We are so in the DARK I almost called LES to see whats up…Things are that bad
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Don’t do it Geoly. Les tries to call himself because he doesn’t even know whats up with himself. LOL.
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Still waiting Córdoba
https://theminingplay.com/uploads/db1184/original/2X/0/060427921e96abb10c771dbb58401ebffd37a105.JPG
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Perhaps our customary state of confusion and lack of information would help explain the real reason why Cordova was “unable” to connect with Baldy at the PDAC. He “knew” he would be unable to answer the difficult questions that he would have asked him. imho…
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While no one here is happy about the silence, I’d rather keep to a more optimistic view as expressed by WIZ a while back. When there is something worthy to report AURYN will report it. AURYN has already stated what it’s goals are. As already commented on, CDCH share structure is maxxed out. Unless production gets underway and there is positive cash flow from AURYN there is little that can be reported on, IMHO.
Continuing the discussion from Cerro/Medinah/Auryn- 2018 Q1 General Discussion 
:
“The inevitable never happens and the unexpected always does.” - Ruchir Sharma
First of all, I have no clue as to whether or not AMC shut down operations at the Caren Mine or not. I don’t think Google Earth images are going to be much help in determining that. If they haven’t commenced mining there assuming their permit is still good I think one of the more likely reasons why would be a decision having been made as to how to attack the overall project. Sillitoe’s input might have something to do with it.
A year or two back Maurizio told a reporter that they were drifting a “crosscut” adit from the Larissa eastwards towards the Fortuna. If this adit encountered a high density of veins or breccias that they didn’t see at surface then an open pit approach might have been determined to have the best economics for the entire mining district.
If the economics are there, both the Cu/Mo quartz monzodiorite poprhyry at the Pegaso Nero as well as the stratabound deposit over at the LDM and the Andesite porphyry in that area are typically mined via bulk mining methodologies using an open pit. With that monstrous area of surface argillic alteration over at the Fortuna there is a decent chance that this area might be open pitable like many “high sulfidation” epithermals are.
If the whole mountain is open pitable then you don’t want to start up an underground operation over at the Caren Mine in between the PN and the LDM. Anglo American and their partners (Codelco, Mitsubishi and Mitsui) just ran into this situation at their stratabound deposit El Soldado to the north of the ADL. The engineers decided to open pit the project after some underground mining was done. This sets up safety issues. Anglo pressed their case and finally got their open pit plan approved by SERNAGEOMIN.
The grades present at those first two lenses encountered in the Larissa Adit are way too high not to go after quickly. They hit 28 lineal meters of 11.5 gpt Au and 1.6% Cu in lens #1. This represents $600 per tonne “rock”. It pinched off for 4 meters and then they hit 42 meters of “clearly more mineralized ore with approximately twice those grades”. After that second lens Maurizio told a reporter that they thought they were within 20 meters of the really good stuff (like those other grades are chopped liver).
Prospect generators like Maurizio tie down concessions and work hard trying to de-risk a project for others. As the risk for the big boys goes down the value goes up. If an event occurs (no guarantees) in which the value of the mining assets jumps upwards then somebody like Maurizio might tie a red ribbon around the project and say what am I bid. An interested major might say hold your horses on the underground work at the Caren until our engineers figure out how to attack the overall district.
At the Las Vegas “informational meeting”, AMC and their people impressed me as being extremely trustworthy and ethical. They did indeed pledge to be more communicative. Kevin forewarned us that there might come times in the future during which management is going to go radio silent “for strategic reasons”. I don’t sense they’re being super silent because they’re mean and ornery. If the action isn’t occurring in the Larissa Adit then I would think the action is occurring on the desks of the engineers. If you’re going to design open pits you first need to launch a massive exploration effort involving a lot of drilling meterage. Then the engineers will do the kriging and the block modeling and then do the pit optimization studies.
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I would hazard a guess that Cerro/Auryn didn’t obtain a single new shareholder via their new “audience” at PDAC. (Also, their focus appeared to be Masglas; not Auryn/Cerro and certainly not Medinah.) As such, they would be better off keeping their existing audience properly informed. Their existing audience was able to create a very high market cap for Medinah and could do the same for Cerro/Auryn with regular updates and reaching milestones in a timely manner. (I’m not talking about updates with wildly inflated forward looking statements, just reasonable updates that tell shareholders what the heck is going on.)
I have no doubt that Dante and Maurizio have a “plan” but if it is anything like their plan for 2017 which accomplished little on the ground at the Alto…I’m not going to like it!
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Nah…I was just too busy early in the conference and couldn’t find them on the last day. Bottom line, I’ll be selling my positions in MDMN and CDCH at the end of the year to offset gains in my portfolio unless there is a dramatic shift in the momentum. I can’t even remember how long I’ve been vested in this name but I can only laugh as I read the latest post from Brecciaboy. Always knowledgable on the mountain, completely clueless to this investment. A stark reminder as to how many unknowing souls have been sucked into this investment. While a lot of my friends were smart enough to trade MDMN and make a lot of money, I apologize to those I brought into this fiasco who bought and held (like myself).
The unfortunate reality is that, post the Les crimes and our “stellar” deal with AMC, our piece of the pie has dwindled to crumbs. It no longer matters if this is a WCD (world class deposit) as our percentage interest has been diluted into oblivion. I’ve never see a JV in the mining world where the partner gets 75% of the asset for nothing upfront. No cash, no royalty (like we were originally told). Only a “promise” to spend some money and add a legitimate team of operators. We essentially gave up 75% of our ownership to ensure that scumbags like Les and JJ no longer had control.
Going forward, every time AMC spends money MDMN/CDCH will face a capital call or massive dilution. There’s no activity on the mountain because AMC needs money. Progress=capex=dilution. Welcome to death spiral financing boys. I’m sure Maurizio is a champ but, unless you own private shares in AMC (like Kevin was smart enough to do), the CDCH crumbs will likely fail to cover your milk money.
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Per the last update from Medinah at Christmas time.
“To this end Medinah plans to satisfy its financial obligations as quickly as possible and distribute the remaining assets to our shareholders before ceasing operations. We anticipate this will leave 1.61 billion shares of CDCH to our Medinah shareholders pro rata. This is a ratio of 0.558 shares of CDCH for each share of MDMN that our shareholders own.”
Seems like if Medinah’s interest in Auryn is converted to shares in Cerro, doesn’t cash calls go away? There doesn’t seem to be much wiggle room for Auryn to demand more money for long. Auryn/Cerro also doesn’t currently have any room to issue more shares since they are maxed out.
I think the most likely dilution will be in the form of percent of the property given away to a JV partner(s)…not so much in stock etc.
Full profitable production at the Caren short term could change the equation quickly if it ever materializes.
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From financials:
Medinah is responsible for its pro-rata share of Auryn’s capital costs and Medinah’s ownership in Auryn is subject to dilution should Medinah not be able to meet any cash calls.
I have a feeling this liability transfers to cdch shares once converted.
Are we going to get cash call on taxes just paid under Mdmn before cdch shares are distributed?
It was indicated better days ahead and yet here we sit .0021 to .0025. Not better!
I can take the price if I knew WTF was going on but we don’t know and some kind of light at the end of the tunnel is needed
What happened to the gold production? Did they get money? What did they use it for.
Now that asserts are under cdch, they have a responsibility to inform shareholders.
As it stands now, I agree with Baldy where they could sit on the property and dilute our ownership away.
Mike, Am I wrong or normally when you (CDCH) do a JV with a new partner, after that partner meets his obligations to earn a percentage ownership of the deal, funds spent after that are contributed to on a percent of ownership basis? By a new partner I’m referring to a future unknown partner that CDCH JV’s with after all the current dust clears.
Depends but JV’s are generally several years in length. In the case of the Alto, most likely Cerro would simply be bought out prior to the JV completing so no cash needed. Also, Auryn should have access to cash via the Caren/Fortuna/LDM mines unless they are completely inept at mining. Most likely, any JV will be separate from the mines.
Awesome! So if anyone is going to survive this it will be Kevin and Goodin. It all Makes sense now since they both took shares of Auryn and Not Medinah. Karl intuition was right on jmo
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DoneDeal, all you do is complain, ask questions, and cast stones. You’ve shown no effort to actually learn or understand anything about investing or mining. Why are you even here? Why didn’t you sell long ago and move on with life?
@Baldy - you may want to rethink your comment that this DoneDeal replied to.
MDMN owns AURYN shares. I own both AURYN and MDMN shares. Any dilution MDMN faces, I face. Any cash call MDMN faces, I face. All dilution is proportional.
All AURYN and MDMN shareholders will get prorated shares in CDCH at the appropriate time. Nobody is being favored and nobody is getting a raw deal.
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Are you not thinking or are you intentionally trying to mislead?
John, how much of the ADL did MDMN own? How much of it did CDCH own? How much did AURYN own? How much was in LDM’s name?
Where are the economically viable properties?
MDMN did not give up 75% of anything for nothing. That’s not at all what happened. You’re smart enough to know it. So you’re either being lazy or intentionally misleading. I’ll assume the former.
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MG,
The point I was trying to make by recalling the post from WIZ could just as easily been expressed a little differently. Perhaps you’ve heard the old saying “If you’re up to your “arss” in alligators, it’s hard to remember that your original mission was to drain the swamp!” It’s been a rough couple of years for all shareholders that have managed to hold on here. As Yogi Berra said, “It is tough to make predictions, especially about the future.” But the last couple of years have been particularly difficult for all shareholders.
A cautious optimism that things are being worked out to the best possible outcome under the circumstances, albeit slowly, is better than many of the very caustic comments that a few seem to dwell upon here. I think it is safe to say most shareholders here have not made the ROI that was expected under JJ and Les. After the Informational Meeting there was a great deal of optimism having met the current management and gotten to see other shareholders. Putting a face on those monikers was important to me. Many that post here were not at that meeting.
For what it’s worth, while staying with this investment since the Informational Meeting, I’ve also moved on to others that are more immediately rewarding. I find no reward in the pessimism that some seem to be wallow in day after day. At the risk of being repetitive:
“The inevitable never happens and the unexpected always does.” - Ruchir Sharma
Ok. I guess I’m not smart enough. Explain what we got.
I’ll I see is a little bit of $$$ to attempt to advance the project, a capital call, and a merger of two stocks (shells) that really shouldn’t even be public, and billions upon upon billions of shares.
The three reasons why investors could justify the deal was because it involved upfront money (didn’t happen), was not going to provide further dilution (didn’t happen), and because we had no other choice. The last point was and probably still is true. But let’s no pretend we got a great deal. We got what we could get and the stock price has reflected the same.
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Of the total land package that now makes up CDCH, how much came from medinah?
Right, we got the best we could get under the circumstances. And given the fraud I’d say AMC got the short end.
So why does your post try and make it seem like mdmn got ripped off?
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AURYN’s District-wide Analysis Planned for February should/could better have been expressed as their “Plan for 2017”, IMO
District-wide Analysis Planned for February
Dr. Jannas will work with other mining engineers, geologists, and consultants during the month of February to help AURYN determine the best strategy for expanding and developing the project. This involves• uncovering the full length of the 42m intersection of the main vein and taking 20 samples for a detailed analysis,
• continuing the mapping and evaluation of levels 1 and 2 in an effort to further understand the vein’s behavior and the topography, and
• beginning exploration and analysis on the Fortuna and the Las Dos Marias targets.This effort will help us refine our business plan as we consider the development of the entire project, including the possibility of bringing on additional partners for the porphyry targets.
ADL Project Update - January 2017 | AURYN Mining Corporation
Optimistically, I think management accomplished much of what it set out to do, even if it took all year for them to accomplish it. This is reflected in AURYN’s Dec 15 notification:
As the majority owner of Cerro, we look forward to working with current Cerro management. This includes the following:
• Creating a management team and Board of Directors suitable for an exploration company intent on becoming a junior and major mining company.
• Launching a massive exploration program on the Altos de Lipangue mining district including entering JV agreements with companies that have the specific expertise necessary for exploring and mining the variety of targets we believe we have in the district.
• Focusing our resources on becoming an active gold producer by reopening the Fortuna gold mine and actively exploring and mining the gold veins found in the Larissa tunnel.
• Subject to regulatory approval, consolidating the capital structure, changing the name of the company, and moving to a higher exchange or tier on the OTC.
As CHG so aptly put it: