Shareholder Update
Madre de Dios – Medinah Minerals, Inc.
Receives 30% Ownership Interest in the Madre de Dios gold placer properties
February 1, 2014
Madre de Dios – Medinah Minerals, Inc.
Receives 30% Ownership Interest in the Madre de Dios gold placer properties
February 1, 2014
Dear Medinah Minerals, Inc. Shareholders:
Medinah Minerals, Inc. is very pleased to announce the receipt, without remuneration to the property owners (see the attached documents), of a 30% ownership interest in the Madre de Dios group of gold-bearing placer claims in the southern coastal area of Chile. These claims are located in the Province of Valdivia, which is approximately 700 kilometers southwest of the capital city of Santiago.
Senor Juan José Quijano Fernández and his family have been the owners of these claims for many years. They have gratuitously decided to contribute a 30% ownership interest in the 8,000+ hectares of placer claims to benefit of Medinah Minerals, Inc. as a token of appreciation to Medinah’s management team for their years of work on the Altos de Lipangue and Las Dos Marias mining projects. This notarized 30% ownership interest in the Madre de Dios mining claims extend over a 30 square mile area of prime gold-bearing placer deposits. These properties are easily accessible by road. Necessary infrastructure requirements including water, electricity, communications and construction equipment are also available, both locally and on site.
This area is replete with both present placer beds and buried placer deposits that are contained in dry, ancient river beds which, as a result of previous glacier and other geologic activity, are often located 5 to 50 meters above current placer deposits. Historical and current production data and geology reports in and around this area corroborate the belief by many that the placer gold deposits at the Madre de Dios claims are potentially very viable. Various samples from the buried placer deposits indicate potential recoveries of gold ranging from 2 to 100 grams per cubic meter (approximately 1.5 tonnes of earth/cubic meter) from the blue clay/gravel material. The terraced placer bed deposits near the Madre de Dios area have produced from .5 to 50 grams of gold per cubic meter.
Much of the gold in the Madre de Dios claims area is found in underlying surface areas of the bedrock; it is primarily small flake and nugget size and is often concentrated with quartz material. Gold nuggets have been found near the area which weighed hundreds of grams (approximately 31 grams per ounce). This pay zone varies between 2 to 50 meters in width and up to 50 meters deep. The depth of current placer beds is often up to 10 meters deep. A considerable amount of the gold in the Madre de Dios mining claims area is deemed to be recoverable.
Production recoveries of gold from placer style operations can be increased by installing a conventional crushing and screening circuit system prior to the recovery circuit. The majority of the free-milling gold is then released as it passes through sluicing systems which trap the majority of the coursing gold. Additionally, the installation and use of recovery equipment such as shaker tables, and/or spiral systems should further enhance gold recoveries.
A report commissioned by Senor Quijano utilized a 50 lb. sample to demonstrate the advisability of using a crushing, classifying, concentrated circuit and then shipping the concentrates to a refinery for final refining. This report reconfirmed the potential recovery of significant amounts of high grade gold content of the material processed from the pay zones.
Senor Quijano has received, in writing, three different partnership and ownership production offers. Each of these prospective parties has indicated that they would like to commence operations as soon as possible. It is anticipated that a successful contract will be consummated during the next few weeks.
As exciting as the Madre de Dios news is, we are nonetheless continuing to focus our daily efforts on doing everything appropriately possible to finalize and consummate a quality deal with a major joint venture partner with respect to the 1573 Altos de Lipangue mining properties.
Madre de Dios 30% Ownership (Spanish)
Madre de Dios 30% Ownership (non-certified English)
Respectfully,
Dennis B. Tenney
CEO– Medinah Minerals, Inc.
