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The following are selected excerpts from the June 19, 2000 Howe Chile Limitada report on the Alto de Lipangue and Los Dos Marias gold/copper properties.
The complete report is available for viewing at the corporate offices of
Medinah Mining, Inc.


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GEOLOGICAL REPORT
ON THE
LIPANGUE AND LAS DOS MARIAS
GOLD-COPPER
PROPERTIES
METROPOLITAN REGION, CHILE
FOR
MEDINAH MINING INC.

Report No. 0029
Howe Chile Limitada
(A.C.A Howe International Limited – South American Office)
La Serena, Chile

Robert Cinits, P.Geo.
June 19, 2000

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 Geography and Climate
  2.3 Property Description and Current Status
  2.4 Acquisition & Maintenance of Mineral Rights in Chile  

3.0 CHILE

3.0 CHILE
3.1 Introduction
3.2 Geography
3.3 Climate, Vegetation and Drainage
3.4 Demography
3.5 Business Investment Climate in Chile
3.6 Mineral Resources of Chile
3.6.1 Gold and Copper Production in Chile  

4.0 GEOLOGICAL SETTING

4.1 Tectonic Setting of Central and Northern Chile

5.0 HISTORY

5.0 HISTORY
5.1 Lipangue Property – History and Previous Exploration Work
5.2 Las Dos Marias Property – History Previous Exploration Work
5.3 Medinah Exploration Program - Lipangue
5.3.1 Phase I – Reconnaissance Over the Lipangue (and Dos Marias)

6.0 PROPERTY GEOLOGY AND MINERALIZATION

6.0 PROPERTY GEOLOGY AND MINERALIZATION
6.1 Lipangue Property Geology
6.1.1 Lipangue Property Mineralization
6.1.1.1 Lipangue Breccia
6.1.1.2 Quartz Vein Mineralization
6.1.1.3 Howe Verification Sampling
6.2 Las Dos Marias Property Geology
6.2.1 Las Dos Marias Property Mineralization
6.2.1.1 Shear Zone Hosted Gold Mineralization
6.2.1.2 Manto Style Copper Mineralization
6.2.1.3 Howe Verification Sampling

7.0 CONCLUSIONS AND RECOMMENDATIONS

7.0 CONCLUSIONS AND RECOMMENDATIONS
7.1 Conclusions
7.2 Recommendations
7.2.1 Lipangue Property
7.2.2 Las Dos Marias Property

8.0 PROPOSED BUDGET

8.0 PROPOSED BUDGET
8.1 Lipangue Property
8.2 Las Dos Marias Property

SOURCES OF INFORMATION

CERTIFICATE

 

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"), which is a wholly owned subsidiary of Howe International Consulting Ltd, and part of the A.C.A Howe International Limited group of companies, was retained to review the exploration and mining activities completed to date over the Lipangue Gold-Copper-Silver, and Dos Marias Gold+/-Copper Properties. The properties are located in the Metropolitan Region of Chile, approximately 30 kilometres northwest of Santiago.

Howe was retained by Medinah on March 28, 2000 with the terms of reference for this assignment consisting of the preparation of a qualifying geological report complying with Canadian reporting guidelines as set out in proposed National Instrument 43-101 (scheduled to replace National Policy 2A), covering the mineral potential of the Lipangue and Las Dos Marias Properties. This report will update and replace a previously prepared Howe report (Geological Report on the Lipangue and Las Dos Marias Gold-Copper Properties, Howe Chile Limitada Report #0025, August 2, 1999). 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 a total of 5 claims (3 mensuras and 2 manifestacions) covering 1,363 hectares. The Dos Marias property consists of one "mensura" (mining claim), which covers a total of roughly 130 hectares. Both the Lipangue and Dos Marias properties are currently held 100% by Medinah, through their wholly owned Chilean subsidiary Medinah Mining Chile, and 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 recently 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.

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 properties 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, while the Dos Marias Property is located on it’s western slopes. Dirt roads pass through the middle of both property areas, and from here most other parts of the properties 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 fiber optic network while the cellular network covers most major cities and has reception from the Lipangue Property and higher elevations of the Dos Marias Property.

The Andean region of Chile attained the status of a major gold province as a result of gold exploration successes started in the late 1970’s and continuing since then. The majority of the new discoveries are of epithermal, or porphyry type, however pluton related vein and metasomatic related discoveries were also made. A large portion of the deposits are related to porphyry systems as high sulphidation mineralization above, or low sulphidation and contact metasomatic mineralization around, the porphyry-type mineralization. Most of the exploration over the past 20 years or so has focused in the high cordillera where infrastructure is almost non-existent and harsh winter and high elevation conditions prevail. Very little exploration was concentrated in the lower elevation coast range mountains and as such, prospects such as Lipangue and Dos Marias remain largely unexplored.

The Lipangue and Dos Marias Properties are 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 western flanks (which includes the Dos Marias Property), 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 area surrounding the Lipangue and Dos Marias properties has been exploited since Spanish conquistador times both for the alluvial gold and the oxidized portions of the high grade quartz veins. Evidence of hand cobbed placer activity can be seen in many locations over both properties. Although several "pirquineiro style" mining operations started in the area about the turn of the century, the first well documented mining activities were in the Fortuna de Lampa mine, just east of the Lipangue property which was active over an approximately 30 year period between the early 1940’s and the late 1960’s. During this time the property saw intermittent, small scale, mining activity on a narrow vein style gold deposit which reportedly produced almost 2,000 tonnes of vein style mineralization grading 63.9 grams gold/tonne, 51.2 grams silver/tonne, and 0.2% copper.

The Dos Marias Property is host to numerous old adits, shafts, and pits which are located along the Quebrada Durazno and surrounding hillsides in the vicinity of the old Dos Marias Mine. The workings on the west side of the creek are the oldest and most extensive and appear to have been exploiting gold rich quartz veins and pyritic zones within a shear zone. The timing of this work is unknown, but early diggings and gold placer operations further north down the creek, may date back hundreds of years, possibly to Spanish colonial times. No data regarding these mining activities were made available to Medinah and it is unknown as to the amount of gold (+/-copper?) mined and processed, the average grade, or the extent of the workings. More recent adits have been excavated into the hillside on the east side of the creek following several copper +/-gold mineralized manto horizons. Based on the limited amount of dumps, it appears that this material may have been hand cobbed and hauled to a plant for milling. Similar to the other workings, no data documenting this previous mining activity was forwarded to Medinah.

The first documented exploration program over the Lipangue Property, that Howe is aware of, was completed by Shell (La Division Metales de Shell Chile S.A.) in 1985 as part of a reconnaissance regional exploration program over the Altos de Lipangue plateau. Shell’s project covered a northeast elongate area of about 7 to 8 kilometres by 2 kilometres wide and included ground presently covered by Medinah’s Lipangue and Dos Marias Properties. The most positive results were returned from a very limited mapping and sampling program over the Lipangue Property where they outlined what they believed to be a roughly east northeast elongate area of subcropping hydrothermal breccia. Even though at the end of their limited program this breccia remained for all intent and purpose, unexplored and had unknown strike and depth potential, they still believed that it represented an excellent precious and base metal target that could host a significant resource.

The Lipangue Property

The Lipangue Property 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 the property, between the Lo Amarillo and Cerro Negro knolls and is host to the recently discovered Lipangue gold-copper-silver breccia pipe.

The Lipangue Property was first obtained by Medinah in 1998, and after the initial Phase I review by their consulting geologist Gordon House it was highly recommended as a potential target for polymetallic breccia style mineralization. Medinah’s second phase of exploration, which took place between September 13th and October 8th, 1998 consisted of gridding, geological mapping, and an IP/resistivity survey which further outlined the surface extent of the breccia target and defined several geophysical targets that would be drill tested during the next phase.

The Phase III work program occurred between February 8th and April 18th, 1999 and consisted of 1,652 metres of diamond drilling in 7 separate holes. Individual holes ranged in depth between 70 and 348 metres and were all targeted to intercept the Lipangue gold-copper-silver mineralized hydrothermal breccia.

The Phase IV work program, the most recent phase of exploration, took place between August 1999 and April, 2000 and consisted of fill-in grid lines that were covered by an second IP/resistivity survey, geological mapping, and 1,181 metres of diamond drilling in 5 holes, all designed to further outline the Lipangue breccia. By the end of this most recent phase of exploration work, Medinah had outlined the surface extent of the breccia which occurs as an east-west elongate, ovoid shaped body that outcrops in trenches over an area measuring roughly 150 to 200 metres (east-west) and up to 100 metres wide. The drilling has traced the breccia 100 metres along strike and 250 metres down its apparent dip to the south, where it has continually averaged between 50 and 75 metres in thickness.

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 drilling indicates that the oxidation level varies between 25 and 50 metres in depth, below which it steeply plunges to the east southeast and 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.

Even though the two drilling programs by Medinah have been completed over a fairly restricted area, with all of the 12 holes occurring within a 350 metres radius of each other, nine of these holes have intersected significant thickness of variably altered and mineralized breccia. These nine holes that intersected the breccia have been drilled on 4, north-south oriented, irregular spaced sections (separated by 25 to 50 metres) which cover a 100 metre east-west distance. Two of the early holes from the first drill program were collared approximately 120 and 220 metres further to the east in an attempt to trace the breccia along strike in that direction, but failed to intersect it. The IP/resistivity survey (completed by Geodatos on behalf of Medinah in 1998) indicates that an eastward plunging polarized body continues another 400 metres east of the known surface extent of the breccia, and that the top of the breccia could be as deep as 120 metres by this point. The breccia may have a strong east to east northeast structural control, and therefore could evolve into a narrower breccia-dike or brecciated fault much further to the east.

The 5 drill holes along section E crossed the breccia at its widest point where it continually averaged between 50 and 75 metres in width, and was traced down a –60º south apparent dip for about 250 metres where it remains open at depth.

Geochemical analysis completed by Acme Analytical on the Medinah drill hole samples indicate 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 L99-03

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

Drill hole L99-05

0.23 grams gold/tonne, 1.35 grams silver/tonne, and 0.07 % copper across 40 metres and,
0.47 grams gold/tonne, 2.11 grams silver/tonne, and 0.10% copper across 24 metres

Drill hole L99-06

0.60 grams gold/tonne, 13.7 grams silver/tonne, and 0.39% copper across 154 metres

Drill hole L99-07

0.49 grams gold/tonne, 9.68 grams silver/tonne, and 0.31% copper across 124 metres

Drill hole L99-08

3.83 grams gold/tonne, 27.2 grams silver/tonne, and 0.40 % copper across 56 metres (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

Drill hole L00-09

5.93 grams gold/tonne, 23.6 grams silver/tonne, and 0.81% copper across 6 metres,

Drill hole L00-11

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

Drill hole L00-12

0.33 grams gold/tonne, 3.06 grams silver/tonne, and 0.07 % copper across 11 metres
and,
0.56 grams gold/tonne, 2.33 grams silver/tonne, and 0.14 % copper across 28 metres

An approximately 20 metre wide zone of higher grade mineralization occurs at, or close to the hanging wall contact with the granodiorite on most sections. Section E, having the most drill hole information has traced the high grade zone from just below the oxidation level to a depth of 225 metres down the apparent dip of the breccia. This same high grade zone also appears on sections E+25*, and E+50. Significant weighted averages across this zone include:

SECTION E

Drill hole L99-03

2.59 grams gold/tonne, 20.84 grams silver/tonne, and 0.85 % copper across 29 metres

Drill hole L99-06

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

Drill hole L99-07

1.26 grams gold/tonne, 18.11 grams silver/tonne, and 0.49 % copper across 28 metres

Drill hole L99-08

6.49 grams gold/tonne, 10.07 grams silver/tonne, and 0.63 % copper across 32 metres

SECTION E+25

Drill hole L99-05

7.92 grams gold/tonne, 23.42 grams silver/tonne, and 0.86 % copper across 10 metres*

SECTION E+50

Drill hole L99-12

2.23 grams gold/tonne, 16.16 grams silver/tonne, and 0.55 % copper across 25 metres

*In hole L99-05, the high grade zone was hosted in a zone of intensely "chloritized and magnetite-rich granodiorite" in the hanging wall of the breccia. The location of this zone correlates with the high grade zones on sections E and E+50 and indicates that this may be a continuous mineralized sheet, however more drilling will be required in this area to the actual geometry of the high grade zone.

The western boundary of the breccia has been roughly defined by drill holes P00-09 and 10, on Section DE+50 as an undulating contact that roughly follows the southeast dipping andesite-granodiorite contact. Hole P00-09 just clipped the western edge of the breccia, intersecting a narrow, but high grade interval that yielded 5.93 grams gold/tonne, 23.6 grams silver/tonne, and 0.81% copper across 6 metres. Hole P00-10, which was drilled about 60 metres up the projected apparent dip of the breccia, missed it, probably drilling just west of its contact. However, a strong IP anomaly returned from the recent survey indicates that the breccia could occur below (and possibly widen), and to the west of hole P00-09, at about 200 metres depth. More drilling will be needed to accurately determine the western extent of the breccia.

The breccia remains completely open to the east, and down plunge. Even though to date 9 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 a larger porphyry style mineralized system at depth.

In addition to breccia style mineralization, the Lipangue property also hosts several narrow (0.10 to 0.50 metres wide), variably oriented, auriferous quartz veins. Most of these are hosted within the granodiorite in the eastern two thirds of the plateau and were mined or explored by "pirquineiro" style operations over the past century. This style of target has not yet been explored by Medinah at Lipangue, and should be considered a lower priority target. Based on the known mineralization at the nearby Fortuna Property, which occurs just east of Lipangue (on land currently held by Cerro Dorado Inc.), these veins are usually very narrow, but can be very high grade, and often can average above 50 grams gold/tonne. Typically they consist of a gangue, which is primarily quartz and some sericite, mineralized with pyrite-arsenopyrite +/-sphalerite-chalcopyrite-galena-hematite-tetrahedrite and gold.

LAS DOS MARIAS PROPERTY

The Dos Marias Property occurs on the northwest slope of the Altos de Lipangue plateau and is underlain by a generally north striking, east dipping sequence of volcanic and volcanoclastic rocks with intercalated marine and continental sedimentary rocks which correspond with the Lo Prado Formation. The main structural feature, and the main exploration target on the property has been a 340º to 350º striking, 70º west dipping, 50 to 100 metre wide auriferous shear zone which trends through the middle of the property. Regional geology maps show an extensive area of hydrothermal alteration, centered on the shear and which extends south from the middle of the property, about 2 kilometres to the granodiorite contact.

Similar to the Lipangue Property, Dos Marias was first obtained by Medinah in 1998 and after the initial Phase I review by their consulting geologist Gordon House, it was recommended as a potential target for shear zone hosted gold mineralization and stratabound skarn replacement copper mineralization. Medinah’s second phase of exploration, which took place between September 8th and October 16th, 1998 consisted of gridding, geological mapping, and an IP/resistivity survey which further outlined the surface extent of the shear zone and defined several geophysical targets.

Phase III occurred between February 8th and April 18th, 1999 and consisted of a very small, two hole diamond drilling program which totaled approximately 456 metres of drilling. The two vertical holes were about 156 and 301 metres in depth, respectively and were both collared to test the shear zone style of mineralization several hundred metres south of the old workings. Both holes yielded positive results and warranted a follow-up drill program.

Phase IV, the most recent phase of exploration, took place between September 22, 1999 and March 29, 2000 and consisted of gridding, geological mapping, and a CSAMT geophysical survey, and 3 additional diamond drill holes.

The geology in the area mapped by Medinah, consists of a central, north striking, 30º east dipping volcanic sequence which is both overlain and underlain by units of hornblende and feldspar porphyritic to massive andesite. The volcanic sequence consists of ash flow and ash fall deposits and variably skarnified, interbedded limey sedimentary horizons which in the southern parts of the property have been intruded by a 50 to 75 metre wide granodiorite dike. The skarnified limestone units with the volcanic unit are host to several disseminated to massive copper skarn replacement lenses which were lightly exploited in the past.

The shear zone roughly follows the base of Quebrada Durazno, and within the property boundaries can be traced over a strike length of about 700 metres (traced through surface outcrops, diamond drill holes, and extrapolated along strike through IP/resistivity results). The dip of the shear zone cross-cuts the gently east dipping host lithology, which is predominantly siliceous and pyritic ash tuff and tuff of the volcanic sequence, and the underlying porphyritic andesites. Mineralization occurs as fine disseminated pyrite and quartz-sulphide (pyrite+/-arsenopyrite?)+/-carbonate-chlorite-pyrophyllite stringers 2 to 5 centimetres wide, and spaced 15-25 centimetres apart.

On surface the shear zone is best exposed in the area of old workings (the Las Dos Marias Mine) in the central portion of the claim, however also in several drill road cuts, and in outcrops in the creek bed, west of the drill holes. The surface mineralization consists of strongly sheared (north northwest striking and steeply west dipping), and silicified tuff and porphyritic andesite with 1 to 20 % disseminated pyrite which is cut by several quartz-pyrite veinlets up to 2 centimetres wide and oriented subparallel to the shearing direction. Two independent surface channel chip samples, collected by Howe in 1999 across select surface exposures of the vein at the old workings and near the collar location of DM99-01 yielded:

3.82 grams gold/tonne across 1.5 metres and;
1.39 grams gold/tonne across 2.5 metres

The strongest, and best mineralized portions of the shear zone appear to be hosted in the eastern, or foot wall portions, and the intensity and gold grades appear to drop in the hanging wall sections. Even though 5 drill holes have been drilled into the zone, the structural and/or lithological controls and the geometry of the mineralized zones within the shear have yet to be determined. Results of Medinah’s two drill programs yielded several anomalous weighted averaged values including:

DM99-01

6.48 grams gold/tonne across 2 metres ( between 11 and 13 metres)
0.64 grams gold/tonne across 6 metres (between 23.5 and 29.5 metres)
0.50 grams gold/tonne across 53 metre (between 50 and 103 metres)

DM99-02

2.44 grams gold/tonne across 5 metres (between 37 and 42 metres)
91.99 grams gold/tonne across 2 metres (between 68 and 70 metres)
0.48 grams gold/tonne across 10 metres (between 70 and 80 metres)
0.36 grams gold/tonne across 23 metre (between 150 and 173 metres)

DM00-03

0.80 grams gold/tonne across 10 metres (between 177 and 187 metres)
1.49 grams gold/tonne across 3 metres (between 178 and 181 metres)

DM00-04

1.81 grams gold/tonne across 1 metre (between 57 and 58 metres)
0.30 grams gold/tonne across 6 metres (between 67 and 73 metres)
0.35 grams gold/tonne across 6 metres (between 79 and 85 metres)
0.39 grams gold/tonne across 8 metres (between 93 and 101 metres)
0.52 grams gold/tonne across 13 metres (between 128 and 141 metres)
0.41 grams gold/tonne across 4 metres (between 164 and 168 metres)

DM00-05 (and 5a)

0.73 grams gold/tonne across 4 metres (between 127 and 131 metres)
0.48 grams gold/tonne across 9 metres (between 160 and 169 metres)

The two 1999 holes were drilled vertically to intersect the southern extension of the shear zone in the vicinity of a granodiorite dike, however once drilled, the location of these holes was found to be collared in the shear zone, therefore missing the footwall and possibly the strongest mineralized portion of the auriferous structure.

A narrow, but very high grade auriferous fault/breccia gouge zone hosted within the main shear zone, consisting of clay-carbonate-sericite alteration and 1 to 5 % disseminated pyrite and traces of molybdenum and chalcocite, was intersected in hole DM99-02 between approximately 66 and 73 metres. Although core in this interval was extremely broken and recovery was well below normal levels, the analytical results of two consecutive, one metre samples taken by Medinah, between 68 and 70 metres, yielded 61.77 and 122.2 grams gold/tonne. A quarter core repeat sample by Howe of the second sample, between 69 and 70 metres, returned a spectacular value of 455.02 grams gold/tonne across one metre. The extremely high grade and varying results yielded from the Medinah and Howe analyses reflects the probable nuggety nature of the gold mineralization in this fault zone and perhaps in other portions of the shear zone.

Based on the results of these two holes it was decided to test the full width of the shear zone, with holes DM00-03, 04, and 05 drilling from the west to the east and intersecting the high grade zones, below the two earlier holes. The results of the second drilling programs were disappointing, especially since the high grade gold zone intersected in hole DM99-02 could not be traced to depth. The drilling did confirm that the shear zone has a significant width of 150 metres, and that it is not continually mineralized across this entire width and varies from intensely sheared and pyritized sections, to very lightly fractured and weakly altered portions with minor sulphide mineralization. Gold grades are only weakly anomalous across the shear zone and localized in a few zones with weakly anomalous values.

The 5 holes completed to date over Dos Marias have not been successful in locating a wide, low grade, bulk mineable gold target that Medinah was hoping for, and it now appears that the property is much more structurally complicated that originally believed. Recent geological mapping by House substantiates the complex structure where numerous new faults and shears have been located at oblique angles to the main shearing direction. The mapping also determined that many of the auriferous structures in the northern portion of the shear zone are aligned along a 50º orientation, and not subparallel to the trend of the main shear zone as originally believed. This could imply that the drilling may have been oriented subparallel to, therefore missing a significant portion of, the main gold bearing structures at Dos Marias. This oblique angle is not uncommon in shear zone related deposits worldwide as the principal gold accumulation can often be found in several structural sites, including: obliquely oriented tension gash type veins; zones of bifurcation within, or splays off of, the main shear; or at points where the main shear is intersected by oblique angled faults, etc. The area should be carefully re-mapped in detail with a strong emphasis placed upon the structural relationship between gold mineralization and the shear zone, prior to commencing further drill programs.

The other main mineralized target at Dos Marias is stratabound or "manto" replacement skarn copper mineralization which is hosted in a series of north striking, east dipping limey tuff and sedimentary horizons ("mantos") on the east side of the creek. Very little follow up work has been completed over this target however recent mapping by Medinah in an adit ("the manto adit") on the east side of the creek, has revealed that the individual mantos are not more than a few metres in thickness, but are vertically "stacked" throughout the stratigraphic sequence, the true thickness of which has yet to be determined. Mineralization consists of disseminated and semi-massive to massive pyrite and chalcopyrite lenses, however many of the exposures are well oxidized and consist of various copper oxides, limonite, and iron oxides, mixed with pyrite and chalcopyrite. It is uncertain if low grade copper values occur in the lightly skarnified units between the mantos.

A 1.5 metre channel chip sample taken by Howe in the manto adit across an interbedded sequence of partially oxidized skarnified limey sediments and siliceous volcanics with minor amounts of copper oxide mineralization and traces of fine disseminated pyrite and chalcocite, yielded 1.96% copper. Based on this analytical result and the occurrence of additional subparallel manto horizons, Howe recommends that portions of this tunnel be systematically sampled to test the grade of the other manto horizons and the surrounding weakly skarnified sediments/volcanics to see if a wide, potentially bulk mineable copper resource exists here.

Surface mapping several hundred metres along strike to the south of this adit has located rubble of epidote-diopside skarnified limey sediments mineralized with irregular shaped blebs of pyrite and/or chalcopyrite and it is thought that this rubble is similar to the manto style copper skarn mineralization which is exposed in the adit suggesting that additional pods of this mineralization will occur both along strike and stacked vertically throughout the volcanic/sedimentary sequence.

During Howe’s two visits to the Lipangue and Dos Marias Properties, time was spent reviewing the surface geology, the style and extent of mineralization, drill hole locations, and the extent of previous workings. Independent samples were taken from both surface and underground exposures of the mineralized zones. Howe also visited the core storage facilities in both Santiago and Lampa where several representative intervals of core from both properties, through both mineralized and barren sections, were reviewed by Howe. Several quarter core samples were collected by Howe which repeat intervals that were previously split and analysed by Medinah. In total, 30 confirmation type samples were collected from the two properties (18 from Lipangue and 12 from Dos Marias). The gold analytical results obtained from the Howe sampling at both properties were 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. Silver and copper results at Dos Marias were generally low and considered insignificant. 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 campaigns over both the Lipangue and Dos Marias Properties give a general representation of the values that can be expected from these prospects. 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 an excellent target to host underground, bulk mineable, gold-copper-silver mineralization. This target remains open to the east and down plunge, and could become much larger in extent as Medinah traces it in these directions. The breccia is still in the earliest 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 mineralization. Howe concurs with this target objective.

The Dos Marias Property, hosts an early stage, grass roots shear zone hosted gold prospect and stratabound or manto replacement skarn copper mineralization. Recent drilling into the shear zone hosted gold target has returned mixed results, however a new geological map by Medinah indicates that structure of the property is much more complex that originally believed and that the main gold bearing structures may actually be oriented in oblique to the main shear zone, which is subparallel to the direction of the recent drilling. The property hosts areas of strong pervasive alteration, and indications of numerous old mining operations and based on this Medinah believes that it warrants an re-evaluation of the gold potential. The manto replacement copper skarn mineralization remains untested.

Medinah’s land position is secure in both properties, in that it covers the strike and down dip extent of all of their defined mineralized zones 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 over the Lipangue Property. The total cost for Phases I (US$482,900) and II (US$800,250) is approximately US$1,300,000.

Howe also recommends that a two phase, results driven program be conducted in order to assess the vein style, and shear zone hosted gold mineralization and copper skarn replacement mineralization over the Dos Marias Property. The total cost for Phase I (US$89,760) and II (US$169,400) is approximately US$260,000.

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 exploration completed to date over the Lipangue and Las Dos Marias ("Dos Marias") Gold-Copper Properties. The two properties are located within two kilometres of each other, within the Metropolitan Region of Chile, approximately 30 kilometres northwest of Santiago.

The Lipangue Property consists of 5 individual mining claims which together cover an area of 1,363 hectares. The Las Dos Marias property consists of 1 mining claim which covers approximately 130 hectares. Both are held 100% by Medinah, through their wholly owned Chilean subsidiary Medinah Mining Chile.

1.2 TERMS OF REFERENCE

Howe was retained by Medinah on March 28, 2000 with the terms of reference for this assignment consisting of the preparation of a qualifying geological report complying with Canadian reporting guidelines as set out in proposed National Instrument 43-101 (scheduled to replace National Policy 2A), covering the mineral potential of the Lipangue and Las Dos Marias Properties. This report will update and replace a previously prepared Howe report (Geological Report on the Lipangue and Las Dos Marias Gold-Copper Properties, Howe Chile Limitada Report #0025, August 2, 1999). 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 geological report on the Lipangue and Las Dos Marias Properties 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 experience. In addition, on April 7, 2000 Mr. Cinits visited both the Lipangue and Las Dos Marias Properties. During this period the drill sites of each of the recently completed diamond drill holes were visited. Between April 7 and 8, 2000 Howe remained at the Medinah field office in Lampa where diamond drill core from the recent drill programs over the Lipangue and Las Dos Marias Properties are stored. Representative sections of several of the drill holes from each property were reviewed and independent confirmation samples taken. This visit was complimented by background knowledge gained during an earlier trip to the site and to Medinah’s core storage facility in Santiago by Mr. Cinits between June 16 and 17, 1999 and on July 14, 1999 (see Cinits, 1999).

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 1999 and 2000 field examinations of the Lipangue and Dos Marias Properties a number of samples were independently collected by the author and submitted to ITS (Bondar-Clegg) Laboratories in La Serena, Chile and ALS-Geolab (Chemex) laboratories Santiago, 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 June 4, 2000 is $US 1.00 is equal to approximately 503 Pesos.

2.0 LOCATION, ACCESS AND PROPERTY DESCRIPTION

2.1 LOCATION AND ACCESS

The Lipangue and Las Dos Marias Properties are located approximately 30 kilometres northwest of Santiago in the coastal range mountains. The approximate UTM coordinates of the center of the Lipangue Property is 315500 E, 6314000N and the Dos Marias Property is 312000E, 6313500N.

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.

To reach the Dos Marias property one must continue west southwest across the Altos de Lipangue plateau and the Lipangue property and then drop in elevation about 500 metres down the west slope of the plateau. The drive from Lampa to the Lipangue Property takes approximately 1 hour to complete, while the drive to Dos Marias takes an additional 15 minutes to complete. The road passes through the central portions of both properties and other parts must be reached by travelling off-road in a 4 wheel drive truck or by foot.

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 west boundaries of the Lipangue Property and the eastern edge of the Dos Marias 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. 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 and higher elevations on the Dos Marias 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.

2.  GEOGRAPHY AND CLIMATE

The Lipangue and Dos Marias Properties are situated within a few kilometres of each other in the coastal range mountains. The Lipangue Property covers the majority of the Altos de Lipangue Plateau except for the easternmost edge, which has an average elevation of almost 2,000 metres. The northeast oriented gently rolling plateau crosses the central third of the property dropping steeply off in the northern and southern thirds of the property down to elevations of 1,500 and 1,200 metres, respectively.

The Dos Marias Property is located along the western slope of the plateau where elevations range between 1,150 and 1,550 metres. The north trending Quebrada Durazno runs through the middle of the property. Both properties are covered by low shrubs, cactus, tough grasses, and rare small trees. Local farmers use the area for summer grazing of cattle, horses and goats.

The property areas have a Mediterranean type of climate with cool and rainy winters (April to September) and dry hot summers. The average temperatures for the hottest (January) and coldest (July) months at Santiago are 20ºC and 8º C, respectively. The average annual precipitation at Santiago is approximately 381mm. Snow is extremely rare around Santiago, however it is known to occur at the higher elevations of the property area.

2.3 PROPERTY DESCRIPTIONS AND CURRENT STATUS

The Lipangue Property consists of a total of 5 contiguous claims covering approximately 1,363 hectares. Of these claims, three are registered as "mensuras" (mining claims) in the name of Juan Jose Quijano and together cover a total of approximately 763 hectares; and two are "manifestacions" (application stage for a mining claim) which were staked by Medinah at the end of the last drilling phase and which cover an area of approximately 600 hectares. The property extends roughly 3,000 metres in a north-south direction and 900 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

Manifestacion

Gordon 1-60

300

Manifestacion

Gordon 61-120

300

The Dos Marias property consists of one "mensura" (mining claim), which covers a total of roughly 130 hectares, and is registered in the name of Juan Jose Quijano. This property extends approximately 1,750 metres in a northwest direction, and 750 metres northeast-southwest.

Both the Lipangue and Dos Marias properties are currently held 100% by Medinah, through their wholly owned Chilean subsidiary, Sociedad Contractual Minera Medinah Mining, Chile ("Medinah Mining, Chile") and 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.

2.4 ACQUISITION AND MAINTENANCE OF MINERAL RIGHTS IN CHILE

Chile’s current mining policy is based on legal provisions that were enacted as part of the 1980 constitution. These were established to stimulate the development of mining and to guarantee the property rights of both local and foreign investors. According to the law, the state owns all mining resources, but exploration and exploitation of these resources by private parties is permitted through mining concessions, which are granted by the courts. The concessions have both rights and obligations as defined by a Constitutional Organic Law (enacted in 1982). Concessions can be mortgaged or transferred and the holder has full ownership rights and is entitled to confiscate the rights of way for exploration and exploitation. In addition, the concession holder has the right to defend his ownership against state and third parties. An ex