The Mining Play

Auryn/Medinah - 2020 - 2nd Half General Discussion

Finally halfway through 2020. Can’t think of anything clever to say about this disaster of a year.

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I can think of something clever to say - the price of gold is going through the roof, which means the potential income that could be made over and above AISC is maximized, so there is NO excuse NOT to get going on production. Now is the time!

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Hey cabezon… thanks to you and Wiz for all you do. Happy 4th of July to all our American friends as we celebrate Canada Day tomorrow…

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REMINDER TO ALL: click on them banner ads! :wink:

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Well, Bubba, that would help make up for some of the bad mojo.

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Don’t forget GCCapital, Hurricane Rick and newleaf, thanks to those guys, too.

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A couple clarifications from my end which I consider to be “informed” but that’s up for you to decide.

  1. My previous statements re: a significant dilution were probably misplaced. Not b/c a considerable amount of capex wouldn’t be needed, even for a 5,000 tpm operation but rather for the points below.

  2. I believe a very small production opportunity, gravity only, etc. is the most likely path forward which will cost significantly less and could involve an equity raise or royalty, structured financing route. This would be the good news. The flip side to that would be an operation that is 90%-95% smaller vs. what has been discussed on this board.

  3. For those willing to exercise considerable patience there is always the option that a very small scale production effort could slowly self-fund other opportunities. Even 600-1000 ounces a year of low cost production could lead to an opportunity, a couple years down the road, to expand.

  4. Not surprisingly, Covid has halted any and all efforts to advance things on the mountain since early in the year.

  5. I do not believe there is any pathway for funding to pursue anything beyond Fortuna at this point but it does sound like the dewatering has occurred and been maintained. Without a defined resource and millions of $'s of additional drilling there simply is not access to capital at a reasonable cost.

Bottom line, everyone needs to evaluate their own opportunity cost in sitting in MDMN/AUMC when the rest of the precious metals space rips higher. Maurizio is a solid steward of this investment but is limited to the realities of a very early stage (but exciting) exploration play. Over time, with gold going higher, money will ultimately find it’s way to this more speculative corner of the market and, if the company can find a way to self-fund the definition of further resources in the next 24 months there is a way to advance the project without assuming massive dilution. Lot’s of “ifs” but that’s mining for you.

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All good points Baldy, but with few exceptions, I’m sure, most of us here have no “opportunity” to get out of MDMN with any substantial funds and into something better. For better or worse, we’re stuck here.

Vark

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I like this attitude, been supportive of it on this board for years and was shot down by guys around here that are smarter than me on mining. Being somewhat of a rebel, I have always stuck to my guns; Never, EVER, allow somebody to build you, because then they will be able to bring you down later on at their whim. Maybe Serogeomin’s interruption/intervention is what truly blocked Maurizio from proceeding. Maybe Maurizio has delayed progress due to Rule 144 issues. Yes, the theories propounded by brecciaboy make sense (and have been well-grounded in fact and law), but it sure would be nice to hear the complete story from Maurizio himself. Transparency. The other side of me recalls dealing with lawyers and other professionals with piles of paperwork in their office who NEVER get around to getting their work done - not laziness, just too many things going on at once, flying by the seat of their pants. Is the Covid virus bringing other mining operations to a halt? Assuming not, I wonder exactly what is stopping Maurizio from proceeding with even a start-up operation. Has a potential partner advised against proceeding? Is there a potential sale of the properties to a third party, rendering a start-up mining process immaterial? We might never know, but a 1,000-mile trip begins with the first step. I look forward to the transparency and good things to come.

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