Auryn/Medinah - 2023 1st Half General Discussion

[easymillion]

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:

@cornhuskergold

But the variation in those grades even across very short distances, which mirrors what was seen in the high grade areas of the Caren, raises the uncertainty as to what the average grade of this vein will turn out to be. The fact that in the old workings they had a fairly small area that averaged 60+ gpt raises an eyebrow to be sure. But it is very short of proof that this kind of grade will hold up across hundreds of meters of vein. Maybe you average 64 gpt all the way down 500 meters and out 1 km+. And if so, it’s bonanza super lottery winner time. But that’s a big assumption. You could just as well have occasional pockets of 10m or 20m or 30m where you can hold that average and then another 30m, 40m, or 50m where you average very marginal grades.

Everything will end up depending upon average ore grade and width of the vein across longer distances of say hundreds of meters. And we just won’t know until they start exploitation. But it looks like we’ll find out this next Chilean summer as the exploitation begins. And if they start publishing news of regular truck loads of even 20+ gpt ore at multiple levels for a couple of quarters and we see some AISC information that looks decent, then our ship is coming in. If on the other hand, grades fall much below 10 gpt, then things are going to get pretty tough for the whole self-funding and expanding operations approach.

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

• Topographers from EGV Ingeniería will return to Lipangue and take new readings to ensure the precise orientation to follow the DL2 from our intersection on level 3 to the old workings on level 2. The team will then construct an evacuation/ventilation chimney following the Don Luis vein to the old workings. Ore from the chimney will be shipped to ENAMI.

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