Medinah Minerals (MDMN)

[momentumtrader]

This post was put back in March on the cdch board from what I was told.

"This was at the bottom of his post
Divide these two figures by the number of current O/S and we get the following per share.
MDMN= $44.50 per share
CDCH= $70.31 per share
Now please reread the second paragraph above, and always keep in mind I am sure I have made huge mistakes here in my calculations."

Now it sure looks like to me a lot of upsude potential!!!
Read post below



http://investorshub.advfn.com/boards/read_msg.asp?message_id=17536012
The numbers below are strict guessing. DON'T INVEST BASED ON WHAT I TELL YOU! Because remember, I don't know anything!!

Please note the following factors about Cerro Dorado (CDCH) and Medina Mining (MDMN) do not include the almost certainty that we will continue seeing rising precious metal prices in the months and years to come. Satellite images shows a porphyry over both properties and the last update indicates there are two. The figures below, which I was somehow able to find, will be on the assumption of what is considered "average" according to world wide research of porphyrys. (Source listed below). These "average numbers" assume a gold recovery of 5 grams per/ton and 1% per ton of copper. This is average in a very good mine anywhere in the world. If you want to see I am using the wrong numbers to be overly conservative, please see the next paragraph of actual numbers taken from the report of a couple of holes within the MDMN website. These are the official numbers.

As stated, "The discovery hole (L99-03) intercepted 84 meters averaging 1.72 g/t Au, 10.07 g/t Ag and 0.40% Cu. Two step-out drillholes (L99-06 & L99-07) returned intercepts of 154 meters grading 0.60 g/t Au, 13.7 g/t Ag and 0.39% Cu &
124 meters averaging 0.49 g/t Au, 9.68 g/t Ag and 0.31% Cu, respectively."

I further made errors in my calculations because I forgot to include Silver, seen above as the symbol "Ag." Silver is currently selling at $14.00 per ounce. Oh man, I also forgot to use Molybdenum, also a precious metal. For those of you not familiar, a quick note about moly. It's not used in Molly McButter. Molybdenum (moly) has many uses including as a component of stainless steel due to its ability to inhibit corrosion from acids. One might consider that maybe this can explain the interest level in CDCH?MDMN of steel producers like Sumitomo.


From the last official company update given to us, we read the following:

1- "In this sector of study they are located; a deposit that can be classified like of type PORPHYRY OF COPPER-GOLD (in the zone of the plain of the Alto de Lipangue) and, in addition, a PORPHYRY OF MOLYBDENUM-COPPER in the contiguous area immediately located to the south of the previous one."

Again, I will be using only 1 porphyry in my example instead of 2.

Continuing from our last shareholder update:

4- "The volume of identified mineral resources to date, reaches already to several hundreds of millions of tons, mainly assigned to the added porphyries and skarn together."

"which can without a doubt be classified World Class."


This is a conservative number using the word "several" and here is why:

According to the experts and studies of porphyrys:

Copper porphyries are gigantic, they are elephants and they are the ultimate discovery for a junior exploration company. Under the heading below "TYPICAL GRADE AND TONNAGE" in the accompanying attachment note the significance of discovering a porphyry copper deposit that just so happens to have molybdenum contained therein as does Medinah's and Cerro's. These otherwise elephant-sized behemoths now average 3 to 4 times the tonnage when molybdenum is present i.e. from about 160 million tonnes (a metric "tonne" has 2,200 pounds instead of 2,000 pounds) to about 500 million tonnes. Note that MDMN and CDCH discovery has plenty of moly and even has 2 past producing moly mines on site.


TYPICAL GRADE AND TONNAGE:
Worldwide according Cox and Singer (1988) based on their subdivision of 55 deposits into subtypes according to metal ratios, typical porphyry Cu deposits contain (median values): Porphyry Cu-Au: 160 Mt with 0.55 % Cu, 0.003 % Mo, 0.38 g/t Au and 1.7 g/t Ag. Porphyry Cu-Au-Mo: 390 Mt with 0.48 % Cu, 0.015 % Mo, 0.15 g/t Au and 1.6 g/t Ag. Porphyry Cu-Mo: 500 Mt with 0.41 % Cu, 0.016 % Mo, 0.012 g/t Au and 1.22 g/t Ag.

A similar subdivision by Cox (1986) using a larger data base results in: Porphyry Cu: 140 Mt with 0.54 %Cu, <0.002 % Mo, <0.02g/t Au and <1 g/t Ag. Porphyry Cu-Au: 100 Mt with 0.5 %Cu, <0.002 % Mo, 0.38g/t Au and 1g/t Ag. (This includes deposits from the British Columbia alkalic porphyry class, B.C. model L03.) Porphyry Cu-Mo: 500 Mt with 0.42 % Cu, 0.016 % Mo, 0.012 g/t Au and 1.2 g/t Ag.

British Columbia porphyry Cu * Mo ± Au deposits range from <50 to >900 Mt with commonly 0.2 to 0.5 % Cu, <0.1 to 0.6 g/t Au, and 1 to 3 g/t Ag. Mo contents are variable from negligible to 0.04 % Mo. Median values for 40 B.C. deposits with reported reserves are: 115 Mt with 0.37 % Cu, *0.01 % Mo, 0.3g /t Au and 1.3 g/t Ag.
Panteleyev, A. (1995): Porphyry Cu+/-Mo+/-Au, in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 87-92.


Doing the math isn't that tough.

It's easy if you simply convert the grades present into $/ton via utilizing current metals prices. For instance, copper trading at $2.80 per pound multiplied by 2,200 pounds per ton equals $6,160/ton for 100% copper. One percent copper (1%) would then be worth about $61.60/ton. Likewise, $670/ ounce gold divided by 31 grams per ounce equals $21.61/gm of gold. Therefore, gold grades of 5 gram/ton are worth about $108.05 per ton of ore mined. Thus 1 ton of material grading 1% copper and 5gm/ton gold is worth about $169.65.

Please keep in mind I forgot about silver and moly values.

These properties are fortunate enough to have 4 separate metals. This allows things to add up in a hurry especially if the extraction costs are only perhaps 20% or less. Probably less, due to the properties being located about 40 km NW of Santiago in the coastal range of Chile at an elevation of approximately 2,000 meters. That's a little over 6,000 feet for those of you who don't wish to take the time to convert. Easy road access and water is certainly available. Plus drilling is available year round!

If we now take the numbers above (which I have already greatly reduced) compared to what we know what has already been found on the properties, the mineralization is worth between $100 and $200 per ton based upon today's valuations for copper and gold based on today's prices. Based upon averaging $150 per ton (do the math based on the ACA Howe reports) if our copper-moly porphyry was of an "Average Size" i.e. 500 million ton then there might be approximately $75 billion worth of copper and gold. If you forgot what you read above, this still does not figure in the profit from moly or silver. Based upon today's metals prices and the average of having $150/ton in ore values, I think a good case can be made for the costs involved to extract these metals can be taken care of easily by the amount of silver and moly mined on the properties leaving the above at bare minimum, pure profit.

Book Value?

Using my incorrect numbers above and trying to keep in mind that I am a simpleton, I will suggest the following: The JV reached brings a 50/50 split partnership. (The original offer from Hotchschild was 49% for us and 51% for them).

This brings our profits from 75 Billion to 37.5 Billion shared between MDMN and CDCH.

I will also assume based on monies spent by MDMN to get us to where we are today, and to bring a major or majors to the table, plus the fact that MDMN has more hectors or property than CDCH, using the 50% split we get from the example above, the sharing arrangement or split can be MDMN getting 60% of that and CDCH getting 40%, or one could use a 70/30 split. You people can do your own splits and figure the numbers, either way they are impressive especially with everything being underguestimated.

This now leaves us with the following pure profit:

MDMN -$26,250,000,000

CDCH -$11,250,000,000

Divide these two figures by the number of current O/S and we get the following per share.

MDMN= $44.50 per share
CDCH= $70.31 per share

Now please reread the second paragraph above, and always keep in mind I am sure I have made huge mistakes here in my calculations.