Hey Madmen, Iâm still hanging on to brecciaboyâs reminder that if MDMN was a fraud of a company then it would have been shorted out of existence long ago - and yet itâs still here.
Here doing what, I do not know - but here nonetheless.
Have a good one.
I still believe. Like T_Rick said; someone is accumulating this $tock.
But they have their work cut out for them
Hard rock, tunnel mining, is a slow process.
A lot of work to progress say 15 ft. Shoring up ceiling, drilling for charges, blast, evaluate blasted area/ and re shore it all⌠Move out debris, and Repet.
A small tunnel operation as what I think we have could get you 4 to 6 feet a charge/blast (if you donât want to cave the tunnel in on top of itself.)
This area looks like unstable hard-rock do to shifting of earthquakes, fault lines and such. Slow and caution is the name of the game.
Adding to that is bringing all the old tunnel works up to safety standards.
The Spaniards and others did not do things uniformly back then.
If the ceiling held, you left it that way, wood for shoring did not grow on site like Rocky Mountains out west. It had to be brought up mountain.
So they used it sparingly. We canât get by with that.
So I bet they have been doing mostly that this year. And the continuing of cleaning out water and mud.
They did not say if they were using any equipment inside the tunnels to haul out. ? That could be almost anything now days, motorized wheel barrows, ATVs, railways, skid loaders, conveyor belt system, humans and mules.
We are hoping for 40 tons a day. #1 ton= 2000lbs ?
A yard of average gravel is about 2800#lbsâŚ
A average tandem axle dump T holds 15 tons of that gravel? We will be doing âpretty goodâ to be pulling out two such truck loads âA DAYâ Ă
Very realistic projection. Go baby go⌠âFire in the holeâ
Bubba. This stock was a fraud when Les was running the show and, while I donât know if any shares are short, we do know for a fact that billions of shares were issued, resulting in all of our holding basically being wiped out.
CDCN/AUMC wasnât abused to the same extent but you have a similar issue. At 50 cents and a market cap of ~$35M (as far as we know) the question becomes: how to you actually monetize what we all believe is a valuable asset. This opportunity would be more interesting to me if they did a cram down raise, wiped out the existing shareholders and started anew. Iâd buy new shares in a clean shell that owned the assets.
This may be an inevitability as no equity financier will accept any price that isnât at a significant discount to current prices (due to illiquidity). Most of the initiatives discussed here and by the company require a lot of $$$$. An extremely small scale production would be less dilutive but represents massive opportunity cost (read: years and years to grow into the current market cap when producing at that scale).
There arenât any debt financing options as there is no defined resource nor collateral. A royalty could make sense but would also be extremely expensive given the stage of development.
IMO, any discussions on the value of the mountain are essentially meaningless to the value of what you own until the company tells us exactly how they plan to finance a path forward and, more importantly, actually line up the capital to do so.
âThis opportunity would be more interesting to me if they did a cram down raise, wiped out the existing shareholders and started anew. Iâd buy new shares in a clean shell that owned the assets.â
Yes by all means lets make this more interesting for Baldy so he can feel comfortable jumping in by wiping out all the existing shareholders. Go back into your hole.
You donât post often but when you do it just takes my breath away. Yes they are starting at a small scale (itâs a start), if they need to grow they can issue some shares to raise capital 99.9 % of juniors this is what they do. Before issuing shares for capital they need to release a few PRâs so they can get the SP rolling thatâs if they have the goods and judging from the pics from the Dom vein there is gold on the mountain. This is how juniors raise money. Knowing you I would expect a negative response, but go ahead Baldy tell us how it is!
The response is appreciated. I would encourage every MDMN/AUMC potential investor to let Hulkâs post marinate in the archives.
Here you go Baldy similar stock like AUMC, it was trading at .54 in 2018. Did they wipe out the shareholders and start clean?? No they started small just like Auryn.
Hi Wiz,
As always, thanks for all youâve done and continue to do for Medinah. If the average ore grade at the Don Luis 1 Vein remains at 85 grams per tonne (2.7 ounces per tonne), it wouldnât take that much ore to represent a 1-million-ounce deposit. If you zoom out and look at the entire vein system outlined to date from the Merlin 1 Vein (Caren Mine) to the west and the Fortuna Veins (including the Don Luis 1 Vein) to the east you can easily sense something pretty special going on there. The âplumbing systemâ that allowed the gold-bearing hydrothermal fluids and gases to ascend to the surface must have been very well-developed. The grades at the Merlin 1 Vein area (Caren Mine) well to the west of the Don Luis 1 Vein were also spectacular. The geoscientists have already determined that all of these veins are ârelatedâ. This means that they share certain textures, anatomy and types of silicification accompanying the gold i.e. chalcedonic quartz in this case. The implication is that they probably share a common underlying magma chamber with an average gold grade of âXâ. The gold grade found in the precursor magma chamber can be increased/concentrated if favorable vertical strata are present that promote gold deposition.
A very thorough trenching program already revealed that over 5,000 meters of this vein system have made it all of the way to the CURRENT surface. The CURRENT surface is the original/paleosurface minus the overburden lost by erosion. The erosion process was very favorable here because the various vertical layers of the typical vein complex are all still intact. Oftentimes, in 100-million-year-old rock like this, the gold contents of the vein complex have been eroded and are gone. Theyâre sitting at the bottom of the mountain in placer deposits.
These insanely high grades suggest that this vein complex is sitting smack in the middle of a vertical âboiling zoneâ. This is an area of a vein complex in which gold bearing hydrothermal fluids and gases coming out of an underlying magma chamber are allowed to deposit their gold contents locally. The upward migrating gold is carried in conjunction with sulfur in things called âthiosulfate complexesâ. The act of âboilingâ provides the energy needed to break the bond between the gold and the sulfur which allows the gold to be emplaced in very high concentrations locally. Itâs like a vertical sweet spot within a vein system where the conditions are favorable for sometimes very high-grade gold deposition. It would be very fortuitous if this vertical sweet spot was preserved from erosion and very extensive from west to east. The 5,000 meters of veins making their way all of the way to the CURRENT surface attests to this.
In these âboiling zonesâ the super-heated hydrothermal liquids and gases need to actually cool in order to âboilâ. When rapid cooling occurs as it does in these zones, the type of quartz found in conjunction with the high-grade gold is often referred to as âchalcedonic quartzâ or âmilk quartzâ. The cooling process happens so quickly that the quartz doesnât have time to take on the typical crystalline structure you see in samples. This indeed is the type of quartz prevalent at the ADL where the high-grade gold is being found. Itâs nice when the findings make geologic sense. Whatâs exciting is that these âboiling zonesâ, when present, can be 300 to 500 meters thick.
In order to assess the potential here, what you need to do is mentally integrate the density of the veins found in the trenching program with the vertical nature of âboiling zonesâ. Favorable erosion levels are very important especially in mineral economics. If Mother Nature already removed most of what once was âoverburdenâ then thatâs a good thing from a mining point of view. Another phenomenon we need to evaluate is whether or not this deposit is a typical âepithermalâ deposit or more of a âmesothermalâ deposit. âEpithermalâ veins are near surface, they form at low temperatures and the individual veins are often fairly narrow. âMesothermalâ veins extend much deeper than âepithermalâ veins. They form at higher temperatures and they actually tend to widen with depth. There are some vein outcroppings on the southern downslope off of the plateau which suggest that the potential for these being mesothermal veins is still on the table but by no means a certainty.
What is striking to me is the POTENTIAL ECONOMICS at play here. There are no guarantees. Worldwide, the average âall-in sustaining costsâ (AISC) to produce an ounce of gold is about $907. The infrastructure present at the ADL, especially involving the access to power and water, is far superior to the average gold production facility. The ore we have is amenable to a 90%-plus recovery rate with simply gravity processes without the use of caustic chemicals. The ore present at the Don Luis Vein is unconsolidated enough to not even need blasting. I would assume that the cost to produce an ounce of gold here would be in the lowest quartile compared to other gold production facilities worldwide. The grades speak for themselves; they are insanely high at both the Don Luis 1 Vein and the Merlin 1 Vein/Caren Mine. Of these 5,000 meters of veins making it all of the way to the current surface, we know quite a bit about the grades present at the westernmost extent (the Caren Mine) and the easternmost extent (the Don Luis 1 Vein). The question is, can we assume that the grades in between the two are similar in nature. The vertical nature of âboiling zonesâ might suggest that we have a pretty good shot at it.
A recent update cited the plan to study the addition of an on-site ore crusher and a concentration plant. This would decrease the transportation charges on a per ounce produced basis since a highly concentrated ore could be shipped necessitating less truckloads for a given amount of production. The free-milling nature of the ore amenable to gravity concentration techniques and the lack of a need for blasting should uncomplicate the permitting process. Even at the meager 40 tonnes per day production rate anticipated for Q-1 of 2021 at just the Don Luis 1 Vein, with these grades this still represents gross production revenue of almost $1 million per week. Iâm assuming that high-grade production from the Caren Mine will come on line in the not-too-distant future. Production rates should also increase naturally through time and also as the Covid-related restrictions are alleviated.
Hey Doc, What is your estimate on how many shares in AUMC & MDMN that JJ has and Les has (if any) ?
Thanks,
Rod
(from previous post Auryn/Medinah - 2021 - First Half General Discussion đ - #245 by TheRod +
Hi Rod,
I donât really have much of a read on that situation. I believe that Les had to surrender his shares of all related companies as part of his deal. JJ sold his shares to Maurizio in a couple of different large blocks. The flip side of that coin is that I have a hunch that both of them have a pretty good idea of the bona fides of the mineral assets.
Doc, that was a great post !! Itâs really appreciated and helps me realize why it is that Iâm still in Medinah/Auryn after 20 years. A post like that is equal to a months worth of my morning coffee 
Quiet day on the trading side today compared to yesterday. Hope to see these financials soon!
Yes, I show zero trades/volume for MDMN today on my Charles Schwab account after 8.5 million shares traded yesterday. Thoughts? Someone not day drinking today? LOL
chirp-chirp-chirp
AUMC Year end financials due tomorrow 3/31 correct? If so like to see more than a measly $27
Aumc Financials out
Nothing new there as far as I can tell. Hopefully this clears the way for another update for Q2 like the January update.
Not expecting that too much happened since the last update as Santiago area is in complete lockdown mode. Bloomberg - Are you a robot?
They just went back into lockdown, but the company still had 3 months to get some things done. Sure would like to know what goals were reached if any. Nevertheless an update from Aumc would be nice.