Medinah Minerals (MDMN)

[jetpilot1101]

Every word of it. I made sure to quote his entire post so as not to be accused of cherry picking his comments.

He also tried to link MDMN to this article by Louis James (a member of Doug Casey's outstanding stable of researchers) which I find offensive and I'm sure Mr. Casey would as well.

http://www.caseyresearch.com/cdd/doug-casey-3-stocks-to-own-when-gold-recovers

Although not Medinah, Doug's #1 pick is nonetheless an interesting parallel. This yet to be identified junior explorer all of a sudden becomes a producer. Unless they have issues with credibility (like one junior producer we know) usually a junior explorer is taken out before they have a chance to go into production. Doug asserts that when the cash starts flowing "the shares should soar". This mystery company also has a bigger second project. Thus the investor gets 2 kicks at the proverbial cat. Once he announces this secret #1 pick we might want to follow the company's development and see if there's anything to learn from how they handle matters. Any Doug Casey subscribers out there with the identity of his pick?

He makes a good point, "Normally, we're skeptical when an explorer aspires to become a producer, as exploration and production are two completely different businesses with two completely different skill sets." This article might show the need to first establish credibility (perhaps through a JV in the case of Medinah) before your shares are going to "soar" due to your being one of the 1-in-1,000 of the junior explorers that not only make an economic discovery but successfully get it into production.

This reality might explain why management is not big on tooting the LDM horn until credibility is established via a JV. First you establish the credibility, then you develop an audience and then you toot the horn so that there's somebody there to hear your tooting.

I like his (Decosta's) use of the word "soar" twice in his diatribe.

Allow me to quote some of the article:

However, this company was founded and is run by a mining engineer, and its two current projects have an unusually short path to production.

Who was MDMN founded by? Certainly not a mining engineer.

Since publication of these projections, the company has drilled into more high-grade gold beside and below the current deposits being worked.

MDMN hasn't drilled in 13 years nor do they appear to have any plans to drill anything.

However, the best part of this story is the company's second project, which is already much larger and high grade—this one is showing world-class potential. And with cash flowing from the first project, the value in the second one could be brought to market with little or no dilution for shareholders.

MDMN has diluted to the tune of 800,000,000 shares - I don't suppose this is what Mr. James had in mind when he said "little to no dilution to shareholders".

Now please Dr. Decosta, explain how MDMN has anything in common with this legitimate junior miner?