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Gold/Mining/Energy : Medinah Mining Inc. (MDHM)

MDMN 0.000001000

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Jun 3 1:07 PM EST

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To: Handshake™ who wrote (7522)	12/7/1998 2:21:00 PM
From: Mike Gold	Read Replies (2) of 25548

Las Dos Marias-Conclusions and Recommendations: (Part 2) The shear hosted gold/sulphide deposit on the West side of the creek are thought to be related to the granodiorite dyke which was intruded along an original shear or fault zone and deposited suphides on shear planes and as veins within the intruded and altered andesites. The intersection of the shear zone and the granodiorite dydke is not exposed on surface, it may have been intersected in the underground workings and it is thought likely that this intersection hosts an intrusive granodiorite carrying disseminated sulphides. The old working appears to have reached this zone of mineralization, float of altered pyritic intrusive observed on one of the dumps, and the large amount of arsenopyrite/arsenical pyrite in the tailings. That these sulphide rich tailings contained entrained gold values of 5.39 grams/tonne indicates that there was free gold associated with the vein systems and disseminated sulphides at depth in the old workings. The IP/Resistivity surveys carried out over the property have confirmed the continuity of the sulphide rich siliceous tuffs, and also showed the manto deposits continuing to the depth of penetration of the IP 100 meter dipole-dipole setup. There are several interesting targets indicated by the survey on Lines and Line 5 around Station 600 which warrant further investigation with at least three diamond drill holes. The IP/Resistivity survey over the shear zone on the West size has shown the zone to be booth continuous and mineralized at depth. The iintersection of the shear zone with the granodirite dyke is thought o occur between Line 5 and Line 6 near Station 450. There are interesting anomalies in both IP Phase and Resistivity on thse Lines between Stations 400 and 500 which certainly warrant further investigation by three or four diamond drill holes. We recommend diamond drill programs to test the IP/Resistivity anomalies outlines on the manto deposit and on the shear hosted gold deposit especially at the interseciton of the shear and the granodirite dyke. The manto deposit should be tested with at least three drill holes in the ara around Station 600 on Lines 4 and 5 and drilled to a depth of at least 200 meters to ensure that all the manto horizons are intersected. The shear hosted gold deposit should be tested with two drill holes adjacent to Station 300 on Line 4. This will determine the tenor of the mineralization mined by the old workers and find out if the granodiorite dyke occurs to depth at this point. The drill holes should be drilled to at least 150 meters depth. The intersection of the shear zone and the granodirite dyke should be tested with at least three drill holes to a minimum depth of 200 meters around Stations 400 to 500 between Lines 5 and 6. (House goes on to estimate cost for the drill program for Las Dos Marias-about $300,000 for eveything including fixing the road.)

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