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Microcap & Penny Stocks : CDCH Cerro Dorado Inc.

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To: john who wrote (753)9/7/1999 1:11:00 PM
From: javajakeRead Replies (1) of 958
 
john - sorry to take so long to get back on this question. i think the medinah report is very encouraging for the Cerro property. my first impression is that the local geology (in the vicinity of the Cerro property) is very favorable.

the Medinah report specifically addresses the Fortuna Mine. the old mine on Cerro's property was stopped at what was ooriginally believed to be the final end point of the vein, but Howe offers an intriguing analysis, based on a newer understanding of the local geology derived from the Medinah characterization program:

"Old reports from
the Fortuna Mine state that the vein is cut off to the northwest by a "mafic unit", however Howe
believes that this may actually be an andesitic dike and although it was not confirmed by Howe, the
Fortuna vein may continue to the northwest onto Medinah?s ground, on the other side of the dike.
Several old pits and diggings occur on Medinah?s ground, several hundred metres northwest of the old
workings, but time did not permit Howe to visit these."

this means the the veins could continue on the other side of a dike - a cross-cutting unit that pushes through cracks in the host rock). Howe does note that this is purely theoretical, but they do think that the mineralization on Cerro's property is more widespread than originally believed.

tom
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