Las dos Marias Project
Management is pleased to announce that the confirmed funding of a Joint Venture Agreement with a Chilean company, LDM (Chile), has been concluded to immediately commence underground development of the claims at the Las dos Marias property. The monetary commitment to fund the program has been placed into escrow by the investors to the benefit of Medinah Minerals (Chile) S.A. Medinah Minerals, Inc. (USA) will share in a 50% ownership holding of Minerals (Chile) S.A. interest in the project.
Negotiations have been ongoing with various parties over the past several months to find suitable partners to begin work on the high-grade gold zones at the Las dos Marias property. The Las dos Marias property has been removed from the other Altos de Lipangue claims groups and will now be a standalone project. The Las dos Marias claim is a property that will be brought into production phase in the next few months.
The Las dos Marias claim embodies a small portion of the total Altos de Lipangue plateau, but is consistent in its mineralogy with the adjoining Altos de Lipangue group of claims. It is anticipated that as work progresses, the determined gold ore zones exposed by the drill results in earlier exploration programs will flow into similar structures within the other Altos de Lipangue holdings. Aside from the known copper/gold breccia zones and drill indicated porphyry deposits exposed during the previous drilling program at the Altos de Lipangue, additional gold–bearing quartz vein structures were uncovered that produced high–grade metals capture within the core. These structures will be further evaluated and developed as their relationships to the high-grade Las dos Marias zones are defined. The results of the work to be undertaken at Las dos Marias claim will hopefully enhance the larger, and much anticipated, Altos de Lipangue project. The work will provide valuable geological information pertaining to similar structures existing throughout the Altos de Lipangue plateau. The potential significance of information gained through this mining program at the Las dos Marias claim is considered by Management to be geologically significant and representative of the gold-bearing structures contained within the Altos de Lipangue properties.
Of note, earlier diamond drilling programs at, and in proximity to, the Las dos Marias claim were conducted to explore potential gold-bearing structures that were indicated by the occurrences of shear zones containing massive arseno pyrite and visible gold in quartz. All of the work done was interpreted, reviewed and confirmed by A.C.A.Howe International under the guidance of Robert Cinits, P.Geo.
The specific assays of DDH99-02 conducted at the Las dos Marias claim returned values of 91.99 grams of gold per tonne over a width of 2 meters. A quarter–core repeat sample by A.C.A. Howe International of an interval between 69 and 70 meters depth returned a spectacular 455.02 grams per tonne of gold.
The Funding Agreement Company, LDM (Chile), has entered into an Option Agreement with Medinah Minerals (Chile) S.A. to purchase a maximum of 25% ownership interest in the Las dos Marias property. The Agreement calls for an investment of USD $1,000,000 (one million dollars) total with an initial investment of USD $300,000 (three hundred thousand dollars) to begin the first phase of work drifting a tunnel into the ore zone and creating a ventilation shaft for worker safety. The initial investment of USD $300,000 (three hundred thousand dollars) has been paid to Medinah Minerals (Chile) S.A. The LDM (Chile) funding partners have earned a 10% ownership interest and can obtain an additional 15% upon payment of the remaining commitment of US $700,000 (seven hundred thousand dollars).