Medinah Energy Makes Announcement- January 14, 1998 09:45
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LAKE ELSINORE, Calif.--(BUSINESS WIRE)--Jan. 14, 1998--
Highlights
-- Medinah is negotiating the acquisition of additional gold properties in Chile.
-- Mineral reserves estimated to exceed 100,000,000 cubic meters (130,800,000 cubic yards).
-- Historic gold zone produced recoveries of 1.5 to 2.9 grams gold per cubic meter (2.0 to 3.8 grams gold per cubic yard).
-- Anticipated production cash cost estimated at less than US $120.00 per ounce.
Medinah Energy Inc. has entered into negotiations to acquire two additional gold properties in Chile.
The property names and locations will be released after the completion of the acquisitions.
Historical information, dating back to the year 1742, indicates it to be some of the richest grounds in Chile. One period of production processed 300,000 cubic meters (392,000 cubic yards) of material with an average recovery of 0.6 grams of gold per cubic meter (0.03 ounces gold per cubic yard). Testing by the property owner in 1996, using a retro-excavator, achieved a greater penetration into the pay zone. A descent of 21.8 meters (24 yards) into the gold zone produced recoveries of 1.5 to 2.9 grams of gold per cubic meter (2.0 to 3.8 grams per cubic yard).
The mineral reserves are expected to exceed 100,000,000 cubic meters (130,800,000 cubic yards). The gold zones on the first property are composed mainly of alluvial glacial deposits with yield zones 60 meters thick and 350 meters wide (66 yards x 385 yards). The strike length of this deposit is 10 kilometers (six miles). The second property has a yield zone of 10 meters thick, 120 meters wide (11 yards x 132 yards) and a strike length of 10 kilometers (six miles). The company engineer, Paul Jones P.Eng., reports that these types of alluvial deposits are ideal for the mill facility that the company has purchased and shipped to Chile. After recent property examination, Jones made a strong recommendation to proceed with the construction of a bulk testing facility to verify grades and recovery. The engineer suggested "that the properties deserve management's intense scrutiny as they were former producers of significant amounts of gold and embrace tremendous potential for expansion through unexplored, virgin ground." Based upon these recommendations and the property's history, Jones has been instructed to proceed with mill setup and testing. The cost of gold production is expected to be less than US $120.00 per ounce, all inclusive. Test production results and full production dates will be announced as soon as the information is available. Management is committed to expanding the company interests in production opportunities. With the completion of the aforementioned acquisitions, Medinah Energy Inc. will be in the positive position of becoming a major low cost gold producer in Chile. Medinah Energy Inc. is a mining exploration company quoted on the OTC Bulletin Board (MDIN) with 39,130,334 million shares outstanding. The company will meet full reporting requirements.
On behalf of the board of directors Per: Larry Regis, president
CONTACT: Medinah Energy, Lake Elsinore
Investor Relations, 1-888/572-0170
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