The Shareholder Update of April 20, 2014 stated that “The progress of the mining work at the LDM/NUOCO projects has opened up new discoveries which may have significant impact on our understanding of the potential scope of mineralization over the entire Altos de Lipangue claims area.”
The update explains that beside the significant discovery of copper made at the LDM, which “appears to be porphyritic in origin, and associated with the Altos de Lipangue breccia pipes,” another “surprising and potentially game changing discovery” was made. The update goes on to tell of “yet another porphyry intrusive separate from the known copper rich porphyry in the Altos de Lipangue breccia area. This contact has revealed a gold rich porphyry/brecciated zone mixed with quartz. We have received initial assays from the 66.5 meter shaft level, approximately 3.5 meters above the high-grade target zone, which contained 6.6 grams of gold per tonne. A second assay taken at the 67 meter level revealed 9.8 grams of gold per tonne. This confirms the assays, at a similar depth, that coincides with the assays received from the DDH-002 drill core samples. We now expect that assays from the downward target zone will confirm assays from the 70 meter section of the drill core.”
An “evaluation of a Professional Geological Assessment related to both of these discoveries” will be made to better understand the value of these discoveries.
Finally, “Medinah’s management team has determined this additional information and findings to be potentially material to prospective financial well being and potential profitability of the company.”
In a nutshell, the “standard industry deal” offered by the “Peruvian mining experts” might not be good enough for JJ’s baby. And who can blame him? A proud dad wants only the best.
Of course, more than one shareholder is expressing disbelief that any deal, standard industry or not, could slip away while JJ shops around.
Since development of the LDM claims is spoken for by NUOCO and the LDM investors, how do the discoveries mentioned in this update specifically enhance the value of the greater ADL? That’s the million dollar question, one that could possibly be answered by additional drilling on both the plateau and the gulch that the LDM is situated in.
The notion that the LDM provides a look into the belly of the mountain needs to be examined a bit more. This notion can only be proven by professional geological analysis and comparison of core samples from the ADL and perhaps samples from lateral drilling on the LDM. If an extensive supergene enrichment zone can be proven to exist within the mountain, we may be in business.
As an enthusiastic (still) shareholder, I can’t wait for professional sampling and metallurgical assays from the high-grade target zone at the LDM. The company has pledged to do this, and now that they are only 3.0 meters from potentially earth-shaking assays, the moment of truth is near. If analysis of rock from the depth equivalent to the 70 meter section of drill core from DDH-002 can be found to match samples existing elsewhere on the plateau, maybe JJ is on the right track.
I’ll keep an open mind in the meantime. After a number of years, this is starting to get really interesting.
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