How many faces will Auryn have to cut at the DL to get to 140,000 ounces?
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Just to clarify, I didn’t mean to infer that there is not a general green mining push. I was referrring specfically to AUMC. I’ve spent the past three years raising money for a company that will process high-grade electronic waste (from landfills) to produce gold, silver, copper, and platinum. I would agree that the ESG focused funds are flooded with cash and there are a lot of efforts even in traditional mining to reduce a carbon footprint. Yes, mining companies are using solar power and are expected to spend $3.8bn on renewables projects, with plans for a combined capacity of 585 MW in solar energy alone. However, using a solar array with a suitable battery stack is capital intensive. Especially when you are dealing with long winters. This is why most of the renewabe iniatives are either a) being pursued by the largerst of miners who have the capacity to experiment with alternative sources of energy or b) being pursued by the largest of miners who are essentially “green washin” or c) pursued by smaller miners who have the right quantum of sunny days. No doubt that battery storage technologies will ultimately evolve to a point of affordability for most miners but it seems like that is a decade away.
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Thank you for the clarification, baldy. The company you’ve been raising money for sounds quite interesting, You are very knowledgeable about the many mining endeavors. I have a question though: Are you inferring that it’s not feasible to keep diesel generators on standby during the winter months when the solar batteries likely run out periodically during bad weather?
Of course I’m not near as knowledgeable as you and other TMP members are regarding this industry. But I’ve been trying to learn more; mostly from TMP. How many hours of sunshine per day does the ADL get during winter months? I see that Chile’s southernmost parts are fairly close to Antarctica, but the country spans nearly the entire coastline of South America, lol. Are the ADL’s winters worse than winters here in Michigan where I live? Even here we frequently get significant sunshine during winter days. So the solar panels should recharge on days like that, too.
And, I read about how these solar structures are not only coming down in price, but there are other financial incentives and/or options that can make it affordable for the mining industry — especially since concerns about climate change are finally peaking. You mentioned that “…most renewable initiatives are being pursued by the largerst of miners who have the capacity…” I do not recall WHEN MC said he’s planning to go solar, but is it possible that he plans to wait to put the plan in place until after production begins? Since Auryn is already working with ‘authorites’ on the green path, going solar doesn’t seem too far-fetched, imo. I’m sure many of us would be interested in the details and how this is progressing. I sure am. Which of your scenarios are the most accurate? Time will tell. Maybe we all have a great deal to learn about it. Until then, I’ll shut up about it. 
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DD,
Interesting you highlight one of my favorite portfolio positions. It has an interesting history and is doing very well:
If anyone else has followed and invested in Lundin Mining corp. over the years they may have seen this interview writeup from a couple of years back by Mark Sitter, Vice President of Sustainability.
A couple main topic threads ( it’s worth reading the link) discussed are excerpted below …
Why Mining Companies Should Care About ESG
Studies show that companies that do not focus on ESG are putting their long-term competitiveness at risk. What are the ways that the ESG proposition can create value for the companies?
- · Access to capital:
- · Access to resources:
- · Access to customers:
Some companies operating in the junior space may not have a dedicated ESG function. How can these companies start developing and implementing an ESG plan?
… Juniors generally don’t have the resources or activities to merit a large and complex ESG strategy. So start small. Remember: ESG planning is a journey that’s iterative and gets better over time. Here are some thoughts on what that process should consider:
Typically, Large Cap companies do better when it comes to the visibility of their programs in sustainability. What can Small Caps do to get noticed by the ESG ratings’ agencies or be included in ESG indices?
(Why Mining Companies Should Care About ESG - Lundin Foundation)
That same year (2021) another position I hold, Karora Resources, published its Inaugural ESG Report For 2021. "Karora’s ESG program is overseen by its Board of Directors with a clear objective of introducing and maintaining policies and systems that reflect the Company’s goal of being a leader among our peers in the ESG and climate space.
… The ESG materiality assessment identified and prioritized the ESG factors with the greatest potential to materially impact company value and our ability to achieve our strategic objectives over the short, medium, and long term." There are many other examples. Solar is not a sideshow distraction as ESG governance is very mainstream. Baldy going back to 2016 is highlighting the pivotal year for MDMN under new management before Dr. Sillitoe was invited to outline the best path forward for successful exploitation based on a geology review and tour of the property. As promising as the Caren Mine (Larissa Adit) is, the strategic value was clearly stated before prioritizing to the Fortuna: “This report is for internal purposes. It will provide Auryn’s team with a fuller understanding of the diverse geological structures found at the Altos de Lipangue and help place them within an historical regional context.” This was part of AURYN’s previously announced District-wide Analysis. The larger and more historically investigated region of the Fortuna Mine was more clearly defined as to its preexisting data. I’m sure the earlier work done at the Larissa Adit gave much insight on the difficulties of narrow vein exploitation and will be returned to later with great success. A better course for early exploitation was decided upon as seen by the progress made to date.
When Baldy used to habitually belittle those commenting here the standing joke was … “Now where did DOC hide that tank?” Time to take cover! It was just expected that Baldy would arise to the occasion with some kind of incoming flak. The pandemic kinda put an end to that kind of good natured joking around. Now that exploitation is slowly coming together, I expect a rigorous PR campaign will be initiated after a beneficiation process begins and direct shipment to ENAMI is embarked on. Folks that actually have an interest based on the reported incremental progress and have money invested want this company to succeed. There are exciting times ahead for AURYN. Management has adopted a vision for long-term achievement and diligently working toward a profitable future for all stakeholders. We still need to wait and see results, but let’s not give up on current accomplishments just because they are taking longer than expected. Constant negativity is a nuisance, but does not harm management’s determination to turn this company into a producing mine. The harm instilled from the previous management is primarily what Baldy’s post from 2016 was highlighting.
EZ
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The 2016 PR was made by Maurizio not the previous management. I didn’t cite that post to be a “nuisance” but rather point out that management says a lot of things that don’t turn out to be true. They also said the project was “fully funded” in parallel to reaching out to myself and many others for financing. They also said the hit the DL vein, twice, before (I’m assuming) actually hitting it. There were dozens if not hundreds of posts speculating on when the hyper grade stockpiles would be sent to Enami in the new truck. Still has happened. I wish the company success and when they start to acheive some I’d be happy to jump back in by purchasing shares. However, my “constant negativity” has proven to be well placed so I patiently wait, follow with interest, and do my best to dilute the “constant euphoria” which has never been right. Doc left the tank a long time ago and has drifted into never never land. It all boils down to one’s perspective. Easy pretends to understand mine.
Another nuisance post does not negate the persistent forward progress management is making. My sock drawer investment is still intact while you’ve just failed to move on Baldy. 
Keep up the good work, I’m sure management is paying it a great deal of attention to you, Baldy, while weighing it to what Dr. Sillitoe had to say toward a mine plan. 
I’m sure your words and wealth of knowledge overwhelm anything Dr. Sillitoe had to say in moving the company forward! 
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Q4 of 2017?? Six years ago?? Is “Dr” Silltoe even still alive?
I admire you and other’s patience holding this stock as we go through multiple market cycles and triples in the SP 500 over the past ten years. Must be nice to have play money. I have the unfortuante luck of having to focus on opportunity costs, ie: “dead money” as I cleary don’t have the same financial flexibility as many here to be invested in a stock that is down 90% over the past twenty years and claim it is “intact”. Hey, if the stock rallies 500% some may break even. Fingers crossed.
I’d much rather buy AUMC (wouldn’t touch MDMN) at 75 cents afrer they have acheived a few milestones vs. holding (forever) in the hopes they do so. Call it “nuisance” posting but this company, as of yet, has not hit their “milestones.” This is not an debateable point unless you think 7 years of sorting out a mine plan is commendable.
Actually it will run at least 3x when AUMC announces the trading partner. (most like a ETF)
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Well said. This play was always going to be about timing things right. We all failed miserably at timing it. The goods are there, how long will it be now? It may have taken 7 years but at least there was no dilution. So I’m continuing to average down at these basement prices as I believe a 5 to 10 bagger is inevitable. Too much mineralization there and the precious metals are entering a bull cycle for the ages
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Wouldn’t a 5-10 bagger from here be a LOSS for MC et al? Maybe MC averaged down too, but that would have to be disclosed, right?
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I think we go higher than that but 10 bagger minimum seems completely reasonable given what we know.
Are you saying that “founders” don’t lose money in mining ventures? What is the relevancy of his (and friends/family) cost per share in MDMN?
In any case, his actual cost per share in his blended AUMC/MDMN position is WAY less than 2, 5, or 10 cents per share in MDMN. He controls AUMC and received his share of that entity for a “song” (AUMC forgave $300k in debt owed by CDCH and then took control of the assets).
The Cerro Board of Directors increased its authorized share count to 7 billion shares and paid AURYN Mining Chile SpA 6.65 billion common shares and its 5% interest in AURYN for all AURYN’s mining claims
If you take his cost averaged across positions in both companies you may be suprised.
My guess is that his primary objective will be to recover the money he’s poured into the company over the past couple years (debt). If he could liquidate his holdings in AUMC at today’s price (which he can’t), he’d be in the money.
For those wondering what is going on . . . the company is conducting a thorough analysis of the ore to determine the best method or methods for processing.
Gold ore can be processed in several ways, depending on the nature of the ore, its size, the presence of other minerals, and the final quality required of the gold. Here are some of the most common methods:
- Gravity Separation: This method makes use of the difference in density between gold and the impurities. It’s often the first step in gold processing because it’s relatively simple and cost-effective. Gold particles are separated from the ore using various devices such as sluice boxes, jigs, and centrifugal concentrators.
- Flotation: This method is typically used when gold is combined with sulfide minerals like pyrite or arsenopyrite. The process involves grinding the ore into a fine powder, then mixing it with water and chemicals that bind to the gold and float it to the surface. The gold-rich froth is then skimmed off the top for further processing.
- Cyanidation: This is the most commonly used method for processing gold ore. It involves treating the ore with a cyanide solution, which binds to the gold particles and forms a soluble compound that can be separated from the rest of the ore. The gold can then be precipitated out of this solution by adding zinc. This method can be used in either heap leaching, where the solution is applied to a pile of ore, or in carbon-in-leach processes, where the ore is ground and mixed with activated carbon before the cyanide solution is applied.
- Bioleaching: This is a more environmentally-friendly method that uses bacteria to extract gold from the ore. Certain types of bacteria can consume sulfide minerals and produce a weak sulfuric acid as a byproduct, which can then leach out the gold.
- Refractory Processing: If the gold is encased in sulfide minerals (making it “refractory”), it won’t react with the cyanide solution used in cyanidation. In this case, the ore has to be pre-treated to remove or alter the sulfides so the gold can be accessed. This can be done with roasting or pressure oxidation, both of which involve heating the ore to high temperatures.
Each method has its own advantages and disadvantages, and the choice of method depends on a variety of factors, including the nature of the ore, environmental considerations, and cost. Often, more than one method is used in combination to achieve the best results.
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Thank you Kevin for the breakdown. When you say company, is this the mineral trader from Peru that has a term sheet Mou with Auryn or Auryn themselves?
The recovery rate for gold extraction methods can vary widely depending on the specific nature of the ore and the particular extraction method used. However, here are some typical recovery rates:
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Gravity Separation: For free-milling ores, gravity separation can achieve high recovery rates, often up to 90% or more. However, for complex ores or ores with fine gold particles, the recovery rate can be much lower.
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Flotation: Flotation can also achieve high recovery rates, often over 90%, for sulfide-associated gold. However, the gold concentrate needs to be further processed, usually with cyanidation.
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Cyanidation: When used on free-milling ores, cyanidation can achieve gold recovery rates over 95%. For complex ores, the recovery rate can be lower, but cyanidation is still often the best option because of its relatively low cost and high efficiency.
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Bioleaching: The recovery rate for bioleaching can vary widely, from as low as 50% to as high as 90%, depending on the specific nature of the ore.
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Refractory Processing:
- Roasting: Recovery rates can be quite high, often over 90%, but the process is energy-intensive and can be expensive.
- Pressure Oxidation (POX): Recovery rates can be very high, often over 90%, but the process is also energy-intensive and can be expensive.
- Bio-Oxidation: Recovery rates are usually in the 80% to 90% range, and the process is less energy-intensive than roasting or POX, making it a more environmentally-friendly option.
- Ultrafine Grinding: This method can achieve high recovery rates, but it’s energy-intensive and can lead to high wear and tear on equipment.
- Nitric Acid Pretreatment and Alkaline Oxidative Leaching: These methods can also achieve high recovery rates, but they are often used in combination with other methods, such as cyanidation.
Please note that these are typical recovery rates, and actual rates can vary depending on many factors, including the quality of the ore, the specific extraction method used, and the expertise of the personnel carrying out the extraction process.
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AURYN is conducting the analysis, as far as I’m aware. I suspect it is required by the mineral trader, but I don’t know that.
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Yea good luck getting any sort of decent size position at .75 now, let alone after any single milestone is made. Mark this post.
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Baldy,
I don’t pretend anything here. You and I quite simply have a completely different perspective on this one equity. I hold it for a very specific reason, and you sold it when you did because it benefitted you in a particular way. I did not have that option and so in that respect I’m a stuckholder. I’m not advocating buying MDMN to average down because I’m already overweight here. For many years I bought dollar for dollar the same amount in CDCH and MDMN. As a result, I have a respectable position in AUMC which apparently you do not, and a large MDMN position that I’m neither buying nor selling. I agree with all your reasons for not holding this stock, and why you are not buying. Most investors quite wisely are risk adverse in the present era of uncertainty. Both AUMC and MDMN are presently illiquid. I invest to make a profit the same as you do, preferably in equities that are both liquid and have good fundamentals. I’ll repeat for the umptieth time I have a large “FULL” position in this stock held in an IRA and ROTH. I know why I post here. I do question what your purpose in posting here is. At times you are entertaining and laughable! Only 12 posts in 12 days without a company update? 
It is an annoyance (to me personally) with your attitude of a know it all that knows better than management in this particular stock. Your way to investing in this stock is not wrong, but it is also NOT suitable for all stockholders here. You fail to recognize and respect other shareholders points of view and why they did not sell and wait to buy back as you may eventually do.
You cover no new ground in your posts to anyone holding this stock long term, and primarily kept in a sock drawer. I did misspeak when I attributed your focus to the past management; I should have said it reminded me of why we took several giant steps backwards when the prior management’s myriad misrepresentations to stockholders were finally being exposed in 2016 and the lawsuits that followed. The present management has made tremendous strides forward compared to where we stockholders were at back in 2016, and finally started moving forward in 2017 with their longer term planning. If you could get off your high horse of always being right and everyone else is wrong when presenting your viewpoints it would be less of an issue.
Continue using your investment acumen for profits in the DOW, S&P, and NASDAQ. NASDAQ was down 33% last year and has come back 22%. Stocks can exhibit both cyclic and seasonal effects. ( an interesting article on seasonality - Best and Worst Months for the Stock Market - Seasonal Patterns - Trade That Swing). This stock is clearly not in the same category as major markets, or investable with the same metrics used in the major markets. AUMC is in a unique market and stage of it’s development. Management is looking for it’s payday the same as investors. Management is not looking to unload for $30M all at once as you frivolously suggested recently.
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”
Winston Churchill
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Marked. Wasn’t hitting the DL Vein, when they actually hit it, a milestone? What’s the next one, just so I can keep track? An MOU with a global minerals trader? This is becoming comical
YOUR QUOTE was that you would rather take a position at .75 AFTER they hit milestones. Your words, not mine.