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The
following are selected excerpts from the February 12, 2001
Howe Chile Limitada report on the Alto de Lipangue Breccia
Property gold/copper/silver property. The complete
report is available for viewing at the corporate offices of
Medinah Minerals, Inc.
SUMMARY
GEOLOGICAL REPORT
ON THE
LIPANGUE BRECCIA PROPERTY
METROPOLITAN
REGION
CHILE
FOR
MEDINAH MINING INC.
Report
No. 0031
Howe Chile Limitada
(A.C.A Howe International Limited South American Office)
La Serena, Chile
Robert Cinits, P.Geo.
February
12, 2001
TABLE
OF CONTENTS
SUMMARY
1.0
INTRODUCTION
- General
- Terms
of Reference
- Scope,
Sources of Information, and Disclaimer
- Units
and Currency
2.0
LOCATION, ACCESS AND PROPERTY DESCRIPTION
2.1
Location and Access
2.2
Property Description and Current Status
3.0
GEOLOGICAL SETTING
4.0
HISTORY
4.1
Medinah Exploration Programs - Lipangue Property
4.1.1
Phase V Exploration Lipangue
5.0
PROPERTY GEOLOGY AND MINERALIZATION
5.1
Lipangue Property Geology
5.2
Lipangue Property Mineralization
5.3
Howe Verification Sampling
6.0
CONCLUSIONS AND RECOMMENDATIONS
6.1
Conclusions
6.2
Recommendations
7.0
PROPOSED BUDGET
SOURCES
OF INFORMATION
CERTIFICATE
LIST
OF FIGURES
1.1
Map of Chile
2.1 Property Location Map.
2.2 Land Tenure
4.1 Lipangue Property Geology
and Drill Holes
5.1 General Geology of the Santiago
Area
5.2 Geology of the Lipangue Property
5.3 Lipangue Property Section
Line E
5.4 Lipangue Property Section
Line E + 50
5.5 Lipangue Property Section
Line EF
6.1 Lipangue Breccia Level
Plans
6.2 Lipangue Proposed Drilling
LIST
OF TABLES
2.1
Lipangue Claims
4.1 Lipangue Diamond Drill Holes Third Drilling Program
(2000)
4.2 Lipangue Property General Range of Gold, Silver
and Copper Values
4.3 Lipangue Property Significant Diamond Drilling
Analytical Results
5.1 Lipangue Property Summary of Howe Assay Results
(2000 Site Visit)
SUMMARY
At
the request of Mr. Gregory Chapin, President of Medinah Mining
Inc. ("Medinah"), a public New York company (NASDAQ
OTC) with offices located at 148 South Main Street,
Lake Elsinore, CA, 92530, U.S.A, Howe Chile Limitada ("Howe"),
was retained to review the recent phase of drilling completed
between September 1st and November 30, 2000 over
the Lipangue Gold-Copper-Silver Breccia Property. The property
is located within the Metropolitan Region of Chile, approximately
30 kilometres northwest of Santiago.
Howe
was retained by Medinah on October 19, 2000 with the terms
of reference for this assignment consisting of a summary of
the results of the most recent phase of drilling over the
Lipangue Property. This report appends the previously completed
qualifying geological report ("Geological Report on the
Lipangue and Dos Marias Gold-Copper Properties", Robert
Cinits, Howe Chile Limitada Report #0029, June 19, 2000) which
complies with Canadian reporting guidelines as set out in
National Instrument 43-101, covering the mineral potential
of the Lipangue and Las Dos Marias Properties. Since no further
exploration has been completed over the Dos Marias Property,
this newest report only covers the most recent drilling phase
of exploration completed over the Lipangue Property and the
new land tenure status. It is Howes understanding that
this report is required by Medinah in support of a financing
with the NASDAQ-OTC Stock Exchange.
The
Lipangue Property consists of 12 individual mining claims
("mensuras") which together cover an area of approximately
2,163 hectares. All of the claims are currently held 100%
by Medinah, through their wholly owned Chilean subsidiary
Medinah Mining Chile ("Medinah Chile"). The
two original claims of the property have been bought outright
by Medinah through a purchase agreement which became effective
on April 23, 1999, and three additional claims were staked
by Juan Jose Quijano, on behalf of Medinah. The remaining
seven claims have recently been acquired by Medinah in an
option to purchase agreement.
The
project area is located in central Chile, approximately 30
kilometres northwest of Santiago in the coast range mountains
at an elevation of approximately 2,000 metres. The property
can be easily reached from Santiago along a paved highway
to the town of Lampa and then along approximately 13 kilometres
of 4 wheel drive roads which climb to an elevation of about
2,000 metres to the Altos de Lipangue plateau. The Lipangue
property covers the majority of the plateau. Dirt roads pass
through the middle of both property areas, and from here most
other parts of the property can be reached in a truck or by
foot along dirt roads and trails.
The
nearest city with any reasonable infrastructure is Santiago,
however the most basic exploration supplies can be purchased
in Lampa, approximately 1 hour driving time from the property.
Deep water ports exist in the cities of Valparaiso and San
Antonio on the Pacific coast, approximately 65 and 70 kilometres
direct distance northwest, and southwest of the property,
respectively. Electrical power, sufficient only for local
town use, and telephone services currently exist in the town
of Lampa, however a major power grid runs just west of Lampa.
Telephone service in Chile is excellent, most of it being
connected to a fibre optic network while the cellular network
covers most major cities and has reception from the Lipangue
Property.
The
Lipangue Property is located on the "Altos de Lipangue"
which is a relatively flat, northeast elongate plateau covering
an area approximately four kilometres long and one to two
kilometres wide. The plateau, and its eastern and western
flanks are underlain by a volcanic sequence, intercalated
with continental and marine sediments which are intruded by
Upper Cretaceous aged granitic rocks of the central batholith.
The area surrounding the properties is host to several diverse
types of metallic mineralization such as vein, stratiform,
stockwork/breccia, skarn, and shear zone hosted copper/gold/silver
mineralization which occur in a variety of geological environments.
The
Property area is underlain by a generally north striking,
east dipping volcano-sedimentary sequence of rocks which corresponds
with the Ocoa and Purehue Members of the Veta Negro Formation,
and which, to the east, is intruded by Cretaceous aged granodiorite
of the central batholith. The contact zone with the granodiorite
runs roughly north-south through the central portion of the
property and is host to the recently discovered Lipangue gold-copper-silver
breccia pipe.
The
Lipangue Property was first obtained by Medinah in 1998 and
since then has seen five phases of exploration, including
the most recent phase which occurred between August 16th
and November 30, 2000. The Phase V exploration program consisted
of: the rehabilitation of the access road; drill platform
construction; 6 diamond drill holes (L00-13 to L00-18) which
range in depth between approximately 325 and 427 metres and
together total approximately 2,304 metres; and a thin/polished
section study consisting of 25 samples from drill hole L00-13.
The
new drill holes intersected the breccia at its deepest levels
to date and helped to further outline its geometry and grades
and determine the alteration sequences. To date, all of the
drilling completed by Medinah (holes L99-01 to L00-18) has
been in a fairly restricted area, with all of the holes occurring
within a 360 metres radius of each other. Fourteen of the
18 holes have intersected the breccia, and these 14 holes
have been drilled on 5, north-south oriented, irregularly
spaced sections (separated by 25 to 50 metres) which cover
a 150 metre east-west distance. Below surface the breccia
has an ovoid pipe shape which is elongate to the northeast,
and which plunges to the south southeast at about -62º. Drilling
has so far traced it from surface, approximately 400 metres
down its plunge where it remains open at depth.
Surface
exposures of the breccia are heavily oxidized and consist
of rounded to subangular clasts of intensely altered granodiorite,
cemented by a matrix of crystalline quartz and limonite and
iron-oxides. Limited sampling of previously excavated trenches
indicates that the oxidized portions of the breccia are heavily
leached and are only weakly anomalous in gold, copper, and
silver.
The
oxidation level varies between 25 and 50 metres in depth,
below which the breccia consists of rounded and sub-angular
clast and matrix supported fragments of altered granodiorite
(varying amounts of fine disseminated and coarse "earthy"
chlorite, along with sericite, silica, clay +/-pyrophyllite
and alunite?). The fragments are set in a matrix of finer
grained fragments and flour, along with coarse crystalline
vuggy quartz, 1 to 15% coarse anhedral blebs of pyrite, chalcopyrite,
and in places chalcocite (replacing chalcopyrite), sphalerite,
and galena. Fine disseminated pyrite (trace to 5%), and lesser
amounts of chalcopyrite are common throughout the granodiorite
fragments. Late quartz veinlets, generally less than a centimetre
in width, cut the breccia in places, and are mineralized with
pyrite, chalcopyrite, and at times chalcocite, sphalerite
and galena. Although the breccia is almost continually mineralized
across its width, the intensity of both alteration and sulphide
mineralization is variable and the most intense sulphide mineralization
usually occurs near the hanging wall contact. In most holes
a 10 to 30 metre wide halo of pyritization and sericitization
occurs in the granodiorite in the immediate hanging and footwall
of the breccia.
Below
the 1800 metre level the alteration style changes and becomes
more phyllic (quartz-sericite) with much less of the chloritic
alteration which dominates in the upper levels. Potassium
feldspar and pyrophyllite also occur in varying amounts at
these lower levels. In addition, at this depth there appears
to be much less of the coarse crystalline quartz crystals
and open vuggs, instead the silicification consists of moderate-to-strong
pervasive silicification throughout the matrix and fragments
of the breccia and as cross-cutting smokey quartz veinlets.
In
many of the holes to date an intrusive breccia was intersected
either at the hanging or footwall contact of the hydrothermal
breccia and in contact with the locally sericitized and pyritized
granodiorite. The intrusive breccia has well defined heterolithic
fragments in a fine-grained felsic to porphyritic intrusive
matrix. Alteration is pervasive throughout both the matrix
and the fragments as K-feldspar, sericite, clay, carbonate
and minor pyrophyllite. Sulphide content is also much less
in the intrusive breccia and occurs as fine disseminated pyrite
cubes and irregular shaped specks along with minor traces
of chalcopyrite. A general decrease in sulphide content is
reflected by the lower assay results returned from several
of the intrusive breccia intervals.
Geochemical
analysis by Medinah on the drill hole samples indicates that
the breccia below the oxidation level, is anomalously mineralized
over most of its entire width, with significant weighted averages
of gold, silver, and copper as shown below:
|
Drill
Hole |
Analytical
Results |
Drilled
Width |
|
L99-03 |
1.72
g Au/t, 10.07 g Ag/t, and 0.40% Cu
|
84
metres |
|
and |
0.37
g Au/t, 2.88 g Ag/t, and 0.04% Cu
|
36
metres |
|
L99-05 |
0.23
g Au/t, 1.35 g Ag/t, and 0.07 % Cu
|
40
metres |
|
and |
0.47
g Au/t, 2.11 g Ag/t, and 0.10% Cu
|
24
metres |
|
L99-06 |
0.60
g Au/t, 13.7 g Ag/t, and 0.39% Cu
|
154
metres |
|
L99-07 |
0.49
g Au/t, 9.68 g Ag/t, and 0.31% Cu
|
124
metres |
|
L99-08 |
3.83
g Au/t, 27.2 g Ag/t, and 0.40 % Cu
|
56
metres |
|
including |
15.61
g Au/t, 99.56 g Ag/t, and 0.90 % Cu
|
3
metres |
|
and |
14.76
g Au/, 56.9 g Ag/t, and 1.01 % Cu
|
9
metres |
|
L00-09 |
5.93
g Au/t, 23.6 g Ag/t, and 0.81% Cu
|
6
metres |
|
L00-11 |
0.23
g Au/t, 3.47 g Ag/t, and 0.17 % Cu
|
12
metres |
|
and |
0.22
g Au/t, 0.66 g Ag/t, and 0.06 % Cu
|
9
metres |
|
L00-12 |
0.33
g Au/t, 3.06 g Ag/t, and 0.07 % Cu
|
11
metres |
|
and |
0.56
g Au/t, 2.33 g Ag/t, and 0.14 % Cu
|
28
metres |
|
L00-13 |
0.60
g Au/t, 2.03 g Ag/t, and 0.11 % Cu
|
105
metres |
|
Drill
Hole |
Analytical
Results |
Drilled
Width |
|
L00-14 |
0.62
g Au/t, 4.77 g Ag/t, and 0.36% Cu
|
39
metres |
|
including |
1.32
g Au/t, 12.64 g Ag/t, and 0.94 % Cu
|
7
metres |
|
and |
1.58
g Au/t, 12.28 g Ag/t, and 0.93% Cu
|
5
metres |
|
L00-15 |
0.25
g Au/t, 2.10 g Ag/t, and 0.10 % Cu
|
93
metres |
|
L00-16 |
1.19
g Au/t, 6.47 g Ag/t, and 0.36 % Cu
|
27
metres |
|
L00-18 |
0.67
g Au/t, 5.02 g Ag/t, and 0.32% Cu
|
38
metres |
|
including |
0.85
g Au/t, 22.62 g Ag/t, and 1.53% Cu
|
6
metres |
|
and |
1.67
g Au/t, 14.23 g Ag/t, and 0.71% Cu
|
3
metres |
An approximately 15 to 20 metre wide zone
of higher grade mineralization occurs in the breccia at, or
close to the hanging wall contact with the granodiorite on
this section starting at the base of the oxidation level and
continuing about 170 metres down the apparent dip of the breccia
to an elevation of about 1800 metres. This is best shown on
Section "E", but also appears on several of the
other drill sections. Below this depth the width and grade
of the high grade zone appear to decrease significantly. The
grade of the high grade zone averages roughly 2.5 to 3.0 grams
gold/tonne, 25 to 35 grams silver/tonne, and 0.7 to 0.8% copper
over a 170 metre "down-dip" distance. Significant
weighted averages across this high grade zone include:
|
Drill
Hole |
Analytical
Results |
Drilled
Width |
|
L99-03 |
2.59
g Au/t, 20.84 g Ag/t, and 0.85% Cu
|
29
metres |
|
L99-05 |
7.92
g Au/t, 23.42 g Ag/t, and 0.86 % Cu
|
10
metres |
|
L99-06
and |
1.60
g Au/t, 34.35 g Ag/t, and 0.66% Cu
1.39 g Au/t, 44.16 g Ag/t, and 1.25% Cu
|
8
metres
19 metres |
|
L99-07 |
1.26
g Au/t, 8.11 g Ag/t, and 0.49% Cu
|
28
metres |
|
L99-08 |
6.49
g Au/t, 10.07 g Ag/t, and 0.63 % Cu
|
32
metres |
|
L00-12 |
2.23
g Au/t, 16.16 g Ag/t, and 0.55 % Cu
|
25
metres |
The
breccia remains completely open to the east, and to the west
below the 1700 metre level, and down plunge. Even though to
date 14 holes have intersected the breccia, its geometry and
structural control(s) are still poorly understood. Typical
of hydrothermal breccias, the down plunge extent could be
very deep and possibly overlie, or occur adjacent to, a larger
porphyry style mineralized system at depth.
During
Howes recent visit to the core storage facility near
Lampa, representative sections through the breccia and granodiorite
were reviewed. A total of 10 quarter core samples were collected
by Howe which repeat intervals that were recently split and
analysed by Medinah. The gold analytical results obtained
from the Howe repeat sampling are in the same general range
of values of those reported by Medinah, but often upwards
of several grams higher or lower. Similarly, silver and copper
values at Lipangue were generally in the same range, but at
times several grams, or tenths of a percent, higher or lower,
respectively. Although this difference can be attributed to
a nuggety effect for the gold, the blebby and inconsistent
nature of the breccia style mineralization could in effect
give quite variable assay results for all of the elements,
even from two halves of a split core. During future drill
programs, Medinah should consider using a larger diameter
core to get a more representative sample.
Howe
feels confident that the analytical values reported by Medinah
from their recent drilling campaign over the Lipangue Property
gives a general representation of the values that can be expected
from this prospect. Future drill programs should be preceded
by early stage mineralogical testing to determine the general
characteristics of the gold grains in the mineralized domains
which will assist in determining the optimum sampling scheme
for future exploration programs. In addition, a full quality
assurance program should be adapted by Medinah for all future
exploration programs to minimize unavoidable sample assay
errors which are introduced by the acts of sample collection,
sample preparation and assaying.
Medinahs
Lipangue property contains the Lipangue polymetallic breccia
pipe which represents a good target to host underground, bulk
mineable, gold-copper-silver mineralization. This target remains
open to the east, and at deeper levels to the west, and down
plunge, and could become much larger in extent as Medinah
traces it in these directions. The breccia is still in the
early stages of drill definition and Medinah believes that
with a minimal exploration program the potential size of this
target can be substantially increased. Other parts of the
Lipangue Property have only been reviewed on a preliminary
basis, or not at all, and these should be further explored,
since the potential exists for additional breccia style or
copper porphyry mineralization.
Medinahs
increased land position is secure, in that it covers the strike
and down dip extent of all of the defined mineralized zone
and leaves sufficient ground to define new targets along strike
or on other parts of the property.
Howe
recommends that a two phase, results driven program be conducted
in order to further assess the large tonnage, bulk mineable,
breccia hosted gold-copper-silver potential and to explore
for copper porphyry style mineralization over the Lipangue
Property. The total approximate cost for Phases I (US$415,000)
and II (US$605,000) is US$1,020,000.
1.0
INTRODUCTION
1.1
GENERAL
At the request of Mr. Gregory Chapin, President
of Medinah Mining Inc. ("Medinah"), a public New
York company (NASDAQ OTC) with offices located at 148
South Main Street, Lake Elsinore, CA, 92530, U.S.A, Howe Chile
Limitada ("Howe"), was retained to review the recent
phase of drilling completed between September 1st
and November 30, 2000 over the Lipangue Gold-Copper-Silver
Property. The property is located within the Metropolitan
Region of Chile, approximately 30 kilometres northwest of
Santiago (see Figure 1.1).
1.1 Map of Chile
compressed
1.1 Map of Chile full size
The Lipangue Property consists of 12 individual
mining claims ("mensuras") which together cover
an area of approximately 2,163 hectares. All of the claims
are currently held 100% by Medinah, through their wholly owned
Chilean subsidiary Medinah Mining Chile ("Medinah
Chile"). Five of the claims having been bought outright
or staked directly by Medinah , and the remaining seven claims
have recently been acquired by Medinah as part of an option
agreement.
1.2 TERMS
OF REFERENCE
Howe was retained by Medinah on October 19,
2000 with the terms of reference for this assignment consisting
of a summary of the results of the most recent phase of drilling
over the Lipangue Property. This report will append the previously
completed qualifying geological report ("Geological Report
on the Lipangue and Dos Marias Gold-Copper Properties",
Robert Cinits, Howe Chile Limitada Report #0029, June 19,
2000) which complies with Canadian reporting guidelines as
set out in National Instrument 43-101, covering the mineral
potential of the Lipangue and Las Dos Marias Properties. Since
no further exploration has been completed over the Dos Marias
Property, this newest report only covers the most recent drilling
phase of exploration completed over the Lipangue Property
and the updated land tenure status. It is Howes understanding
that this report is required by Medinah in support of a financing
with the NASDAQ-OTC Stock Exchange.
Howe Chile is a wholly owned subsidiary of
Howe International Consulting Limited and part of the A.C.A
Howe International Limited group of companies which offer
geological, geophysical, and mining consulting services to
the international mining industry, including geological, evaluation
and valuation reports on mineral properties. The firm was
incorporated in the Province of Ontario, Canada in 1966 and
has continuously operated under a "Certificate of Authorization"
to practice as Professional Engineers (Ontario) since 1970.
The firms services are provided through offices in Toronto,
Canada, Denver, USA, London, England, and La Serena, Chile.
Howes La Serena office was opened in 1996. Howe is not
an insider, associate or affiliate of Medinah.
The summary geological report on the Lipangue
Property was prepared by Robert Cinits, P.Geo. currently acting
as the General Manager of Howe Chile Limitada. Mr. Cinits
has more than 15 years experience in the mining industry,
and has most recently worked on projects in Chile, Peru, Argentina,
Brazil, Colombia, Ecuador, Honduras, and Costa Rica. Mr. Cinits
has prepared numerous qualifying reports and valuations for
various Canadian, American, and British stock exchanges.
1.3
SCOPE, SOURCES OF INFORMATION AND DISCLAIMER
In preparing this report, Howe relied on
geological reports and maps, miscellaneous technical papers,
published government reports and historical documents listed
in the "Selected References" section at the conclusion
of this report, public information and Howes previous
experience on the property. In addition, on December 7th
and 8th, 2000 Mr. Cinits visited Medinahs core storage
facility near Santiago. During this period representative
sections of several of the most recent drill holes from the
Lipangue Property were reviewed and independent confirmation
samples taken. This visit was complimented by background knowledge
gained during earlier trips to the property and to Medinahs
core storage facility in Santiago by Mr. Cinits between June
16 and 17, 1999, on July 14, 1999, and on April 7th
and 8th, 2000 (see Cinits, 2000).
Howe has only reviewed the land tenure in
a preliminary fashion and has not independently verified the
legal status or ownership of the properties or underlying
option agreements.
The results and opinions expressed in this
report are based on Howes field observations and the
geotechnical data listed in the "Sources of Information".
While Howe has carefully reviewed all of the information provided
by Medinah as listed in the sources of information, and believe
they are reliable, Howe has not conducted an in-depth independent
investigation to verify its accuracy and completeness.
The results and opinions expressed in this
report are conditional upon the aforementioned geological
and legal information being current, accurate, and complete
as of the date of this report, and that no information has
been withheld which would affect the conclusions made herein.
Howe reserves the right, but will not be obliged to revise
our report and conclusions if additional information becomes
known to us subsequent to the date of this report. Howe does
not assume responsibility for Medinahs actions in distributing
this report.
During the most recent examination of the
Lipangue diamond drill core a number of samples were independently
collected by the author and submitted to ITS (Bondar-Clegg)
Laboratories in La Serena, Chile. The results of these samples
are included in this report.
1.4 UNITS
AND CURRENCY
All measurement units used in this report
are metric and currency in US dollars unless stated otherwise.
The currency used in Chile is the Peso. The exchange rate
as of February 12, 2001 is $US 1.00 is equal to approximately
550 Pesos.
2.0
LOCATION, ACCESS AND PROPERTY DESCRIPTION
2.1
LOCATION AND ACCESS
The
Lipangue Property is located approximately 30 kilometres northwest
of Santiago in the coastal range mountains (see Figures 1.1
and 2.1). The approximate UTM coordinates of the center of
the Lipangue Property is 315500 E, 6314000N.
The
project area is best accessed from Santiago, the capital city
of Chile. From here one drives northwest about 25 kilometres
to the town of Lampa. One must then travel north approximately
6 kilometres along a well maintained gravel road (route G-16)
which parallels the base of the coast mountains until the
Hacienda Mercedes at Chicauma. After entering through a steel
gate, with a guard house, on the west side of the road, one
drives an additional 6 kilometres along a 4 wheel drive road
which rapidly gains elevation up a bumpy gravel and boulder
filled open valley to an elevation of approximately 550 metres.
At this point the valley abruptly ends and the road continues
up a "cuesta" (a series of about 19 switch backs)
which climb up a steep slope for approximately 7 kilometres.
At the top of the cuesta, the northeast corner of the rolling
Alto de Lipangue plateau is reached at an elevation of about
1,950 metres. The eastern edge of the Lipangue property is
crossed just a few hundred metres west of the crest of the
mountain and the La Fortuna de Lampa Mine (see Figure 2.2).
A
second, more southerly access road leaves the "Hacienda
Lipangue" south of Lampa on route G-16 and reaches the
plateau near the south and western boundary of the Lipangue
Property however this road needs upgrading and for the moment
all travel must be done along the more northerly route.
A
400 metre long, E-W oriented dirt air strip straddles the
eastern boundary of the Lo Amarillo claim of the Lipangue
Property (see Figure 2.2). Although it is not maintained,
it appears to be in relatively good shape and with minimal
care small planes could easily land there now.
The
small town of Lampa is able to supply only the most basic
needs (food, fuel, hardware, etc.) for very early stages of
exploration, and more advanced projects must be serviced from
Santiago. Electrical power, sufficient only for local town
use currently exists in the village of Lampa, however a major
power grid runs just west of the town. Telephone service in
Chile is excellent, most of it being connected to a fibre
optic network while the cellular network covers most major
cities and has reception from most parts of the Lipangue Property.
Deep
water ports exists at Valparaiso and San Antonio on the Pacific
coast, approximately 65 kilometres northwest and 70 kilometres
southeast of the property, respectively (see Figure 2.1).
figure
2.1 compressed
figure 2.1 full size
figure
2.2 compressed
figure 2.2 full size
2.2
PROPERTY DESCRIPTIONS AND CURRENT STATUS
The Lipangue Property consists of a total
of 12 contiguous mining claims ("mensuras") covering
approximately 2,163 hectares (Note: this total area takes
into account the percentage of the Caren 1-80 claim which
overlaps with several of the other claims held by Medinah).
(see Table 2.1 and Figure 2.2). The property extends roughly
6,000 metres in a north-south direction and 7,000 metres east-west.
Table 2.1: Lipangue Claims
|
Claim
Type |
Claim
Name |
Area
(hectares) |
|
Mensura |
Lo Amarillo 1-72 |
288 |
|
Mensura |
Millalelfun 1-55 |
275 |
|
Mensura |
Amparo 1-40 |
200 |
|
Mensura |
Gordon 1-60 |
300 |
|
Mensura |
Gordon 61-120 |
300 |
|
Mensura |
Antonio 1-20 |
100 |
|
Mensura |
Antonio 21-40 |
100 |
|
Mensura |
Antonio 41-60 |
100 |
|
Mensura |
Colihues 1-40 |
200 |
|
Mensura |
Consuelo 1-20 |
100 |
|
Mensura |
Consuelo 21-40 |
100 |
|
Mensura |
Caren 1-80 |
400 |
| |
SUBTOTAL |
2,463 |
| |
less
overlapping area |
300 |
| |
TOTAL |
2,163 |
The
Lipangue Property is currently held 100% by Medinah, through
their wholly owned Chilean subsidiary, Sociedad Contractual
Minera Medinah Mining, Chile ("Medinah Mining, Chile").
The initial three claims ("mensuras") of the property
(Lo Amarillo 1-72, Millalelfun 1-55, Amparo 1-40) were acquired
by Medinah through a purchase agreement with the previous
owner, Juan Jose Quijano ("Quijano"), which became
effective on April 23, 1999. Medinah has purchased a pre-existing
royalty commitment from Quijano for preferred shares of Medinah
and retains the right to re-purchase 50% of these shares for
future financings. Since the date of that agreement Medinah
has also staked two additional claims Gordon 1-60 and Gordon
61-120 which are now in the mensura stage and are held 100%
by Medinah.
The
seven newly added claims include: Colihues 1-40, Antonio 1-20,
Antonio 21-40, Antonio 41-60, Consuelo 1-20 Consuelo 21-40,
and Caren 1-80. All were acquired from two separate private
Chilean groups under a 2-year option agreement signed in November
2000. Under the terms of the agreement Medinah has the option
to earn 100% undivided interest in the 7 claims by issuing
US$1 million in Medinah shares to the vendor upon signing
and an additional US $1.5 million in Medinah shares at the
completion of the 2 year option period (based on Medinah share
price at the time the Option is exercised).
3.0
GEOLOGICAL SETTING
The
regional geological setting has been previously documented
in Cinits, 2000
4.0
HISTORY AND PREVIOUS EXPLORATION WORK
The
history and previous work on the Lipangue Property has been
previously documented in Cinits, 2000
4.1
MEDINAH EXPLORATION PROGRAMS - LIPANGUE
A
detailed description of the first four phases of exploration
at Lipangue by Medinah can be found in Cinits, 2000
4.1.1
PHASE V EXPLORATION- LIPANGUE
The fifth and most recent phase of exploration
at Lipangue was completed by Medinah between August 16th
and November 30, 2000 and consisted of: the rehabilitation
of the access road, drill platform construction, 6 diamond
drill holes, and a thin section study. Similar to the earlier
programs, the program was coordinated by, and all work was
completed by House. The details of the exploration program
are summarized below.
 |
A
total of approximately 2,304 metres of diamond drilling
was completed in 6 drill holes which ranged in depth
between approximately 325 and 427 metres (see figure
4.1 and Table 4.1). All drilling was completed by PerfoAndes
S.A. from Chile using a Boyles 56 drill rig and holes
were collared at 70º, oriented north (Note: five
of the six holes were pre-collared by a percussion drill
rig which triconed down to depths ranging between 68
and 100 metres through the relatively barren granodiorite
host rock at which point the drilling method was switched
to NQ diameter diamond drilling for the remainder of
the hole. None of the final collar coordinates were
surveyed and down hole deviation tests (acid dip tests)
were only completed at the end of holes L00-16 and 18
which showed "corrected" dip angles of 67.5º
and -76º, respectively. At the end of each hole, PVC
tubing was left in the collar and a cement block placed
around it as a permanent marker. Based on the core recovery
logs and the portions of the holes reviewed by Howe,
the core recovery generally appeared very good. All
diamond drill logs prepared by Medinah are included
in House 2001 in Appendix I. |
 |
A
total of 528 half core samples, each 1 metre in length
were taken from mineralized sections of the core using
a "hammer and wheel" style core splitter;
samples were collected by a trained assistant, but under
the supervision of House; once labeled and bagged the
samples were under the control of House at all times,
until a shipment was ready (50 to 100 samples) and then
these were taken directly by House to the laboratory
for analysis. The remaining unsplit and halved core
is currently stored in a secure locked storage facility
near Lampa. All samples were analysed at ACME Analytical
Laboratories S.A. ("ACME") in Santiago for
gold by 30 gram fire assay
|
figure
4.1 Geology and Drill Holes compressed
figure 4.1 - Geology and
Drill Holes full size
 |
and
copper by AAS. The pulps were then shipped directly
by ACME to their associated laboratory in Vancouver,
Canada where they were further analysed for 30 elements
by ICP method. As part of their in-house quality assurance
program, ACME reported the results of their own blank,
standard, and duplicate samples on the assay certificates
(a full list of the ACME assay certificates were included
as Appendix III in House 2001, and therefore have not
been reproduced by Howe. Approximate general ranges
of the gold, silver, and copper values returned from
the recent drilling program is shown on Table 4.2 and
the significant drilling weighted averages are shown
on Table 4.3. |
Note:
According to new guidelines set out by the TSE Mining
Standards Task Force Final Report, January 1999, and
similar "international guidelines" put out
by various regulatory bodies worldwide, a stringent
quality control program is essential for compiling reliable
exploration data, especially during drilling programs.
For all future work, Medinah should ensure that sample
preparation and quality control procedures are
well organized to monitor the accuracy and precision
of analytical results, to detect possible sample contamination,
and to add confidence to future resource estimates.
In addition to the laboratories in-house quality
assurance program, each sample batch sent to a laboratory
should include: sample duplicates (1 in 20 samples),
assay duplicates (at least 1 per batch), multi-element
standards (at least 1 per batch), and blank standards
(at least 1 per batch). In addition inter-laboratory
preparation and analytical checks should be completed
through the sampling phase of the drill program. Also,
during the core logging process all core should be photographed
prior to cutting and the geological logging should be
preceded by geotechnical logging (percent recovery,
RQD, fractures, etc.). In addition, to assist in future
resource estimates, specific gravity measurements should
be taken at representative intervals along the length
of the hole and all drill hole collar locations should
be surveyed at the completion of the drill program and
down-hole strike and dip deviation tests should be taken
at reasonable intervals down each hole during the drilling
program.
 |
A
petrographic report consisting of 25 polished thin sections
from hole L00-13 was completed by Vancouver Petrographics
Ltd. The samples were taken from representative locations
between drilled depths of 113.7 and 325.6 metres in
both the hanging and footwall granitic rocks, and the
breccia body. The results of the study indicate that
most of the rocks submitted are strongly altered and
many of those taken from the breccia zone showed an
early potassic (K-feldspar) and quartz alteration overprinted
by an episode of phyllic (clay-sericite-chlorite- rutile,
+/-quartz, calcite-to-ankerite, sulphides) or locally
advanced argillic alteration (pyrophyllite in addition
to the phyllic assemblage). The surrounding granitic
rocks have been described as diorite to monzodiorite
and quartz monzonite with pervasive propylitic (chlorite-epidote-calcite)
alteration to transitional "mafic-potassic"-propylitic
alteration (amphibole, alkali feldspar, including K-feldspar,
quartz, magnetite, sphene, and apatite). The study also
looked at the sulphide assemblages and determined that
the majority occurs as pyrite with minor amounts of
chalcopyrite and rare bornite along with traces of sphalerite
and galena. |
The
most recent drill program was successful in that five of
the six drill holes intersected the breccia pipe, tracing
further down its plunge to the south southeast and along
strike, mainly to the east. The breccia can now be traced
approximately 400 metres from surface down its 62º south
southeast trending plunge. Hole L00-17 was planned to be
the deepest intercept on section "EF", but was
terminated early due to drilling difficulties and never
reached the target depth. The breccia still remains open
down its plunge and to the east, and at deeper levels (below
the 1800 metre level), to the west. More drilling will be
required to more accurately define the eastern and western
boundaries. At the end of his report House recommended that
another program of diamond drilling be initiated, further
testing the eastern, western and depth extent of the breccia.
The program would include six diamond drill holes (each
pre-collared by reverse circulation drilling down to depths
of about 300 metres), totaling approximately 3,500 metres.
The approximate cost for this program was estimated to be
US$320,000.
Table
4.1: Lipangue Diamond Drill Holes (Third Drilling Program)
|
Drill
Hole |
Approx.
Elevation (m) |
Approximate
UTM Location of Collars |
Azimuth |
Dip |
Depth
(m) |
Samples
Numbers (total #) |
| |
|
Easting |
Northing |
|
|
|
|
|
L00-13 |
1975 |
315125 |
6313823.5 |
360º |
-70º |
339.20 |
407001-407120 (120) |
|
L00-14 |
1970 |
315175 |
6313770 |
360º |
-70º |
419.15 |
407121-407254 (134) |
|
L00-15 |
1975 |
315125 |
6313770 |
360º |
-70º |
401.65 |
407255-407368
(114) |
|
L00-16 |
1978 |
315075 |
6313770 |
360º |
-70º |
426.60 |
407369-407461 (93) |
|
L00-17 |
1970 |
315175 |
6313720 |
360º |
-70º |
324.50 |
None |
|
L00-18 |
1980 |
315175 |
6313820 |
360º |
-70º |
393.00 |
407462-407500,
and
349500-349527
(67) |
|
TOTAL |
|
|
|
|
|
2,304.1
m |
528
samples |
Table
4.2: Lipangue Property General Range of Gold, Silver,
and Copper Values Returned from the Recent Diamond Drilling
Program:
|
Sample
Location in Drill Hole |
Gold
(g/t) |
Silver
(g/t) |
Copper
(%) |
|
Total Range of Values |
0.01-26.24 |
0.10-58.8 |
0.001-4.28 |
|
Approximate Average Range of Values
in "Low Grade Breccia" |
0.10-0.50 |
1.00-5.00 |
0.05-0.25 |
|
Approximate Average Range of Values
in "High Grade Breccia" |
0.50-1.50 |
5.00-15.00 |
0.30-0.80 |
|
Approximate Average Range of Values
in Granodiorite |
0.01-0.10 |
0.30-1.0 |
0.001-0.06 |
Table
4.3: Lipangue Property - Significant Diamond Drilling
Analytical Results (Third Drilling Program)
|
DDH |
Depth
(m) |
Weighted
Averages |
| |
From |
To |
Interval |
Au
(g/t) |
Ag
(g/t) |
Cu
(%) |
|
L00-13 |
220 |
325 |
105 |
0.60 |
2.04 |
0.11 |
|
L00-14 |
361
including
362
395 |
400
369
400 |
39
7
5 |
0.62
1.32
1.58 |
4.77
12.64
12.28 |
0.36
0.94
0.93 |
|
L00-15 |
291
including
291 |
384
295 |
93
4 |
0.25
0.41 |
2.10
2.80 |
0.10
0.11 |
|
L00-16 |
315
including
326 |
342
340 |
27
14 |
1.19
1.03 |
6.47
7.46 |
0.36
0.50 |
|
L00-17 |
hole |
abandoned |
before |
target |
reached |
|
|
L00-18 |
317
including
317
334 |
355
323
337 |
38
6
3 |
0.67
0.85
1.67 |
5.02
22.62
14.23 |
0.32
1.53
0.71 |
5.0
PROPERTY GEOLOGY AND MINERALIZATION
The
"Altos de Lipangue" is a relatively flat, northeast
elongate plateau covering an area approximately 4 kilometres
long and 1 to 2 kilometres wide. The plateau is located on
top of the first range of mountains west of Santiago, which
are part of the north-south oriented coastal range. The plateau
is underlain by a volcanic sequence, intercalated with continental
and marine sediments which is intruded by plutonic and hypabyssal
rocks of the central batholith (see Figure 5.1). The volcano-sedimentary
sequences consist of: the Lower Cretaceous aged Veta Negro
Formation, which is primarily composed of andesitic lavas
intercalated with continental sediments; and the underlying
Lo Prado Formation (also of Lower Cretaceous age), which consists
mainly of marine sediments with intercalated volcanics. The
sedimentary units in the Lo Prado Formation include: limestone,
shales, sandstones, calcareous and fossiliferous sandstones,
breccias, and conglomerates; while the volcanics units are
primarily andesitic and rhyolitic flows, brecciated flows,
and tuffs. The central batholith, in the vicinity of the two
properties is mainly Upper Cretaceous aged and chemically
is classified as calc-alkaline, Type I. It is quite variable
in composition, and includes several varieties of amphibole-biotite+/-pyroxene
granodiorite, tonalite, and quartz monzodiorite; and minor
porphyritic andesite. The granodiorite that hosts the Lipangue
breccia has been mapped as an amphibole-biotite granodiorite
with granular magnetite and varying intensity of clay-sericite-chlorite-epidote-pyrite
alteration (Gana, et. al., 1996).
This
area is host to several diverse types of metallic mineralization
such as veins, stratiform, stockwork/ breccias, skarns, and
shear zone hosted copper/gold/silver mineralization which
occur in several geological environments:
 |
Au
+/- Cu-Ag veins: hosted in the Cretaceous batholith (i.e./
La Fortuna) and in stratified Mesozoic rocks (i.e./ Ramayana);
also Au, Fe-Cu, Pb-Zn and Pb-Cu-Au veins which occur hosted
in stratified units and intrusives of the Lower Cretaceous
age. |
 |
Stratiform
Cu, Cu-Au, and Cu-Ag-Au: hosted in volcano-sedimentary
formations of Lower Cretaceous age (i.e./ Los Amarillos). |
 |
Stockwork
Au-Cu (i.e./ Rose Marie) and Au-Cu contact metamorphism
related and structurally controlled mineralization : hosted
in volcano-sedimentary units of Lower Cretaceous age (i.e./
Colliguay). |
 |
Cu
Skarns: hosted in stratified rock of Lower Cretaceous
age (i.e./ Dos Marias). |
 |
Placer
Au: hosted in Quaternary sediments (i.e./ Estero Curacuvi). |
(Gana,
et. al., 1996)
In
addition, in the volcanosedimentary rocks surrounding the
batholith, or close to its contact, occur several copper deposits
such as the Lo Aguirre (stratabound exhalative) and La Africana
(vein) deposits both currently held by Soc. Minera Pudahuel.
The locations of some of these prospects and deposits are
shown on Figure 2.1. Even though most of the old mines and
showings in the area have seen intermittent mining activity
over the past hundred years or so, they remain relatively
under explored and today are only present as prospects. The
Lo Aguirre Mine is currently in production and produces 4,000
tonnes per day from a newly developed underground operation
replacing a depleted open pit operation (Compendio de la Mineria
Chilena, 1998).
5.1
General Geology Map of the Santiago area compressed
5.1 General Geology
Map of the Santiago area full size
5.1
LIPANGUE PROPERTY GEOLOGY
The
western portion of the Lipangue Property is underlain by a
generally north striking, east dipping volcano-sedimentary
sequence of rocks which corresponds to the Ocoa and Purehue
Members of the Veta Negro Formation, and which, to the east,
is intruded by granodiorite of the central batholith (see
Figure 5.2). In the areas mapped by Medinah, the andesite
consists of massive and feldspar porphyritic andesite, with
a matrix of quartz, amphibole, biotite, and minor hematite
and magnetite. Generally they are variably propylitized and
silicified and are mineralized with accessory epidote, hematite
and magnetite. The contact zone with the granodiorite runs
roughly north-south through the central portion the property,
between the Lo Amarillo and Cerro Negro knolls. Andesite close
to this contact is generally hornfelsed and silicified. The
granodiorite which underlies the eastern two thirds of the
plateau consists of gray, fine-to-medium grained, hypidiomorphic
rock. In most places it is variably propylitized with chlorite,
epidote, and carbonate common. In addition, amphiboles within
the granodiorite are commonly replaced by biotite and fine
magnetite (House, 1999a).
A
small gabbro stock, measuring about 100 metres in diameter
intrudes the andesite near the peak of the Cerro Negro knoll.
Its contacts with the andesite are not exposed and therefore
its relationship to the andesite and granodiorite remains
unclear (House, 1999a).
5.2
LIPANGUE PROPERTY MINERALIZATION
The
main gold and copper (+/-silver) mineralization at Lipangue
is hosted in the Lipangue hydrothermal breccia pipe, which
on surface occurs as an east-west elongate, ovoid shaped body
that outcrops over an area measuring roughly 150 to 200 metres
(east-west) and up to 100 metres wide. Float material of the
breccia is widely dispersed and covers a much larger area
(400 metres by 250 metres). The breccia is hosted within granodiorite
of the central batholith, at the contact with massive andesite
(see Figures 4.1 and 5.2). On surface the breccia is well
exposed in only two trenches where it is heavily oxidized
and consists of rounded to subangular clasts of intensely
altered granodiorite, cemented by a matrix of vuggy crystalline
quartz and limonite and iron-oxides.
To
date all of the drilling completed by Medinah (holes L99-01
to L00-18) has been in a fairly restricted area, with all
of the holes occurring within a 360 metres radius of each
other (see Figure 4.1). Fourteen of the 18 holes have intersected
the breccia, and these 14 holes have been drilled on 5, north-south
oriented, irregularly spaced sections (separated by 25 to
50 metres) which cover a 150 metre east-west distance (see
Figures 5.3 to 5.5). Below surface the breccia has an ovoid
pipe shape which is elongate to the northeast, and which plunges
to the south southeast at about -62º. Drilling has traced
it from surface, approximately 400 metres down its plunge.
The
six drill holes that were completed during the most recent
phase of exploration were drilled on sections "E",
"E+50", and "EF" (see Figures 5.3 to 5.5).
The interpretation of those sections is discussed below. Sections
with previously drilled holes (Sections "DE+50",
"E+25", and "F") have not been updated
with new data and therefore are not discussed in this report,
however a detailed interpretation can be found in Cinits,
2000.
figure
5.2 compressed
figure 5.2 full size
figure
5.3 compressed
figure 5.3 full size
figure
5.4 compressed
figure 5.4 full size
figure
5.5 compressed
figure 5.5 full size
DRILL
SECTION "E"
Drill
section "Line E" (see Figure 5.3) crosses the breccia
at its widest point where it is approximately 75 to 90 metes
in width and has an apparent dip of approximately 60º
to the south. Along this section, the breccia has been traced
from surface, almost 400 metres down its apparent dip by drill
holes L99-07, 6, 3, 8, L00-11 and most recently L00-16. Below
the oxidation level (which ranges between 20 and 50 metres
in depth), to a vertical depth of about 250 metres, the breccia
consists of rounded and sub-angular clast and matrix supported
fragments of altered granodiorite (varying amounts of fine
disseminated and coarse "earthy" chlorite, along
with sericite, silica, clay +/-pyrophyllite and traces of
alunite?). The fragments are set in a matrix of finer grained
fragments and flour, along with coarse crystalline vuggy quartz,
1 to 15% coarse anhedral blebs of pyrite, chalcopyrite, and
in places chalcocite (replacing chalcopyrite), sphalerite,
and galena. Fine disseminated pyrite (trace to 5%), and lesser
amounts of chalcopyrite are common throughout the granodiorite
fragments. Late quartz veinlets, generally less than a centimetre
in width, cut the breccia in places, and are mineralized with
pyrite, chalcopyrite, and at times chalcocite, sphalerite
and galena. Although the breccia is almost continually mineralized
across its width, the intensity of both alteration and sulphide
mineralization is variable. The most intense sulphide mineralization
usually occurs near the hanging wall contact. In most holes
a 10 to 30 metre wide halo of pyritization and sericitization
occurs in the granodiorite in the immediate hanging and footwall
of the breccia.
The
only hole on Section E from the most recent drilling phase,
L00-16, was drilled 50 metres south of hole L00-11 and is
the deepest intercept on the section. The drill hole intersected
the breccia almost 50 metres deeper than expected which could
be interpreted as a sudden steepening in the breccias apparent
dip, or faulting. Since the two drill sections to the east
(sections "E + 50" and "EF") showed no
change in the apparent dip of the breccia at the same approximate
elevation, a northwest trending, northeast dipping reverse
fault was interpreted (see Figure 5.3).
Hole
L00-16 intersected the breccia at approximately 300 metres
vertical depth, where the nature of the silicification is
somewhat different from the coarse crystalline quartz crystals
and open vuggs typical of the upper levels of the breccia.
The silicification in hole L00-16 consists of moderate-to-strong
pervasive silicification throughout the matrix and fragments
of the breccia and as cross-cutting smokey quartz veinlets.
In addition, sericite alteration was much stronger at this
depth. At approximately 346 metres drilled depth, the hydrothermal
breccia changes to an intrusive breccia with well defined
heterolithic fragments in a fine-grained, felsic porphyritic,
intrusive matrix. Alteration is pervasive throughout both
the matrix and the fragments as K-feldspar, sericite, clay,
carbonate and minor pyrophyllite. Chlorite, although present
as fine disseminated specks is much less prevalent than in
the upper portions of the breccia. Sulphide content is also
much less in the intrusive breccia and occurs as fine disseminated
pyrite cubes and irregular shaped specks along with minor
traces of chalcopyrite. This decrease in sulphide content
is reflected by the lack of significant assays returned from
this intrusive breccia interval.
Analyses
completed by Medinah on the previous and recent diamond drill
holes indicate that within the Section E, the hydrothermal
breccia is anomalously mineralized over most of its entire
width, with significant weighted averages of gold, silver,
and copper as shown below, and on Figure 5.3.
 |
0.49
grams gold/tonne, 9.68 grams silver/tonne, and 0.31
% copper across 124 metres from hole L99-07. |
 |
0.60
grams gold/tonne, 13.7 grams silver/tonne, and 0.39
% copper across 154 metres from hole L99-06. |
 |
1.72
grams gold/tonne, 10.07 grams silver/tonne, and 0.40
% copper across 84 metres, and 0.37 grams gold/tonne,
2.88 grams silver/tonne, and 0.04 % copper across 36
metres both from hole L99-03. |
 |
3.83
grams gold/tonne, 27.2 grams silver/tonne, and 0.40
% copper across 56 metres from hole L99-08 (which includes
several higher grade sections including 3 metres grading
15.61 grams gold/tonne, 99.56 grams silver/tonne, and
0.90 % copper, and 9 metres grading 14.76 grams gold/tonne,
56.9 grams silver/tonne, and 1.01 % copper. |
 |
0.23
grams gold/tonne, 3.47 grams silver/tonne, and 0.17
% copper across 12 metres, and 0.22 grams gold/tonne,
0.66 grams silver/tonne, and 0.06 % copper across 9
metres both from hole L00-11. |
 |
1.19
grams gold/tonne, 6.47 grams silver/tonne, and 0.36
% copper across 27 metres from hole L00-16. |
An approximately 15 to 20 metre wide zone
of higher grade mineralization occurs in the breccia at, or
close to the hanging wall contact with the granodiorite on
this section starting at the base of the oxidation level and
continuing about 170 metres down the apparent dip of the breccia
to an elevation of about 1800 metres (see Figure 5.3). Below
this depth the width and grade of the high grade zone appear
to decrease significantly, as indicated by the assays yielded
from drill holes L00-11 and 16. Towards surface, the zone
does not continue into the oxidation zone, and becomes almost
flat lying at a depth of about 50 metres vertical. The grade
of the high grade zone averages roughly 2.5 to 3.0 grams gold/tonne,
25 to 35 grams silver/tonne, and 0.7 to 0.8% copper over a
170 metre "down-dip" distance. This high grade zone
may be a result of various factors such as: supergene enrichment,
faulting and fracturing, and zones of porosity and permeability
within the breccia pipe. Often margins of a pipe can host
higher grade zones where imbricated breccia fragments with
a vertical orientation are abundant (Baker et. al, 1986).
In addition, many pipes are originally emplaced along a zone
of structural weakness such as a fault zone, or intersection
of two faults, and repeated pulses of hydrothermal activity
can continue along these same conduits thereby creating more
intensely altered and/or mineralized zones. Further, more
detailed structural and thin section studies of the existing
core and core from future drill programs should assist in
determining this control. Significant weighted averages across
this high grade zone include:
 |
2.59
grams gold/tonne, 20.84 grams silver/tonne, and 0.85
% copper across 29 metres from hole L99-03. |
 |
1.6
grams gold/tonne, 34.45 grams silver/tonne, and 0.66
% copper across 8 metres, and 1.39 grams gold/tonne,
44.16 grams silver/tonne, and 1.25 % copper across 19
metres from hole L99-06. |
 |
1.26
grams gold/tonne, 18.11 grams silver/tonne, and 0.49
% copper across 28 metres from hole L99-07. |
 |
6.49
grams gold/tonne, 10.07 grams silver/tonne, and 0.63
% copper across 32 metres from hole L99-08. |
DRILL
SECTION "E+50"
Drill
section "E + 50" occurs 50 metres east of Section
"E" (see Figure 5.4) and includes hole L00-12 from
the previous drilling campaign and holes L00-13 and 15 from
this most recent program. Drill hole L00-12 crossed through
almost 150 metres of propylitically altered granodiorite from
surface, with increasing silica and chlorite alteration, and
disseminated magnetite noted below 100 metres drilled depth.
At about 146 metres a narrow (2 metre wide) zone of igneous
breccia was intersected, which might correlate with the much
thicker igneous breccia from the hanging wall of the main
breccia pipe in hole P99-05 from one of the earlier drill
programs (see Cinits, 2000). Although disseminated pyrite,
chalcopyrite and traces of chalcocite were noted in the igneous
breccia and surrounding granodiorite, no significant assays
were returned until 158 metres depth, 3 metres above the main
breccia contact. This intersection point occurs at a vertical
depth of about 150 metres (almost 200 metres down the apparent
dip of the breccia) and the hole remained in the breccia until
a drilled depth of 254 metres (true width of about 75 metres).
Although the mineralogy of the breccia was more or less similar
to the other first and second phase holes, a series of 1 to
7 metre wide (drilled width), fine grained, intensely sericitized
and carbonatized granodioritic dikes were crossed in the lower
half of the breccia. The orientation of these dikes is not
certain but it indicates that there was repeated intrusive
activity in the area.
The
size and geometry of the breccia intersected in hole L00-12
is very similar to that on Section E, 50 metres to the west,
but quite different from that in drill hole L99-05 on the
previous section (see Cinits, 2000). It is possible that additional
late, subvertical granodioritic dikes and intrusives, similar
to those in hole L00-12, have intruded the breccia in the
hanging wall portion of hole L99-05 therefore disrupting its
geometry.
Hole
L00-12 intersected a significant hanging wall high grade zone
which yielded the following analytical results:
 |
2.23
grams gold/tonne, 16.16 grams silver/tonne, and 0.55
% copper across 25 metres (approximately 20 metres true
width), between 158 and 183 metres. |
Below this high grade zone, two additional,
but much lower grade zones were intersected in hole L00-12,
which included:
 |
0.33
grams gold/tonne, 3.06 grams silver/tonne, and 0.07
% copper across 11 metres, between 199 and 210 metres,
|
and
 |
0.56
grams gold/tonne, 2.33 grams silver/tonne, and 0.14
% copper across 28 metres, between 226 and 254 metres.
|
Drill hole L00-13 was collared 50 metres
south of hole 12 and drilled in the same orientation (see
Figure 5.4). The hole intersected the breccia at a depth of
about 221 metres and continued in it until about 325 metres.
The upper half of the intercept was typical of the alteration
and mineralization from the earlier drill programs with strong
sericite-chlorite alteration and coarse blebby pyrite, minor
chalcopyrite and some localized zones with black sooty chalcocite
replacing chalcopyrite. Below 266 metres, the chlorite alteration
becomes much less dominant, and pervasive silicification increases,
with less of the open vuggs and coarse quartz common in the
earlier holes. Gold, silver, and copper values remained continually
anomalous across the entire breccia interval and averaged:
 |
0.60
grams gold/tonne, 2.03 grams silver/tonne, and 0.11
% copper across 105 metres. |
A single, one metre wide very high grade
zone was returned from within this interval which assayed:
 |
26.24
grams gold/tonne, 37.9 grams silver/tonne, and 2.33%
copper across 1 metre. |
Drill
hole L00-15 was collared 50 metres south of L00-13 on the
same section and was drilled in the same orientation (see
Figure 5.4). The breccia was intersected at a drilled depth
of about 290 metres to about 383 metres. The majority of the
breccia showed very strong chlorite-quartz plus sericite-pyrophyllite
alteration, and local zones of strong carbonate alteration,
which was quite different from the lower half of the intercept
yielded from hole L00-13, about 60 metres up-dip. Similar
to previous holes sulphide mineralization consisted of coarse
blebby and fine disseminated pyrite and lesser amounts of
chalcopyrite. In addition, between 314 and 321 metres were
noted numerous late, low angle quartz veinlets (1-3mm wide),
mineralized with fine specks of sphalerite, galena, pyrite,
and chalcopyrite. These late veinlets were cross-cutting the
breccia, and indicate that more than one pulse of hydrothermal
activity occurred at Lipangue.
Several
late, light gray, fine-grained, felsic (dacitic) dikes were
noted between 352 and 376 metres drilled depth. These dikes
are strongly carbonatized and contain no significant sulphide
mineralization.
Similar
to hole L00-13, the gold, silver, and copper analytical results
from hole L00-15 remained continually anomalous across the
entire breccia interval and averaged:
 |
0.25
grams gold/tonne, 2.10 grams silver/tonne, and 0.10
% copper across 93 metres. |
DRILL
SECTION "EF"
Drill
section "EF" (see Figure 5.5) includes hole L99-04
from a previous drilling campaign and holes L00-14, 17, and
18 from this most recent program. Drill hole L99-04 was part
of the first drill program in 1999 and was drilled to test
an IP anomaly in an attempt to trace the breccia to the east.
Very little background information regarding the geometry
of the breccia was known at that time and the drill hole failed
to intersect the target. The IP/resistivity survey, completed
in 1998 clearly indicates that a polarized body continues
to the east, at least 400 metres past line E, and that it
also plunges steeply in this direction (see Cinits, 2000).
Modeling also indicates that by Line G, the top of the anomaly
occurs at a depth of about 120 metres. This anomaly quite
likely represents a halo of pyritization and silicification
in the host granodiorite peripheral to the breccia, or possibly
the westward continuation of the plunging breccia where it
could evolve into a narrower fault controlled breccia-dike
along strike to the east. This is supported by the narrower
shape of the IP anomaly on line G. Hole L99-04 may have been
collared south of the up-dip projection of the breccia and
since the hole was angled south, at -60º, it remained parallel
to the apparent dip of the breccia and never intersected it
(see Figure 5.5). Instead, the hole crossed an interval of
variably propylitized and weakly fractured and mineralized
granodiorite peripheral to the breccia. It is now known that
the breccia occurs on this section, but at a much deeper level,
as shown by the intercepts yielded from drill holes L00-14
and L00-18 during the most recent drill program. The breccia
was intersected by hole L00-18, approximately 150 metres vertically
below the end of hole L99-04 (see Figure 5.5), and it still
remains unknown how far up-dip the breccia will continue on
this section.
Holes
L00-14, 17, and 18 were all drilled to the north at a dip
of -70º. Hole L00-14 crossed about 345 metres of variably
propylitized and sericitized granodiorite before intersecting
an approximately 15 metre wide halo of increased sericitization
and pyritization which occurs immediately above the breccia
zone at 363 metres. The upper 10 to 15 metres of the breccia
was logged by Medinah as an intrusive breccia, or brecciated
granodiorite, consisting of subangular granodiorite fragments
set in a matrix of fine-grained felsic intrusive, rock flour,
and coarse blebs of pyrite, and some chalcopyrite. The interval
is strongly sericitized and silicified with moderate amounts
of carbonatization. A few chalcedony veinlets and fragments
were noted in the interval. The upper contact zone with the
granodiorite was strongly mineralized and returned highly
anomalous gold, silver, and copper values including:
 |
1.32
grams gold/tonne, 12.64 grams silver/tonne, and 0.94
% copper across 7 metres (approximately 5 metres true
width), between 362 and 369 metres. |
The
underlying "true" hydrothermal breccia was notably
thinner than on the previous sections possibly due to the
fact that this section crosses the breccia near its interpreted
eastern end. The breccia was first intersected at about 374
metres and persisted until 400 metres. The alteration noted
in this interval was significantly different than in all previous
drill holes, consisting of pervasive buff to gray coloured
phyllic (quartz-sericite) plus K-feldspar alteration, and
much less of the chlorite alteration which predominates in
the other drill holes. The silicification consists of moderate-to-strong
pervasive silicification throughout the matrix and fragments
of the breccia and as late cross-cutting smokey quartz veinlets.
The coarse crystalline quartz crystals and open vuggs which
are so common in the upper levels, is much less evident in
this interval. At about 398 metres depth several coarse crystals
of fluorite were noted in the breccia matrix, which had not
been known to occur in any of the previous drill holes. Sulphides
throughout the breccia interval still occur as coarse blebby
pyrite and some chalcopyrite along with occasional specks
of sphalerite, galena, and molybdenite.
The
entire breccia interval (including the upper intrusive breccia)
returned consistently anomalous gold, silver, and copper values,
yielding a weighted average of:
 |
0.62
grams gold/tonne, 4.77 grams silver/tonne, and 0.36%
copper across 39 metres (approximately 28 metres true
width), between 361 and 400 metres. |
A second higher grade interval was intersected
near the base of the breccia, which yielded:
 |
1.58
grams gold/tonne, 12.28 grams silver/tonne, and 0.93%
copper across 5 metres (approximately 3.5 metres true
width), between 395 and 400 metres. |
Hole L00-18 was drilled 50 metres north of
hole L00-14 and intersected the breccia approximately 60 metres
further up its apparent dip (see Figure 5.5). Similar to hole
L00-14, a zone of increased sericitization and pyritization
was crossed in the granodiorite immediately above a 13 metre
wide zone of intrusive breccia, which was intersected at about
304 metres drilled depth. Alteration and sulphide mineralization
in these zones was very similar to that described for hole
L00-14, except for an increase in pyrophyllite mineralization
noted in hole L00-18. No significant analytical results were
returned from the intrusive breccia zone in hole L00-18. The
underlying hydrothermal breccia was intersected at about 313
metres depth and continued until 354 metres. Once again the
alteration was very similar to hole L00-14, with strong pervasive
buff to gray coloured phyllic (quartz-sericite) alteration,
and a marked decrease in chlorite alteration which is so strong
in many of the other drill holes. The hydrothermal breccia
interval in hole L00-18 yielded a weighted average of:
 |
0.67
grams gold/tonne, 5.02 grams silver/tonne, and 0.32%
copper across 38 metres (approximately 27 metres true
width), between 317 and 355 metres. |
Two narrow higher grade zones were returned
from the upper and middle portions of the hydrothermal breccia
yielding the following results:
 |
0.85
grams gold/tonne, 22.62 grams silver/tonne, and 1.53%
copper across 6 metres (approximately 4 metres true
width), between 317 and 323 metres. |
 |
1.67
grams gold/tonne, 14.23 grams silver/tonne, and 0.71%
copper across 3 metres (approximately 2 metres true
width), between 334 and 337 metres. |
Drill
hole L00-17 was designed to intersect the breccia at the deepest
level to date, at a depth of roughly 500 metres down the apparent
dip of the breccia. The hole was collared 50 metres south
of hole L00-14 and oriented in the same azimuth dip (see Figure
5.5), but unfortunately encountered numerous problems with
broken and fractured ground and was eventually abandoned at
a depth of about 324 metres, roughly 90 metres above the projected
target depth.
Note:
in the previous Howe report (see Cinits, 2000 page 68) it
was erroneously reported that an old drill hole completed
by the previous property owner which was collared close to
the location of Medinah hole L99-02 on section Line "F",
had intersected the breccia. It has now been brought to Howes
attention that no breccia was intersected in this drill hole
and similarly Medinahs hole L99-02 only crossed variably
propylitized, fractured, and weakly mineralized granodiorite.
It is believed that these two drill holes were collared north
and east of the breccia structure and therefore only intersected
propylitized granodiorite and some weak zones of disseminated
pyrite, sheeted veining and stockwork fracturing, which might
be associated with the contact regions of the breccia.
5.3
Howe Verification Sampling
During
Howes recent site visit to the core storage facility
in Lampa in December 2000, several representative intervals
of core were reviewed through both mineralized breccia, and
the host granodiorite from the recent phases of drilling.
Ten separate confirmation type samples were collected (see
Table 5.1). These samples were quarter core samples, taken
from the previously split, half core samples over the same
intervals as sampled by Medinah. The gold results obtained
from the Howe sampling were in the same general range of values
as those reported by Medinah, but often upwards of several
grams higher or lower. Similarly, for all of the samples collected
silver and copper values were generally in the same range,
but at times several grams, or tenths of a percent, higher
or lower, respectively. Howe feels that these differences
can be attributed to the coarse, blebby and inconsistent nature
of the breccia style sulphide mineralization, which could
in effect give quite variable assay results for all of the
elements assayed, even from two halves of a split core. During
future drill programs, Medinah should consider using a larger
diameter core to get a more representative sample.
Howe
feels confident that the analytical values reported by Medinah
from their recent drilling campaign over the Lipangue breccia
give a general representation of the values that can be expected
from this prospect. It is highly recommended that Medinah
complete early stage mineralogical testing prior to their
next drilling phase to determine the general characteristics
of the gold grains in the mineralized breccia. By combining
these characteristics with several other parameters, a sampling
constant can be estimated and nomograph constructed which
should assist in determining the optimum sampling scheme for
future exploration programs. In addition, a full quality assurance
program should be adapted by Medinah for all future exploration
programs to minimize unavoidable sample assay errors which
are introduced by the acts of sample collection, sample preparation
and assaying. The quality assurance program should be designed
to verify the validity of sample collection, security (contamination),
sample preparation, analytical method, and accuracy and precision
of the sample collection and assay process.
TABLE
5.1: Lipangue Property, Summary of Howe Assay Results (Analysis
at ITS (Bondar Clegg) Laboratories Chile)
|
Sample
Name |
Location
(UTM) |
Sample
Type |
Description |
Au
(ppm) |
Ag
(ppm) |
Cu
(%) |
Pb
(ppm) |
Zn
(ppm) |
|
51887 |
Medinah diamond drill hole L00-13,
271-272 metres; previously sampled by Medinah in sample
407057 1.74 g Au/t, 4.7 g Ag/t, 0.26% Cu |
quarter
core sample across 1.0 metre |
breccia; dark green colour; strong
chlorite alteration; mottled texture with chlorite,
pyrophyllite, and sericite; moderately silicified; 1-5%
dissem. pyrite, chalcopyrite, and minor chalcocite;
several cross-cutting pyrite-rich fractures and micro-veinlets
with chloritic halos. |
0.651 |
5.2 |
0.28 |
12 |
171 |
|
51888 |
Medinah diamond drill hole L00-13,
298-299 metres; previously sampled by Medinah in sample
407084 0.68 g Au/t, 24.3 g Ag/t, 1.63% Cu |
quarter
core sample across 1.0 metre |
Typical breccia; pervasive chlorite-phyllic-silica
alteration; 5-20% coarse blebs pyrite, chalcopyrite,
plus minor sphalerite, galena; several cross-cutting
pyrite-chalcopyrite rich fractures and micro-veinlets. |
1.086 |
32.2 |
1.203 |
3475 |
9706 |
|
51889 |
Medinah diamond drill hole L00-14,
263-264 metres; previously sampled by Medinah in sample
407208 2.37 g Au/t, 50.2 g Ag/t, 3.95% Cu |
quarter
core sample across 1.0 metre |
Hanging wall contact of breccia; intense
phyllic alteration; 10-15% coarse blebs pyrite and chalcopyrite
plus 1-3% as fine dissem. specks; minor sphalerite and
molybdenite; pervasive carbonate alteration. |
1.398 |
56.9 |
2.41 |
33 |
195 |
|
51890 |
Medinah diamond drill hole L00-14,
398-399 metres; previously sampled by Medinah in sample
407243 4.93 g Au/t, 19.7 g Ag/t, 2.03% Cu |
quarter
core sample across 1.0 metre |
Strong phyllic altered breccia; white
gray colour; 5-10% blebby pyrite-chalcopyrite mineralization
along breccia fragment boundaries; some coarse dogstooth
quartz; minor smokey gray quartz veinlets; minor chlorite
alteration as fine specks; 1-3% very fine dissem. pyrite-chalcopyrite
specks and traces of molybdenite. |
3.310 |
12.3 |
1.19 |
12 |
83 |
|
51891 |
Medinah diamond drill hole L00-15,
316-317 metres; previously sampled by Medinah in sample
407288 0.22 g Au/t, 16.3 g Ag/t, 0.42% Cu |
quarter
core sample across 1.0 metre |
Strong pervasive chlorite altered breccia;
dark green colour; lesser amounts of silica-sericite
plus pyrophyllite alteration; 1-5% coarse pyrite and
chalcopyrite blebs with chloritic halos; trace to 1%
fine dissem. pyrite in matrix; several late smokey low
angle quartz veinlets with minor sphalerite-galena-pyrite
mineralization; minor smokey quartz in breccia matrix;
very little vuggy quartz. |
0.127 |
10.9 |
0.235 |
1189 |
2723 |
Table
5.1 (continued)
|
Sample
Name |
Location
(UTM) |
Sample
Type |
Description |
Au
(ppm) |
Ag
(ppm) |
Cu
(%) |
Pb
(ppm) |
Zn
(ppm) |
|
51892 |
Medinah diamond drill hole L00-15,
339-340 metres; previously sampled by Medinah in sample
407311 7.07 g Au/t, 9.0 g Ag/t, 0.53% Cu |
quarter
core sample across 1.0 metre |
breccia with pervasive silica-sericite-chlorite
alteration; coarse blebby pyrite-chalcopyrite mineralization
along with coarse infilled quartz in matrix; a 25cm
section of intense chlorite alteration with 10-15% fine
dissem. pyrite-chalcopyrite mineralization cut by pyrite
stringers. |
4.91 |
5.9 |
0.33 |
17 |
191 |
|
51893 |
Medinah diamond drill hole L00-16,
318-319 metres; previously sampled by Medinah in sample
407379 5.10 g Au/t, 20.1 g Ag/t, 0.79% Cu |
quarter
core sample across 1.0 metre |
Typical breccia near upper contact
zone with granodiorite; pervasive chlorite-sericite-silica
alteration; many smokey quartz veinlets; 3-5% coarse
pyrite blebs plus fine dissem. chalcopyrite. |
1.65 |
9.7 |
0.38 |
133 |
640 |
|
51894 |
Medinah diamond drill hole L00-16,
335-336 metres; previously sampled by Medinah in sample
407396 1.97 g Au/t, 17.9 g Ag/t, 1.22% Cu |
quarter
core sample across 1.0 metre |
Typical chlorite-rich breccia with
strong sericite-clay-pyrophyllite alteration; 5-15%
coarse pyrite +/- chalcopyrite and fine dissem. cubes
and specks pyrite and chalcopyrite; silica alteration
as smokey quartz. |
1.899 |
15.8 |
0.96 |
56 |
3298 |
|
51895 |
Medinah diamond drill hole L00-18,
322-323 metres; previously sampled by Medinah in sample
407485 2.32 g Au/t, 45.9 g Ag/t, 2.95% Cu |
quarter
core sample across 1.0 metre |
Strong altered breccia interval with
pervasive sericite plus minor carbonate-pyrophyllite-chlorite
alteration; 5-15% coarse anhedral blebs pyrite and minor
chalcopyrite, some with chlorite-pyrophyllite alteration
halos; 1-5% fine dissem. pyrite and chalcopyrite. |
1.36 |
50.1 |
2.41 |
40 |
358 |
|
51896 |
Medinah diamond drill hole L00-18,
334-335 metres; previously sampled by Medinah in sample
407497 1.41 g Au/t, 23.6 g Ag/t, 1.22% Cu |
quarter
core sample across 1.0 metre |
Very similar to previous sample; pervasive
sericite-silica alteration; minor chlorite-pyrophyllite
alteration; 5-15% coarse anhedral blebs pyrite and minor
chalcopyrite; several late pyrite-rich stringers at
various orientations; minor areas of pervasive carbonate
alteration. |
1.45 |
19.8 |
0.99 |
54 |
132 |
6.0
CONCLUSIONS AND RECOMMENDATIONS
6.1
CONCLUSIONS
The
18 drill holes that have been completed to date by Medinah
have revealed a great deal more information about the geometry,
alteration, and grades of the breccia pipe. The latest round
of 6 drill holes has penetrated the breccia at its deepest
levels to date, and has uncovered some distinctly different
alteration suites than at higher elevations. Based on the
work completed to date, the following conclusions can be drawn:
- The
breccia pipe has a consistent ovoid shape between the 1900
and 1600 metre levels which is elongate to the northeast
(see Figure 6.1). On each of these four levels the breccia
extends approximately 150 to 200 metres along its northeast
trending axis and 50 to 70 metres in width. (Note: an
interpreted northwest trending fault offsets the western
edge of the breccia on the deepest two levels.). The
breccias plunge is roughly 62º to the south southeast.
The pipe remains open to the west below the 1800 metre level
and to the east at all levels, and down plunge.
- The
surface exposure is highly leached and contains only weak
geochemical levels of gold, silver, and copper. A 15 to
20 metre wide zone of supergene enrichment with a possible
structural control, follows the hanging wall contact of
the breccia starting from the base of the oxidation level
(about 40 to 50 metres depth), roughly 170 metres down plunge
to the 1800 metre level below. Gold, silver, and copper
values are enriched in this zone. Below the 1800 metre level
the high grade zone disappears, but gold, silver, and copper
values remain consistently anomalous across the entire width
of the breccia, with occasional 2 to 8 metre wide higher
grade zones within the main breccia.
- The
upper levels of the breccia are mineralized predominantly
with pyrite and chalcopyrite (along with chalcocite replacing
chalcopyrite) and minor amounts of sphalerite, galena, and
traces of molybdenite and bornite. The alteration is dominated
by coarse crystalline quartz with open vuggs, chlorite,
and sericite, with varying amounts of calcite, K-feldspar
epidote, clay, and pyrophyllite. At depth (below 1700 metres)
some of the holes start to show a change in the alteration
to pervasive silicification and cross-cutting smokey quartz
veinlets with strong phyllic (quartz-sericite) alteration
and increasing carbonatization. Chlorite, although still
present and locally strong, no longer dominates as one of
the principal alteration types. Sulphide mineralization
content appears to have decreased slightly at depth.
- The
breccia is rimmed by a zone of pyritization and sericitization
in the host granodiorite and by zones of sericitized and
silicified intrusive breccia that are variable in intensity
and at times seem to grade into the hydrothermal breccia.
- The
concept of an hidden, underlying, or adjacent copper mineralized
porphyry is still a possibility, and should remain as one
of Medinahs exploration target objectives.
- The
Lipangue polymetallic breccia pipe still represents a good
target to host underground, bulk mineable, gold-copper-silver
mineralization. Even though the breccia has been intersected
by 14 drill holes, it is still in fairly early stages of
drill definition and Medinah believes that with an additional
exploration program the potential size of this target can
be increased. Medinahs recently increased land position
at Lipangue covers the strike and down dip extent of the
breccia and leaves sufficient ground to define new targets
along strike or on other parts of the property. A large
percentage of this property has only been reviewed on a
preliminary basis, or not at all, and should be further
explored, since the potential exists for additional breccia
style mineralization or even porphyry copper mineralization.
figure
6.1 Level Plans compressed
figure 6.1 - Level Plans full
size
6.2
RECOMMENDATIONS
The
Lipangue Property area should continue to be evaluated for
large tonnage, bulk mineable, breccia hosted gold-copper +/-silver
and/or copper porphyry style mineralization, according to
the suggested two phase, results driven exploration program
outlined below and as shown on Figure 6.2.
The total approximate cost for Phases I (US$415,000) and II
(US$605,000) is US$1,020,000 as outlined in Section 7.0
figure
6.2 - Proposed Drilling compressed
figure 6.2 - Proposed Drilling
full size
Phase
I
 |
Combined
airphoto/landsat structural interpretation: this would
assist in determining the regional structural and alteration
patterns in the area and help locate areas of intersecting
faults or radial fracture patterns which are commonly
associated with breccia and/or porphyry style mineralization.
|
 |
Gridding
and topography: the existing north-south oriented grid
(200 metre spaced lines) should be extended to cover the
entire property area (approximately 96 line kilometres).
|
 |
Geophysics: |
-a
magnetic survey should be completed over the entire gridded
area (approximately 116 line kilometres) therefore generating
new drill targets and a model to apply for regional exploration
purposes; interpretation of the data to look for zones of
structural dilation created by the intersection of major structural
trends or post mineral faults which could control the location
of additional breccia style mineralization, and signatures
typical of porphyry style mineralization which could be associated
with the breccia at depth; a preliminary interpretation of
the magnetics should be completed prior to starting the IP
survey, so that additional IP/resistivity lines can be planned
over any resulting magnetic anomalies. It would be advantageous
to incorporate the magnetic results in the structural interpretation.
-
IP/resistivity should be completed over areas of magnetic
anomalies.
 |
The
entire gridded area (outside of the recently mapped area)
should be geologically mapped and sampled at a scale of
1:5,000 so that a better regional understanding of the
geology is attained and models can be applied to outline
new targets; any anomalous areas resulting from the airphoto/Landsat
study should be reviewed with special care and a strong
emphasis should be put on structural aspects of these
areas; finally, the mapping will ensure that a full level
of understanding is attained prior to drilling so that
any complexities or unexpected deviations in the mineralization
encountered during the drilling program can be dealt with
in a prompt and technically sound manner.
|
 |
An
additional suite of thin/polished section work should
be completed from a wide range of representative drill
core samples over the entire vertical and lateral extent
of the breccia; this study will complement the study done
on hole L00-13 and determine the alteration and mineralogical
suites present in the Lipangue breccia and assist in determining
the location of the breccia within the vertical epithermal
profile.
|
 |
Early
stage metallurgical testing at a reputable international
testing laboratory should be completed, using a small
bulk sample collected from selected portions of the existing
drill core.
|
 |
A
total of approximately 7 drill holes, totaling approximately
2,825 metres should be drilled in the vicinity of the
Lipangue breccia to trace it along strike, and down plunge
(see Figure 6.2). The holes should be pre-collared by
RC drilling to depths ranging between 100 and 300 metres
(a total of about 1,550 metres) and then switched to HQ/NQ
diameter diamond drilling across the mineralized zone
(a total of about 1,275 metres). Initially the holes should
be drilled to the north at -70 degrees and then adjusted
accordingly based on the results of the first few holes. |
As
part of the diamond drill program and all of the sampling
programs it is highly recommended that Medinah initiate a
full quality assurance program to ensure that the highest
level of confidence is maintained for all of their exploration
results and that all standards set by various regulatory bodies
are met. The surface location of all drill holes should be
permanently marked and surveyed and down hole deviation tests
completed at regular intervals during the drilling process.
Phase
II
 |
Based on favourable results generated
from Phase I, targets generated by the above regional
exploration program should be drill tested by diamond
drilling in a second phase of exploration. In addition,
sufficient fill-in drilling should be completed over
the strike and down plunge extent of the Lipangue breccia
to outline blocks of measured, indicated, and/or inferred
resources. A total of approximately 1,000 metres of
drilling should be budgeted initially for the newly
defined targets and an additional 4,500 metres for the
Lipangue breccia.
|
Respectfully
Submitted,
HOWE
CHILE LIMITADA
Robert
Cinits, P.Geo
February 12, 2001
7.0
PROPOSED EXPLORATION BUDGET
| Phase
I |
US$ |
| Structural
Interpretation |
$10,000 |
| Diamond
Drilling: |
1,275
metres @ $75/metre |
95,625 |
| "Pre-collar"
RC Drilling: |
1,550
metres @ $50/metre |
77,500 |
| Analytical
(Drilling Related): |
750
samples @ $25/sample |
18,750 |
| Professional
Staff |
1
consultant:20 days @$450/day |
9,000 |
| |
1
project geologist 3 months @ $5,000/month |
15,000 |
| |
1
junior geologist 3 months @ $3,500/month |
10,500 |
| General
labour: |
1
technician 3 months @$1,000/month |
3,000 |
| Bulldozer: |
150
hours @$75/hour |
11,250 |
| Surveying
and Gridding: |
30,000 |
| Analytical
(rock/trenches): |
500
samples @ $25/sample |
12,500 |
| Geophysics: |
|
|
Magnetics |
116
line km @$100/km |
11,600 |
|
IP/resistivity |
10
line km @$1,500/km |
15,000 |
| Metallurgical
testing: |
5,000 |
| Thin/Polished
Section Study: |
5,000 |
| Accommodation: |
15,000 |
| Equipment
and Related Expenses: |
20,000 |
| Miscellaneous
(flights, etc.) |
10,000 |
| SUBTOTAL
- Phase I |
$374,725 |
| Contingency
(10%) |
$37,473 |
| TOTAL
- (Phase I) |
$412,198 |
| |
Say,
US$415,000 |
| Phase
II |
| Diamond
drilling: |
3,500
metres @ $90/metre |
262,500 |
| "Pre-collar"
RC Drilling: |
2,000
metres @ $50/metre |
100,000 |
|
Analytical (Drilling Related): |
2,000
samples @ $25/sample |
50,000 |
| Professional
Staff: |
1
consultant @ $450/day for 20 days |
9,000 |
| |
1
project geologist @ $5,000/month |
30,000 |
| General
Labour: |
1
technician @ $1,000/month 6,000 |
6,000 |
| Bulldozer: |
300
hours @$75/hour |
22,500 |
| Accommodation: |
20,000 |
| Equipment
and Related Expenses: |
20,000 |
| Miscellaneous
(flights, etc.) |
30,000 |
| SUBTOTAL
- Phase II |
$550,000 |
| Contingency
(10%) |
$55,000 |
| TOTAL
(Phase II) |
US$605,000 |
| TOTAL
(Phases I and II) |
US$1,020,000 |
SOURCES
OF INFORMATION
Baker
E.M. et. al., 1986, Hydrothermal Breccia Pipes, EGRU Contribution
12, Contributions of the Economic Geology Research Unit,
Geology Department, James Cook University of North Queensland
Cinits,
1999, Geological Report on the Lipangue and Las Dos Marias
Gold-Copper Properties, Howe Chile Limitada Report #0025,
August 2, 1999, in-house report for Medinah Mining Inc.
Cinits,
2000, Geological Report on the Lipangue and Las Dos Marias
Gold-Copper Properties, Howe Chile Limitada Report #0029,
June 19, 2000, Appendices II and III bound separately,
in-house report for Medinah Mining Inc.
Davidson,
J. and Mpodozis C., 1991, Regional Geologic Setting of
Epithermal Gold Deposits, Chile, Economic Geology, V86,
pp 1174 1186.
Frutos
J., Oyarzún R., and Pincheira M., ed., 1986, Geología
y Recursos Minerales de Chile, Editorial de la Universidad
de Concepción, Tomo I, II y III.
Geodatos,
1998, Estudio Geofisico Mediante Polarizacion Inducida,
Proyectos Lipangue Breccia y Las Dos Marias, Sector Lampa,
Region Metropolitana, in-house report for Medinah Energy
S.A.
Geodatos,
1999, High Frequency C.S.A.M.T. Geophysical Survey, Las
Dos Marias Project, Metropolitan Region, Chile, in-house
report for Medinah Mining Inc.
Geodatos,
1999, Induced Polarization Geophysical Survey, Lipangue
Breccia Project, Metropolitan Region, Chile, in-house
report for Medinah Mining Inc.
Haynes,
S.J., 1995, Epithermal and Mesothermal Cu and Au Mineralization,
Domeyko District, 19º S, Chile, in-house Report for A.C.A.
Howe International Ltd.
Hodgson,
C.J., 1993, Mesothermal Lode-Gold Deposits in Mineral
Deposit Modeling, GAC Special Paper 40, pp 635-678.
House,
G. D., 1998a, Report on the Evaluation of the Santiago
Project, Metropolitan Region, Chile, in-house report for
Medinah Energy Inc.
House,
G. D., 1998b, Summary Report on the Lipangue Breccia Zone
and the Relationship to the Las Dos Marias Replacement
Deposit, in-house report for Medinah Energy Inc.
House,
G. D., 1998c, Report on the Geological and Geophysical
Exploration Programs on Las Dos Marias Project, Metropolitan
Region, Chile, in-house report for Medinah Energy Inc.
House,
G. D., 1998d, Report on the Exploration Programs on the
Lipangue Breccia Project, Metropolitan Region, Chile,
in-house report for Medinah Energy Inc.
House,
G. D., 1999a, Report on the Phase I Diamond Drill Program
on Lipangue Breccia, Metropolitan Region, Chile, Appendeces
I, II, and III in-house report for Medinah Energy Inc.
House,
G. D., 1999b, Report on the Phase I Diamond Drill Program
on Las Dos Marias Project, Metropolitan Region, Chile,
Appendeces I, II, and III, in-house report for Medinah
Energy Inc.
House,
G. D., 2000a Report on the Phase II Exploration Programs
on the Lipangue Breccia Project, Metropolitan Region,
Chile, for Medinah Mining Inc., Appendeces IV bound separately,
in-house report for Medinah Energy Inc.
House,
G. D., 2000b, Report on the Phase II Geophysical and Diamond
Drill Program on Las Dos Marias Project, Metropolitan
Region, Chile, for Medinah Mining Inc., Appeddix IV bound
separately, in-house report for Medinah Energy Inc.
House,
G. D., 2001, Report on the Phase III Diamond Drill Program
on the Lipangue Breccia Project, Metropolitan Region,
Chile, for Medinah Mining Inc., Appendices I, II, and
III bound separately, in-house report for Medinah Energy
Inc.
Leitch,
C. H. B., 2000, Petrographic Report on 25 Polished Thin
Sections, Vancouver Petrographics Ltd., in-house report
for Medinah Mining Inc.
Mineria
Chilena, Compendio de la Mineria Chilena, 1998, Editec
Ltda., Santiago
Sernageomín,
1980, Mapa Geológico de Chile, Escala 1:1.000.000
Sillitoe,
R.H., 1991, Gold Metallogeny of Chile An Introduction,
Economic Geology, V86, pp 1187-1205.
Thin
Section Report on DDH-199-05-110.10, 1998, in-house report
for Medinah Energy S.A.
TSE,
1999, Setting New Standards, Mining Standards Task Force
Final Report, Toronto Stock Exchange and Ontario
Securities Commission
Ugalde,
H.A., 1998, IP Data Revision Report, in-house report for
Medinah Energy S.A.
Waisberg,
R.I., 1955, Informe Sobre la Solicitud de Préstamo de
la Sociedad Minera "La Fortuna de Lampa", Incl.
Plano General de Laboreos, Escala 1:500, Croquis Geológico
y Muestreo de Socavon 1 y Frontones de la Chimenea, Escala
1:250, Caja de Crédito Minero, Santiago.
CERTIFICATE
I,
Robert Cinits of Vancouver, B.C., Canada do hereby certify
that:
1.
I am a geologist currently acting as General Manager of
Howe Chile Limitada, Geological and Geophysical Consultants,
(a South American branch office of A.C.A. Howe International
Limited), located at Colon, 370, Piso 2, La Serena, Chile.
2.
I am a graduate of the University of Toronto with a Bachelor
of Science (1985) degree in geology.
3.
I have continuously practiced my profession as a geologist
since 1985.
3.
I am a professional geoscientist, registered with the Association
of Professional Engineers and Geoscientists of Saskatchewan
(member No. 10615)
4.
I am a member of the Geological Association of Canada (GAC),
the Prospectors and Developers Association (PDAC), the Society
of Economic Geologists (SEG), and the Canadian Institute
of Mining (CIM).
5.
I have reviewed several similar style deposits throughout
Chile and have reviewed many properties in highly weathered
terrains throughout South America and through this, have
gained the expertise to give a fair evaluation of the nature
and distribution of the mineralization on this property.
6.
The information and data used in this report is based on:
Howes experience in the area; from the references
cited; and from site visits that I made to the Lipangue
and Dos Marias Properties on June 16 1999, and April 7,
2000; plus two trips to Medinahs core storage facility
in Santiago on June 17 and July 14, 1999; and then to Medinahs
core storage facility in Lampa on December 7 and 8, 2000.
During these trips representative sections from the Medinah
drill core was reviewed and independent samples collected.
7.
I have neither directly or indirectly received any interest
in the property, nor do I beneficially own directly or indirectly,
any securities of Medinah Mining Inc., or any affiliated
company, nor do I expect to receive any in the future.
10.
In my professional opinion, the properties discussed in
this report are of potential merit and warrant further exploration,
as recommended in this report.
11.
Consent is hereby given to Medinah Mining Inc. to use this
report in support of a financing through the NASDAQ stock
exchange, and to reference this report in any applicable
disclosure document provided that no portion be used out
of context in such a manner as to convey a meaning which
differs from that set out in the whole.
"Robert
Cinits"
Robert Cinits, P.Geo
February 12, 2001
Vancouver, Canada
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