To All: MDIN
This is a penny stock that I hold a considerable position in. Since it's not the type of stock we normally want on this board I asked TJ if it would be okay to post this first. The reason I am posting is that drilling is about to commence on MDIN's Alto de Lipangue property in Chile. The drills should be turning no later than next week. Often times an exploration company's stock price will climb with the beginning of drilling (but not always). Drilling is evidence of their confidence in their property. So, this stock could be a short term trade on the drilling news, but the reason I own it is the potential value of their property. Exploration companies are very risky long term plays, but if their property proves up, they can be quite rewarding. If you're interested, I have provided more information below.
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Medinah Energy Corporation Trading on the OTC BB as MDIN
Medinah Energy Corporation is a non-reporting bulletin board company engaged in gold exploration currently in the process of proving up a number of it's properties in Chile, S.A. The stock is currently near its 52 week lows.
CAUTION: the following profiles Medinah Energy Corporation, an OTC BB stock that at this time is a non-reporting company. This is not a day trade.
Reasons NOT TO BUY this stock:
1) It is an OTC bulletin board stock.
2) It is currently non-reporting.
3) There are no meaningful earnings to date.
4) Shares are being issued to pay sub-contractors
5) There are no proven reserves at this time.
6) The company is in litigation with Dayton Mining over disputed property.
Reasons TO BUY this stock:
1) MDIN has been working on various projects across the country of Chile. At this particular time all of their work to prove up their properties is coming to completion. If the results are as suspected, the company will attract the attention of major gold producers, and MDIN's share price should move up significantly. In fact, according to their most recent press release, BEMA is already interested and reviewing MDIN's properties.
2) IP (Inverse Polarity) surveys have been completed on it's most promising properties by independent geologists, and there are highly favorable indications of large ore bearing deposits.
3) A diamond drilling program is about to commence, and the drilling contractor has been secured with shares in the company, i.e. the drilling contractor believes the results of the IP survey indicate rich ore.
4) MDIN is working to get a listing on a European exchange.
5) MDIN is working on its form 10 and has stated that they will become fully reporting in the next few weeks.
6) MDIN has a large inventory of properties so the success or failure of this company is not dependent on any single project.
Background and details:
MDIN has claims and contracts on several hundred gold and metal bearing properties in the country of Chile. Many of these properties show great promise. Independent geologist Gordon House has completed IP surveys (Inverse Polarization - geop.ubc.ca on two of MDIN's properties and these surveys indicate a high probability of metal bearing ore. Grab sampling and geologic study coupled with historic records and research indicate a high probability of large concentrations of gold bearing ore.
MDIN has contracted with SEDNA drilling to begin a diamond drill program for the Alto de Lipangue and Las Dos Marias properties near Santiago, these two properties being the subject of the IP survey. Diamond drilling produces in tact core samples which will be used to determine the underlying geology and assayed for their gold content.
This is the make or break moment for this project on these properties. If the assay results return the expected results, this should propel the price of MDIN shares upward as the majors rush in to partner or negotiate acquisition of MDIN's properties, or even MDIN itself.
Presently Alto de Lipangue appears to be the main ore body. The IP indicates its size at approximately 200 X 400 meters across and unlimited to depth. Resitivity surveys shows the ore body is likely composed of quartz-the best indicator for gold. A previous 37 meter drill core done at the site indicated that the ore body is a very rare polymetallic deposit composed of exceptionally high grade gold, silver, copper, molybdenum, zinc etc. Previous assay numbers indicate a high probability of an exceptional deposit.
Las Dos Marias also has great promise with 3 distinct ore deposits-i.e. shear zone, mantos(skarn), and porphyry styles of minerlization not to mention
previously mined placer and vein deposits all in one small valley. Two other nearby placer deposits that are owned by MDIN show outstanding potential. Production facilities at the placers are in place and production is expected to begin shortly.
Majors rely of small companies such as MDIN to do the risky exploration work, and when an exploration company comes across a major find, the majors rush in in an effort to acquire new properties to add to their inventories.
Homestake Mining was recently featured on CNBC and confirmed that this was indeed how they grow. Homestake also reported that during this slump period for the gold industry they were actively seeking to acquire junior gold companies who had the goods in order to add to Homestake's inventories for when gold demand picks up and the commodity prices increase.
At this time, MDIN stock is thought to be under very heavy shorting pressure by Canadian houses. It is believed that these shorters do not think that MDIN can accomplish their drill program for lack of capitalization. A share census conducted recently has estimated the short position to be on the order of 14 to 18 million shares. The drill program, however, has been contracted and paid for with shares of MDIN's stock. This stock is redeemable by the company at a favorable price when revenues begin to flow.
At this moment in time, MDIN is a penny stock without meaningful revenues. If what their studies indicate is true, MDIN is likely to become much, much more than a penny stock. They are in the process of becoming a fully-reporting company, and the most meaningful activity that an exploration company can engage in, e.g. diamond drilling, is about to commence.
Another aspect which may enhance MDIN's value is a litigation with Dayton Mining. MDIN has sued Dayton for infringement of it's Chilean holdings. Settlement of this lawsuit is imminent. If successful, it will greatly enhance MDIN's value and stature.
This is perhaps the riskiest time to invest in this kind of enterprise ergo, this moment holds the possibility of the greatest rewards. Should you decide to take a position, read the MDIN threads here at SI before you do, particularly the research thread and particular the first 3 posts.
REMEMBER this is risky business. Know what you are getting into if you choose to take a position. Risk only venture capital. It looks like MDIN is on the brink of major developments, but there are always delays. These gold exploration stocks do not trade like big board stocks. Remember the risks involved.
Medinah Energy Corporation - Trading symbol MDIN - OTC bulletin board
Company Profile
Medinah Energy Inc. is an emerging mining exploration company with their assets in the resource rich country of Chile. The Company has acquired a major interest in the historic gold mining district of Andacollo, Chile, in addition to a large group of very prospective claims just North of Santiago, Chile.
Contact Information
Telephone 909-245-9498
FAX 909-245-9438
148 South Main Street
Lake Elsinore, CA. 92530
Investor Relations:
Ralph Ulm: Al: 888-572-0170
Official Web Site:
medinahenergy.com
SI threads:
MDIN Research thread on SI:
Subject 22738
MDIN Discussion thread on SI:
Subject 16900
NEWS RELEASES:
December 11, 1998, Press Release
DIAMOND DRILLING TO COMMENCE
Lake Elsimore, CA, December 11, 1998 ... Medinah Energy, Inc. reports the following updates on the Company's gold and copper projects in Santiago, Chile.
Sedna Drilling to implement drilling program at Alto de Lipangue and Las Dos Marias:
Management has agreed to engage the services of Sedna Drilling to implement the recommendations of Mr. Gordon House, P.Geo., for the Alto de Lipangue and Las Dos Marias properties near Santiago, Chile. The diamond drill targets, identified by an IP survey, are a copper gold porphyry deposit, a large shear zone containing significant gold values, a manto deposit and an intrusive that may be a second porphyry. The first drill program is 2,700 meters of core on the Alto de Lipangue porphyry and the second entails 1,900 meters on Las Dos Marias. A large number of high-grade gold veins and abundant disseminated copper sulfides and massive sulfides led to the discovery of the associated intrusive deposits, mantos and shear zones.
Bema Gold to review project in January:
Bema Gold has expressed an interest in the Company's Santiago properties and has informed management that Bema will send a geologist to view the property in January, 1999.
Tunnel into first gold vein completed:
Workers have completed a 70-meter tunnel into the Catan Vein. This vein is one of an abundance of gold bearing quartz veins found throughout Medinah's Santiago properties. The Catan vein has been traced on surface for almost two kilometers in length and from one to five meters in width. The tunnel intersected the vein 1,000 feet below the surface outcroppings on the mountain. Assays from the Catan vein range from trace to 70 grams of gold per ton. At the point where the tunnel intersected the vein, a channel sample across 1.2 meters of vein assayed greater than 10.7 grams of gold per ton.
Professional mining group completes study of Medinah's placer gold project:
A consortium of placer mining professionals based in Russia has completed an independent appraisal of Medinah's Carin and Puangue placer grounds. They have determined that commercial gold values exist. Mr. Paul Jones, Mining Engineer for Medinah, determined commercial values during a separate test of this area in the spring of 1998. Medinah owns in excess of 12 kilometers of placer leases on these two rivers. Medinah has been asked to joint venture, sell or partner these placer grounds. Professor Juan Jose Quijano, is representing Medinah in the process of brokering an agreement with the consortium.
Shareholders are requested to register their stock with:
American Registrar & Transfer Company 705 - #10 Exchange Place P.O. Box 1798 Salt Lake City, UT 84110 U.S.A.
Ph: (801) 363-9065 Fax: (801) 363-9066
PRIOR RELEASES:
November 19,1998, Press Release Porphyry copper/gold deposits identified medinahenergy.com
September 15, 1998, Press Release Management update on legal proceedings medinahenergy.com
September 14, 1998, Press Release Medinah Energy announces initiation of advanced exploration program. noblehouseofboston.com
August 7, 1998 P.Geo identifies porphyry style copper/gold deposit. noblehouseofboston.com
August 4, 1998 Medinah Energy announces creation of Preferred Shares. noblehouseofboston.com
July 21, 1998 Medinah files lawsuit in Canada against Dayton. noblehouseofboston.com
July 19, 1998 Medinah Energy files Lawsuit against Dayton Mining in Nevada
July 16, 1998 Update on Andacollo, Chile, Properties
July 13, 1998 Medinah responds to Dayton Mining's News Release
July 8, 1998 Medinah announces new phase mine development
June 17, 1998 Medinah acquires more key ground in Andacollo
May 11,1998 Gold production to start in Chile.
April 9, 1998 Medinah completes acquisition of 1788 mineral claims in Chile.
April 8, 1998 Medinah completes acquisition of 234 Mineral claims in Chile.
March 24, 1998 Medinah Energy Expects that Full Scale Production is Imminent.
March 12, 1998 Medinah to bulk sample Santiago placer gold.
February 24, 1998 Medinah contracts services of Mr. Andrew Racz
February 4, 1998 Medinah to Acquire Financing
February 2, 1998 Mr. Paul Jones new Director of Medinah
January 14, 1998 Medinah to acquire two placer gold properties in Chile
December 17, 1997 Medinah to acquire more Chilean gold properties
October 22, 1997 A.C.A. Howe confirms Medinah gold values
October 6, 1997 Andacollo drill program started
September 18, 1997 Medinah uncovers more gold in Andacollo
August 29, 1997 Medinah engages Barry Kaplan Associates
August 26, 1997 Additional assay results from the Andacollo project
August 18, 1997 Medinah Energy Inc. receives shareholder approval for acquisition
August 12, 1997 Medinah acquires more ground in Andacollo, Chile
August 09, 1997 Medinah acquires majority interest in Chilean gold and copper projects
July 18, 1997 A.C.A. Howe International Ltd. commissioned to report on Mina Claudia
July 10, 1997 Mina Claudia geological update
June 30, 1997 Medinah acquires 20% of Mina Claudia, Chile |
