MEDINAH MINERALS Question & Answers
September 23, 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: Several years ago Gordon House with the aid of several other geologists/engineers did a resource approximation for the top part of the Gordon pipe that had been drilled out at the time. These numbers were made available at a prior annual general meeting if I'm not mistaken. Do you have these numbers and the approximate in the ground value based on today's metals prices? Would it be possible to post these numbers on the website? Would it not make sense to do some step out drilling to expand these resources since the core drilling is already done? Are the numbers anywhere close to being in the "proven reserve" category?
A: In 2003, after completing several diamond drilling programs (18 holes on 50-meter spacings) on the Lipangue breccia project, Gordon House, M.S., P.Geo, in consultation with several other professionals, prepared a preliminary resource estimate of tonnage and mineral content contained within the breccia pipe from surface (2,000 meters) to the 1,700 meter elevation. The Diamond Drilling has not tested any horizon deeper than the 1,700 meter level to date.
Gordon House’s calculated estimates were:
1. 32,928,214 tonnes of ore
2. 722,000 ounces of gold
3. 6,500,000 ounces of silver
4. 180,000,000 pounds of copper
The present in-ground values of these resources, at current prices, exceed $1.3 billion. The yet to be determined additional monetary value(s) require further drilling and exploration activity by a major mining entity.
Various surveys and examinations indicate the breccia continues to plunge East and Southeast, open in these directions and to depth. At least two other areas have been identified on the properties with similar surface characteristics as the breccia pipe and these deserve further evaluation.
From a geologic point of view, findings of significance were at the bottom of holes #15 and #18 wherein metamorphic rock intensely altered with sericitic alteration indicated a close proximity to a massive heat source that the satellite surveys indicate could possibly be a twin porphyry system.
Noteworthy is that there was no contribution assessment from molybdenum in this resource calculation as the molybdenum tends to concentrate near the 1,000 to 1,200 meter elevation level at the Lipangue property complex near our recently acquired, two former, past-producing copper/moly mines that are major targets for the next program of drilling.
The recommendation for further drilling is contained in the long-standing, various A.C.A. Howe International reports as published on the website.
Q: What is the role of Les Price with Medinah Minerals?, how is he paid for his services?
A: Mr. Price resigned as CEO of Medinah Minerals, Inc. in September 2008, at which time all administrative and office functions were transferred to Las Vegas, Nevada. Mr. Price does not serve in any capacity for Medinah Minerals, Inc. and therefore, he is not paid for any services.
Mr. Price remains a devoted Medinah Minerals, Inc. shareholder and significant creditor.
Mr. Price monitors land developments in Chile for numerous Chilean companies.
Q: Currently are the figures still the same in the deal that is being done? (150 mil euros, 15% retained interest). YES
This was asked on the August 8, 2008 Q&A and currently on the website. Is this still true today, some 13 months later?
A: No changes.
