HISTORY OF MDIN:
In case everyone has not seen this yet:
PRESIDENT'S REPORT TO SHAREHOLDERS
October 19, 1998
Dear Medinah Shareholder:
In August of 1997, Medinah acquired from Frontier International Resources, mining claims in Andocolia, Chile. Properties with great potential, but in the early exploration and development stage.
A.C. Howe International was then contracted to determine the feasibility of continued exploration and development. The final report recommended an aggressive program at an initial cost of $1.3 million.
In April 1998, Medinah expanded its Chilean holdings by acquiring an 80% interest in the Santiago- Lipangue area owned by Juan Jose Quijano Fernandez for a contractual $24 million. The acquisition added 1773 claims to the Medinah asset base. The claims represented both hard rock and placer deposits.
The combined Andocolla and Santiago properties provided Medinah with an initial estimated $40 million in gold reserves. The Company objective has been to determine the most productive and economically feasible areas in which to begin production.
Financing has been a challenge in the volatile markets of today, hampered by world market crisis, cost of gold and mining scandals. Several key factors were completed in 1998:
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A private London investment firm provided private financing in the amount of $500,000, with further financing available.
Additional private financing was completed, in various stages, to continue exploration, and further financing is contemplated to implement drilling and mining programs.
Class A, non-voting convertible shares were issued to Frontier International Resources and NP Energy in exchange for their Chilean working percentages and their previous issue 144 common shares.
The above transaction resulted in reducing Medinah*s outstanding common shares from 54,000,000 to 29,000,000.
Clouding of Medinah*s rights of ownership of certain properties in Chile and destruction of Medinah property in Chile resulted in Medinah filing law suits in Chile, Canada and the United States against Dayton Mining of Canada and its US subsidiary. All suits are presently in the judicial systems of those respected countries.
Our most recent activity is in the drilling and exploration of the acquired Santiago Lipangue and Carin properties. The project, under the direction of Gordon House, is mapping a major breccia zone identified by Gordon House and sampling and testing the placer deposits. An estimated 100 million cubic meters of alluvial deposits, with an average of 0.6 grams per meter, with an estimated mining cost of $120 per ounce of gold has been identified in the
Lipangue-Carin claims. Proving the deposits and determining mining
approaches is now in progress. With the completion of the mapping, IP program and drilling, Medinah will be in a position to provide a financeable mining package. A recent article in Market Place made the following statement-. "With two potential world-class properties in Andocolla and the Santiago, Medinah is in the enviable position to break out of their junior exploration status." |
