After much debate and clarification it appears the company is NOW on the same page as those running the Pumillahue.
medinah-minerals.com
Dear Medinah Shareholders:
On June 1, 2009, Medinah Minerals, Inc., in Santiago, Chile became the legal owner of 5 shares (being 5% percent) of the total issued shares of the private company, Minera Pumillahue formed to develop a placer operation in southern Chile. This legal documentation was registered and subscribed with the “El Conservador de Minas” on June 8, 2009, FS.613, NO 699, and 2009 (document attached with Notary verification).
The Minera Pumillahue project is currently undergoing its initial phase production of its determined placer reserves with staged plans for increasing this to full production in 2010.
Placer operations differ markedly from operations in hard rock. Most notably hard rock mining requires generally a complete definition of the ore body to be mined. This is accomplished by extensive outline drilling and then infill drilling of the outlined ore deposit. This determines grade, mineralogy, and precise extraction requirements. All this and more must be completed in order to set up production operations and refining and/or concentration requirements – i.e., Alto de Lipangue.
A placer operation is generally tested through bulk sampling and continuity testing of the known “pay zones” in the gravels. Test pits, drilling, adits and tunnels are driven into the pay zones to test the extent and grade of the gold bearing gravels. Total mineralogy is not as important in a placer operation as it is in hard rock mining. In placer works, separation of the gold from the gravels, grams of gold per cubic meter and the method and percentage of recovery of gold are the important factors.
Placer operations generally go into production once a decision has been made that the operation is economically viable. They do not necessarily know the total extent of the deposit in advance. As production commences, a one-shift crew will process the known pay gravels and, if the operation is deemed large enough, a second crew, independent from the production crew, will continue to test pits, drive adits and, in general, continue to develop additional known reserves of pay gravels.
In the case of the Minera Pumillahue, the latter is what is occurring. The Company has established that the deposit is viable, and they have established sufficient material in the known pay zones to commence production. Crew are concurrently proving up and developing additional reserves by driving more adits and conducting further testing. When the continuing developmental work has reached reasonable reserve calculations of cubic yardage of pay gravels, increased production phases will be commenced in phased sequences.
As developmental/production stages are attained the information results with be reported to the Medinah Minerals, Inc. shareholder body. |
