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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.


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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

  1. General
  2. Terms of Reference    
  3. Scope, Sources of Information, and Disclaimer
  4. 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 Howe’s 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 Howe’s 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.

Medinah’s 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.

Medinah’s 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 Howe’s 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 firm’s services are provided through offices in Toronto, Canada, Denver, USA, London, England, and La Serena, Chile. Howe’s 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 Howe’s previous experience on the property. In addition, on December 7th and 8th, 2000 Mr. Cinits visited Medinah’s 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 Medinah’s 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 Howe’s 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 Medinah’s 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.

figure 4.1 – Geology and Drill Holes compressed

figure 4.1 - Geology and Drill Holes full size

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
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:

and

0.33 grams gold/tonne, 3.06 grams silver/tonne, and 0.07 % copper across 11 metres, between 199 and 210 metres,
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 Howe’s attention that no breccia was intersected in this drill hole and similarly Medinah’s 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 Howe’s 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:

  1. 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 breccia’s 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.
  2. 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.
  3. 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.
  4. 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.
  5. The concept of an hidden, underlying, or adjacent copper mineralized porphyry is still a possibility, and should remain as one of Medinah’s exploration target objectives.
  6. 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. Medinah’s 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: Howe’s 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 Medinah’s core storage facility in Santiago on June 17 and July 14, 1999; and then to Medinah’s 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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