Medinah Minerals (MDMN)

[Goldstrike]

I won't down play the Gold Sampling Program just yet... lets wait and see... Something peaked their interest to get this program started... They were happily drilling holes and making trenches... when the up and decided to start some sampling for early production opportunities...

Makes one go... Hmmmmmmmmmm...??? Wonder what they saw/came across that made them switch course in that particular area of the Mountain...???

What's there to wonder about?
Have you read and gathered information from what has been posted regarding the high-grade bulk sampling program? This subject has been discussed very widely on this forum and others, including, of course, the MDMN website.

I'll first refer you to the May 29th, 2015 Shareholders Update:

"Medinah Mining Chile reports that it has signed an Amendment to the original Altos de Lipangue Option Agreement that allows AURYN Mining Chile SpA to engage in a bulk sampling program to deliver ore to processing facilities to determine exact metallurgic composition of the material from the recently identified high-grade gold zones."

"Dear Medinah Minerals, Inc. Shareholders:
Medinah Mining Chile, subsidiary of Medinah Minerals, Inc., during recently conducted meetings, reports that on May 27, 2015 it signed an Amendment Agreement to the original Option Agreement, specific to the Altos de Lipangue group of claims. This Amendment allows AURYN to commence their development of recently identified 1.5 kilometers of high-grade gold zones. This development program will involve bulk sampling in order to deliver ore to processing facilities to determine the metallurgic composition of the material for future production."

I believe the bulk sampling program mentioned in the May 29th Shareholders Update refers directly to the "Caren" vein. In that update it is stated "This Amendment allows AURYN to commence their development of recently identified 1.5 kilometers of high-grade gold zones."

In the April 30th Shareholders Update from a month earlier, this 1.5 Kilometer high-grade zone is mentioned:

"At the Caren claims, a new gold-bearing vein approximately 1 to 1½ kilometers in length and up to 1 meter wide, was recently discovered that is parallel to the existing high-grade structures trending northeast." and "The mineralization trend is indicated at the Las dos Marias site, through the Caren, and into the Gordon and Mambo claims, is in a northeast direction."
Finally, the high-grade nature of this zone is described:
"Caren vein assays returned an astounding 21+ ounces per tonne of gold (Au), similar to the DDH-002 results at Las dos Marias within the indicated northeast trend area."

I assume this is all relevant to the "high-grade bulk sampling program"

Again, this is key when the high-grade nature of this zone is described:

"Caren vein assays returned an astounding 21+ ounces per tonne of gold (Au), similar
to the DDH-002 results at Las dos Marias within the indicated northeast trend area."

Dr. DeCosta very kindly weighed in on this subject. I will quote his reply to my post concerning this from another forum:

"Hi GS,

In hole # LDM 99-02, Medinah hit 455 gpt gold at the 68-70 meter depth level. They successfully sunk a winze/internal shaft to that level and hit a very high grade zone right where it should have been. They then started chasing down this "vein"?/"dike"?/"ore shoot?" and it headed NE. It is oriented just like the "about a dozen" intrusives that Perez found on the hyper-spectral satellite imagery i.e. SW to NE. The question on this ultra rich intersection is was this a statistical anomaly known as the "nugget effect".

Recently they hit the Caren Vein with over 600 gpt gold. Is it the same structure as that found at Level 70 below LDM 99-02? Maybe but it doesn't matter. ACA Howe already told us that there are about 25 veins similarly oriented across the plateau. We knew about the Fortuna Vein and it averaging 64 gpt gold over 30 years of production. On Auryn's website their geophysicist refers to these as "sheeted veins". They're pictured on the website as a group of parallel veins coming off of an underlying porphyry stock. These are also referred to as "vein systems" or "subparallel vein systems". They are of epithermal (near surface in an environment averaging about 150-degrees Celsius) origin.

I think the excitement has to do with the chances of finding a bunch of similar veins with similar grades in between the Caren and the Fortuna. These are pretty long structures with nice "mining widths". The Caren is 1 to 1.5 Km (so far) and the Fortuna was 800 meters before it got cut off by a late stage andesite dike. ACA Howe suggests that the Fortuna continues onto Medinah's property west of the Fortuna mine. Until the recent geophysics nobody ever messed with these veins because at surface they were oxidized, highly weathered and leached. AMC's recent discovery of the high grade gold zone near their hole #24 as well as their new "breccia/vein" SW of hole #24 confirms this high grade "gold zone" going from SW to NE.

Somewhere back in the last 115 million years these current "veins" were just a series of parallel linear cracks in the rocks resulting from the movement of adjacent rock slabs relative to each other. The hydrothermal fluids and gases rising from magma that was starting to cool as it ascended simply filled up these spaces and cooled and became extremely long "veins". The probability is that most of these 25 or so veins will carry pretty much the same average grade because all of this material was once molten. It appears that the insanely high grades at LDM 99-02 (455 gpt gold) was perhaps not a statistical or sampling anomaly representing "the nugget effect". The fact that this "mineralization trend" extends from the LDM to the Los Amigos to the Caren and through to the Gordon and Mambo claims is very encouraging because we already knew that we had a 7 Km long corridor containing "about a dozen" intrusives ALSO TRENDING FROM SW TO NE."

So...Long story short, a near surface high-grade vein with a preliminary AU assay of 21 oz/ton was reported. An amendment to the original ADL Option Agreement was then drafted. A bulk-sampling program was proposed. This has not yet been initiated.
Additionally, Dr. DeCosta points to preliminary geologic evidence that veins similar to the Caren may be spread across the greater ADL.

The opportunity to exploit this high-grade early production opportunity seems to be the right move at this time of depressed commodity prices. It's that simple.