Replies to post #69602 on Medinah Minerals (MDMN)

[536hr]

gman,
Correct on commodities, but I believe that with the fact that Greece is gone financially, the dominoes will start to fall all over Europe and the US, and gold & silver will be making a comeback fairly soon.

Of course it is just a guess as the money people manipulate all the markets as they see fit. We just have to be in the right place at the right time!

Mike

[Hurricane_Rick]

Auruyn will continue with the "free option" it has for three years doing the minimum to not forfeit the option.

While I agree Auryn will do what they need to in order not to forfeit the option, I disagree in that they will be doing "the minimum". That makes no sense. If they owned an interest in the property already, then there may be a certain degree of incentive to shelve the project until economic conditions were more favorable. However, at some point during this 3 year option period, Auryn needs to perform enough drilling and exploration to make an economic decision on whether to exercise the option or not. Otherwise they've spent money doing the minimum amount of drilling and exploration for nothing. In order to make an educated go/no-go decision, they need to spend adequate funds on drilling and exploration.

Auryn is not in the business of holding property for sh&ts and giggles. Additionally, Auryn took out a $10 million line of credit from Banco Sabadell to fund the drilling and exploration program. I'm guessing they'd prefer to produce revenues from their investment rather than pay interest. Dragging their feet for 3 years would be counter-productive to the assumptive goal of economically monetizing their investment.

If material/metal costs recover they may proceed.

The price of metals impacts decisions on how Auryn prioritizes its targets, not whether they should proceed or not. Assuming price of metals is a concern, Auryn will modify its focus away from the longer term projects (deep drilling the porphyry target, proving up the new gold zone and stepping out the Gordon Breccia) and will set its sites on the near surface production opportunities and mineralization of LDM/NUOCO, the newly discovered gold zone discovered at the Caren property that they will be bulk sampling, and possibly the Fortuna mine on Cerro's property.

They will at expiration assess the overall markets and look for a larger partner or sale.

Their decision isn't based exclusively or predominantly upon the overall markets. It HAS to be primarily focused on the current economic feasibility of the property they hold. Obviously the PM market affects the overall economic feasibility of the deposit, but more so, the mineralization within ADL will determine whether they can partner or sell their share. The condition of the metals markets is dynamic. The mineralization in ADL is not...it is just an unknown quantity that can only be discovered through exploration.

And keep in mind that Auryn can't entertain either a partner or a sale of the property until or unless they exercise the option.

If the metal market is poor they will just walk.

Not exactly. They will walk if drilling and exploration does not prove ADL to be economically feasible.