Replies to post #60838 on Medinah Minerals (MDMN)

[RD759]

Satellite imagery is a very useful exploration tool, particularly in Chile where extensive areas of land are vegetation poor or free (such as the Atacama). By manipulating the visible spectra you can highlight particular rock types (based on their reflectance characteristics - though this will only tell you that they are different from their neighbours, not what the rock actually is in terms of a definitive classification). What it does particularly well is to pick out alteration zones within and around rock outcrops. This is often related to hydrothermal activity that MAY have an economic component, so as a 'first pass' tool it can highlight particular areas that warrant further investigation on the ground.

What it cannot do is 'see ore' (unless you have a Kiruna-style deposit sitting on the surface) and it certainly can't give you tonnage and grade, so those thinking you can use it to define a 'World Class' deposit as a stand-alone tool should go and sit in the corner with a pointy hat on...

[Hurricane_Rick]

Beth,

I think you are overlooking and perhaps minimizing what the C.S. Perez report encompassed. The satellite imagery analysis was only one of the components in the report, though obviously his specialty, that led to Perez' conclusion that he felt ADL is a multi-porphyry world class deposit.

Perez' report was compiled not only from his satellite imagery, but also included data and/or referenced analysis gathered from previous historical reports on the property from other geological professionals such as E. Tidy Finch (Codelco), Francisco Ortiz, P. Geo (Codelco), Rogelio Zamarano, P. Geo (Codelco), Alejandro Faunes (Metals Division of Shell, S.A.), Robert Cintis, P. Geo (ACA Howe Chile), Gordon House, P. Geo (Medinah Minerals), petrographic analysis from Vancouver Petrographics, GeoDatos IP/Resistivity survey, and so forth.

It's not like Perez just looked at the Satellite Imagery and exclaimed "Voile!".

As explained by the company, "(The Perez) report is truly a “Summary” report compiled after an exhaustive review of all of the information gathered to date which was then overlain with recent satellite imagery reports that successfully coalesced all of the prior information into the model utilized by nearly all of the major mining suitors involved in negotiations i.e. that of the existence of two “Classic Sillitoe type” porphyry systems. Sr. Sepulveda Perez was retained by 2 of the top 5 major mining firms in the world to perform this research and file this summary report.)"

Perez, like the other geological professionals (other than Gordon House) that have reported on the Alto de Lipangue property, was contracted by the company for his analysis as a professional 3rd party. This isn't like Joe Schmo walking off the streets hired by the company to rubber stamp the concept of a multi-porphyry deposit on behalf of the company. In fact, he wasn't even hired by Medinah, he was retained by Vale (he had been contracted by Vale previously for analysis on their Tres Valles deposit in Northern Chile) and BHP Billiton to provide analysis on Alto de Lipangue.

So while it would be beneficial from a shareholder confidence aspect to have thousands of meters of drilling and associated reports to confirm a world class deposit, from a risk/reward standpoint the share price would be considerably higher as the premium for greater information and confidence is costly. From my personal risk/reward standpoint, I'd much rather invest in MDMN sub-.10 with the current information, than say .50 if the geological information was in a more mature stage of exploration and analysis. But that's just me...there's a whole different class of investors (and non-investors) who don't like and won't assume that kind of risk.