Yup! If it wasn’t for Zotron getting questions answered from Solar and sharing with us we would have nothing. Pretty sad!
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Some nice dumping today at under .0015. I guess we are the point that some people are starting to figure that this will never happen. Can’t blame them one bit…
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You can thank Cordoba for that! Been almost a year since we last heard from him.
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I think it is pretty clear we have been hung out to dry. If we can get back to .002 I might exit myself. Enough is enough…
You do not know whether or not the stock holders have been hung out to dry. The dump under .0015 was about 5 million which was nothing volume wise. Of course you can exit whenever you wish. Lets let the facts of Auryn speak when THEY decide to share in a news release in the future. Until then everything else is conjecture. Some see it as a time to exit and others as a time to buy. Glass is either half full or half empty. Have a great day.
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I think the glass half empty or half full days are over. Why would you or anyone else be defending Auryn at this point? You can discount the 5 million shares as low volume all you want. But let’s keep in mind that the 5 million shares sold today probably came at a cost of over $100,000 dollars to the person or people selling. And I know because I have 4 million shares and I know how much I am losing…
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Do I sell and lose $75,000; gives me a cash account $1200. At this point it’s a lottery ticket. Expensive lottery ticket.
I wonder what I would win if I spent $75k on lottery tickets.
TDK.
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Auryn is selling for about 29 cents. If I can buy Medinah at .0013 then I’m buying… .That’s equal to about 23 cents for Auryn. To me, Auryn is a steal at .29 therefor Medinah is a steal at .0013. 
Buying MDMN at .0015 is like buying Auryn for .27 
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Don’t worry gang, I’m sure the “appropriate time” is right around the corner.
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Mangelsen not defending Auryn. Just saying that we will not know until the news finally comes out and the conversion happens and the price of AUMC is adjusted for all the shares trade-able. Best to you and we all have losses at this point. Been in MDMN for over 13 years so I feel your pain.
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I know many of us have been here for many years and all of us are awaiting the conversion but that said I would hope the group here has been accumulating shares of either MDMN or AUMC. It does disappoint me with the “noise” trades swinging the price lower on a few thousand dollars. Yes times are tight but if we as a group buy and establish the bottom then the weak hands will be rinsed out
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I still have shares of Medinah Gold. Lost track of the years.
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Hi JCN,
You bring up an interesting point about waiting to see what happens when the AUMC share distribution occurs and how the market reacts to it. The complexity of this overall Medinah/AUMC/ADL Mining District scenario leads to the current handcuffing of both the Medinah and AUMC markets unless one concentrates on the value of the ADL Mining District in current metals prices and geologic terms. For Medinah shareholders the salient question should be what is the ADL worth with gold trading at around $2,000 per ounce.
Conventional market wisdom would say don’t buy AUMC right now because only 5% of its shares are free-trading and when that other 95% of the shares becomes free-trading then look out below because the market might crash with all of that extra SUPPLY of shares becoming free trading. This is by no means accurate but I can sure see why people would think along those lines. The extension of that line of thinking would be don’t buy Medinah either because it is convertible into these AUMC shares that might be about to tank in share price. So what is missing from this analysis? It’s the true value of either Medinah’s or AUMC’s share of the ADL Mining District when gold is trading at about $2,000 per ounce. I guess one could argue that the effect of the upcoming distribution of the AUMC shares is already “baked into the cake” since people know about it. But to many you just can’t dismiss the fact that 95% of the AUMC shares are about to become free-trading and that’s of concern.
So what’s the reality a prospective investor or current shareholder should be concentrating on in regards to the upcoming share distribution? Is the SUPPLY variable of AUMC shares that interacts with the DEMAND variable for AUMC shares as part of the “price discovery” process really going to go through the roof? No, for starters, the 24% of the AUMC shares held by Medinah shareholders have been liquid all of this time. Those Medinah shares don’t represent new SUPPLY in a post-AUMC share distribution world. Medinah sellers have been able to sell all of this time. The 5% of the AUMC shares accorded to the old Cerro shareholders is free trading as AUMC shares today and has been for some time. Those shares don’t represent new SUPPLY in a post-AUMC distribution world. After the distribution of the AUMC shares Maurizio and his wife will own about 73% of the AUMC shares. These are referred to as “control securities” as per Rule 144 of the 1934 “Securities Act”. They are subject to further handcuffing from resale and even then only after any would be seller would publicly file a Form 144 declaring their intent to make such a sale in the future. I can’t overemphasize the beneficial effects of having this good of visibility over management’s shares as well as management having that much “skin in the game”.
The reality is that this supposed deluge of new SUPPLY upon the distribution of the AUMC shares is an illusion that is no doubt going to fake a lot of people out. The reality that we should be concentrating on is that the average Medinah and ex-Cerro (current AUMC) shareholder needs somewhere around a “10-bagger” just to break even. My assumption is that a significant percentage of those shareholders that haven’t sold after all that they have been through are holding off until they either break even or get a lot closer to breaking even than they are now. I don’t see those shares as being likely to be sold SUPPLY for quite a while.My guess is that this theoretically bloated share structure that conventional wisdom might predict is actually going to be a very tight share structure in reality.
But what good is a tight share structure if there is no news being released in order to generate DEMAND for these shares? We need to keep in mind that Medinah is currently 100% NONPROMOTABLE. Why? It has a dismal corporate governance past, 2.88 billion shares outstanding, it no longer files its quarterlies and is no longer in good stead with the Secretary of State’s office of Nevada. The latter two, believe it or not, are very good things for a “holding company” like Medinah, with significant assets but no cash. Nevertheless, to a prospective investor unaware of the history of Medinah it appears to be either potentially on its corporate deathbed or ripe for a reverse split. You and I know that this is an illusion but not many others do. AUMC is also currently 100% NONPROMOTABLE because only 5% of its shares are free trading and nobody knows for sure what’s going to happen (except for people like you and I) when that 95% is released. Besides, the average spread between the bid and the ask is 100% BECAUSE OF THAT 5% REALITY. Thus, both markets are pretty much temporarily handcuffed. You can see that when gold recently went up about $600 per ounce, neither market budged despite the gold production opportunities at both the Caren and Fortuna Mines. A unique set of circumstances has placed these markets into a coma while the industry itself is hitting on all cylinders. Is there likely to be a make up period when Auryn finds acceptance in the industry and when current shareholders wait until an acceptable exit point arrives? I suggest yes. The spread between the bid and the ask on AUMC which is currently driving away investors will tighten up and any demand for shares in the no longer 100% NONPROMOTABLE owners of the ADL will funnel into AUMC instead of being shared by Medinah and AUMC.
As far as the potential value of the ADL Mining District, “Mike Gold” made an interesting comment on theminingplay forum the other day. He was referring to the epithermal vein system present on the mountain and he commented that it just doesn’t get any better than that. Mike is an engineer and a very bright guy when it comes to the geosciences and the mining industry. I found myself snickering when he said “it just doesn’t get any better than that” when referring to the gold grades in that “epithermal” vein system. I’m of the distinct opinion that this vein system is a lot more than your typical run of the mill extremely high grade “epithermal” vein system. I think that the evidence is very compelling that we are sitting on a “mesothermal” vein system. When I get a second, I’ll review the difference between the two and it is significant.
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Thanks Doc. I have my average down to around .00226 for MDMN so not that far underwater. Took advantage of the drop in price from time to time and sold a very small amount of AUMC at .40 and bought MDMN at .00115 and .0012. Would like to get better prices but hey it is what it is. Oh and share away the difference you mentioned in your post of what you and Mike Gold have talked about. Enjoy your posts.
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As you go deeper into the earth’s crust and underlying mantle, temperatures and pressure levels go up. Vein deposits are typically classified as being
“epithermal” if they form close to surface where the temperatures and pressures are relatively low or “mesothermal” if they form down deeper where both the
pressures and temperatures are higher. “Epithermal veins” will form between the surface and about 1 Km depth. The average temperatures during formation will
be about 200-degrees C. “Mesothermalo veins” will form at depths of from 1 Km to 10 Km at temperatures of about 350-degrees C.
When gold bearing ultra-hot hydrothermal fluids rise up through the rock structure after being expelled from magma chambers, the minerals associated with
these fluids will solidify at a vertical level that matches the melting point of that mineral. When yopu heat up a mineral or metal from room temperature it
will melt at its melting point. Likewise, the minerals/metals carried as a liquid in super-heated fluids will convert into a solid at its “fusion point”
which is the same as its “melting point”. The melting/fusion points of minerals found at surface will tell you about the conditions present when those
minerals and metals were emplaced.
“Mesothermal veins” will hang out with high melting point minerals and metals down deep. You probably read about the ADL’s tourmaline breccia on the
southern downslope off of the plateau. Since tourmaline’s melting/fusion point is about 900 degrees C, this area experienced these temperatures while the
tourmaline was being emplaced. This is much hotter than the typical epithermal vein formation temperature.
Epithermal veins typically have small areas of “alteration” surrounding them. Mesothermal veins have much larger areas of alteration surrounding them. In
fact, at the Fortuna Mine the surface argillic alteration (made up of clays like illite and smectite) extend for between 100 and 200 meters of width at the
surface. You need very high temperatures and pressures, as well as rock that is fairly porous, in order to propel ultra-hot hydrothermal fluids that far
laterally at surface. It’s these same hydrothermal fluids that carry the gold that also “alter” the native rock into clay.
From an ECONOMIC point of view, mesothermal vein systems are typically vastly superior to epithermal vein systems. They typically carry higher grade gold
and their volume is much higher. In fact, these veins can extend downwards to depts of 1.5 Km from surface and the “meso’s” tend to widen with depth. On
the southern downslope off of the ADL plateau, the veins extended down from surface all of the way to the valley floor. The grades were improving with
depth. This translates into longer mine lives.
We already know that the trenching results in the Merlin and in the Fortuna Vein areas revealed over 5,000 lineal meters of veins making it all of thw way to
surface. The IP/IR studies also revealed underlying subparallel veins that didn’t make it to surface. IP/IR studies can be customized to see deeper into
the crust via changing the dipole spacing if management were to judge that as being worthwhile.
In Theresa Moreno’s book “THE GEOLOGY OF CHILE”, she and Victor Maksaev list the location of the belt of mesothermal veins occurring in Chile in Figure 6.11.
The ADL is located right in the middle of this “mesothermal vein” belt. The belt includes the Colliguay deposit immediately to the north of the ADL and the
Curacavi Mining District immediately to the south and west of the ADL. It also includes the famous Andacollo Mine to our north near La Serena. The IP/IR
studies done in the Fortuna Mine area suggest that these veins extend to impressive depths. With what we know already, I think a very compelling case can be
made that the prospects for this being a significant mesothermal gold vein deposit are very real. Drilling will tell us a lot more.
For me, this is pretty exciting stuff especially when the price of gold is near $2,000 an ounce. The average gold grades mined from the Fortuna Vein system
from 1940 to 1970 were basically off the charts. The mining was done from 7 different levels in that mine. The price of gold at the time was $35 per ounce.
The mine has reportedly been successfully dewatered and has been partially rehabbed. Management has not revealed the grades found from the sampling after
the partial rehabbing.
It appears that the Fortuna Vein project has gained stature in the mind of management from recent press releases. The grades found in the Caren Mine/Merlin
1 Vein were also stellar. This is located well to the west of the Fortuna Vein complex. Interestingly the argillic alteration around the surface aspect of
the Merlin 1 Vein was only about 1 meter in width versus over 100 meters in parts of the Fortuna Vein complex. The lesser width of alteration is more
suggestive of a true “epithermal vein”. The outstanding grades of both mines suggests that there might be a common progenitor magma chamber underlying the
entire plateau. Auryn’s geoscientists have confirmed that all of these veins are part of a common system of veins. ACA Howe’s report cited that the prior
mining efforts at the Fortuna Mine have not even scratched the surface in the Fortuna Vein area. The trenching results seem to confirm this assertion.
If you want to know what we’re all looking for, whether we know it or not, it’s the report cited in this press release:
March 14, 2017 @ 21:00
Auryn Mining Chile SpA (Auryn) is pleased to host Dr. Richard Sillitoe at the Alto de Lipangue from March 15, 2017 through March 19, 2017. Dr. Sillitoe is
an independent international consultant and one of the world’s leading experts on epithermal gold systems and porphyry copper systems.
Auryn CEO, Maurizio Cordova, and consulting geologist, Dr. Raymond Jannas, will accompany Dr. Sillitoe as he reviews Auryn’s exploration data and tours the
property. Dr. Sillitoe will produce an evaluation report of the Altos de Lipangue Mining District at Auryn’s request. This report is for internal purposes.
It will provide Auryn’s team with a fuller understanding of the diverse geological structures found at the Altos de Lipangue and help place them within an
HISTORICAL REGIONAL CONTEXT (emphasis added).
In regards to the “HISTORICAL REGIONAL CONTEXT”, what might they be referring to? I can’t help but think that the parallels to the Andacollo deposit are a
topic for discussion. Recall how excited Dr. Ray Jannas was when he ordered a Re/Os study to date some of the rock at the ADL. It turned out to match the
91 million year old age of the Andacollo deposit which also has a mesothermal vein aspect aswell as a porphyry aspect (think Pegaso Nero) as well as a
Sediment Hosted stratabound copper aspect (think LDM), etc. The Andacollo deposit features very high grade gold within a 5 Km radius of a centrally placed
porphyry.
I’m also interested in what Hochschild’s CEO Bustamente was referring to when he told a reporter after signing the LDM JV that the LDM area of the ADL had
“some pretty interesting geology”.
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The gold is appealing and I am sure you have the raw figures on the trifecta of copper and the lovely silver if you please. Thanks Doc.
I love your audacious posts, Brecciaboy… All of us know that somewhere on this planet (or perhaps on some other planet, near or far) there just has to be at least one geographic formation (or perhaps an entire region) with “mesothermal” veins of almost-pure gold running 100-200 yards wide (or maybe even wider) right at the surface and widening out as we follow them a mile deep (or maybe much deeper), and who says it can’t be right here in this place where so many of us have invested such a huge percentage of our lifetime hopes and lifetime savings? Who says? Isn’t this ridiculous notion the thing that drew us all here in the first place? Thanks for adding such reasonable-sounding “technical analysis” to all of our unhinged dreams!
– madmen
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Hi madmen,
I think I’d dial down your expectations to about an average width of perhaps 0.5 meters and an average grade of maybe 20 gpt gold. The key is that the ore is amenable to gravitational (dirt cheap) methods of extraction without all of the environmental concerns. With Maurizio forecasting a little bit of production even out of the Fortuna Mine (not the Caren Mine) it sounds like any permitting issues have been looked after there. At this point of the ball game what we need is to post a couple of runs on the scoreboard. The rest has a tendency to fall into place.
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Blank Slate: you have a glob of money that you could just as easily burn, and you loved to pour risk all over your cheerios every morning. Then your buddy says, hey bro! there’s potentially some action coming in this stinky pinky. There was a ton of shady manipulation but that appears to be all resolved. The data on the core asset is SCREAMING another Aurelian. And your buy-in is .0001. There’s a leadership in place that has YET to go back on promises, who has confirmed spent big $$$ on the asset, but they haven’t pulled the trigger on a catalyst event we all expect to happen… Why not buy in a few mil shares?
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Because there is no visibility on how the project will be financed. Given the microscopic market cap there is a very real possibility that the equity could become worthless, even if the “mountain” is a world class deposit. Its very difficult for people to differentiate the asset vs. the investment. Yes, you could call this investment a flyer but you need to be very comfortable with the potential of a zero.
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