Medinah Minerals (MDMN)

[RD759]

Management of Medinah Minerals, Inc., is pleased to provide the following update received from the LDM/NUOCO managers from Santiago, Chile. The progress of the mining work at the LDM/NUOCO projects has opened up new discoveries which may have significant impact on our understanding of the potential scope of mineralization over the entire Altos de Lipangue claims area.

The LDM is a shear zone; by definition these are structures with definite boundaries, subject to their own discrete tectonic history. How can you then extrapolate what is going on here to an entire plateau?

During the LDM tunnel and exploration work undertaken by the private partners, a significant discovery of copper was made. This copper formation appears to be extensive and competent and is currently being mined for production by the NUOCO crews. The first rounds that blasted into the formation indicated a consistent and strongly mineralized structure. This appears to be porphyritic in origin, associated with the Altos de Lipangue breccia pipes, except that this is not a breccia, but rather a strong and consistent copper rich zone associated with a porphyry intrusive containing malachite, chalcocite, bornite and chalcopyrite. Indications are that the porphyry ore body, with all probability, is very much at a mine-able depth, which should present very large tonnage for capture.

Shear zones may often be strongly, but variably mineralised. Being finely sliced as they are, grade continuity in all directions is extremely unlikely and rather than focus on individual points within the shear zone, the entire mining width has to be considered, because that is what you will be extracting; 10g/t over a metre becomes 3g/t over a 3m mining width (an therefore uneconomic for an underground operation) if there's no extra gold in the face.

Porphyritic: a term that defines a texture; simply put it's an igneous rock texture with larger crystals hosted in a finer groundmass; evidence of a binary cooling history with slow cooling (the larger crystals) followed by movement to an environment, while still partially molten, with more rapid cooling (hence the smaller crystals). There seems to be a great deal of confusion in this update between porphyry (in Medinah-speak, huge bodies of rock full of metals) and porphyritic. An earlier update referred to porphyritic andesite (a volcanic rock, part of the plateau country rock and therefore not unexpected); now we have a "consistent copper rich zone associated with a porphyry intrusive" (not such a huge mass of rock then, after all). This is still within the shear zone and heavily brecciated, so consistent is not what it is likely to be. Is this a porphyry dyke? is it simply porphyritic rock? And should you assume it has any connection (based on simple observation and some very poor overexposed photographs) with an underlying mineralised porphyry stock? Secondary copper mineralisation can be transported considerable distance from source prior to deposition; particularly within shear zones which may be preferential flow zones.

The LDM project designed to intercept the high grade gold zone has succeeded with the addition of another surprising and potentially game changing discovery. The gold that has been encountered appears to be associated with yet another porphyry intrusive separate from the known copper rich porphyry in the Altos de Lipangue breccia area. This contact has revealed a gold rich porphyry/brecciated zone mixed with quartz. We have received initial assays from the 66.5 meter shaft level, approximately 3.5 meters above the high-grade target zone, which contained 6.6 grams of gold per tonne. A second assay taken at the 67 meter level revealed 9.8 grams of gold per tonne. This confirms the assays, at a similar depth, that coincides with the assays received from the DDH-002 drill core samples. We now expect that assays from the downward target zone will confirm assays from the 70 meter section of the drill core.

Not one porphyry, but two and with distinct mineral assemblages! All within one short tunnel - not big bodies of rock then.... And still within a shear zone. And once again a set of meaningless assays with no location, width or geological information and no sample QA/QC. Such assays are irrelevant and even if properly sampled and taken, what would they tell you? You're presumably not in the business of mining pockets of rich ore a metre at a time like artisanal miners; only average grades across the full mining width (composed of weighted composite grades at a maximum 1 metre width) are of any real value, and then only if taken as consistent channels in a regular manner. Those grades are unlikely to be spectacular and dazzle unwary investors, but they are what the company should be producing.

Let's hope the company finally does get a fully independent, signed off, geological assessment with quality data; it will hopefully put an end to nonsense updates of this quality for good.