**********MDIN news **********************PR NEWSWIRE) DJ: Medinah Energy Inc. Announces New Phase of Mining
Develo DJ: Medinah Energy Inc. Announces New Phase of Mining Development
Near Santiago, Chile LAKE ELSINORE, Calif.--(BUSINESS WIRE)--July 8,
1998--The intensive field work of recent months in Chile was focused
upon (1) delineating and developing potentially commercial portions of
the extensive gold placers along the Puangue River and (2) re-opening of
the idle underground gold mines with the intention of shipping crude ore
to the ENAMI smelter facility owned and operated by the Chilean
Government. The presence of commercial gold values at the Puangue River
are reported to be confirmed. Along this river, Company concessions
extend for more than ten kilometers. Paul Jones, V.P, Mining and
Exploration reports, "I am expecting significant gold production just as
soon as we can mobilize a larger suction dredge with appropriate
equipment for treating concentrates. A new excavator that has just been
delivered will greatly enhance our productive capacity." A geochemical
exploration program between the Catan Mine and the Santa Lucia Mine
yielded two virgin gold veins. The Santa Maria vein assayed on surface,
6.00 grams of gold per ton and 28 grams of silver per ton over a width
of 0.4 meters at the discovery cut. The Santa Monica vein yielded 0.55
grams of gold per ton and 2.6 grams of silver per ton over 1.6 meters at
the discovery cut and 3.54 grams of gold per ton and 7.3 grams of silver
per ton across 1.5 meters, 100 meters along strike. These veins were
previously unknown. Work is continuing to provide access to and
rehabilitation of the San Genaro gold mine to determine whether
significant amounts of high grade gold ore can be mined by open pit
methods. Information, provided to the Company by the property owner,
indicates high grade gold values in both the hard rock and placers. In
December, 1990 the owner shipped 16.9 metric tons that assayed 23.10
grams of gold per ton and 45 grams of silver per ton. A second shipment
of 12.8 metric tons a year later, assayed 16.2 grams of gold per ton and
30 grams of silver per ton. Original intentions for early production
from the Catan property have been modified to incorporate a new approach
to the vein systems. These systems may be amenable to open pit mining
methods which are more economical than conventional tunnel and custom
milling operations. Mr. Jones has recommended that the Company will be
better served by installing its own mill. Medinah Energy Inc. has
available a vat leach system, tried, proven, and operating in Pocone
County, Brazil. Management concludes that the current data delivered by
Mr. Jones, although positive, is as yet insufficient to determine the
ultimate commercial capability of the Puangue placer grounds. Mr. Jones
and his team, in the time allotted, have only been able to review a
small portion of the Santiago placers and hard rock properties. A team
of Independent North American geologists have been retained to further
evaluate the Puangue placers, the open pit potential of the San Genaro,
Santa Maria, Santa Monica and other gold veins, and expand upon the work
done by Mr. Jones. For further information please contact investor
relations: 1-888-572-0170 On behalf of the Board of Directors Per: Larry
Regis, President
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