Medinah Minerals (MDMN)

[RD759]

Hi Rick; my query over the 'porphyritic' terminology stems from the way it is used in the update. Less well-informed investors may think that a major porphyry system has been intersected rather than dislocated lenses of porphyritic rock within a shear zone looking at the way the update was worded. Without rigorous geological background information it's difficult to interpret the meaning of parts of the update even with a geological background, never mind for the layman.

I seem to recall an earlier update mentioning porphyritic andesite present in the workings; this is quite distinct from the type of porphyry that is typically associated as being the parent magma of porphyry-style mineralisation. The presence of porphyry rock within the shear zone may be due to dissected dykes that cross the shear; there is some possibility that some material could have been brought up from depth in an earlier phase of movement, but most shears work in a sub-horizontal to oblique sense and so it seems more likely that these rocks come from close to the current elevation of the LDM workings. Detailed Normative mineralogy and whole-rock geochemistry would be needed to tie them genetically to other porphyry rocks present on the plateau.

The LDM project isn't so much about the sampling and assays though obviously any geological data is helpful to investors. It is first and foremost about extracting and monetizing ore from the high grade gold zone which based on reports thus far (as vague as they may be) appears to be occurring. CMLDM probably doesn't need a whole battery of assays to monetize the asset...perhaps bulk sampling and grades provided by the mill from the extracted ore will suffice. Though I may be incorrectly over-simplifying the nature of what is involved in assaying for the ore extraction process.

I would disagree here - production mining is all about comprehensive sampling and assays; to monitor production grades, check stockpiles, perhaps instigate blending to iron out high grade and low grade spikes and to reconcile what you thought you had in-situ with what you eventually extract (how good was your original sampling and have you suffered any dilution from poor blasting, waste rock caving, etc); problems with dilution can have a catastrophic effect on your head grade and needs to be tightly monitored. The mill will have a comprehensive sampling regime for their own records; the problem with relying on them to do your sampling is that they will undoubtedly under-report your grade and shave off your revenue with no way for you to know it's being done. In all my years in mining I've never known a mill that didn't balance the books in their favour - not sampling is just making it too easy for them.

The fixation with spot sampling used within the LDM thus far has, I think, been detrimental to the overall mining scheme. High grade spikes may make for headline numbers, but it is the average mined grade that makes or breaks a deposit. I can understand wishing to probe possible extensions to the grades seen in the 'Glory Hole', at least I could if this was a vein deposit - as I've already said, in a shear zone with multiple elliptical domains moving independently and with gold already displaying a very high nugget effect, looking for continuity of grade is a huge ask. In this case I think sinking a winze at this juncture was a premature move. It would have been better to mine a couple of chamber off the main level and punch in a series of scissored short drill holes (using something like a cheaply available bazooka drill) to investigate the gold grades. This would have been cheaper and much faster than mining the winze with all its expensive bracing, etc, and would have delivered the same results. The problem with the winze is now that it is there it has to be accommodated into the extraction plan. Winzes/raises usually mark the beginning and end of an extraction panel and are sited ideally in low grade to waste rock. A winze in high grade is not necessarily a problem, but you'll have to mine another one (at additional expense and time) when you come to extract that particular panel. Developments of this kind usually follow level mining and intensive sampling/evaluation drilling just for this reason.

Like you I hope that the LDM will get a fully independent report signed off by a PGeo with no company connections. Best regards RD759.