Replies to post #58202 on Medinah Minerals (MDMN)

[Hurricane_Rick]

And that's bad news for miners, because production costs at eating into their profits very badly indeed.

That's why it's important for miners to concentrate on exploring and developing those deposits that are economically viable with lower Capex requirements - the ones with existing infrastructure or close to infrastructure, at low elevations and ideally with promising grades of multiple metals to mitigate and diversify the risk of price swings in one or more PMs.

Medinah is fortunate that Alto de Lipangue is only 35km from Santiago in the centrally located Metropolitan Region of Chile. There is plenty of access to human resources, electrical power and water supply...certainly much more than the outreaches of the Atacama desert or high up in the Andes. The 2,000 meter elevation is extremely attractive compared to other deposits at higher elevations and much further away from infrastructure. In addition, drilling, exploration and production costs are greatly reduced due to the lack of significant overburden on the plateau thanks to a volcano that blew its lid millions of years ago.

The fact that Medinah is now producing/shipping copper from its low-hanging fruit at Las Dos Marias and will soon be hitting the high grade gold zone from their recent tunneling efforts adds to the attractiveness of the deposit even with depressed PM prices.

[Kubisiak5]

Its All relative though. It really depends independantly on each mining outfit. Mining typically is a very high profit margin industry compared to others, so many can flourish even without record high prices. Having a bunch of different metals is also huge for diversification.

Metals have been getting beat up. This wont be permanent, and people should look at buying the dip in producing startups IMO.

Curious about reading more on this one. Is this part of the Hoffman Crew from Gold Rush?