MEDINAH MINERALS Question & Answers
August 17, 2009
Question & Answer postings are compiled from time to time, as an information source as to company actions and/or activities. Q&A posts will continue in the post-Joint Venture Agreement phase concerning Company activities, to provide ongoing information for the benefit of Medinah Minerals shareholders.
Q: The last Shareholder update stated the following in regards to the new POLO claims,“..they will be preparing a detailed report of the property that will be published on the Medinah Minerals, Inc. website”. Can you please be more specific on when you expect this report to be completed and published? Who is the land vendor? Who owns the other 85% of the property? What is the predominate form of mineralization on the property? i.e. porphyry, skarn, mantos, veins etc. Who is paying for the current work program? Do we have a free carried interest on these claims at the present time? The Shareholder Update referenced the claim block as being close to the town of Santa Cruel. There is no such town in Chile. What is the correct town name? Can you please provide more details on the geologic crew that is doing the exploring? i.e. specific name of firm, size/scope of effort. Did we have to pay anything for the POLO claims? If so, how much did we pay? It is simply an option? Is there a possibility that our percent ownership will be increased? Do the POLO claims represent a significant new undertaking for Medinah?.
A: There is some minor snow on the slopes of the Andes that, at present, makes access difficult. As soon as the weather improves, the geologists will attend and prepare their report for publication. When received, we will post the results on the Company website.
The family company of Juan José Quijano purchased the property and retains the 85% ownership and is paying for all past and current work programs.
The property is located in the “comuna de Santa Bárbara, VIII Región de Bio Bío”, 600 kms to the south of Santiago (coordinates UTM Norte 5.816,500,00 metros y UTM Este 273,500,000 metros).
The claims represent a new opportunity to participate in a potentially valuable asset at “no cost” to Medinah with the possibility of a future purchase of an increased ownership.
Q: Recently, Sr. Quijano reacquired all of the Madre De Dios claims from Global Gold Corporation. Going forward, does any of Juan’s plans to develop these claims involved Medinah Minerals or Medinah Gold? Medinah Minerals has a 5% interest in the Pumillahue Company. Is it contemplated that our percent ownership in that project will be increased?
A: Medinah Minerals, Inc. no longer has any interest in the Global Gold properties and it is not anticipated that Medinah will have the ability to increase its interest in the Pumillahue Company. Medinah Gold is not a participant in the Pumillahue project. Of note, the dividend shareholders in Medinah Gold have long hoped for activity. Once the Medinah Minerals, Inc. JVA is finalized, a directed and concerted effort will be launched to bring value to the Medinah Gold shareholders.
Q: In a recent Q&A, the following was stated regarding the new Pumillahue gold plant: “The majority of the exploration to outline the reserves and grades has now been completed. The results to date indicate a substantially higher grade of gold than one usually encounters in a typical placer operation. It is anticipated that the plant will commence production in October, initially on an 8-hour schedule, at a rate of 150 cu yds/hour and, subsequently, add a second shift. Once in production, Medinah Minerals, Inc.’s 5% holdings should result in a very positive cash-flowing situation.” What is the expected range of gold grades per cubic yard that will be processed? What is the expected range of gold recovery? Any success yet in recovering the “gold fines”? It seems apparent that with gold reserves mostly outlined and batch testing that is occurring at the plant; that this information would be available. Without this information, it makes it very difficult if not impossible for investors to gauge the potential significance of this operation to Medinah’s bottom line.
A: On July 30, 2009’s Q&A, it was stated, “further details will be forthcoming upon completion of reserve calculations.” These are not yet available, but should be forthcoming in the very near future. The details will be presented on the Company website when received.
Q: Medinah & Cerro Dorado has stated previously that some of the largest mining companies in the world were among those interested in doing a JV with Medinah. Is that still the case? On July 11, 2007-the following was stated by Medinah’s sister company, Cerro Dorado: “We can state that five or six consortiums or partnerships consisting in the aggregate of twelve (12) major mining companies, some of the world’s largest, are actively in negotiations with Mr. Quijano.” As of today, how many major mining companies is Juan still actively dealing with regarding a JV for the Alto De Lipangue?
A: Cerro Dorado, Inc. is not Medinah’s sister company, but an owner of mineral claims adjacent to Medinah’s property holding at Alto de Lipangue. As to statements issued by Cerro Dorado, we cannot speak for them, but we will validate that Señor Quijano is, and continues to negotiate with several major mining conglomerates.
Q: Do you have viable alternative options if you don’t conclude a deal with the primary group that you have spent much of this last year meeting with? If you do have viable alternative options, given the amount of time that has elapsed without a concluded agreement, why haven’t you gone with a different group instead?
A: Viable alternative options have always been available and Management continues to work with them on a regular basis. Various economic and strategic issues must be evaluated at every turn to finalize the most optimum venture opportunity for Medinah.
Q: During my last conversation with Jim Stock, he indicated that the next quarterly financial statements would be out by the end of July. What is that status of that?
A: Done and posted on Medinah’s website and Pink Sheets as of August 11th.
Q: For awhile, Medinah put out Q&A’s on a regular basis. For some reason, this useful means of frequent shareholder communication has become used less and less. Could you please return to putting out frequent Q&A’s? Also, in the Q&A, it would be helpful to state a no later than a specific date that the next round of questions will be answered. Please consider doing this the next time around.
A: The submission of questions from shareholders ceased or became so repetitive that it was deemed to be of little interest to shareholders. Additionally, numerous shareholders felt that the Q & A’s were redundant and had little value. It appears that this viewpoint is in the minority, thus, we will post Q & A’s on at least a “once-a-month” time frame.
Q: Does the total issued shares include those which are obligated via option agreements? If not, what is the total number of shares obligated via option agreements?
A: No. The total shares obligated under any Company option are 1,000,000 shares.
Q: Some shareholders say, management and the board of directors have been funding the company out of their own pockets. Is this accurate? If so, is this an interest free loan? Is management charging a nominal interest rate for the funds? Are they getting restricted shares for the funds? What are the terms?
A: Yes. A Directors Resolution passed in 2004 calls for simple interest to be paid at 10% per annum at time of repayment. There is no option to receive shares for these funds and there are no specific repayment terms. All current operating expenses are being paid directly by the Board of Directors.
