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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: KMT who wrote (11742)	4/28/1999 2:33:00 AM
From: J.D. Elliott	Read Replies (1) \| Respond to of 25548

What will drive the price up the fastest.......the shorts or the gold Al said about 15Mil float....you guys est 50Mil short. How do you cover 50 with 15?

To: KMT who wrote (11742)	4/28/1999 7:31:00 AM
From: Mike Gold	Read Replies (2) \| Respond to of 25548

CLOSER LOOK AT THE DRILL RESULTS-PLEASE READ. Since Lipangue is a polymetallic deposit-in order to compare to other gold mines-it is necessary to convert to “gold equivalents”.-ie on a cost basis-coverting copper and silver to an equivalent amount of gold. Assume the following: $285/oz gold, $5.25/oz silver, $0.75/pound Copper. Using these numbers and prorating the interval length you get the following: DDH99-03 485 feet of 1.54 grams/ton Gold Equivalent DDH99-05 610 feet of 0.82 grams/ton Gold Equivalent DDH99-06 548 feet of 1.45 grams/ton Gold Equivalent This gives you an average of 1.3 grams/ton Gold Equivalent or $13/ton at current market conditions. Now we can compare to other gold mines associated with porphyrys in Chile: Refugio 0.96 grams/ton Marte 1.45 grams/ton Lobo 1.6 grams/ton Valy 0.4 grams/ton Escondidio 0.3 grams/ton Aldebaran 0.6 grams/ton La Pepa 1.3 grams/ton Amalia 0.5 grams/ton Santa Cecilia 0.3 grams/ton Dayton .7 grams/ton Ertsberg Distrist-Grasberg Indonesia: 1.2 grams/ton Gold + 1.1% Copper As you can see-Lipangue seems to follow pretty much in line with other gold porphyrys that have been discovered in Chile. However, the unusually thick intercepts at Lipangue make it especially attractive. Furthermore, the location of Lipangue which is within easy commuting distance of Santiago means that it would easy to setup a mining infrastructure-ie no need to construct housing for the miners etc. Compare this to most of the mines being very high up in the Andes. When Dayton was built, they had to relocate the entire town of Andicollo! The key now is the tonnage of ore. The gold porphyrys(excluding Ertsberg) contain on the order of a few hundred million tons of ore. Copper porphyrys can contain several billion tons of ore. If Lipangue is a hybrid as I suspect and actually contains say 2 billion tons of ore-that would work out to 91 million ozs of gold equivalents! Since we have only a few holes to go by so far and that only the breccia zone has been drilled-we have a long way to go before we can make realistic calculations. Keep in mind that minerlization in breccia zones tends to be extremely variable. Often, the porphyry itself will contain higher grade ore than the breccia portion so, in fact, Lipangue's numbers could be higher. On the other hand, a small drop in the ore concentration or further drop in commodites prices could kill the economic viability of Lipangue. You always stand on a razor blade with large low-grade bulk deposits....