Are you also saying this PR is false ? ************Wednesday July 8, 1:04 pm Eastern Time
Company Press Release
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
Note: This news release may contain certain ''forward-looking
statements'' within the meaning of the United States Securities Exchange
Act of 1934, as amended. All statements, other than statements of
historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and reserves,
exploration results, and future plans and objectives of Medinah Energy
Inc., are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate, and actual results and future could differ materially
from those anticipate in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations are disclosed under the heading ''Risk Factors'' and
elsewhere in documents filed from time to time with the United States
Securities and Exchange Commission and other regulatory authorities.
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Contact:
Medinah Energy Inc.
Investor Relations
1-888-572-0170
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