The Mining Play

Auryn/Medinah - 2022 - 1st Half General Discussion

Auryn/Medinah - 2022 - 1st Half General Discussion
Another continuation.

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Happy New Year 2022 to all. May those who have held this the longest survive another year or more to reap any benefits from the stock or stocks they own or hold. May those who do not own find opportunity in the new year to be encouraged and factually engaged to make a well timed decision. Thank you Kevin for your well timed appointment previously and helping all shareholders. Thank you Cabezon and others who do the heavy lifting here. Thank you Doc for all you bring to the table. Rich thanks for your charts and other posts. Anyone else I missed thank you for what you do to add to the community. Have a safe and enjoyable Jan 1st. Best to all.

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In 2021 AUMC increased 3.5x. I will not be surprised when it does at least that much in 2022!

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I think the $64,000 question for all of us after the most recent photo of what was being encountered in the Antonino Adit is what in the heck is that yellow stuff. Here is the link to the photo:

If you left click the image and then left click the blue download link on the new image then you can get a JPG image that you can magnify.
The following is some previously acquired data that might narrow down the identity of the yellow stuff:

When the intersection of Shaft A and Level 2 of the old Fortuna Mine workings (Don Luis1 Vein) was sampled with 18 samples, several came back with over 100 gpt gold and one came back with 1,220 gpt gold PLUS OFF THE CHARTS SILVER. If this was a nonreproducible “nugget effect” situation then the “nugget” sampled had to have huge grades of BOTH gold and silver. That sounds an awful lot like “electrum” which is an alloy of gold and silver that occurs in nature. It’s not super-rare and there are deposits in Chile that prominently feature electrum. The most commonly mined ore of silver is “argentite” which is Ag-2-S. It can occur nearby native gold but with “electrum” the gold and the silver are literally bonded together and inextricably linked. “Electrum” is about as high of an octane form of gold or silver you can get barring native gold or silver. The presence of “electrum” might help explain 1,220 gpt gold PLUS off the chart silver grades in the same sample.

  1. The most likely candidates for being that yellow material would be gold (either native gold or electrum), pyrite or chalcopyrite. The presentation was a little odd for pyrite or chalcopyrite in that the gold-colored stuff presented in a “subrounded, globular-shaped” fashion.

  2. One of the presentations of electrum is in a “globular, subrounded” fashion. It can also present as “nuggets”. The color of “Electrum” will be associated with the percentage of contained gold and silver and vary from deep yellow for electrum containing predominantly gold to near white for electrum containing predominantly silver. In “mesothermal vein systems” the percentage of gold in electrum averages around 70% and the color is yellow.

  3. One of the Chilean deposits famous for its gold and silver being presented as “electrum” is the famous El Penon gold-silver mine. At the El Penon there is also a lot of clay in the gangue of the vein similar to the blue-gray clay seen in the Auryn gallery of photos depicting the DL1 Vein. Photos #16 to 20 at Q-4, 2021 at this link will show you this blue-gray “breccia gouge” clay material.
    Gallery | AURYN Mining Corporation

  4. We were just told by Professor Luis de la Tierra of San Sebastian University in Chile, who had worked on the El Penon mine for about 5 years for Yamana Gold and who now collaborates with Auryn, that the presentation of the gold ore at the Fortuna Mine/DL1 Vein was eerily similar to that at El Penon which is an electrum deposit. The case for that material being gold-dominated electrum is starting to look pretty good.

  5. The highest-grade ore at El Penon is described as being in veins that are “massively-banded, containing gold in addition to quartz adularia presenting in a crustiform texture”. If you look at photos 20-23 in the gallery section of the Auryn website under Q-4, 2021 that’s exactly what you see just meters away from this new photo shown on Twitter with all of the gold-colored mineralization. There you can see the quartz adularia banding with the shiny yellow stuff disseminated through it. There is no guarantee that the shiny yellow stuff is indeed gold in these pictures but gold does like to hang out with banded quartz in veins.

  6. Until we get the assays back from this most recent sample, you might want to add relatively high gold percentage electrum to the list of possibilities for the newest findings. If that is the case then the chances for that shiny yellow material within the banded quartz veins is also probably gold since it was found within meters of the other material. The assay results will tell the story. If the gold-colored material were pyrite, you’d typically have a nice cubic crystal form with striations on the sides of the cubes. That’s nowhere to be found in this sample. Chalcopyrite doesn’t often present in these spheroidal subrounded “globules”. It is heavily crystalline (tetragonal). The gold-colored material pictured does not show marked crystallinity like pyrite and chalcopyrite do.

  7. If you go to the Auryn website’s gallery under “Don Luis 1”, photo #12 of 12 shows “free gold” found in the DL1 Vein which some refer to as “nuggets”. This sample may or may not have been associated with that 1,220 gpt gold sample with “off the chart silver” grades. That “sooty” appearance is often due to silver sulfides which often accompany electrum. Here is a link to an electrum sample that closely resembles the new photo:
    Gold (Var: Electrum)

  8. When management reported the 18 sample assay results within their July 6, 2021 update found here: July 2021 – Shareholder Update | AURYN Mining Corporation
    They included the official assay results sheet from the lab.

  9. Unfortunately, due to Covid related supply chain and employee issues, according to Kitco, the average turn-around time for assay results from labs and processing facilities worldwide has been extended from an average of 6 weeks to 3 months. I don’t think we want to assume that the delays in receiving assay results is related to lousy results that management is sitting on. Mining firms have the option to release assay results in a piecemeal fashion as they arrive from the labs or processing facility or to wait for a “representative” accumulation of assay results in order to avoid market irregularities involving potential spikes and drops.

DISCUSSION

I think a pretty compelling case could be made that this new sample might be electrum. That would explain the similarity to the El Penon ore mentioned by Luis de la Tierra who spent several years with BHP and then about 5 years with Yamana Gold at the El Penon Mine. In the pictures showing the visitation of a bunch of professors and civil mining engineering students from San Sebastian U. there were a couple of jackets worn by professors with the “El Penon” citation. In a discipline as complex as geochemistry and civil mining engineering, I think we all need to don some humility and listen to the words of those that do this work day in and day out. Professor Luis de la Tierra’s comments on the ore at the DL1 Vein are as follows:

“The ore extracted and stockpiled from the old and new works on AURYN’s La Fortuna de Lampa mining project strongly reminds me of the ore from El Peñon Project, owned by Yamana Gold Corp. They are very similar to the color and rock quality of the ore I personally observed during my time working on the development of El Peñon. I have the firm belief that once La Fortuna de Lampa project goes into production, and a correct evaluation of the entire project is achieved, it will be a mining operation with very similar characteristics of El Peñon.”

This might also explain why the grades for BOTH gold and silver were pretty much off the charts at Shaft A. The Auryn gallery photo of “free gold” with what appears to be sooty-looking silver sulfides is also somewhat suggestive. The ability of SMFL to average 64 gpt gold production over 30 years in time is also somewhat suggestive that the ore grades are not the typical 7 gpt average gold grade seen worldwide in underground vein deposits.

The El Penon “mining operation” involves producing from 38 different veins with a small open pit contribution. They have been in production for about 23 years. Initially they averaged an extremely robust 15 gpt gold which made the shareholders of both Meridian Gold (the original discoverer) and Yamana Gold a lot of money. Now their average grade is 4 gpt gold but they are still making good money. The beauty of a new gold mining operation like that at the ADL is the ability to selectively mine the highest-grade gold available within the widest veins. On almost a daily basis, Auryn is adding to its list of high-grade production opportunities. The width of the structure within the DL1 Vein that SMFL averaged 64 gpt production over 30 years was only 0.15 to 0.4 meters in width. The structures that Auryn is encountering now appear to have mineralization with a width of about 2 meters.

I keep getting asked questions like what I feel the “over/under” is for the average gold grade to be mined from the ADL Mining District. I don’t and can’t provide an answer to that question but it will be a big number. What’s more important is that it might be a real big number for a decade or two which will inevitably decrease over time just like at the El Penon.

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I’ll drink to that! Happy New Year to all of you and may you have a joyful and abundant 2022.

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Happy New Year!

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A poll of our current userbase to start the New Year and test some ideas for the future of The Mining Play . . .

Do you know much about cryptocurrency, security tokens, and utility tokens?

  • Yes
  • Some
  • Nothing

0 voters

Would you be interested in owning an asset-backed security token that invests in mining projects in various stages?

  • Yes
  • Maybe
  • No

0 voters

Happy new year everyone. Anybody else sick of the gold market being rigged? How obvious can it be? The corrupt go on vacation last week and it runs up and of course their first day back they hammer it back down.

And if I’m just being a paranoid conspiracy theorists, then why was JP Morgan charged with rigging the metals prices?? I don’t understand how corruption is allowed to be so pervasive and nothing ever comes of it.

Anyways, I think the reason they hold it down is that they continue accumulating since they know the writing on the wall better than anyone, the paper currency is diluted beyond repair.

I like Wiz’s hopes for a 3.5x or more gain this year. I think that’s more than doable. I only have a small position in AUMC as it is too difficult to build a large position at this stage. I have a very big position in MDMN and I am more and more comfortable that this will be at .01+ pps very soon. Pre or post conversion equivalent, it doesn’t matter to me. I think it’s coming fast.

I expect to see some of the tax loss sellers buying back in after the 30 day wash trade window ends and when we get a nice quarterly update. I expect a very positive Januray and February, Chilean Spring!

Let’s get this train moving!

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Totally agree, Jimmy - if you’re Jamie Dimon, why worry about a $50 Million SEC fine when you’re making $31 Billion off manipulation? Business decision, I understand. Can’t blame him. The revolving door between government and industry needs to be CLOSED SHUT, and I mean now! The FDA/CDC and Big Pharma, along with the SEC and multiple Wall Street firms comes to mind.

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Well we’ve broken the pattern of the last year, to receive an update on the first work day of the new quarter. We know they were working before and after Christmas. So I’m curious what the motivation for the update delay is.

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My recollection is they stated last quarter or the one before that they would release a quarterly update during the first full week of every quarter. I guess we’ll see it tomorrow then.

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And here it is…

https://aurynminingcorp.com/january-2022-shareholder-update/

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Hey Wiz, do you know next Powerball numbers?

https://aurynminingcorp.com/january-2022-shareholder-update/

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Yes - they are - 28 62 36 65 84 7

Put each digit in on your keypad. :wink:

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From the update . . .

“On November 30, 2021, AURYN received a pre-liquidation value from ENAMI for the 48 tons shipped. The accepted total was 15 g/t Au, 31g/t Ag, and 3% Cu with an anticipated liquidation value of $36,207.”

Interesting. AURYN is bypassing a known structure of 15+ g/t plus the silver and copper to focus on intercepting the Don Luis. I can only infer that they must have high confidence of hitting it and that it will deliver comparatively outsized results.

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“Once intercepted an announcement will be made”

“Production will start immediately”

"Multiple faces"

My interpretation: This does not mean 2 or 3 faces - more likely it means at least between 5 and 10 faces. But that’s just me.

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All good news. I appreciate that Auryn will announce setbacks and delays - gives their progress better context. This “should” be a positive year for us lads and lasses.

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move to a higher tier on the OTC Markets in 2022.

:smiley:

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What would be next tier up? Are they talking about AUMC…probably not MDMN since we are supposed to be conversing over soon

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Auryn is anticipating success using strategic foresight in it’s operational planning.

Initial cash flow from production will be used to pay off exploration debts and expand operations. We anticipate being debt-free and having fully audited financials prior to seeking to move to a higher tier on the OTC Markets in 2022.

This should set shareholders expectations to be patient and allow the manage team to fully implement what it needs to do. The maximum time horizon was actually set with the Hochschild Joint Venture option which runs out December 2023 (December 2018 – Shareholder Update | AURYN Mining Corporation) . At this point, it is much less important if Hochschild takes advantage of it’s option, although it would be a boon to all shareholders. Fruition of the option is much more likely once AUMC has actual production figures to report. This is the time-line that reminds me to let things unfold for a while longer.

The next higher tier which was planned long ago was the mid- tier OTCQB, although the OTQBX is something that should be possible and allow much more flexibility with foreign investors…

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