Auryn/Medinah - 2022 - 1st Half General Discussion

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“…the only solution…”? Without being partial or unjust? Mods have many other options in their toolbox to promote harmony. A sledgehammer or chainsaw won’t fix anything.

I think some of the most respected contributors in this little group have made their opinions about BE very clear. Why treat him as a child and threaten “bannings”? Yes, doing that would be childish in this case, unless he starts spewing foul-mouthed attacks or threatening violence. You either agree with his opinions or you don’t. We are all grown with developed reasoning skills. The offended can counter any of BE’s claims or opinions with known facts and engage him in a healthy and civil debate. BB is a good example of doing just that.

This is the shareholders’ forum, so I think the consensus rules. Nobody is “god” here, including the mods or BE himself. But banning him just adds fuel to the fire and turns this forum into a dictatorship.

I agree with TradeRich, Hurricane Rick, Wizard, Drifter and others: nobody is being forced to read his posts. Most everyone knows what this investment is about, so anything negative BE says is just his opinion, no matter how unpopular it may be. Just ignore what you don’t like. That’s what I had to do here ten years ago when I discovered a knife in my back (stemming from vocalizing my neutrality about baldy & those complaining about him) — I was removed as a mod because of my stand on the matter. I just let the personal attack against me go, dumped back-biting cargo, then I went on ignoring it no matter how unjust. Lesson well learned.

Yes, BE knows damn well he is crass and antagonistic - but he still has important information to share from his POV. Everyone here has that same right, too. Several members recently expressed how they have learned from his posts over the years despite his narcissistic demeanor. But, Immoderate or partial mods tend to damage members’ trust and generate even more chaos. IMHO. They tear the forum apart instead of promoting the cohesive force that keeps it all together — keeping it together is a mod’s job.

I love TradeRich’s reference to Rodney King. :clap: :wink:

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I appreciate the various commentary on keeping this board open to opposing views. At the end of the day, that’s what makes a market. While anybody who has actually met me or spoken to would (probably) consider me a relatively nice guy I can handle being a crass, narcissistic, boorish, jerk-like, arrogant child if that is how BE is perceived. I’d also admit that, at times, my posts might my exaggerate to the bearish side after I read through the rinse and repeat optimism of BB’s mountain of gold. However, I’d also point out that any extremes to by pessimism could never offset the optimistic extremes being presented.

Bottom line, nobody has threatened to ban me from the site, but there’s a tangible exhaustion to my “negative” point of view so I’m happy to wait until we hear something concrete from the company before engaging in any further debate.

Here’s to the ultimate search for the golden egg.

**side question: can anybody tell me the distance from the site to Enami? The distance, grade, and condition of the road is very relevant to any modeling as transport costs can play a factor. I’m invested in a mine in Peru and the road to the site is pretty treacherous. They are currently trucking 140ptd to a toll miller (similar to Enami) but that’s their capacity. Not because they can’t mine more but rather b/c only one truck can go up and down the mountain at a time and its a 4 hour trek. This company needs to construct an on-site plant before they really make any money and that will cost them approximately $25M for a modular, 350tpd site. Without it the transport costs and logistical constraints make it barely profitable. They also need to spend $5-$10M to fortify the roads as there are constant landslides. They are mining 9gpt ore.

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I appreciate everything you said, baldy. Just for the record, I never said anything about “banning”. Cabezon brought that up in her last post, but I’m not sure why.

Banning was being considered at one point, but far too long ago. That was during the Les Price scandal. I am not aware of anyone else being banned, either. I was just responding with my concerns about any mods using that tactic with prejudice, that’s all. The Golden Egg would be nice, though :wink:

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I can actually vouch for Mr. Baldy… talked with him many times over years. He’s a very nice, intelligent guy who knows his stuff and definitely offers value in his posts here. He’s even got, I believe, a couple of daughters if I remember correctly which are probably a whole lot larger than I remember them!

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Hello Mr. B.
About the road questions. If we are to be hauling down that horrendous switch back road, they could widen some switch backs into bypass areas for trucks to hold up at and pass each other.
This is often used in open pit and mountain mining. One only needs good radios to coordinate with each other. Its wise also to put in these pull offs
so if one should have mechanical issues you don’t block the road.
Drive time to Enami? I suppose one could Mapquest that one.
“Any driving” down that way, is mountain driving. So I wouldn’t be surprised if you can only make one run per day for “each” truck.
*Seems I read just recently where Enami is expanding its operations to help the back log from small and mid size miners. Hopefully that might help us.
C.s

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I suggest go with BE’s cautionary tale for the time being. Auryn has been moving at a snail’s pace over the last year. They have averaged about 1 meter per day in their tunneling. A LOT of ramping up needs to happen for this to move on to the next level. I will check back in when Auryn’s next update comes out. Nothing else of value to discuss here till that happens.

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Happy Easter. This board should be about the stock not a person.

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Here we go … I 've tried before to locate ENAMI’s processing plants.
This Information is not on EMANI’s website !

Cheers,
Rod

I gave up the first time I tried several months ago. After an hour or so of research ( 1 website leading to another ), The distances in [ ] are from google maps from Alto de Lipangue, north west of Santiago.

I’ve found the locations :

The National Mining Company has mining offices and purchasing powers from Arica to Rancagua and the mineral acquired is processed in five benefit plants:

José Antonio Moreno, in Taltal; [1130 km from the Alto]

Osvaldo Martínez, in El Salado; ]993 km]

Manuel Antonio Matta, in Copiapó; [828 km]

Vallenar, in Vallenar; [684 km]

and

Delta, in Ovalle. [426 km]

In addition, it operates the Hernán Videla Lira Smelter, in Paipote [ 830km ] , , where it processes a wide variety of mining products, becoming the main production plant and the greatest purchasing power for small and medium-sized producers in the Atacama Region. It has a nominal processing capacity of 340,000 tons of CNU (New Useful Load) per year of material and also has two sulfuric acid plants, which produce about 285,000 tons per year.

This one is a puzzle ; Google shows Manuel Antonio Matta Ruiz plant, Paipote, Copiapó, Atacama, Chile 833 km, but Manuel Antonio Matta *[ 84.4km ]

Manuel Antonio Matta is the largest of ENAMI’s benefit plants, with a treatment capacity for sulphide minerals of 110,000 tons/month and a treatment capacity for oxidized minerals of 48,000 tons/month. It is located in Copiapó, less than a thousand meters from the HVL Paipote Smelter. Since 2009, it has leaching, solvent extraction and electrowinning (SX-EW) facilities, with a monthly production capacity of 600 tons of copper cathodes.

The José Antonio Moreno Plant, located two kilometers from the port of Taltal, Antofagasta Region, has a capacity to treat 12,000 and 13,000 tons of sulfide and oxide minerals, respectively. In Vallenar, Atacama Region, Enami has a SX-EW solvent extraction and electro-winning plant, with a production of 200 tons. It has flotation and leaching facilities, with a processing capacity of 22,000 and 21,000 tons per month of sulphide and oxide copper ore, respectively. During 2007, the solvent extraction and electrowinning (SX-EW) plant began operations, producing 300 tons of copper cathodes per month.

Osvaldo Martínez Carvajal ENAMI’s oldest plant -still in operation- is located in the town of El Salado, Atacama Region, 36 kilometers from Chañaral and processes oxidized copper minerals via leaching, solvent extraction and electrowinning (LIX-SX -ew). It has a monthly oxidized ore treatment capacity of 62,500 tons and produces 800 tons of high-purity copper cathodes (99.999%) per month. The Delta plant - an industrial mining complex - has its origin in the replacement of the Ovalle Plant, formerly Panulcillo, owned by ENAMI, located in the commune of Ovalle, Coquimbo Region. This facility began operations in May 2010. Its business model considers an underground mine owned by ENAMI, exploited by a third party; a Minerals Buying Agency, built and operated by ENAMI; a LIX-SX-EW plant, built and operated by a third party; and a flotation plant for sulphide minerals built and operated by ENAMI, with a processing capacity of 60,000 tons per month.

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Thx for the digging. With that distance you need to add ~$200-$300 per ton for transportation cost and the blue truck will only be able to make one trip per day. So, any modeling beyond 10 tonnes per day would/will need to involve the lease/purchase of several more trucks and some investment in the roads.

With the existing equipment you are talking about 10oz a day (if they are averaging 30gpt material, which seems very high), over 250 days which would net ~$2.25M a year if you assume an ASIC of $1000oz which also seems very low.

Using AUMC’s current market cap of $70M you’re looking at a P/E of 31 which, according to BB, is the industry average. I don’t see many of the names I’m invested in trading beyond 10x PE but…So, the big considerations would be how much more capex is needed just for transport and can they average 30gpt. If they can’t the stock is expensive (today), if they can average 60gpt (3x the highest grade mine in the world) than AUMC is somewhat cheap if you assume flawless execution.

I’ll leave it there until the next company PR.

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Fyi, my opinion is to let Bale Eagle speak his mind. I find value in it.

Above is an excellent opportunity for BB or Wiz to refute his above statement. Hopefully they can because AUMC was putting out targets of 40tpd before they had their eyes set on a fleet of trucks. If AUMC is not being realistic with their forecasts then that is a disservice to shareholders. Wiz alluded to Maurizio’s tendency of being optimistic and forward looking but a line must be drawn between that and downright falsehoods.

BE is being specific here. BB in particular, please be specific as to how you are accounting for what BE is claiming to be an extra $200-$300 per ton of transportation costs in your AISC estimate. Thanks

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There are two places where AUMC will be shipping ore.

  • Chacon - approximately 150 km
  • Ventanas - approximately 120 km

You all get way ahead of yourselves. Also, I wouldn’t give much credence about operations, AISC, or forecasting to BB or BE. I will let AUMC speak for AUMC when the time is appropriate.

What I know is that MC and the team who are running this know more about what they have than anyone else. MC can’t tell me everything, but I know he thinks this has the potential to be something extraordinary.

First step was to hit the DL. Done.
Now they need to validate that the grades are what they expected.
Then they need to begin scaling and operationalizing.

All done properly, and in order.

One more comment, and this is my opinion only. If grades are what they need to be and scale is what it needs to be - shipping eventually will not be necessary. :slight_smile:

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Wiz alluded to Maurizio’s tendency of being optimistic and forward looking but a line must be drawn between that and downright falsehoods.

BE is being specific here. BB in particular, please be specific as to how you are accounting for what BE is claiming to be an extra $200-$300 per ton of transportation costs in your AISC estimate. Thanks

I know you are not intending to offend, but one might be after reading your post.

MC could have let MDMN go bankrupt and lose its entire position in AUMC and taken 90% plus of AUMC for himself with the money he has put into it. Optimism and lying are on different spectrums. There is no line to be drawn.

Furthermore, Bald Eagle says a lot of things that are mischaracterizations (intentionally or not only he can answer.) It seems he has tried to throw as much shade as possible on MC and AUMC over the past couple of years. That has changed somewhat since AUMC has continued to execute, shown great mineralization along the way, and now hit the DL. Regardless, neither MC nor AUMC are under any obligation to answer his assertions (or BB’s positive ones for that matter.) In fact, I know they don’t waste a moment’s energy on any of it. They have a plan and are doing their best to execute it.

If they have what they believe they have, this stock is going places and there isn’t a darn thing anyone can do to change that. And if they don’t have what it takes, there is not going to be any effort from the team to put lipstick on a pig and salvage what they can. They are good people. If you haven’t figured that out by now, you’re not paying attention.

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In terms of what i asked, i dont think so. If so, then thats an issue because AUMC specifically commented on a near-term objective of shipping 40tpd. Baldy is throwing cold water on that specifically. Therefore i dont think im getting way ahead of myself. If thats your take, unfortunately you are lending more credence to Baldy than AUMC’s assertion. Just saying

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No of course im not trying to offend. Maurizo has done a commendable job for which any shareholder with their head screwed on straight should appreciate.

Im not suggesting AUMC would outright lie. If Bald Eagle can so confidently say that 40tpd isnt possible then that flys right in the face of what AUMC set as a goal. I dont think anyone thought it would take a fleet of trucks to do 40tpd. I was hoping you or BB would shut that down with easy facts but that doesnt appear to be the case.

If it does in fact take several trucks to do 40tpd, then I hope we skip to your scenario above with an outfit that can escalate this faster. Giving up half the equity would be wirth it to scale say 15x or 20x, given the amount of estimated ore and grade

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No wonder BE gets everyone freaking out. Were you not able to work through this? Here, work through the math. I’ve given you the questions below.

How much ore does a 20t truck carry?

How long does it take to load, drive 150km, unload, and return?

How many hours are there in a day?

How many 8 hour shifts are there in a 24 hour day?

How many trucks does it take to deliver 40 tpd (once they start producing at that level?)

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Ok. Given that I’m being accused of “mischaracterizing” again I’ll throw my 2 cents in with the caveat that I have not been to site and have only seen videos of the road/conditions/switchback. In an attempt to answer your question, I’d guess that the blue truck could make one trip a day. Obviously the trip up and down the actual switchbacks will require the most amount of time. I don’t know that distance but you ain’t driving down a dirt road at speeds exceeding 10mph and you ain’t driving at night or when the road conditions (rain/snow) compromise the safety of the driver. The loading shouldn’t take too long as the ore would/will be stockpiled and read to be loaded.

I couldn’t find Emami plants within 200km but, if accurate, the transport costs would probably be closer to $150 per tonne vs. the $200-$300 I referenced for the longer distances.

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I have an idea let’s wait until AUMC give us more info before we start speculating.The DL has been intersected. Follow the updates. I’m sure you will get your answers before year end. Remember MC is already in the hole over 3 million to date. By year end he’s probably going to be in close to 10 million to get everything going. I don’t think this guy will be pissing money away if he doesn’t think he’s not getting a return back and some. He knows what he owns and for that I will ride it with him.

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I like the way 2022 started and continues to perform. Auryn is showing success in using strategic foresight in it’s long-range and dynamic operational planning. My expectation is to be patient and allow the manage team to fully implement what it needs to do.

Past posts are full of useful information that are easily overlooked or forgotten. MG has had an early handle on things , even before company announcements that thought they were only 10-15 meters away just last year. For instance, Mike figured the correct time and distance to the DL vein in a January post and later followed it up with maps, along with CHG.

Right on target! Again, in April of last year MG posted:

One other thing worth mentioning is that where the new production tunnel is makes it quite convenient for moving ore off the mountain especially compared to the LDM & Caren mines. Basically, it is straight shot all downhill to TilTil with the fully loaded ore trucks. They return up the mountain empty which is nice especially considering how steep the access road is. From LDM/Caren, it is much further involving up/downhill sections. Lot of the cost for a small operation like this is simply the transportation costs so minimizing those costs is very important.

Could TilTil contract services be utilized instead of ENAMI facilities? I don’t discount a couple of statements made by management in their January Shareholder update, even though it is clearly forward looking:

We expect to immediately be in production once the Don Luis vein is intercepted.

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.
GLTA

EZ

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I don’t know about others, but the last 24 hours of posts have been some of the best exchange of opinions/info in a long while.

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Agree.

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