Here’s a link to the type of deposit that the LDM might host. They’re called copper stratabound deposits and in Chile they’re referred to as “manto-type” deposits. Typically, they’re mined for their copper and silver contents. Hoch is big into silver and that might be what attracted them to the LDM. I would think they would be a thousand times more interested in JV-ing with Auryn on the very high-grade gold epithermals (mesothermals?) that Maurizio is going after. That’s their specialty i.e. underground vein mining. The cynical part of me says that Hoch did a JV on the LDM in order to backdoor their way into a deal on the very high-grade vein system. I have zero proof of that, however. IMO, we do NOT want to share those with anybody at this time unless and until the area near the confluence of the Merlin 3 which runs east to west, the Fortuna Oeste which runs NW to SE and the Fortuna Central which runs NNW are proven to be dense enough so that open pitting is deemed the right approach to exploit them. Auryn is currently (Q2) going after the much wider (2M) “massive” veins near the Merlin 3.
It’s obviously extremely exciting to be mining gold with the kinds of grades shown to date. Even at a miniscule 40 tpd rate a ton of money can be made. The real exciting part is getting in there in order to explore the subsurface aspects of that 5,000 meters of veins revealed in the trenching program that actually made it all of the way to surface. Every time they turn a corner, they seem to find a new extremely high-grade gold vein. The difference in the Merlin 3 area is that the veins average over 2 meters in width. In an underground tunnel, almost the entire working face of the adit will be vein material. If these are indeed “mesothermal” veins then they’re not only going to be likely to get wider with depth but also extend downwards a very, very long distance.
I would predict that the comfort levels of shareholders will go up immeasurably when cash flow information becomes available. Then as each day passes, the cash starts piling up and the investment community as well as the mining community takes notice. With cash flow, we can finally take pencil to paper and get a better feel for an appropriate price and market cap. In this exploration sector, until that point investors are kind of in the dark. From a risk/reward point of view, this is the sweet spot I should have been concentrating on over the last 40 years in this sector. Oh well!