Medinah Minerals (MDMN)

[RD759]

Hi Beth,
the project is Canadian and the numbers are real enough, if likely on the conservative side. These are the kind of figures you have to deal with in developing 'World Class' deposits.

As to your second question, I really don't know; I cannot fathom out the way the stock market operates. The company I worked for is currently trading at $0.61 after the JV; Six months ago it was trading at $1.20. Another company I worked for, a junior with a string of good projects is trading at $0.035 and another company with an excellent producing gold mine is trading at $0.09. I have to scratch my head when I see people predicting MDMN will reach over $1. I'm not saying it won't, just that I don't understand why!

The biggest challenge for mining companies at the moment is finance - principally for exploration, as investors have moved out of mining wholesale. The result is that exploration has nose-dived across the globe(it's over 80% down on 2011 levels in BC alone) and many junior explorers are just treading water, keeping their offices open and their listings up to date; however, some forecasters are saying that up to 30% of TSX-listed explorers could be bankrupt by Christmas. The guys I speak to seem to think that's likely. Share prices for juniors are down across the board, so it may be difficult for MDMN to sustain a long-term PPS rise.

Many companies I have worked with began to snowball by self-funding the early stages - mapping, geochemical surveys, trenching and RC drilling (all relatively cheap), then financing a few DD holes. Once you have a good coherent story to tell it was relatively easy to attract a JV partner (hopefully those days will come back soon); I've long been surprised MDMN didn't do just that, but that's a matter for the shareholders and BOD.

Good luck with your investment; I hope it works out for you.