MDMN - 2016-05-16 Weekly Discussion

I don’t think Masglas would be to happy since they now own 412 million shares of Medinah or am I wrong

http://finance.yahoo.com/news/medinah-minerals-inc-announces-completion-201900068.html

Now in the release they state Masglas owns a total of 20% of the common stock. Wheres the 150 million is that separate and belongs to Auryn? Are they not part of Masglas?

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Trucking expense to ENAMI is being minimized resulting from ore concentration prior to shipping using non-chemical methods (from today’s update):

These have resulted in an average gold recovery of over 90% from concentrated ore obtained by a gravimetric Falcon system. Based on this, AURYN expects to produce a total of 5,000 troy ounces of gold in 2016 and over 25,000 troy ounces in 2017.

…the equipment stated in the update:

All Falcon Concentrator models rely on a rotating bowl to generate high gravitational forces, but each Gravity Concentrator model is unique in the way that it collects and produces mineral concentrate. High gravitational forces are used to exploit the differences in density between fine mineral particles, allowing for a cleaner and much finer separation than is possible using low G-force devices.
Sepro Mineral Systems has a complete range of Falcon Gravity Concentrators from small portable Concentrators for laboratory testing to units that are capable of treating up to 400 tonnes per hour.
Mineral Processing Equipment & Solutions | Sepro Systems

Auryn stated:

The Board of Directors of AURYN Holdings Corporation and associates currently holds 150 million common shares of Medinah Minerals Inc.{1}

It seems in line with that statement to understand those 150M as being owned privately by people on the Auryn BOD (and their family / friends), not owned directly by Auryn or Masglas the companies.


  1. http://aurynmining.com/auryn-holdings-corporation-proposes-major-increase-in-ownership-of-medinah-minerals-inc/
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So Mark it’ fair to say

Auryn publicly holds 150 Million Shares

Masglas publicly holds 278,763,318 Shares

A very sizable voting block!
Yesterday I commented:

Will we see the number held by CEDE & CO decrease in our next Quarterly Report?
I would expect the “freely trading” share count to start decreasing.

I would say “Auryn associated people” - I don’t think Auryn Chile owns the shares. I do read today’s announcement as “Masglas” the company owning the 279M. Otherwise, yes I agree. Of course this assumes they haven’t sold any since the start of this saga. But that seems quite unlikely, imo.

These are the same numbers MG presented earlier today.

If you follow the link I gave above it states in the final sentence:

A proposal from AURYN Holdings Corporation to acquire an additional package of 350 million shares of MDMN common stock already issued has been submitted to the present owners.

So they were shooting for 150M + 350M = 500M. In total between individuals and companies, they ended up with 150M + 60M + 219M = 429M or so

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Thank you! So they still don’t fully control Medinah yet. Maybe they will enter the market in the next couple days as they have to wait before entering start purchasing again. Price is still way to cheap they can lock it up pretty quickly as long as someone keeps selling them at this price.

Just go back and see that 62 Million shares that were soaked up at .0210 only cost the buyer 1.3 million. Not bad

Aside from our current sp and the stock going down today…Is there anyone who is not “very pleased” with today’s announcements???

FALCON GRAVITY CONCENTRATORS

http://www.seprosystems.com/index.php?option=com_content&view=article&id=82&Itemid=471

They have units that can go up to 400 tonnes / per HOUR

The typical application for a Falcon SB Gravity Concentrator is recovering liberated precious metals (Au, Ag, Pt, etc.) within a grinding circuit. When installed in this type of circuit, Sepro Mineral Systems often recommends that the gravity concentrator be placed on cyclone feed, rather than cyclone underflow to generate higher mineral recoveries. Outside of grinding circuits, Falcon SB Gravity Concentrators are also used for precious metal separation from aggregate or placer deposits. The target mineral will usually be in extremely low concentration (grams per tonne) and a very high upgrade is desired (up to 10,000x).

Why bother with all the complicated permitting, regulatory, and operational issues with heap leaching when you can use one of these and truck highly concentrated ore to someone else to do that. But imagine a 20-tonne truck loaded with 90% recovered highly concentrated gold ore! Yikes. You’ll have to send a armed convoy with it. :slight_smile:

From today’s PR:

“We have conducted metallurgical test runs at recognized laboratories in Chile and Peru. These have resulted in an average gold recovery of over 90% from concentrated ore obtained by a gravimetric Falcon system. Based on this, AURYN expects to produce a total of 5,000 troy ounces of gold in 2016 and over 25,000 troy ounces in 2017.”

https://finance.yahoo.com/news/medinah-minerals-inc-announces-completion-201900068.html

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All the years of BS is over. Now we’re waiting for production and profits. If we are in fact going to be getting dividends then all we have to do is hold the shares and eventually we’ll get back our cost basis and the shares will end up being an atm machine. Otherwise we get bought out and hopefully we’ll all profit that way.

Either way, yes, I am very pleased to be at this stage of things. There’s a lot less to be concerned about now.

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Thanks TR…Always a pleasure to hear from you. I agree with everything you say. I appreciate you taking the time to respond, especially while you are enjoying your long deserved retirement from trading…

+1,000,000

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There was a few things in yesterday’s news I wasn’t happy about but mostly due to things they choose not to include.

They failed to state what the average grade they expect to have from the Merlin.

They failed to give the status of obtaining the surface rights to the Pegaso Nero target which purportedly is the reason why drilling hasn’t commenced there.

They failed to state when drilling is expected to commence at the Pegaso Nero target.

They failed to mention that the projected cash flow will be augmented from other mines at the Alto where government permits are now pending.

They made the following statement which is partially erroneous as it seems to imply that they need cash flow prior to stating the drilling program which is not correct. “The cash flow generated from production at the Caren Mine will fund an aggressive exploration program of the Pegaso Nero and further drilling of the Merlin-Fortuna targets”.

They failed to give more details about the contract or provide a link for shareholders to view it. Rumors continue on the exact terms related to how cash flow will be calculated/future monies delivered to their partners.

They failed to give an indication on when a 43-101 type report will be developed.

While I am at it…their website and the Masglas one are not complete and are in need of updating. They lack even basic information like who the directors etc and otherwise show a complete lack of transparency. It is my understanding that this will be remedied but of course the sooner the better.

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To add to Easy’s and CHG’s commments about gravity processing. Miner’s use heap leach for “disseminated” gold (i.e. lower grade, very fine particles). But in a high grade vein structure, gravity is the process used.

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[quote=“MikeGold, post:94, topic:1280, full:true”]
There was a few things in yesterday’s news I wasn’t happy about but mostly due to things they choose not to include.

They failed to state what the average grade they expect to have from the Merlin.

They failed to give the status of obtaining the surface rights to the Pegaso Nero target which purportedly is the reason why drilling hasn’t commenced there.

They failed to state when drilling is expected to commence at the Pegaso Nero target.

They failed to mention that the projected cash flow will be augmented from other mines at the Alto where government permits are now pending.
…[/quote]

I will take an alternative point of view just for balance:

  1. I agree those things were not discussed and probably could have been. No doubt Masglas/Auryn has information on those topics.

  2. I think the fact they did not discuss things not highly under their control (e.g. govt. permitting dates and thus other mines on the Alto; average grades on a new mine they have limited drilling info on; surface rights which depends on a process not completely under their control) is simply a reflection that Auryn is going to be an anti-Medinah when it comes to speculation and hype, i.e. they are being conservative and cautious not to promise or speculate on things they can not guarantee to deliver. ANTI-MEDINAH

Yes it’s a shock to the system. But I listen to conference calls and read plenty of presentations etc. from other mining companies, and the last 4 years of PM stock destruction has led many in the PM space to to behave this way, even the larger producers. Most are quite cautious esp. because no one can be certain if the POG/POS will continue up or if there is even a dip for a quarter what it will do to their future projections. But this is also due to the many epic failures in the space over the last few years (e.g. Pascua-Lama) which have renewed the appreciation for risk. Real mining is hard as opposed to printing shares and pretending to be a mining company (e.g. Amaranth - sorry Mr. U.). Mining is often unpredictable. A new era of caution and conservatism is fine with me for Medinah/Auryn. That is how credibility will be rebuilt. And if all goes well you can expect some positive surprises along the way.

Let’s experience:

  1. make a plan
  2. execute a plan
  3. experience the planned results

for once or twice

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Give me a break Mike? A private company with no reporting requirements giving plenty of detail and actually doing work and you complain. Yet you complain very little for years with a public company hiding behind non-existent NDAs and false rumors? I don’t get it.

I could answer point for point, but it’s not worth it.

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MGold. Your understanding of the geo aspects of this investment are unparallelled. One favor to ask: now that AMC has control of the public updates can you please stop incorporating Les’ BS “interpretations” of what is going on. The reason why the stock traded poorly yesterday was primarily because a segment of people were still listening to Les’ insistence that upfront money was to be received and we had some sort of NSR/royalty component.

This investment doesn’t need to be as confusing as we move forward. Relying on AMC to update shareholders on what is actually going on will bring a new sense of legitimacy to this investment. There is no longer the need (nor should there be the desire) to muddy the waters with some joker who’s trying to stay relevant. Les and JJ are out of shares and they should be out of the picture when discussing future ROI opportunities here.

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While not wanting to enter this mornings dust-up, but one point I will make, is last I looked, we are shareholders in MDMN, that has a BOD and CEO. Providing a copy of the contract, imo, is their responsibility to provide to its shareholders, not Masglas.

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Not to belabor the point, but if I’m reading correctly, there is a 15 g/t ore cutoff for gravimetric processing initially on the 5000 t/month permit. If this gravimetric concentration is 90% successful, there are 1.5 g/t (or more) left in the tailings. The additional initial permitting for other areas, as CHG has already pointed out, should go quite rapidly as no chemical processes are used, and there is minimal environmental impact. Several years out, after open pitting and permitting for leach field processing, there will be a large tonnage of tailings that can further undergo processing for additional recovery of gold, and later copper. The time horizon is longer, but the money flow becomes much greater, also. One 400 tonne/hour Falcon Unit running 20 hours per day could conceivably chew through as many as 160,000 tonnes per month!