IMPORTANT POST-PLEASE READ-CONCERNS THE LAMPA CLAIMS-PER LARRY REGIS
Some questions have been recently raised about the Lampa claims. Although these posts concerned who actually owns the Lampa claims---a question with an obvious answer to anyone who bothers to check the Medinah webpage-it did raise to the surface some unanswered questions I had in regards to Lampa.
Rather than speculate endlessly on SI about the answers-I decided to get some answers:
Here's a copy of an email I forwarded to Russell Godwin:
Russell, please explain:
From the original House report on Lipangue-a claims map included options on the Lampa mine property.
(See geo_pg11.gif-a GIF file from one of House's earlier reports-not included here.) The purchase agreement did not include the Lampa mine property. (See medinahmining.com NOTE the mine symbol on the map just outside(Northeast of Medinah's claim blocks-the actual site of the Lampa mine)
Gordon explained the missing LDM block as follows:
"CLAIMS MAP, THE CLAIM MAP WITH THE EXTRA CLAIM BLOCK WAS ONLY INCLUDED IN MY REPORT ON THE EVALUATION OF THE SANTIAGO PROJECT DATED 25TH JULY 1998. THE FIGURE WAS DRAWN FROM MAPS MADE AVAILABLE BY THE PROPERTY VENDOR WHICH HAD INCLUDED THE EXTRA CLAIM BLOCK, BUT THE EXTRA CLAIM BLOCK HAD BEEN DROPPED PRIOR TO THE AGREEMENT WITH MEDINAH ENERGY INC. THIS WAS AN OVERSIGHT ON MY PART WHEN DOING UP THE MAPS FOR THE REPORT."
Did the same thing happen with the Lampa claim block? Shareholders are suspicious that this claimblock was deliberately rerouted from Medinah to Cerro Dorado for the coffers of Les Price etc. after field surveys of Gordon House suggested the potential of this property. Since we shareholders payed for Gordon plus the continued close relationship of Quijano-something stinks.
Since this property obviously was available to Medinah-why didn't Medinah buy it? Can you get an official response from Medinah management on this? In light of the discovery of "new" breccia pipe-this is rather disturbing.(Since it was discovered by field survey-AC HOWE-why wouldn't Gordon have seen it since he tramped all over the mountain?-also there has been persistent rumors about other pipes including a remark by Greg Lillar- suggesting the existence of the pipe has been known for sometime) Also does Gordon House have an equity interest in CDCH? Since AC Howe appears to be the firm now conducting surveys there-I presume that he does in light of its obvious potential .(ie no conflict of interest.) Of all the accusations of the bashers on the internet-this one has me the most concerned since lost of this property ultimately will have a significant impact of the buyout value of Medinah. Thanks.
In reponse to my note-I received a fax from Larry Regis:
"Letter to Mike Gold in Response to;"the purchase agreement did not include the Lampa Mine property"-July 22, 1999.
Medinah Mining Inc. was struggling in the Andacollo gold camp with Dayton bulldozing down Medinah's mill and concentrator plant, as well as the headquarters office building. At this time Medinah was fortunate enough to meet Sr. Quijano, a mining lawyer of high regard. The introduction came via a third party who enlisted the help of Sr. Quijano for Medinah in the legal battles of which you are aware. The Alto de Lepangue and Las Dos Marias properties were under contract to a junior public company who had defaulted several times on their payments to Sr. Quijano. We have seen the reports of their geologists who did very little work on the properties, probably because money was not available. Sr. Quijano was hesistant to do another deal with a junior public company on these two properties because of his disappointment with the prior group. As he got to know Medinah via other people, through his involvement in the legal procedings against Dayton, and became aware of Medinah's commitment and expenditures to the Andacollo project, he gained a level of confidence. He then and only then offered to Medinah the opportunity to pick up the two groups of claims that had been defaulted on.
These did not include the Lobo(Lampa Mine) group, which were contracted to a different Company and were not available for consideration by Medinah.
By the time the optionees dropped the Lobo property and it became available again for acquisition, Medinah had expended a lot of money on its projects. The Carin placer bulk sampling program, drifting the tunnel into the Catan vein, exploration on the Alto property, hiring engineers and geologist to evaluate the properties and recommend work programs, legal proceedings against Dayton and expenses in Andacollo, etc, etc are all programs and expenditures that have all been reported to you.
The Lobo property was not "obviously available" and, even if it was, it is highly doubtful that Medinah could have even considered the expenditure. Most individuals can understand a cash limitation. It is our understanding that the purchase price exceeded five million dollars plus exploration and development costs. [5.55 million shares of R-144 CDCH stock]
The prospects for the Lobo property were not that obvious. Ask yourself why the previous owners dropped the project. They did not find the potential of the property because Medinah had not yet paved the by discovering Alto de Lepangue. A lot of credit is due to our people. This was a far more difficult discovery than you have recognized. Greg Liller said that the breccia expression was so subtle that he would have "walked away without doing further exploration and my hat is off to Gordon". It took an astute professional with much experience, like Gordon House to recognize the potential and our hats are off to him. Furthermore, Greg Liller did not see a breccia on the Lobo, he only stated that these breccias can occur in clusters and that we should be aware of that and look for them. Rober Cinits of Howe Chile, has not yet seen a breeca on the Lobo either, only a smiliar weak surface expression. Maybe it is a breccia buy maybe not, that is the risk that the Lobo people will now be face with. By the way, for the record, Sr. Quijano has other properties of merit that Medinah does not own. We will be investigating some of those, which may still be available in the future for possible acquisition.
Sr Quijano has, over 15 years, expended substantial funds on the Alto Lepangue, Dos Marias and Lobo Solitario and other properties and has accumulated valuable information and compiled many reports. That information was available to CDCH for the Lobo property. Gordon House did not work for CDCH, as has nver done a filed survey of the Lobo property. It is not an issue that another Geologist is doing their work. CDCH, according to news releases has hired its own team of professionals and is proceeding on that basis.
Whether or not Gordon has invested in shares of CDCH is unknown to management and of no concern to Medinah. As you are all aware Gordon is an independent geologist and over the years has worked for numerous companies. Medinah is fortunate to have been able to utilize his services in Chile.
Finally, if a major discovery on the Lobo property is made it will be of great significane to Medinah. The potential size of this intrusive deposit will have been expanded by huge degrees of magnitude and that will do nothing but bode well for all of us. Conversely, Medinah HAS made an important discovery at Alto de Lepangue and it is conceivable that CDCH may as well, however, they are risking their capital to develop the property and test this surface expression.
We can go broke by bitting of more expense commitments that we can reasonably handle but never by benefiting from the good news of neighboring projects that further enhance and confirm our own findings. We wish them luck. Some of this benefit has already been demonstrated by the sharing of new road construction costs at a considerable savings to Medinah's treasure.
On behalf of the Board of Directors, Larry Regis, President"
Thanks for the response-Larry! I will entertain any questions you may have concerning the Lampa claims and related issues. Cheers. |
