As a matter of perspective, it is worth looking at gold grades at other mines around the world as they compare to the Fortunaâs Mine. (40 + grams/ton). As you can see, it compares very well further boosting the notion that the Fortuna mine will be able to generate good positive cash flow.
https://www.kitco.com/commentaries/2020-11-27/Highest-grade-underground-gold-mines-in-Q1-2020.html
Interesting analysis CS. Thanks for the St. Helensâ images. I can see on the google earth view there is a ring-shaped feature surrounding Santiago with the Southside blown out suggestive of the remnants of previous volcanic activity. (I chose this orientation as though I was looking down South at Chile from the US).
In my earlier post, I did throw out the meteor relevance to the origin of some economic precious metal core bodies. It only reminded me of the appearance of a meteor crater on the rim towards La Palma. Meteor strikes explain an origin theory of why some of my investments in different parts of the globe have resulted from the shock waves produced by high impact meteor strikes fracturing the underlying rock structures. I did go off focus from the main point I was going to make and Iâm glad you brought things back into focusing upon the ADL and itâs mineralization. Although gold is the surest shorter-term path to monetary exploitation. It is the low hanging fruit.
I fully agree that during different times in the past two major seismic shocks occurred ( and many smaller ones) which was the major point of my previous post. Regardless of whether Tectonic Plate shifts or Volcanic activity ( or even the possibility of a meteor strike - unlikely?) occurred from different central points, these shocks gave rise to the resulting numerous fractures evidenced on the ADL. The resulting cracks in the underlying rock intersected and concentrated as seen in the area of the flattened mountain top. This is clearly shown by the opposing veinlet structures (and major veins) that reached the surface and have largely âweatheredâ away over the years. These parallel and opposing surface deposits have been pointed out in numerous posts. These multiple fracturing events over the years have resulted in a much higher concentration of ore deposits reaching out and up from wherever the magma bulged up to allow the epithermal processes to evolve over the last 100 million years or more.
Recall these excerpts from an earlier Feb 3, 2016 post by breccia boy:
If you want to zoom in a little bit into Figure 1 on todays AMC PR you can see how linear the arrangement is of those high grade moly showings. The line extends to the NNW. If you continue up the page (NNW) you smack into the Gordon breccia. If you go a little further NNW you run into the Merlin 1 Vein which continues across the plateau heading NNW until it runs into the ultra high gold grade Caren Mine. This is one extremely straight linear arrangement of very high grade ore.
Recall that Perezâs hyper-spectral satellite imaging survey detected a 7 Km long swath of about a dozen intrusives oriented in a SW to NE fashion along this very same southern downslope off of the plateau. This faulting would be at about 90-degrees to the NNW lineal fault.
Also, one should remember from early on, the underlying real prize of the ADL is the copper porphyry, if it can be defined. After reviewing the most recent satellite imagery of the Pegaso Nero, I conclude little or no work has been performed, other than earlier surface sampling and mapping. Rock samples by measuring Re/Os data indicated the Pegaso Nero mineralization is about 91 million years old. Porphyry copper deposits are the major source of copper and significant sources of molybdenum, gold, and other metals. There is hope for the PN to be in play someday, but from all appearances that is some time distant in the future.
Refer to Cornhuskerâs comments and map from Aug 2018 (along with partial excerpts):
Going by the coordinates on the map, it looks to me they basically split the mountain in two. What they are calling the âLDMâ is basically everything that isnât the Caren and Fortuna and associated stuff to the south. This is the map I came up with. Itâs not exact. But I think you can assume the Caren forms the upper left point of that jagged diagonal line, which probably follows the Merlin 1 vein.
Pretty clearly, the original âLDMâ, the Pegaso Nero, and probably the Gordon Pipe area are all included in the JV (3000 hectares). All of this is titled the âcurrently named LDM projectâ in the PR. Yellow marks indicate those new claims that were published this past May, obviously filling in some properties for the JV.
In fact, you can note they basically split the south side of the mountain in two. If there is a porphyry right there where the Pegaso Nero is pointed, the property of both companies would obviously be involved in any future JV / mine etc. having to do with that target.
This stock âinvestmentâ will remain in my sock drawer until there is actual cash flow that is reported for at least several more quarters. If, as suggested by CHG, 40 tonnes per day of 45 g/t can be mined, and processed, this could add up to an annual $30M gross. Could this be sufficient to justify releasing the restricted AUMC shares? I note from the annual report that there are 100M shares authorized and 70M shares outstanding. There are also only 3,989,277 shares in the public float. That is a very tight float. The primary reason to unrestrict the AUMC shares is to use the 30,000,000 treasury shares currently held in reserve to fund aggressive mining and production. At least, thatâs the way I see it. I expect there will be a delay in unrestricting the AUMC divvy shares until there is some definitive valuation that can be assigned from progress being made and widely publicized. Unfortunately, without promotion it is unlikely shareholders will see these unrestricted divvy shares anytime that will satisfy anxious shareholders.
For context I just wanted to add the following information concerning the PN. Click on the link to see the area (Fig. #1) that was sampled. It is the same area I examined in the most recent satellite images referred to in the previous post and failed to detect any new signs of exploration activity.
Preliminary Exploration at Pegaso Nero Target Suggests the Discovery of a Copper Molybdenum Porphyry System within the Altos de Lipangue Project.
February 03, 2016 @ 09:12
Highlights
- A soil molybdenum anomaly area with 3.6 kilometers by 1.2 kilometers was defined surrounding the known tourmaline-specularite breccia.
- Rock sampling returned up to 1.2% Cu, 860 ppm Mo and 0.12 g/t Au in the hydrothermal breccia.
Re/Os dating in the breccia returned 91 ± 0.4 Ma, representing a Cretaceous Porphyry System similar to Andacollo Mine and others.AURYN Mining Chile SpA (âAURYNâ or âthe Companyâ or âAMCâ) is pleased to announce results from the first phase of soil geochemistry sampling program on the Pegaso Nero Moly-Copper area, located within the Altos de Lipangue project, in the Cretaceous-aged belt of central Chile.
The soil geochemistry program detected an important Mo â Cu anomaly surrounded by Pb, Zn and As anomalies. Inside the area containing high molybdenum values on soil samples, it was recognized a hydrothermal breccia with tourmaline â specularite and associated copper oxides.
Mineralization observed at Pegaso Nero target is related to a very well defined structural controlled alteration system that has only been partially explored by AURYN. This system hosts an important number of outcrops of hydrothermal tourmaline â specularite breccia with molybdenum, copper and gold mineralization.
A total of one hundred and thirty-six soil samples were completed at the Pegaso Nero prospect. A large molybdenum anomalous area was detected, with extension almost 3.6 by 1.2 kilometers and still open to the east. Moreover, there are two sectors with strong Cu-Mo mineralization identified to date within the molybdenum anomaly area, named the Moly Zone and the Copper Zone, where Copper is located 2 km south of the Moly zone. (See Figure1) âŠ
(Preliminary Exploration at Pegaso Nero Target Suggests the Discovery of a Copper Molybdenum Porphyry System within the Altos de Lipangue Project. - AURYN Mining Chile)
Without getting into the specifics of grades, production level, and revenue etc, we can get excited touching on a few very important points.
Majors have been interested for a long time. Sillitoeâs involvement and most recently Hochchilds interest in JVâing confirm the legitimacy of the potential.
Thatâs where MC and company have flipped the switch in our favor. Potential only gets you so far and Majors still hold all the leverage when a junior simply has potential. They can stall and tie up negotiations endlessly with the benefit of knowing they have something in their back pocket. Now that we started cashflowing this ourselves, leverage begins to shift. If Majors see that we are willing and able to continue doing this operation on our own, they risk paying more and/or losing out entirely. As Auryn, gets this off the ground, debt financing should fall into place as CHG suggested in his post. That will give us another leg up in leverage as the Majors will see that we donât need their massive dilution option to forge forward. The further we go at this on our own, the higher the payout. If gold catches a nice rally and soars over $2,000, the anxiousness of Majors to lock down promising discoveries intensifies.
We have a lot to look forward to.
Hi EZ,
I think the exciting aspect of that PR you cited has to do with overlaying the results of the hyperspectral imaging satellite survey of C.S. Perez with the extensive sampling done on that ridge crest by Auryn. That satellite survey only detects surface alteration. The satellite shoots electromagnetic waves of a certain wavelength and then recaptures the reflection emitted from surface back to the satellite. This results in a âsignatureâ recognizable by the analyst. The different types of alteration like propylitic, potassic, phyllic/sericitic, etc. all have these âsignaturesâ which are recognizable. Potassic alteration often presents as a pinkish surface on the survey.
Since itâs the ultra-hot rising hydrothermal fluids and gases that do the âalteringâ of the surface rock chemistry and these same fluids carry the sought-after metals then surface alteration indicates the presence of a favorable âplumbing systemâ. This way it is easier to detect and to hopefully mine the ore. Perezâs survey detected a 7 Km long swath of âabout a dozenâ detectable intrusives. The ridge crest surface sampling program you cited in that PR evaluated the westernmost terminus of this swath. At a ridge crest thereâs no trenching involved. That grade of ore was present right at the surface. The initial inference might be that if the ore detected at the westernmost terminus of this swath has average grades of âXâ and if the satellite survey indicates similar alteration patterns 7 Km further east then perhaps similar grade ore might be present at the eastern terminus. This, of course, would need corroboration from surface sampling on the eastern terminus.
Since the magma chambers that once hosted all of these hydrothermal fluids and gases are fairly homogenous due to mixing while in a molten state are GIGANTIC then maybe, just maybe, the ten or so intrusives in the middle of this swath have similar grades and character to that found at the westernmost terminus. There are no guarantees, however. Confirming the diagnosis of this being a copper-moly porphyry system is going to take a lot of drilling which will no doubt have to be done by a major or a consortium of majors with those kinds of budgets. With copper trading at a 10-year high and almost an all-time high then the chances for the economic development of the Pegaso Nero are improved but itâs the extremely high grade gold opportunities that will garner most of the attention in the near term.
I agree, Jimmy,
Your posts have been quite sparse, but very accurate.
From your very 1st post more than 2 years ago back in May 2019:
âŠmining company. They will promote their company properly when the time is right. It seems like forever for suffering shareholders, but they have been very methodical in building this monstrous undertaking. The priority of burying the Medinah soap opera before moving forward with promotion cannot be overstated. Doing otherwise would be questionable strategy.
Information from the company should improve from quarter to quarter moving forward.
News will flow at the time Auryn is ready to promote this to increase share price. It makes no sense to unrestrict all shares until there is sufficient cash flow and progress being madeâŠ
guess we just figured out who is selling. 
I also appreciate the counter view that is Baldy. Thanks for sharing the info/DD you have that Iâve been too lazy to do myself.
Unfortunately Hochschild has the Las Dos Marias project tied up until Aug 2023. I personally was extremely disappointed in the LOI because most earn-in agreements will call for a minimum investment for Year 1, Year 2, etc. (and/or some cash for the owning company). We negotiated for none of that. The ppty is tied up for 5 years with $0 minimum investment required during that time up until the end date, then the $7M.
"August 22, 2018. AURYN Mining Corporation (OTC: CDCHD) is pleased to announce the signing of a binding Letter of Intent (âLOIâ) with Hochschild Mining PLC, for the Las Dos Marias project (âLDMâ). Please note, the currently named LDM project is a consolidation of over 3,000 hectares and is significantly larger than what has historically been known by our shareholders as the LDM (see the graphic included below.)
This LOI gives Hochschild the option to invest US$7,000,000.00 into the LDM project over a 5-year period to earn a 51% joint venture interest in the LDM properties. An option to invest an additional US$23,000,000.00 is available to Hochschild to gain an additional 9% interest. If all US$30,000,000.00 is invested, Hochschild will own 60% of the LDM project with AURYN holding the remaining 40% as a joint venture partner. The LOI is subject to further due diligence and the signing of a definitive agreement."
Rod, the end of the option agreement may actually be the date it was signed, but that is a little unclear, as are many things as this company progresses. (see December 2018 - Shareholder Update | AURYN Mining Corporation) From the Q Report ending March 31, 2019:
At Hochschildâs request, the Company granted them an extension to sign the final contract on or before December 15, 2018. The contract was ratified on December 12, 2018.
So the property is tied up for 5 years until Dec. 12, 2023.
It would be nice to know what âexpensesâ theyâve incurred on the property date. Itâs been 28 months !
Yes, but in the same (see December 2018 update link) Shareholder update it states, âWe continue to work on the Larissa and Merlin claims and are finishing the chimneys and exit routes. Once approval has been given, we will make a new cut on level 3 to intercept the high-grade ore vein uncovered in a new tunnel found between levels 2 and 3. â
And
â⊠look forward to the possibilities for 2019, including advancement of the Hochschild JV, drilling activities on the mountain, and possible production from the Lampa / Lo Amarillo and Larissa / Merlin targets.â
I donât think these goals have been abandoned, but from all appearance have been slowed down considerably. The announcement of some production from the Fortuna may allow some progress to be made towards production on the Larissa/Merlin targets. Iâm always open to pleasant surprises being announced in future quarters. Iâm not holding my breath, however, given the questions remaining to be answered on how/who is financing this.
Hi EZ,
I think that the development that might come out of left field for Medinah/Auryn shareholders will be related to the Pegaso Nero and its copper possibilities. Maurizio told us a long time ago that he envisioned multiple simultaneous JVs at the ADL but that he wanted to keep in house the high-grade gold possibilities. The last we heard about the PN, Freeport had given Maurizio permission to use their name as a potential partner of interest. Maurizio also stated that two majors âeven larger than Freeportâ had shown interest. Deals on a scale like that are extremely slow in getting put together but the recent move in the price of copper to 10-year highs and nearly all-time highs might expedite deal making on large projects like this. I see copper up 2% yesterday and yet another 1.7% this morning to $4.19 per pound. Hereâs a link to a recent interview with the BHP President of minerals for the Americas:
I think we need to keep in mind just how desperate the majors are for new properties and Mineral Reserves/Mineral Resources (MR/MR) on their balance sheets. We are at a 32-year low in new mineral discoveries and a 31-year low in the number of ounces of MR/MR on the balance sheets of the majors. The DEMAND for new discoveries is thus huge but thereâs no SUPPLY. With copper breaking out to the upside, the DEMAND will go up even more. The build out for all of this new Green New Deal-related increase in Electric Vehicles (EVs) and the need for charging stations to service them will result in the copper price continuing to take off. This in turn will augment the DEMAND for new copper discoveries at a time when the SUPPLY is next to nil. Deal making might be very rapid because each new deal results in a lower SUPPLY of discoveries.
The build out for large copper projects is so slow that the majors could miss out on a bull run in copper if they donât hustle. Iâm hoping that Aurynâs near-term gold successes will increase their bargaining position for the Pegaso Nero. Theoretically, Auryn might be able to self-fund some PN development in order to enhance the value of the property prior to doing a deal. At the informational meeting in Las Vegas, Maurizio conceded that the PN was too big for Auryn to attack. He threw out some numbers as to what the negotiations might look like for a deal at the PN and what it might take to acquire a 51% stake. These werenât anything like the LDM numbers.
For the majors, having a large number of viable projects in the pipeline is not a good idea, it is existential. Itâs all about timing. It now takes an estimated 26 years from the commencement of exploration efforts to putting a large discovery into production. The majors that have painted themselves into a corner with a lack of MR/MR donât have time to do their own exploring. Fingers crossed!!!
"He threw out some numbers as to what the negotiations might look like for a deal at the PN and what it might take to acquire a 51% stake."
Brecciaboy, for those of us that were not there, can you try to remember and tell us what Maurizio said? The theoretical numbers and potential structure would be nice to know - at least what Maurizio might have had in mind at the time.
To add to mrbubaâs question about theoretical numbers at Pegaso Nero I couldnât find any info about copper on Aurynâs website as it relates to the amount of copper at Pegaso Nero. Would someone be kind enough to point to a website that references the extent of copper at Pegaso Nero. Thanks !!
Throwing in my .2 cents 
â if we start consistently pulling out 40 tons per day of 25+ grams AU per ton, I donât think we are going to stay at $0.002 for long. Eventually word will spread that this little âragtag group of minersâ has a major discovery. The property is vast, the location is great, and this is not an isolated vein that just happens to be there with nothing else around it.
Definition drilling was never done to my knowledge so the best info would be a possible extrapolation of the area size x sample avg.
It takes a LOT of drilling even to define an INFERRED grade & tonnage.
Rod
Feb 3, 2016
February 03, 2016 @ 09:12
Highlights
AURYN Mining Chile SpA (âAURYNâ or âthe Companyâ or âAMCâ) is pleased to announce results from the first phase of soil geochemistry sampling program on the Pegaso Nero Moly-Copper area, located within the Altos de Lipangue project, in the Cretaceous-aged belt of central Chile.
The soil geochemistry program detected an important Mo â Cu anomaly surrounded by Pb, Zn and As anomalies. Inside the area containing high molybdenum values on soil samples, it was recognized a hydrothermal breccia with tourmaline â specularite and associated copper oxides.
Mineralization observed at Pegaso Nero target is related to a very well defined structural controlled alteration system that has only been partially explored by AURYN. This system hosts an important number of outcrops of hydrothermal tourmaline â specularite breccia with molybdenum, copper and gold mineralization.
A total of one hundred and thirty-six soil samples were completed at the Pegaso Nero prospect. A large molybdenum anomalous area was detected, with extension almost 3.6 by 1.2 kilometers and still open to the east. Moreover, there are two sectors with strong Cu-Mo mineralization identified to date within the molybdenum anomaly area, named the Moly Zone and the Copper Zone, where Copper is located 2 km south of the Moly zone. (See Figure1)
The previous rock sampling detected highly mineralized Mo-Cu±Au breccia, in this campaign the rock sampling was extended with preliminary results of 1.2% Cu, 860 ppm Mo and 0.12 g/t Au in the hydrothermal breccia.
Furthermore, one sample of molybdenite from the breccia was sent to the ALS laboratory in Quebec, Canada, for Re/Os dating, the result was 91 ± 0.4 Ma , which is the age of several known Copper, Gold and Molybdenum porphyry deposits in Chile, such as Andacollo, Dos Amigos, Johana and Frontera.
The extensive molybdenum anomaly, the presence of hydrothermal breccia, the high Copper â Molybdenum results on that breccia and the age of the mineralization, are showing to AURYN Mining Chile team that is in front of a new Porphyry Copper system and this new discovery is opening the cretaceous porphyry belt to the south of Llahuin and Andacollo porphyries on the IV region in Chile.
AURYN is planning for this summer, an extensive exploration program at the Pegaso Nero prospect, aimed at testing for extensions to the anomalies, which will include systematic additional geochemical sampling in the known prospects, reconnaissance of the surrounding areas and IP lines to detect undergrown distribution.
Figure 1: Soil sampling results at Pegaso Nero target.
Thanks Rod, much appreciated !!! With molybdenum selling for about 3x the price of copper this porphyry system may just be worth a few bucks. 
Rod,
Thanks for showing the image of where Auryn grabbed and analyzed 136 samples. Hereâs an image of what that same area of the PN looked like earlier this year.
Hi MrB,
Basically Maurizio laid out a hypothetical. He said letâs say that a major offers us $40 million for a one-fourth stake in the PN. Then letâs say that they have good results and want to acquire a bigger %. The next quarter would obviously cost them a lot more since the risk has been mitigated quite a it. He mentioned that they would probably want to acquire 51% but that they wouldnât be successful in that endeavor. My take away was that Maurizio wanted to maintain control of the PN. He was pretty clear that the PN was too big for Auryn/Medinah to solo develop.
He was apparently given permission to use Freeport McMoRanâs name as a party of interest but he mentioned that there were two âeven largerâ majors that had shown interest but he didnât have permission to use their names. He was very clear in stating that there were no guarantees that any of these 3 would ink a deal. With the price of copper breaking out to the upside, I can only intuit that interest levels in an asset like this would increase. He was very professional in connoting the fact that this industry is not meant for widows and orphans. Itâs very risky and it takes forever to develop a property. He even asked that anybody present that intended on disseminating the information presented at this âinformational meetingâ would please attach a copy of their âboilerplateâ statement addressing risks in this sector and forward looking statements.
For me, the key takeaway was the implied enormous size of this asset. 3.6 Km (north to south) by 1.2 Km (east to west) is a very large sampling space. This is especially true when the hyperspectral satellite imaging survey depicted a 7 Km swath of east to west oriented alteration indicating âabout a dozenâ intrusives.
