would think the last factor would be the roads especially if they're going to be using big rigs. I think Les made the comment that the Cat D-9 they're using for the roads gets a lot of work done very rapidly.
All of these "start up" tasks are slow when you're right at the edge of being cash flow positive for the first time ever but if you're going to be living with these guys for 20 to 30 years you might as well get it done correctly right from the get go. I agree that more communication could have been used to explain delays even if they were pretty mundane reasons. I don't know if there might be some strategic reason to play "secret squirrel" with explaining delays or not. Our view probably only represents about 5% of what's really going on behind the scenes with negotiating strategies and such.
bald eagle
don't bother pointing out the truth, it doesn't help them to distribute shares. Decosta is a shill, as you have noticed by his endless string of excuses for the company. Gotta love how they are back to "fixing roads" excuses, even after they blatantly lied about shipping ore weeks ago. Even better is decosta fake q and a with LP. I guess selling shares is a lot easier than dentistry, unless you can imagine decosta holed up in his office typing away while his clients wait in the waiting room. I feel sorry for the marks that bought millions of shares on decosta's promotion
RD's critique of brecciaboy's response to Kirk with brecciaboy's reply in brackets and capitals: "As a geological critique of the deposit that doesn't hold water on a number of counts (nor are allusions to baking very scientific). [THE LOAF OF BREAD ANALOGY WAS MEANT AS AN EDUCATIONAL TOOL TO DIFFERENTIATE BETWEEN A LEACHED OXIDE CAP FROM WHICH METALS PERCOLATED DOWNWARDS (THE BORING CRUST OF THE LOAF) THROUGH THE VARIOUS STRATA TO THE UNDERLYING PORPHYRY STRUCTURE i.e. THE MORE CENTRAL PORTIONS OF THE LOAF OF BREAD.]
There is no direct evidence that the shear-hosted gold mineralisation at LDM is genetically related to the breccia pipe event at this stage. [I RESPECTFULLY DISAGREE, AS BOTH GORDON HOUSE AND ACA HOWE, AFTER AN INCLUSION BODY ANALYSIS, CAME TO THE CONCLUSION (through the comparison of salinity levels of trapped fluids)THAT THE MANTOS AND THE GORDON PIPE DO INDEED APPEAR TO SHARE A COMMON PROGENITOR INTRUSIVE. THEY HAD ARGUED ABOUT THIS POINT FOR MANY MONTHS AND I BELIEVE IT WAS ROB FROM ACA HOWE THAT FINALLY CONCEDED AND CAME INTO AGREEMENT. THE ISSUE WAS THE 3.2 KM IN BETWEEN THE TWO WHICH SEEMED A LITTLE LARGE WHEN THE ZONES OF MINERALIZATION CENTERED ON A PORPHYRY STOCK TYPICALLY ONLY REACH 1.5 KM OR SO] In many parts of Chile Cu-Au-Ag-(Mo) porphyry style mineralisation and vein/shear hosted gold are separate events and therefore cannot cannot be used to forecast the grades of each other. [AGREED , BUT A "FINE-GRAINED GRANODIORITE INTRUSIVE" (ACA Howe's phraseology) IDENTIFIED BY THE IP/IR STUDY AND LOCATED NEAR HORIZONTAL LINES 6,7 AND 8 BETWEEN STATIONS 300 AND 500 DONE AT THE LDM WAS DEEMED BY BOTH HOUSE AND HOWE (after months of disagreeing) TO BE THE CAUSATIVE LINK]
LDM is a shear-hosted body that will carry fragmented material from the wallrocks through which it passes; some of these may be brought up from depth depending on local movements in a vertical or oblique plane, but that alone cannot be used to constrain a genetic link to the Gordon Pipe as their mode of origin is completely different. [AGREED-IN FACT IN REGARDS TO THE FIRST PART OF YOUR STATEMENT ACA HOWE THEORIZED THAT "THE SHEAR HAS BEEN INTRUDED BY A GRANODIORITE DIKE AT THE SOUTHERN END OF THE PROPERTY WHICH MAY HAVE INTRODUCED OR REMOBILIZED AND ENRICHED SOME OF THE GOLD MINERALIZATION". THE SHEAR ZONE AT THE LDM DIPS TO THE WEST AT MINUS 70-DEGREES. THE MANTOS AT THE LDM DIP TO THE EAST AT MINUS 30-DEGREES. IT'S NICE HAVING A SHEAR ZONE THERE ESPECIALLY WITH SIGNIFICANT DIMENSIONS. THIS CREATES THAT MANY MORE AREAS TO SERVE AS REPOSITORIES FOR THE HYDROTHERMAL FLUIDS TO COOL AND PRECIPITATE OUT ITS CONTAINED METALS. AFTER HOLES 3,4 AND 5 AT THE SHEAR ZONE HAD MIXED RESULTS, HOWEVER, THE EMPHASIS SHIFTED TO THE MANTOS AND THE SKARN. THE DEPOSIT IS OF A CRETACEOUS AGE SO THERE IS A LOT OF LIMESTONE, DOLOSTONE AND QUARTZ-EPIDOTE VEINLETS PRESENT. THE HYDROTHERMAL FLUIDS AND ITS CONTAINED METALS "REPLACED" THESE ROCKS WITH CALC-SILICATE TYPE SKARNIFIED ROCKS.]
Gold grades in the leached oxide cap are likely to be higher in some instances than the underlying primary ore as gossan formation effectively concentrates gold in-situ by volume loss as the original host sulphides are broken down to iron hydroxides and acid-soluble components are removed, but it should be borne in mind that grade variability is so high that it is impossible to make blanket predictions of any kind, which is why thorough sampling is so important. [AGREED, CONVECTIVE CURRENTS INVOLVING METEORIC WATER DESCENDING, BEING HEATED AND REMOBILIZING PREVIOUSLY LEACHED METALS BACK UPWARDS CAN OCCUR. A "THOROUGH SAMPLING" HAS BEEN DONE TO SOME EXTENT THROUGH THE YEARS IN A VARIETY OF VEINS, STOCKWORKS, MANTOS, SKARNS, PIPES, ETC. THE TIGHT SPACING OF WELL MINERALIZED SURFACE ANOMALIES, ADIT WALLS, OLD TAILINGS PILES, MANY, MANY KMS OF TUNNELS, ETC. PRESENTS A COMPELLING CASE OF THE HYDROTHERMAL FLUIDS CARRYING SIGNIFICANT METAL QUANTITIES.]
The Gordon Pipe has been variously described on this site as both rich and poor. [IT'S TYPICAL NONSPECTACULAR PORPHYRY TYPE GRADES] I would go with the latter based on the grade distribution. The figure of 1.5m oz gold equivalent (not sure how that was arrived at, based on the drill intercepts) [I DO NOT HAVE THE NAME OF THE SPECIFIC SOFTWARE EMPLOYED BY HOWE, HOUSE AND AT LEAST ONE OTHER GEOSCIENTIST WITH SPECIAL TRAINING BUT THE NUMBERS REVEALED 180 MILLION TONNES OF COPPER, 6.5 MILLION OUNCES OF SILVER AND 722,000 OUNCES OF GOLD.] is a geological resource [AGREED AS NO PFS WAS DONE IN CONJUNCTION WITH IT] which has no economic or extractive parameters applied to it. A mining resource would only consider those parts of the body which could be mined at a profit, and judging by the dispostion of the higher grade segments close to the pipe margins, that would be a much lower figure. [CORRECT, THERE IS INDEED A 10 TO 20 METER THICK, HIGHER GRADE ZONE OF MINERALIZATION OUTLINED NEAR THE UPPER CONTACT OF THE BRECCIA WITH THE HOST GRANODIORITE. I'VE HEARD BOTH WAYS FROM A VARIETY OF GEOSCIENTISTS FAMILIAR WITH THE PROPERTY AS TO THE GORDON PIPE BEING A "STAND ALONE" ASSET. IT IS THE DATA IN ITS TOTALITY THAT HAS BEEN ACCUMULATED SINCE 1974 ALL THE WAY BACK TO THE WORK OF FAUNES AND FINCH THAT PROVIDES A VERY COMPELLING CASE AS TO THE MERITS OF THIS ASSET AND ITS OPEN PITABILITY. ALL OF THESE LAYERS THAT COMPOSE THE GIS DATABASE ACQUIRED TO DATE NEED TO BE STUDIED IN CONTEXT. CS PEREZ WAS RETAINED TO CREATE A "SUMMARY REPORT" ENCAPSULATING THE RESULTS OF HIS OWN HYPERSPECTRAL IMAGING STUDY WITH ALL OF THE PREVIOUS LAYERS OF DATA. AFTER COMPLETING THIS TASK HIS SUMMARY REPORT CITED WHAT CLEARLY IS A "WORLD CLASS" DEPOSIT.]
My experience, in actually working with porphyry systems, is that they are anything but homogeneous [ALTHOUGH I DO NOT HAVE A FORMAL DEGREE IN ANY GEOSCIENTIFIC DISCIPLINE I STILL FEEL THAT THE OVERWHELMING MAJORITY OF GEOSCIENTISTS HOLD THAT PORPHYRIES ARE ONE OF THE MOST HOMOGENOUS TYPES OF DEPOSITS IN EXISTENCE. THIS DOES NOT PRECLUDE YOUR PERSONAL EXPERIENCE BEING DIFFERENT. A GROUP OF MEDINAH SHAREHOLDERS COMPLETED A SERIES OF VIDEO PRESENTATIUONS DONE BY SPROTT ASSETS' ANDREW JACKSON WHO DOES RICK RULE'S WORK. IN HIS TREATISE ON "SKARNS, PORPHYRIES AND IOCG DEPOSITS HIS COMMENT WAS "A PORPHYRY, IS A PORPHYRY IS A PORPHYRY" FROM A HOMOGENEITY POINT OF VIEW BUT HE SAID DO NOT PUT EITHER A SKARN OF IOCG DEPOSIT INTO THAT CATEGORY.] (check out the latest edition of 'Economic Geology' for a paper on the Caspiche deposit in Chile), [I'VE READ THE ABSTRACT, IN FACT DICK SILLITOE'S (one of the authors) WORK MAY HAVE BEEN INSTRUMENTAL IN THIS DISCOVERY IN A VERY, VERY INDIRECT FASHION. I MENTIONED TO GORDON HOUSE (now deceased but who was a very fiesty Irishman ) MANY YEARS AGO WHAT A FAN I HAD BECOME OF DICK'S WORK ON PORPHYRIES AS WELL AS SINGER'S EXHAUSTIVE REPORTING ON HUNDREDS OF PORPHYRIES. GORDON'S REPLY WAS THAT DICK SILLITOE KNOWS NO MORE AND NO LESS THAN WHAT I TAUGHT HIM OVER THE YEARS]
rather they are polyphase and variably mineralised, often with barren and/or subeconomic intrusions within the same system. [AGREED, THE CANADIAN PETROGRAPHICS ANALYST CITED MANY OVERLAPPING PULSES OF HYDROTHERMAL ACTIVITY BEING INVOLVED AND THE CENTRALIZED CORE WITHIN "PORPHYRY STOCKS" CAN BE BARREN.] I've said before, satellite imagery utilises spectral wavelengths to highlight colour variations in rock outcrops, often related to alteration haloes, but alteration is an indicator of fluid/vapour movement, not an indicator that any subsequent mineralisation is economic - nor can it define ore tenor. [AGREED BUT THE ALTERATION HALOES IN THE HYPERSPECTRAL STUDY DO SUGGEST A VERY LARGE AMOUNT OF HYDROTHERMAL ACTIVITY AS CONFIRMED BY THE PETROGRAPHICS ANALYST'S WORK. THE FORTUNA MINE AVERAGED 64 GRAMS OF GOLD PER TONNE FROM 1940 TO 1970. ACA HOWE COMMENTS THAT THE SURFACE OF THIS EPITHERMAL SYSTEM HASN'T EVEN BEEN TOUCHED. AGAIN THE TIGHT SPACING OF WELL MINERALIZED STRUCTURES FROM THE NORTHEAST TIP OF THE PROPERTY AS REVEALED IN THE ROAD CUTS THERE IN THE "NORTH ROAD" TO THE VERY SOUTHEAST TIP NEAR THE CURRENT LA #1 ADIT WORK]
However much you infer and extrapolate (none of which has any basis in fact and will be immediately obvious to any mining company considering a bona fide investment or JV) [100% AGREED IF MEDINAH CAN FINALLY LAND A PARTNER THAT ISN'T ALL HAT AND NO CATTLE] the last real work on ADL was done by ACA Howe over a decade ago, on a tiny part of the whole claim. [TRUE] What is needed now is a good mapping program to fully map the plateau, followed by a geochemical sampling program (a relatively cheap and quick exercise) and geophysical coverage to identify surface/subsurface anomalies and rate potential drill targets. Go to a potential partner with this data and you're ahead of the game and not relying on bad science and conjecture as you are now." [AGREED]
SUMMARY COMMENTS BY BRECCIABOY (Dr. DeCosta)
The story of the ADL/LDM property complex is a very complex story. The initial concessions only amounted to a couple of thousand hectares for which Sr. Quijano was paid $10 million in restricted shares at the then price of $1 per share. It has almost silently (for a reason) grown to over 15,000 hectares and is still growing. My group's early due diligence efforts centered around sending down 2 different groups of geos spaced about 6 months apart. Their reports came back 2 thumbs up.
The one phrase that might best characterize prior development efforts of the deposit is "undereveloped due to financial constraints yet promising on all fronts". Only about $15 million has been spent to date. In my humble opinion the IP/IR studies, although very diagnostic, were grossly inadequate. I doubt 5% of the current 15,000 hectares was involved. Everything was done on a shoestring budget. But what's interesting is that every aspect that was even partially developed came up with impressive results. Every time the IP/IR data suggested an anomaly it always seemed to be there. Even the tailings piles from the artisanal work of the Incas and Spanish Conquistadores are running about 5.3 grams of gold per tonne. Thankfully the artisanal "perqueneros" didn't have the technology to process the gold associated with arsenopyrite.
The scale of the project has grown enormously. One cannot overemphasize the role of the LDM developments not only in terms of grade and tonnage but geological information acquired for modeling purposes. In the short term, as ADL negotiations occur I would think the attention should be on the LDM as favorable results could provide significant leverage in the ADL negotiations. Management will be the first people to admit that they are way over their head at this point and that it's time to turn the keys to at least the open pit aspects to the big boys as hinted at in a recent update.
There are plenty of drill targets already identified but any party that ends up developing the entire property will want to do it their way. When the big bucks show up, I would think the approach would be fairly straight forward. Early production opportunities will probably be taken advantage of subject to permitting. I would think that the developers would treat the 15,000 hectares as one unit. They'll probably do the gridding, topography, geochem work, airphoto, Landsat, maybe some trenching, etc. Geophysics work is needed. They still haven't even done an aeromag study yet. Lots of IP/IR will be needed. Geo-mapping and further drill target delineation needs to be done. I would think that the CAPEX here is going to be near the $1 billion mark but the mine life could approach 30 years.
The one item to focus on is CREDIBILITY and any developments whatsoever that might enhance it. With Medinah's complex history, they could be sitting on a Fruta Del Norte scale deposit and nobody would believe it. I bear no malice against the geologist/critic from the other blog site. If I were in his shoes I'd probably be leaning towards a differential diagnosis of this company as "probably started as a scam but maybe they just got lucky". I would heartily disagree with this diagnosis, however. I would think that management has done a pretty good job to date considering JJ and Chapin are both "one man bands" with zero support staff.
Thanks RD759. What do you think decosta's agenda would be in writing such a post? I have my own opinion, but I am curious to hear yours.
you are cramping decosta the shill's style
MEDINAH MINERALS POTENTIAL VALUATION METHODOLOGIES
(Disclaimer: Do not treat this as a solicitation to buy or sell any of the securities of any issuer cited. This is an attempt to help nonmining professionals learn how the industry values mining deposits. These efforts are predicated on the stance that although entertaining reading Internet blogs often does NOT constitute meaningful due diligence and that sincere due diligence efforts can actually be undermined by those with either various agendas or those that simply need to vent their frustrations. The problem is that the human brain can often have a tough time in discriminating between science, industry norms and "noise" especially when frustration is present. The underlying presumption of this paper is that the data gathered to date at the ADL/LDM property complex presents a very compelling case that this deposit will easily be economic at today's metals prices.)
With cash flow hopefully imminent at Medinah's Los Amigos #1 concession at the LDM I think we've finally reached a critical point in the Medinah Minerals due diligence process at which it's time to at least design a format to preliminarily estimate their individual property's valuations and determine which universally accepted valuation methods might be appropriate for the deposits comprising the ADL/LDM property complex. The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") has a mining deposit valuation committee ("CIMVal") which published some standards and guidelines several years ago that have become very well accepted in the industry. These standards were incorporated into a paper that was written by the committee's co-chair Keith Spence (CEO of Global Mining Capital) and is available at:
http://web.cim.org/mes/pdf/VALDAYKeithSpence.pdf
Table 1 in this document lists out 14 accepted "methods" (middle column) for mineral property valuation. The MiningPlay's (a blog) "Cornhuskergold" made an excellent educational post on May 16, 2013 reviewing recent purchases and buy outs of mining deposits and mining corporations. Studying and comparing these transactions and the amount paid per ounce of reserves in the ground would correspond to the 4th method listed in the treatise which is labeled "comparable transactions".
From CHG's post on 3/16:
"Purchases / Buyouts
Sept 2010 - Kinross buys Red Back - 2Moz Au - in production - $7.1B purchase price = $340 / oz - No cash / all share exchange purchase - http://www.bloomberg.com/news/2010-08-0 ... mines.html
Oct 2011 - New Gold buys Grayd - 1.4Moz Au - not in production - $255M purchase price with $92M max in cash. This was increased to $192M max cash plus stock. - $200 / oz Au - http://www.bloomberg.com/news/2011-09-1 ... it-1-.html
Jan 2012 - Pan American buys MineFinders - 4Moz AuE - in production - $1.5B purchase with no cash limit , shareholders could select PAAS shares or cash - $375 / oz - http://www.reuters.com/article/2012/01/ ... 0020120123
Apr 2012 - Iamgold buys Trelawney - 6Moz AuE - purchase price $600M in cash - not in production - $165 / oz AuE - http://www.reuters.com/article/2012/04/ ... JO20120427
Jun 2012 - Yamana buys Estorre - 1.4Moz AuE - purchase price $400M being $300M in cash the rest in stock - $300 / oz AuE - http://www.bloomberg.com/news/2012-06-1 ... ne-1-.html"
The countries hosting the deposits acquired include Mauritania, Ghana, Mexico, Canada and Argentina. The average amount paid in these 5 transactions was $276 per ounce of reserves in the ground. Keep in mind that until further drilling is done at Medinah's Gordon Pipe the 1.5 million ounces of gold equivalent previously blocked out there are not in the "proven reserve" or "probable reserve" categories yet. With the 25 and 50 meter spacing used in the Gordon Pipe drill programs they would more appropriately be placed perhaps in the "measured resource" category which is one notch below the "probable reserves" category in statistical certainty.
Ounces in this category might be valued at perhaps half of that $276 per ounce figure until the relatively low risk "infill" drilling in between these semi-tightly spaced existing holes is completed. A second way to estimate the value of those 1.5 million ounces of gold equivalent would be to use the full $276 per ounce figure but then subtract the cost of moving those ounces into the "reserve" category i.e. drilling and a pre-feasibility study (PFS). Here the premise is that the Gordon Pipe is indeed but one "of about a dozen intrusives forming a 7 Km by 800 meter swath running from NE to SW at the Lipangue plateau" as related in CS Perez's (remote sensor analyst) summary piece reviewing all findings to date as well as the results of his own hyperspectral satellite survey. It is not clear yet if the Gordon Pipe, all by itself and not a part of a twin porphyry deposit, would represent a stand alone economic project due to overburden issues. There are those that might argue that it is too early in the development process to be throwing numbers around. The purpose here is to design a format to use once the timing is appropriate.
In regards to how many ounces of gold equivalent might be at the entire 58 square mile ADL/LDM property complex, at this stage of development perhaps the best way to (extremely) roughly estimate the number of ounces present is to look at the hypothecated geo-modeling (version 38) figure below. Note that this is hypothecated and is based on results received to date as well as the incorporation of the "Sillitoe classic copper porphyry model" and the Lowell-Guilbert model for the alteration haloes and mineralization assemblages surrounding centralized porphyry stocks. The task would be to very roughly estimate the number of 1.5 million ounce "top of the Gordon Pipe" equivalents likely to be present at the property complex. Again this is based upon the models cited above and the results attained to date One of these "units" is represented by the yellow "hockey puck" looking representation of the upper portion of the Gordon Pipe which is drawn to scale.
When combining this admittedly extremely rough estimation of ounces in situ (in the ground) and the dollars per ounce information cited above this type of very crude analysis would be an example of the 5th methodology listed in Table 1 labeled "Market cap per reserve or resource ounce". Go ahead and jot down how many of those 1.5 million ounce gold equivalent "hockey pucks" you conservatively estimate are present, multiply it by 1.5 million ounces each and then multiply that number by $138 dollars per ounce. THIS REPRESENTS AN EXTREMELY CRUDE VALUATION METHODOLOGY AT THIS STAGE OF DEVELOPMENT BUT IT'S AT LEAST A START AND NOTE THAT IT IS PREDICATED ON A TYPICALLY FAIRLY HOMOGENOUS PORPHYRY ENVIRONMENT AND A TIGHT FITTING "CLASSICAL SILLITOE TYPE" COPPER PORPHYRY MODEL. This type of crude estimation methodology cannot be used on non-homogenous types of deposits like epithermal vein deposits.
With production commencing at the Los Amigos #1 concession at the LDM, a very important methodology should soon be available and this is the method labeled "discounted cash flow" (DCF) analysis. This methodology is simply based on calculating the net present value (NPV) of a stream of future cash flows. For instance, if an asset had the ability to produce $2 in cash flow per year for one year when interest rates are about 2% then that asset would be deemed to have an NPV of about $100 today because that is the cash flow that a $100 asset might be expected to spin off in one year.
While using this methodology you need to factor in any expected ramping up of production and cash flow over time for the deposits. When a company like Medinah has a free carried interest (FCI) like they do at the Los Amigos #1 portion of the LDM cash "outflow" is negligible for that particular concession. The cash flow you measure using this methodology is the net cash flow (inflow minus outflow). If a company can successfully negotiate for a free carried interest (FCI) in a project then net cash inflow amounts can be very robust and NPV calculations can be that much more accurate because the cash outflow estimates need not be made. All mining firms will still have their S, G and A expenses, however.
For instance, at the LDM LA #1 concession (1 of the 10 Los Amigos concessions at the LDM), as the various Spanish tunnels come on line one might anticipate a ramping up of production. The anticipated mine life is critical to estimate in using this methodology because you need to estimate how long these cash flows are expected to last. The rough estimate for the LDM mine life might be somewhere around 20 years. One must also factor in the time value of money because $1 worth of positive cash flow in year #20 is not worth $1 in today's ("present") terms. Therefore you need to apply a "discount factor" which is typically based on prevailing interest rates. With the 10 year bond at about 1.9% these "discount factors" are now near historic lows.
Once we're able to calculate the NPV of the Los Amigos #1 concession then we might be able to at least attempt to extrapolate the NPV of the entire LDM's 10 Los Amigos concessions. If the entire LDM is homogenous then it would be about 10-fold the NPV of the Los Amigos #1 concession if all concessions could be simultaneously put into production perhaps in an open pit fashion. The next task would then be to estimate just how many "total LDM equivalents" the immensely larger ADL represents from an NPV point of view again assuming homogeneity. Since neither the LA 2-10 nor the ADL are currently in production and receiving cash flow one could deduct from the figure you calculate the approximate cost to put them into production.
The method listed #7 (option agreement/JV terms) might have some utility soon should an ADL deal be executed. This methodology basically assumes that a property is worth whatever a partner is willing to spend on it to get it into production. It has a lot to do with the concept of "CAPEX" (capital expenditures) once your partner has shown clear intent to go the distance. If a party is willing to put $1 billion, for example, into the property then this methodology assumes that the property has a "value" of at least $1 billion BEFORE the deal is done. Otherwise the partner would not have put in $1 billion for only a partial interest. The partner is figuring on getting back his $1 billion plus a whole lot more over the course of perhaps 30 years for the ADL deposit.
Most mining analysts put a heavier weighting on valuing deposits via calculating the net present value (NPV) of the deposit via discounted cash flow (DCF) analyses. This NPV/DCF methodology is not used very often in the junior exploration arena mainly because so few juniors ever develop cash flow. But if there is cash flow then this methodology is very important partially because many juniors are extremely fragile UNTIL cash flow materializes. Once it does, the option to reward shareholders via cash dividends or share repurchases presents itself. These modalities of rewarding shareholders have a tendency to put a floor under the junior explorer's share price which in turn lessens the risk variable for new or existing investors. The key in deposit valuations is to select and deploy several appropriate methodologies and take an average of them. Whatever valuation methodology you prefer the valuation needs to be constantly updated as the project is developed and input assumptions are put to the test.
In deals like Medinah and many other junior explorers where there is so much superfluous "noise" out there concentrating on universally accepted deposit valuation parameters is critical in order to filter out the "noise". Although actually "realizing" the proper valuation for a mining asset can be a very circuitous journey at the end of the day science and mathematics usually win out and there are parties willing to pay a "fair market" valuation especially because of the current lack of new discoveries in geopolitically safe locations.
One of the keys in exercises like this is to get management to appreciate the approximate fair market value of their deposit in order to guide their strategies in negotiations. Many juniors have "given away the farm" in years past because their management teams did not have an accurate vision of their property's worth. To circumvent this, often a "clawback" provision is included in many contracts to allow the junior explorer selling the deposit to "claw" their way back into a contract with better terms if the project's economics exceeded threshold levels.
NET PRESENT VALUE CALCULATIONS USING DISCOUNTED CASH FLOW ANALYSIS
Below is a link to the definitions of NPV and DCF:
http://en.wikipedia.org/wiki/Net_present_value
Although the formula for NPV looks a little daunting it really is very simple. The "net" in NPV refers to cash inflows minus cash outflows while the "present value" refers to the "value" of future cash flows dialed back into today's terms. For instance, if a company has $12 million per year in net cash inflow the year #2's contribution to today's NPV needs to be discounted by a factor dependent upon the proper "discount rate". If the discount rate (often the prevailing interest rate) is 10%, for example, the year #2's effective contribution to NPV needs to be reduced by a factor of 1.1 squared or about 1.21. The "present value" of year number 2's contribution would thus be $12 million divided by 1.21 (which is 1.1 squared) or about $10 million. The NPV of an asset with a 20 year lifespan would thus be the sum of each year's "present value".
At the ADL/LDM property complex the total NPV for the entire deposit might (extremely roughly) be calculated as: the sum of the NPV of Medinah, North America's portion of the Los Amigos 1 concession (30 to 37% FCI) plus the NPV of Medinah, North America's portion of the Los Amigos 2-10 (51% outright ownership) plus the NPV of Medinah, North America's ownership of the ADL in its entirety (51%). Note that there is a veritable laundry list of assumptions that are being made.
Once we can calculate the NPV of LA #1 we might conservatively substitute the NPV of LA 2-10 as perhaps 3 to 5 (let's use 4 times) times the NPV of LA#1. We might then in turn substitute the NPV of the entire ADL as perhaps 30 to 40 (let's use 35 times) times the NPV of LA #1. NOTE THAT THESE ARE VERY, VERY ROUGH ESTIMATIONS BUT PERHAPS THE BEST WE HAVE AT THIS PARTICULAR STAGE OF DEVELOPMENT.
Using this model the formula for the NPV of the entire property complex once in production might be: 40 times the NPV of LA #1 which we should shortly be able to roughly estimate. AGAIN, THIS IS VERY CRUDE. You can see why the LDM going into production is a key milestone in being able to deploy the most respected of all deposit valuation methodologies i.e. NPV calculations using DCF. There are net present value calculators all over the Internet to aid you in making these calculations. Things are much more complex in the mining business than this methodology suggests, however, and again NPV calculations need to be constantly updated as developments progress and input estimates become realities. Besides the NPV/DCF valuation methodology other valuation methodologies might be more appropriate for Medinah's various other mining deposits which we'll look at as their development progresses.
The due diligence and valuation opportunities made available by Medinah's going into production at the LA #1 concession should be taken advantage of by those with a sincere interest to filter out any "noise" that has unfortunately been generated. At the end of the day, no mining major is going to care a lot about the current management's communicative prowess or lack thereof.
that's because decosta is a scammer like LP
only a fool or anyone who bought millions of shares on his recommendation doesn't see it. The rest just like to pretend so they can sell to the fools
thanks RD759
I would love to hear a rebuttal from doctor " brain wash " decosta. Your arguments are so strong I highly doubt even rick H would argue against them. Now let's go back to pretending we have a world class property otherwise those who invested in 10 million shares on decosta's promotion may get upset.
tell doctor "slime' decosta that
"I think you're scratching at the surface of a very important point in your observation. The $64,000 question is how "representative" are the results being attained at the LDM and the cash flow it can spin off to the entire 58 square mile deposit. There are 2 areas of this property complex that we know the most about. The 18 diamond drill holes done at the Gordon Pipe blocked out about 1.5 million ounces of gold equivalent. That's all well and good, but these results were in the relatively barren leached oxide cap much of whose metal content is sitting underneath this "crust" of our loaf of bread. So we got a peek at some serious value but not a very good one as deeper drilling is needed.
The other area we know a lot about is the LDM's Los Amigos #1 concession (LA 1) where the adit was drifted. In its deeper areas we're under the leached oxide cap where the copper and gold acid leached from closer to the surface like to hang out. The LDM is 500 meters lower in elevation than the 2,000 meter surface expression of the Gordon Pipe on the plateau. The LDM is basically a trough that drains the water flow off of the plateau and higher regions down into the Caren and Puange River basins. The "crust" of the loaf of bread (the leached oxide cap) in this region is pretty much gone in this area. It's in the bottom of the river basin which is why those placer deposits are so rich. The inner aspects of this loaf of bread were found right at the surface by the track hoe.
The "inclusion body" analysis done by ACA Howe taught us that the LDM mineralization and the Gordon Pipe 3.2 Km to the east share the same parent intrusive. Porphyry systems are homogenous because everything was in a molten state at one time in a magma chamber and the contents were mixed thoroughly. Repeated bouts of explosive hydrothermal activity reliquified things to allow yet more mixing. The ore either being shipped or about to be shipped to the mill from the LDM's LA 1 is probably extremely similar to that underneath the plateau. Recall that the satellite survey of C.S. Perez revealed a vast "7 km long and 800 meter wide swath of about a dozen intrusives".
I don't know much about the Group A's and Group B's and whether or not in the long run these surrounding events will prove to be a curse or a blessing. I do appreciate the financial pain everybody is experiencing. What I do feel very comfortable about,however, is that whatever the contents and grades of the material about to be shipped turn out to be there is no doubt a very, very large amount of similar ore in the belly of the mountain. I hope management has the foresight NOT to grant exclusivity to any major, no matter how famous, until the world learns about the economics of the LDM ore.
LP is a well documented liar
and if you read the company updates, they rarely do anything they say they will do. Was it a lie when they said "shipping to enami starting next week"? That was over three weeks ago. Of course that shill doctor " slime" decosta came to the companies defence and said there was probably red tape,and now there are claiming another refinery has out bid enami. ROFLMAO In other words, they were clearly lying about shipping to enami. These guys are compulsive liars, LP decosta, the crew, everyone.
PS: to mike 364hr, I truly hope you put me on ignore as you claimed you would,as I do not wish to receive any more comments from you. Thank you
I guess you knew it was a scam
everyone that new the deal was a scam sold higher up. LP has been lying through his teeth again, and hence so have the henchmen. They tell us they won't return without an LOI ( a lie) and everyone jumped for joy. Now they say that won't happen due to added suitors (LOL) and everyone jumps for joy. It;s too easy fooling shareholders, LP and crew sure have fun with it
no proof there are any
thank god
I do hope you sold above 10 cents like I told you to. What's funny is doctor "brain wash" decosta has yet to admit his gut feeling was wrong about Ulander funding, yet he still thinks people will listen to his brain washing rhetoric. Shareholders are in for many months of pain coming up. As if they haven't suffered enough, but that's what happens when you listen to slime balls like LP and decocsta, while thinking medinah will actually deliver when they never do.
shipping to enami was a big fat lie
they told us shipping to enami was starting "next week" several weeks ago. Now decosta and lp are saying they aren't even going to use enami. Once again the carrot gets pulled away.
he obviously feels guilty for lying to shareholders that the deal would have been consummated had JJ not attended the SHM. With this statement in mind, many shareholders bought with confidence thinking the deal would be a wrap upon JJ's return to chile. Many shareholders are deep in the red due to GC's actions, so it is by no means surprising to see him returning shares.
no need to close a deal to make money on medinah
15 years have proven that.
you are catching on it's a scam
from Rick H
"Medinah needs to be compensated for 15 months of non-performance. The collateral has to represent more than a paper tiger. We don't need to hold onto all 90 million shares, but some settlement should occur so that Medinah is compensated for wasting its time and holding up its resources when they could've been much further along with a JV partner that was ready, willing and able to perform. Rolling over and playing dead just to move on will demonstrate that Medinah is a pushover to any future partners."
Good luck with that, let's not forget the million owed to us by partner A, which we have yet to receive. I think it is obvious to many that medinah chooses "partners" that will never deliver, hence why medinah continues to be labelled a scam,and rightfully so. It's a good pump and dump though, let's not forget.
from kirk "I figured out what was going on and then tried to confirm what I came up with. "
apparently kirk feels his DD is beyond reproach. Funny considering he was 100% sure uli would fund. I'm just glad I listened to kirk and now I'm a bagholder
mike, mdmn is a scam
we have 16 years of history to prove it. That's is how we knew this deal would go south, they always do. Not sure what you are going on about, but good luck on the next pump and dump. Maybe next time you will listen when we say sell above ten cents
we were right, decosta was wrong
decosta is not to be trusted, specially considering his gut was telling him uli would fund. Now the shill is claiming we haven't started shipping ore as promised due to chilean red tape. I think what he is really trying to say is that ore pile isn't all that. Let's see how long they delay it.
classic backtracking
"Will Ulander fund? At this stage it is unlikely in time but anything could happen. I have had several ask me why a couple of weeks ago I was 100% positive he would fund. The reason for that is that we had multiple independent confirmations out of Europe and Asia that Ulander had secured his funding out of China and Singapore. No one knows why after this was supposedly secured that the Asians pulled that funding. Since that time Ulander has been trying to secure funds through a private placement through some London banker for Alluvia and for MI he was started working with a Scandinavian bank. Our management and many feel he will succeed but no extension is being granted so he either pays us with what he has already or it becomes first come first serve. Kirk"
get your countdown cheapies while they last
http://countingdownto.com/countdown/286257
Personally I still think uli will fund, after all kirk is 100% he will fund, and that is good enough for me.
here you go mike, I rest my case
decosta clearly pointed out that there was no way in hell that GC did not know about Uli's criminal past. He made a point of it by telling people to go check out GC's resume.
"For those accusing management of not being aware of Uhlander's prior history without addressing that in the terms of the contract I suggest you review Greg's CV and his assignments in training the Scotland Yard and FBI Academy (Quantico) recruits on fraud detection while a detective in L.A. It's extremely easy to second guess management if you have no idea what the options were at the decision making time, what the pros and cons were and what the relative weighting of the pros and cons were."
don't ask me to post the link, as that may be OT. But if rick says I can post it, I will
that is your opinion only Rick
according to decosta (doctor "slime"), GC knew perfectly well who they were getting into bed with. Like decosta pointed out, GC's background in fraud meant they did extensive due diligence on ulander, and decided that even with his criminal background the rewards were worth the risk. What GC failed to communicate to shareholders was that they were dealing with a criminal, who was notorious for not closing deals. When GC said the deal would have been done had JJ not attended the SHM, he was lying through his teeth.
peter wrote:
I suggest that when ( if ) the Ulander deal is null and void, the boards package is also null and void. The board can readjust their debt settlement and performance reward more in line with today's guidelines. I have no objection doing what is fare and transparent. If you want a level field, look at the new direction most fortune 500 companies treat their ceo's and boards. If you want to compare what is fare again, some loyal shareholders are no longer alive! Top that!
Peter
Bald Eagle wrote:
the only way these guys would agree to a restructuring or retroactive clawback of their compensation would be through legal action (shareholder class action).....most lawyers would consider this a "low hanging fruit" case given the extremity of their mismanagement along with their lack of any director's insurance...the ridiculous 500%+ mark up of debt owed in the form of convert along with a 2 million share annual issuance (not sure about the new board members who are equally as present as GC) would be challenged. The shares issued to JJ for these "inside" property swaps would be in question as would his mysterious ability to maintain a controlling vote (and 49%) interest in the MDMN properties over a 10 year period where MDMN issued 100s of millions of shares.
did you not hear GC say the deal would have been finalized had JJ not attended the SHM?
I said we can all agree GC is a liar based on this statement that he made. Nuff said
so you also heard him say the deal would have been finalized had JJ not attended the SHM? Great, now we can all agree that GC lied.