The Mining Play

Auryn/Medinah - 2021 - First Half General Discussion 🗓

The words “Cash Flow positive” and photos of them working on the mountain is all I need to hear and see :smiley:

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Here’s a view of the terrain for anyone not familiar with where Auryn has been working all these years:

… and a slightly different view showing the terrain surrounding the area around the Fortuna mine that MG has already highlighted with annotations for everyone. I should add (for clarification) that the view below is just a closer up view of the Fortuna area, with same orientation as the larger overview of the Alto shown above.

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Here is a little closer zoom in on the area where the new camp is Jan 2020 compared to Jan 2021. There is Feb 2021 imagery as well but this spot is obscured by clouds. But the fact that there is imagery in two consecutive months indicates Google Earth is detecting activity in this area very recently. I have marked a number of changes that occurred in the last 15 months.

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I think this is interesting. From the original Fortuna property report:

The main Fortuna vein has a strike of N45"W and a dip averaging 50°NE. The vein has been continually traced underground over a strike length of 250 metres…, but is terminated to the northwest by a basaltic unit (Note: this unit was not seen by Howe and it is suspected that it may actually be a dike). North of the “dike” occur several pits which have uncovered several veins, however Kaiser remained doubtful that these represented the Fortuna vein. To the southeast the vein can be traced through a series of surface pits and diggings for an additional 400 metres, the first 100 of which Kaiser believed are the continuation of the Fortuna vein.

within the workmgs the vein tends to pinch-and-swell, both along strike and down-dip. In places it is reduced to only a few centimetres width, or even a fracture, only identified by the wall rock alteration. In the areas of best mineralization the vein averages about 15 centimetres width (Note: at the time of Kaiser’s report, the workings had not progressed south of the main N-S fault zone beyond which the width of the vein increases, while the grade appears to decrease - see 'Waisberg", below) (page 23)

Also, recall this from the Q1, 2021 AUMC update:

  • Efficiently dewatered all the old mine works present in the area. …

  • Systematic laboratory sample results from the existing mine workings. Indication of consistent and good quality of gold from the main vein, named Don Luis (averaging over 85 g/ton Au.)

– continued –

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Now consider this image:

So first: note MG’s noted new building is sort of in the center. This represents approximately the location of the old Fortuna entrance and is near the new tunnel Auryn is creating.

But I just noticed there is another new building to the SE that appeared at nearly the same time, around Jan 2020, clearly a part of Auryn’s activities. Also these two buildings seem to correspond to the ends of the N45W trend attributed to the “main Fortuna vein”, called “Don Luis” by Auryn.

The small line, I think, roughly represents where the vein runs and is the “old workings” Auryn fixed up. But the old Fortuna report mentions the vein continues to the N and W. And the first Don Luis picture on the aurynmining.com gallery mentions that the Don Luis is “open to the west.”

So it appears to me that Auryn is taking on that north or northwest extension of the Don Luis vein (which the report was not sure was an extension of the main Fortuna vein or not) mentioned in that first quoted paragraph above.

What do you think MG?

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Here is Aruyns presentation from some time ago. In looking it over again,
you get a idea of all the areas we encompass. And I would say they might be wandering about on it all and planning what to do next when up on that mountain.https://theminingplay.com/uploads/db1184/original/1X/e4c32023180ed6cc88cf189b13cde0a3a814d1a4.pdf

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Now when you go to sleep in your nice comfortable bed at night. Remember it’s know closing in on winter for our workers down south.
I hope some one soon builds them each a bunk house, or drags a couple camping trailers up there soon, so they don’t have to sleep in those isolated tiny tents at that altitude, with these cold nights a coming on. These are some manly men doing our grunt work. No girly men in that crew.
Hell if some one would Go-Fund me, I would grab my tool bag/belt and hop a flight down to help build. Anybody else up for it? C.s.

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Actually,

Looking at some of the older images going back a year or two; the old entrance is more likely to be just SW of the small pond. Recall that they dewatered the mine from the entrance so the water likely came out of the entrance and was collected into the pond.(The area of the pond is likely been around a long time. They used the water from the Lampa mine for the original drilling campaigns at the Alto.) Going back to January 2020, look at the pond and notice what looks like a small stream feeding into it and perhaps a small white covering of the actual mine entrance to the SW of the pond. Only real importance of the exact location is to anchor Auryn’s maps to Google Earth using the entrance depiction. Either way, I think we got the right general area. It is clear that surface trace of the main vein is well SW of the new entrance for good reason. It deeps steep SE towards it so they will be able to intersect it a short distance horizontally. Hopefully, water doesn’t start to pour out the new entrance?

EDIT: This particular map from Auryn definitely pins the entrance adjacent to the pond. It even looks like they took a water sampling flowing out of the mine depicted by a blue dot.

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This looks like it is probably the best photo of the main/central Fortuna vein:

vein

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Here is a geophysical survey(CSAMT) depicting an E/W cross-section that went right over the original entrance to the mine. The new tunnel will be entering from the right side of the page. Note that it appears mineralization goes down several hundred meters and also several hundred meters across as well due to several veins intersecting each other. It is quite possible the best grades will be found within 100 meters of the surface. This is suggested in some of the geology reports as well.

Depth

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This is most likely what happened to the top of these mountain cluster to flatten it off.

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God bless our one-person paint crew – a $5.60 trade nine minutes before the closing bell! :upside_down_face:

If you care to tell us all who you are, please do. If you feel like keeping it private, please message me (I can and do keep secrets). If niether, please do keep on rollin’ that big stone up the Mountain – it’s good entertainment, and a cheap way to turn a red day to a green one, as you so obviously know.

– madmen

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Yeah, we talked past each other a bit. I was less interested in the exact location of the entrances or the vein (I did not intend the yellow line to be a exact placement), although important, so much as to:

  1. Tie Auryn’s strategy to that paragraph in the Fortuna report - namely, the main vein originally was followed toward the SE, now Auryn is going to follow it to the N/W, which I think you agree with.
  2. Try to do what you did here and pick out one of the geophysics images from the Auryn slide deck that is closest to where they will be, which I agree was either P55 or P58 and you chose P55 which I agree may very well be correct.

Maybe once they get closer they’ll run a quick drill hole from underground and see if they can intersect whatever that red blob is and determine if it is actually a primary intrusion or not.

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Hi Mike and CHG,

Remember to overlay that CSAMT with the work of Greg Corbett from NSW, Australia. With grades like those seen as well as the chalcedony form of silicate’s presence, clearly we’re in the middle of a “boiling zone” wherein grades can go nuts. These can be 300 to 500 meters in vertical width. The gold tends to travel accompanied by sulfur in “thiosulfate complexes”. The energy from the boiling is what it takes to destroy the bond and let gold drop out of solution in the local area. Andrew Jackson from Sprott also is a good source of info. on this. He likes to look at the sulfur as a “taxi” that crashes in boiling zones allowing the gold grades to go nuts.

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I’m thinking the red thing is really pink on the color scale so isn’t really a conductor so the yellow/green stuff is actually the good stuff? This would match up better with the alteration map that shows a minimum in the middle.

I believe the drilling would be more useful/cost effective from inside the tunnel especially after Auryn actually has some cash flow/money to play with.

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This slide from the 2016 version of the Auryn deck ties it together and explains their starting here. Since the “main vein” / “Don Luis” is open to the west, something on the order of 500m west it would come close to the Merlin 3 vein. And they concluded that the

Intersection between Fortuna and Merlin 3 suggests a wide mineralized area coincident with Fortuna de Lampa mine site.

The crossed red line is the speculated “wide mineralized area.” And another picture of the “Fortuna vein” or what they now call the “Don Luis” vein.

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And the pps games continue

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Why would someone want to sell at this moment when we have had the best news in over 2 years? And it is not that the stock price is at .10-.20 so you can make some money.

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Because AUMC is an exceptionally expensive stock given the company’s current stage of development. Its going to become even more expensive when they have to issue shares to all of the Medinamites.

I follow and am invested in several micro miners with a similar market cap and exploration upside, fully permitted, mining 750 tpd. It’s important to keep in mind that AUMC is talking about mining 9 tonnes total and is still hoping to get permits for extremely limited tonnage. Cash flow positive is a great development but it doesn’t mean much at this scale.

Point being, it’s going to take a looooong time to grow into a $50M market cap unless they pursue a signifcant financing (dilution) and there are so many other options with more upside and actual money in the bank. That would be one reason why someone would sell at this moment.

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No new audience. I haven’t seen any PR news from Aumc except a release on the web page and on the OTC