Replies to post #68952 on Medinah Minerals (MDMN)

[abazaba375]

Are you still holding sHares here ?"

[Hurricane_Rick]

A full on geo report conforming to those standards encompassing our "mountain" would have value, but we are dozens if not hundreds of drills shy of that that and years away. Auryn could care less about such a report, that was a carrot. Nothing more.

I'm going to have to disagree with you here. The NI 43-101 report (or whatever anyone wishes to call the resulting geological report) is a condition of the option agreement.

The option agreement currently calls for a $100 million minimum purchase price. It has been reported (though not confirmed) that this purchase price may increase based on the geological findings from the drilling and exploration program. While I personally am cautious to speculate on that which is not publicly announced and is sourced back to Les, I am willing to acknowledge the plausibility of such a term based on the previous ADL agreements and the specific use of the term "minimum" in the current contract.

Regardless, in order to determine the value of the property, Auryn (and Medinah) most definitely would need a formal geological report to determine such. To that extent, Auryn most certainly cares about the report and it was not used merely "as a carrot". To shareholders enduring the declining share price it probably looks that way, but from a simple business/contractual perspective, the geological report is essential in determining the value and the entire future of the project.

Additionally, if Auryn wishes to shop around the project either for a partner or an ultimate buyer, they would more likely than not need a geological report in order to garner (serious) interest and negotiate the NPV and fair market value for the project.

Finally, the geological report may or may not be thousands of meters of drilling and/or years away from coming to fruition; however, there is no set amount of exploration required in order to produce a report. In fact, the NI 43-101 (if we're going to use this model) can be produced without any drilling and exploration whatsoever. The NI 43-101 is a living and breathing document that is augmented whenever there is data to be included. To that end, the geological report will be developed when the parties determine it is needed, though it will take several months to author. It has been rumored that the report will be produced some time after this initial phase of drilling and exploration. I'll believe that when I see it, but that doesn't mean I will diminish its significance to either Auryn or Medinah with regards to the future of ADL, the option agreement and beyond.

[BigBaboon]

No... it is true... the Canadian's would definitely like seeing a NI 43-101 report completed on MDMN's Mountain...

And I do believe that report will be coming... Not sure when... but it will happen...

And the report is extremely relevant... As you say, "A full on geo report conforming to those standards encompassing our "mountain" would have value..."

See even you admit... that any full on geo report conforming to those High Standards (obviously talking about the high standards of the NI 43-101)... would have value...