Yes, Jaded - in other words, BONANZA grades.
It’ll be interesting to see how our guys go about ramping up production, from nothing … to something, unless of course you’re one of those who doesn’t believe it’ll be anything worth writing home about. Me, I’m kind of STUCK with this investment - and so I have no other choice than to engage in “hopium” and positive thinking in general.
Hi Jaded,
I think you nailed it on your citing that Maurizio is probably holding off on assay details until PDAC which starts this Sunday. When you get results like they announced at the quarterly update regarding the DL2 Vein (averaging 164 gpt gold over 0.6 meters), the securities lawyers will tell management to sample the heck out of this intersection area and dot all the I’s and cross all the T’s.
When they put out the quarterly update, they kind of left things open-ended noting that once they broke completely through the DL2 intersection area they would resample and get back to us on the results. I’m guessing that we’ll get the comprehensive update in conjunction with PDAC.
There’s a securities law called “Reg FD” which a group of us active in the securities law arena helped push through back around 1999. The law states that an “issuer” of securities must disseminate “material nonpublic information” to all concerned AT THE SAME TIME. The idea was to block the Wall Street analysts from getting special treatment on information distribution. Back then it was common for share prices to double or triple right before big news was released.
I think this tweet suggests that management wanted to confirm the bona fides of the grades mentioned in the quarterly update prior to PDAC but not steal the thunder from PDAC. There may or may not be a press release coincident with PDAC or immediately before PDAC. We’ll see.
WHAT DOES THIS TWEET MEAN IN THE OVERALL PICTURE?
First of all, it represents management putting their imprimatur on the stellar grades noted in the quarterly update. They “doubled down” on them. This in turn corroborates the insane grades seen under the intersection of Shaft A and level 2 right above where Auryn is about to commence production. It also corroborates the HISTORICAL SHIPPING GRADES put out by ENAMI regarding the mining activities carried on right above where Auryn is about to commence production.
We’re still anxiously awaiting the results of the “beneficiating” techniques being tested to see which process increases the SHIPPING GRADE over the “run of mine” grade the most. I would assume they’re testing both gravity concentrating techniques and “froth flotation”. Historically, “froth flotation” was deployed by the artisanal miners of the DL2 and it enhanced the “run of mine” grade from 64 gpt gold to 92 gpt gold. In the last year of production at the DL2 (1970), the artisanal miners produced a “concentrate” grading an average of 102.7 gpt gold. This report didn’t cite the methodology used but I assume it was a gravity concentration technique. The takeaway is that the ore right above where Auryn is about to commence production is amenable to being concentrated by one or another METALLURGICAL process. The beauty of gravity concentration using one of the Sepro-Falconer technologies is that they are inexpensive and free of any nasty chemicals. You simply rev up a centrifuge capable of pulling “60 G’s”.
AS FAR AS THE TOPIC OF DRILLING AT THE ADL MINING DISTRICT
As Maurizio explained at the “informational meeting” in Las Vegas several years ago, he was in possession of the financial wherewithal to put one of the veins at the ADL into production without needing to drill it out. He trusted the HISTORICAL SHIPPING GRADES which he just recently corroborated.
He was very candid about not having the resources to develop the Pegaso Nero in a solo fashion. He confirmed that the CAPEX in a project like that would probably be in the billions of dollars. He predicted a JV arrangement with a major or perhaps a consortium of majors. If this comes to pass, those guys will absolutely make Swiss Cheese out of the Pegaso Nero where Auryn’s sampling revealed a 3,600-meter (north to south down the southern downslope) by 1,200-meter “anomaly” that tested very high for both moly and copper AT THE VERY SURFACE.
A press release referenced these as being the “moly anomaly” and the “copper anomaly”. These are located in the vicinity of a somewhat rare type of breccia known as a “tourmaline/specularite” breccia. This, in turn, was found in close proximity to the “South Road” where a full 2 Km of the associated “road cuts” made during its construction, were inundated with veinlets and “stockworks of veinlets”. This is what “porphyries” are made out of.
“Moly” (molybdenum disulfide) is only mined in association with porphyries. Tourmaline breccias are most often found in conjunction with porphyry structures. The moly found during this sampling was geodated for its age and came in as 91-million-year-old rock. This is the same age (Early Cretaceous) as that of the copper-gold porphyry known as the Andacollo Mine to the north of the ADL Mining District near La Serena, Chile. The ADL Mining District sits in the “Cretaceous-Aged Porphyry Belt” of Central Chile.
From a STRATEGIC point of view, when Maurizio sits with a major or consortium of majors interested in co-developing the Pegaso Nero, should it be deemed worthy of developing, if he were to have a very high-grade gold project INTO PRODUCTION at the time of sitting with these potential strategic alliance partners, the deal he could drive would be VASTLY SUPERIOR to any deal he could negotiate prior to that time. From a geological point of view, a porphyry and the mesothermal veins, skarns, mantos, breccias, etc. that lie immediately above it, share the same underlying progenitor magma chamber.
If the mesothermal veins, just so happened to have atypically-high gold grades then so too might the other various adnexal structures that we know less about. It’s certainly no certainty, but definitely a possibility. The question I have is have the developments at the DL2 had any effect on the interest levels in the other geological structures present. It’s been many years since we learned at the “informational meeting” in Las Vegas, that Freeport McMoRann had given Maurizio permission to reveal that they are a party of interest at the Pegaso Nero and had already scheduled a trip to the Pegaso Nero. Maurizio also noted that there are 2 other major miners, “even larger than Freeport’, that have shown an interest but he did not have their permission to use their names.
As Auryn develops the various horizontal “levels” below level 3 which is the Antonino Adit level, keep an eye out for the texture of the rock to start taking on a “porphyritic texture”. This means rounded larger fragments/phenocrysts sitting amongst a much finer groundmass i.e. a “plum pud
They said they’d share the assay results when they received them. I didn’t see anything saying they’re waiting for Toronto.
They have them in possession now!
So you’re saying that you were part of the group that pushed for Reg FD? Is there no limit to your level of delusion? You’re also saying that the grades were sooooooo good that the company wanted to wait until the booth at PDAC was swarmed by eager investors salivating for the next world class deposit?
I feel like the evil villain is some fantasy novel but would offer another possible explanation: the assays from the last update would never be considered actual “assays” by even the most plebian geologist. They would be laughed out of their booth. Hopefully, they are working on formal assays (which may be great as far as I know) before having the balls to disclose to investors at PDAC who actually understand what is needed for actual economic assignment or rudimentary valuation analysis.
Orrrr, the results of non-industry standard “assays” are so good that Maurizio has hired a battalion of the Chilean military to protect the mountain of gold so that an army of dentists from the Northwest don’t charge the asset for a lifetime of fillings.
Both scenarios seem plausible.
Dentman - I think they’re saying that the grades are “consistent” with what they announced a few weeks back; therefore, we can assume 164 gpt is the average of what they’re seeing. I’m not really sure what these readings mean, because they don’t necessarily say over HOW LONG the average gpt was computed. So, I wonder how the numbers work out when considering the halo and ore in the immediate vicinity which we will also be mining. But, maybe there’s a way to mine just the “good stuff” without having to waste a lot of time and effort with the halo and surrounding? Don’t know the technology these days. But, I’m gonna be patient - the PDAC starts I believe Sunday, and after all these years I can wait another 7 days.
I think CH had a good handle last summer to see where things are headed.
Continuing the discussion from Auryn/Medinah - 2022 - 2nd Half General Discussion:
We need to see the progress made during the next few quarters. I’m still very confident things will turn up for all shareholders, just not as quickly as some would like, or as soon as CH had hoped for. Management has some very ambitious plans and is doing everything “by the book” as surely guided partially on the assessment report by Richard Sillitoe .
Outlook (July 2021)
All indications are that grades are increasing, and the structure is getting wider as it gets deeper. This is consistent with a mesothermal deposit and lines up with previous reports provided by Robert Cinits (A.C.A. Howe) and Richard Sillitoe. Management’s outlook for the future is extremely bullish.
In reaching the DL vein there were numerous delays, and a number of promising new features intersected, which did not match the ore geochemistry of the DL vein. It was back in the beginning of last year that it was clear to me that management has plans to develop more than just he Fortuna Mine when this objective was stated, “Once consistent production is achieved, develop a financial forecast, and begin to outline reserves on La Fortuna and Lipangue Mining District.” There are other areas that will fall into place once full production and debts are taken care of while mining the DL veins. The Caren will be revisited. I don’t think the assays awaiting to be revealed will have much of an impact on share price when released, but they will draw interest. It was stated several times over the past couple of years, that in conclusively reaching the DL Vein, only minor production would occur during this process. Besides the great deal of preparation work yet to be completed and equipment needed, the objective listed below does not look at all like the minor production mentioned, but is a preliminary first step:
Q1 2023 – OBJECTIVES
This chimney ore is primarily to determine the quickest path to full exploitation, and determine which equipment and beneficiation process will be used while following the main DL vein deposit. Looking at the ore sample assays of the Antonino tunnel as it intersected the DL vein, there is a mixture of high and lower grade ore as described by CH. Much of the ore will not be economic without further processing and a solution as to the best methods to handle the variation of this type of ore will be needed. The evacuation/ventilation chimney is 30 meters in length. Constructing a gallery with an area of 50 square meters and building the “T” to exploit the Don Luis vein in both directions (and eventually at lower levels) will move a lot of dirt. (This will entail “minor production”.) How much can be easily processed and direct shipped will be determined. Some of the lower grade ore may be stockpiled for later beneficiation processes unless capital is expended to buy the equipment to further concentrate it right away. That will need to be determined and answered by the chimney ore shipped to ENAMI. Because of all the delays up until now, I’m not as optimistic that we’ll know a lot before the end of the year, but it is definitely more interesting now being inside the tent and holding a ticket to watch this show unfold! 
EZ
Mar 1, 2023
AURYN Mining Corporation (OTC: AUMC) is pleased to announce the appointment of two highly accomplished individuals to its Board of Directors. Isac Burstein and Mark Dingley bring a wealth of experience in exploration and mining business development, as well as oil and gas industries.
Isac Burstein is a resourceful and creative exploration and mining business development professional with extensive experience and contacts in Peru, the US, Canada, Mexico, Chile, Ecuador, Brazil, and Guyana. He has a proven track record in identifying and negotiating the acquisition of prospective claims, developing earn-in JV structures, and evaluating mining investment opportunities. Isac has been involved in four discoveries that became operating mines, over 60 deals from asset sales, JVs, earn-ins, private placements, royalty sales, etc. His skills include negotiating and structuring deals, financial modeling and valuation, and technical due diligence. Isac holds a BSc in Geological Engineering from the Universidad Nacional de Ingenieria in Peru, an MSc from the University of Missouri, and an MBA from Purdue University.
Mark Dingley is a board-level senior leader with a background in mining and on-shore/off-shore oil & gas industries. He has demonstrated increasing levels of technical, financial, and decision-making authority and has accumulated extensive experience working with government bodies up to and including heads of governments and heads of states. Mark is a published author and served as the President of Africa Oil (Ethiopia) and Vice President of Operations at Africa Oil Corp. He has also held several executive positions at Talisman Energy, where he was responsible for exploration activities in the Middle East and Latin America. Mark is a certified UK Offshore Installation Manager (OIM) and an associate member of the International Bar Association. He holds a Law degree (LLB) and an Economics Master’s degree from Canterbury, an MBA from Harvard Business School, and a PhD in Applied Economics from Wharton Business School.
The AURYN Mining Corporation is excited to welcome Isac Burstein and Mark Dingley to the Board of Directors. Their vast knowledge, experience, and expertise in exploration and mining business development, as well as oil and gas industries, will be invaluable in advancing the Company’s mission and goals.
Is there oil in them thar hills???
Click into those links and read their full bios. Uh, I think we just changed leagues.
Confirmation of DL at roughly 150g/t AU was our biggest announcement so far. I think these board appointments are confirmation of that announcement and it is our 2nd most important announcement in our history. I am not being demeaning, but Isac Burstein and Mark Dingley are just a different caliber of individual than we have been able to attract before now.
These new BOD members are deal making strategists, add expertise in business development and may assist in developing earn-in JV structures. I wonder if they’ll be around Toronto this week-end at the PDAC. I’d bet they also have the contacts and know-how to procure the heavy equipment that will be needed to expedite the mine.
Very funny TR, I think they’ll be planning to mine 
Wiz, I agree the two new board members have experience in large scale commodity projects and can bring that knowledge to helping Auryn develop the mine and get a return to shareholders.
I do have a concern, however, RE Mr. Burstein and a potential conflict of interest. Considering Auryn’s existing contractual relationship with Hochschild, his two positions have direct opposing goals and a direct conflict of interest exists because he now works for opposing sides on a contract. I don’t know Mr. Burstein in any capacity, but considering the past behavior of those who have been involved in this mining project prior to Auryn, and who shall remain nameless, we can’t have a fox in the hen house.
IMO Auryn needs to address how the decision making would occur within Auryn RE all things Hochschild as it relates to Mr. Burstein. IMO, at a bare minimum, Mr. Burstein must recuse himself from all decsion-making RE anything Hochschild. IMO Auryn needs to “chinese wall” him off from all Auryn internal documents, materials, and info related to Hochschild and he needs to recuse himself from any discussions and deicsion-making related to Hochschild.
Ques to all. Is it normal in the mining industry to have these types of conflicts of interest? If so, how does it normally get handled? I ask, because as an attorney, I’d get in big trouble doing this and wouldn’t advise my client to do something of this nature unless strict controls were in place.
There is no conflict - there is no existing contractual relationship with Hochschild.
Honestly, I’m somewhat conflicted on this WIZ. I’m not so sure he’s not at least tangentially responsible for the delaying of Hochschild fulfilling obligations under it’s earn-in option on the LDM. In April 2019 it was reported Hochschild started Phase 1 of which included an IP program. in July 2019:
Progress continues at the Altos de Lipangue mining district. At Las Dos Marias, Hochschild Mining plc has advanced studies by completing 6 kilometers of IP Geophysics. Results are pending. With this information there should be suitable understanding of the target to develop a more advanced next stage of exploration.
Thereafter, it appears Hochschild stalled further work to advance the option by the following request reported in the 2020 annual report:
Hochschild did not perform any drilling however recommended the Company should undertake a 3-hole exploration drill program in order to evaluate the potential or lack thereof of mineralization.
It is reasonable to conclude that those making this request were aware that Auryn’s finances were prohibitive to fulfilling this request. Two sources report Isac Burstein is currently serving Hochschild Mining as “the Vice President of Business Development and Exploration at Hochschild Mining , where he has implemented an exploration strategy based on earn-in JVs and outsourcing most of the work to partners.” He is not, however, listed on the BOD of Hochschild.
While Mr. Burstein may not have directly made the recommendation for AURYN to drill, it appears someone on his outsourced team may have. I concur with jak167, there is an apparent conflict of interests here. It may even favor Hochschild’s potential future interest in the LDM over other possible JV suitors. If the current work on the Fortuna is highly favorable by year’s end, will there be renewed interest on the potential resources at the LDM? I do question the propriety of Mr. Burstein on AURYN’s BOD because he may be more instrumental in allowing Hochchild to extend it’s original option contract beyond it’s termination date scheduled to end later this year. While it’s desirable to have a JV partner participate in the development of the LDM as soon as possible, the choice of a partner should remain competitive and unbiased.
EZ
It will be interesting to see how their compensation is structured. Will there be further dilution? Or, will their pay be a percentage of future production, thereby encouraging them to PRODUCE? Just asking. I value people’s work, but one of the huge ASSETS we have here is the fact that there will only be (I think) 80 Million Auryn shares issued and outstanding - even after the Medinah conversion.
What is the conversion rate for MDMN to AURYN?
Wiz, do you state a fact or opinion? It seems like you state it as fact, but it contradicts the publicly announced and filed facts from Auryn.
https://aurynminingcorp.com/auryn-mining-corporation-signs-binding-loi-with-hochschild-mining-plc/
https://aurynminingcorp.com/las-dos-marias-project-update-2018-10-07/
https://aurynminingcorp.com/december-2018-shareholder-update/
https://aurynminingcorp.com/april-2019-shareholder-notification/
https://aurynminingcorp.com/july-2019-shareholder-notification/
“The Company signed a binding Letter of Intent (“LOI”) with Hochschild Mining PLC during 3rd Q 2018, for the Las Dos Marias (“LDM”) project. Hochschild performed various field works and an IP Geophysical survey. Hochschild did not perform any drilling however recommended the Company should undertake a 3-hole exploration drill program in order to evaluate the potential or lack thereof of mineralization. The Company is exploring opportunities to raise funds to complete this drilling program, in the way of private financing, equity, share issuance or rights offering.” Cited from Auryn’s 11/14/22 Quarterly Disclosure, bottom of page 4 https://www.otcmarkets.com/otcapi/company/financial-report/351564/content
They had an LOI in August 2018 with a 5 year term and then signed and contract in December 2018 with the same terms. The other announcements deal with Hochschild’s work. They’ve disclosed the existence of it in their 11/22 Quarterly Disclosure. And, I do not see any other Auryn announcements or filings indicating the contract has terminated. The December 2018 announcement a little vague because it doesn’t state the end date of the contract just that it has the same terms as the LOI. So the end date of the agreement can be either August 2023 or December 2023.
Unless you can provide another publicly announced or filed source which shows the termination of the contract, I have to go with the fact that Auryn has a current contract with Hochschild.
So, to reiterate, I have a concern about a conflict of interest, unless others who have more experience in the mining industry can explain to me the common practice of these types of conflicts and how a mining company protects against them.
200:1 worst case
It will depend on how much debt Medinah has to pay off. My understanding is that they will sell whatever amount of AUMC shares out of their 16.49M AUMC shares to cover that debt.
So there are 2 varaiables, how much debt to pay off and what the AUMC shares will be trading at when they decide to dissolve Medinah. That will determine the remaining of the original 16.49M shares to assign to mdmn shares on a pro-rata basis.
I for one am also hoping that after the conversion, the empty MDMN shell will still be worth something to someone like the Baumann group and we can sell the otherwise worthless mdmn shares as a kind of a bonus!
Great question to ask if anyone is going to the convention this weekend.