I sure would have enjoyed being a fly on the wall when MC was pitching the ADL to these two new board members.
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Santiago, Chile â March 6, 2023 â Shareholder Notification
AURYN Mining Corporation is proud to announce that it has been selected by Chilean Mining Authorities to conduct a training workshop on the use and application of safer materials and new explosive devices for mining producers. The decision was made following a visit by Mr. Carlos Hunt, SEREMI de MinerĂa-Region Metropolitana, and Mr. Christian Orellana, Central Regional Director for SERNAGEOMIN, to AURYNâs La Fortuna de Lampa mine in the Altos de Lipangue Mining District. The mining authorities expressed their satisfaction with AURYNâs operation and its high level of compliance with ESG standards.
âItâs impressive to see the technical and financial effort in this mining project, as well as the high level of compliance with applicable ESG regulations,â said Mr. Hunt, SEREMI de MinerĂa-Region Metropolitana.
âWe view this as a valuable opportunity to share our extensive expertise and knowledge with the mining community,â expressed Enrique Lopez Albujar, AURYNâs General Operations & Logistics Manager. âOur mission is to advocate responsible mining practices and create a culture of conscientious and efficient mining for future professionals in Chile.â
The training workshop will be attended by mining producers, relevant mining associations, and authorities, including the Minister of Mining, Marcela Hernando. It will cover a range of topics, including the safe handling and use of explosives, risk assessment and management, and the latest advancements in mining technology.
The training workshop is part of a broader effort by AURYN to promote responsible mining practices and develop a culture of sustainability in the mining industry. The company already has compliance software, SIGAL (Sistema Integrado de GestiĂłn Ambiental Legal), in place to maintain the highest compliance and ESG standards in the mining industry. AURYNâs Mining Chief Officer, Hector Ledesma, and Vice-President and Legal Manager, Italo Volante, have all contributed to AURYNâs success.
âWe are thrilled to work closely with the government and with the university to generate a responsible, conscientious, and efficient mining culture for future professionals in Chile,â said Maurizio Cordova, AURYNâs CEO and Chairman of the Board.
The training workshop is scheduled to take place in Santiago later this month. AURYN, SEREMI de MinerĂa-Region Metropolitana, and SERNAGEOMIN will conduct additional training sessions jointly.
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Greater exposure to the mining community and public is beneficial to long-term success. Good to know we are in the good graces of the compliance arm of Chilean government. The addition of two new BOD members is a good signal to interested parties in the mining community at large.
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EZ - Right on, as usual!
As I recall, the local university is also devising a mining plan and camp structure? Maybe in exchange for all this special cooperation with the government (including now the training workshop) there is some coming extra benefit we donât know about? Hmmm âŚ
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Gold shot out of a cannon today. I feel comfortable with Gold over $1800 oz for this investment. I can only imagine if/when Gold gets to $2,500!
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"We have received the assay report on the DL2. As expected, they are consistent with the grades provided in the Q4 Shareholder Update. "
This is what management said on Twitter the other day. Thatâs NOT BAD news, and I guess thatâs what weâre gonna get on it, for now at least. Maybe the metallurgical tests will spark new interest. I gotta tell you, being invested in this industry is like sitting here watching paint dry - bwahahahaha! But, I do have confidence weâre gonna make a few bucks and that managementâs interests are aligned with ours and so they are doing their best.
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Iâm ok with not hearing anything until April update. Itâs just around the corner
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Gold up over 1900! With everything going on from this past weekend with SVB and now Signature bank this might be back over 2000.
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Yeah, things looking good for alternative investments, so-called âsafe havenâ investments, CRYPTO included - âsafeâ as to crypto because the government of all people/entities canât get THEIR hands on it. Sad state of affairs. But itâs like many gold pundits have said: âYou may not WANT to live in a world where gold is 5,000.00 per ounce.â Interesting times indeed.
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Where are the assay results?
The team has taken new samples of the entirely uncovered DL2 and will report these when received.
The Quick Access assays for DL1 & DL2 were covered in the January 2023 Shareholder Update. Samples for the Full assays have been taken. Now weâre waiting for those numbers, which will provide far more valuable insight for management. I believe it takes much longer to process the full report, too. From what Iâve read, the Quick Access assays are taken during exploitation. And I believe the Full Assays are taken after production commences, which is good news!. Nothing to worry about, in my opinion.
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Assays go the lab and are then reported back to the company. Whatâs been provided so far would be considered âpreliminary assaysâ without a lot of detail (grade over any sort of width, etc).
While there were some delays on receiving assay/drill results during the covid era, the current turnaround is approximately 5-7 weeks.
The âfull reportâ you are referencing is called a PFS (Pre-Feasibility Study). The PFS is produced by an independent (QP). This costs anywhere from $300k to several million dollars but miners donât pursue this report until they have dozens and/or hundreds of assays (not preliminary ones). The QP canât issue any economic nor mining nor resource guestimates without a series of assays.
Production is not related nor necessary for any of the above but I do think the company is WAY overdue in announcing some sizzling formal assays given the time that has elapsed. Lab assays arenât that expensive but Maurizio controls the expenses and pace (rightfully).
I thought the company was waiting on PDAC?
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Gold at 1960 closing in on 2000 letâs get some production running! Looking forward to April update
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And our pps drops on a $1 trade. Announce when Aumc shares get distributed and watch the fireworks IMO
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Getting closer to 2000! Hope MC is watching and gets this off running
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Hi Dent,
In order for the share prices of Auryn and Medinah to get some traction in the near term, I think we need 1 of 2 things. The first would be going into production and posting some earnings. Nobody on this forum seems to want to breach this topic in regards to throwing some numbers onto the table. The recent move in the price of gold has forced me into re-jigging the numbers mode. I GET A STRONG SENSATION THAT NOBODY ON THIS FORUM HAS A CLUE, OR PERHAPS THEY DO BUT DONâT WANT TO BECOME A TARGET FOR CRITICISM, ON THE POTENTIAL EARNINGS OF THE DL2 VEIN PROJECT. IN ALL CANDOR, ITâS A LITTLE BIT SCARY, AND UNTIL YOU CRUNCH SOME PROBABLE NUMBERS THE POSSIBILITIES HERE WILL GO UNDETECTED. THIS IS NOT ROCKET SCIENCE! What you need to do is to get past that first hurdle, which I call the SPECIFIC GRAVITY HURDLE. More about that in a minute.
The second source of share price traction would be entering into a JV on one of the many assets present at the ADL Mining District over and above the DL2 Vein. I canât see Maurizio sharing the DL2 with anybody. Thatâs clearly going to be not only a cash cow but it will also act as a CATALYST. It will provide bargaining strength at the negotiation table for Auryn because anybody across the negotiating table across from Auryn will recognize that Auryn now has the OPTION to go it alone for a certain period of time.
What THE TERMS of a JV would provide us, and others, is a valuation benchmark or a valuation yardstick. Weâve never had this. If a major miner were to enter into a JV to explore or co-develop the Pegaso Nero, and if the terms were something like they could âearn-inâ a 25% stake by spending âXâ number of dollars on the property, then a prospective investor could roughly estimate that the PNâs value is somewhere around â4Xâ. If âXâ ended up being, letâs say, $30 million (a guess), then the PN might be valued, in the minds of many, as being somewhere near $120 million.
Today âthe marketâ is ascribing ZERO value to the PN. Nobodyâs ever heard of it. A JV with those terms might increase the PERCEIVED VALUE of the ADL Mining District by $120 million. The flip side of that argument is that there currently is no PERCEIVED VALUE because for all intents and purposes there currently arenât any PERCEIVERS/PERCEPTORS. A JV might serve to BOTH increase the numbers of PERCEIVERS (referred to as âaudience development) as well as the PERCEIVED VALUE. The terms of a business deal between two willing parties BOTH of which are very familiar with appropriate industry valuations is very informative to us nonprofessionals. The two new appointees to the Auryn BOD are probably very good PERCEIVERS of value.
At the âinformational meetingâ in Las Vegas many years ago, you might remember Maurizio up at the podium describing how the PN was way too big for Auryn to develop in a solo fashion. He noted that at the time there were 3 suitors that had showed an interest in the PN. He had permission to use Freeport McMoRannâs name as a âparty of interestâ and he noted that the other two suitors were âeven bigger than Freeportâ (âFMXâ).
He let us know his impression of how the negotiations would go. He described kind of a âmating ritualâ. First would come some low ball offers which he would politely but summarily dismiss. He noted that the offers would increase over time if Auryn made progress on the mesothermal veins. âMesothermal Veinsâ tend to âtelescope out ofâ porphyry structures like that at the PN. Extremely rich vein grades in close proximity to a porphyry might turn the heads of a major miner whose geoscientists assumed that a similarly atypically high-grade progenitor porphyry is underlying those veins. I think that makes geo-sense since the same underlying magma chamber gave rise to the magma and hydrothermal fluids and gases that enriched both the porphyry and the mesothermal veins telescoping out of it. Maurizio went on to say that somebody will insist on 51% of the action at the PN but theyâre not going to get it. At the end of the day he predicted that Auryn would end up with a big fat NSR.
The majors know that they could âslow playâ the negotiations because the junior miners typically have to constantly sell shares in order to pay their monthly burn rate. The constant dilution usually brings the junior to the table often on its hand and knees. Any interested major would quickly notice that this approach wouldnât work with Auryn because there was a behind the scenes party cutting interest free checks all of the way until the DL2 Vein was successfully put into production. Aurynâs number of shares issued and outstanding stubbornly stayed at 70 million with several promises by management that this figure was not about to change. Might this result in the timeframe of the mating ritual to be shorter than the norm?
Maurizio knew that if he could get the DL2 Vein project to the brink of going into successful production, then any major would have to match his terms on the PN. Maurizio warned us that this was likely to be a long courtship and it has been. Maurizioâs leverage lies in the need for major miners to constantly replace the ounces that they mine annually and there just havenât been many discoveries in the last several decades to choose from. Nobody is going to buy the shares of a major miner with no pipeline of future production.
What Iâm wondering is if the insanely high grades Auryn is seeing at the DL2 Vein where it was intersected by the Antonino Adit, might have had an effect on this âmating ritualâ. Right after hitting the huge grades at the intersection of the DL2 and the Antonino Adit, and right after getting them corroborated by a second round of sampling coming in at an average of about 150 gpt gold, all of a sudden Auryn puts two stud-muffin deal cutters onto the BOD. Koinky-dink? I donât know but I sense weâll know soon enough.
Kevinâs comments keep replaying in my head. He said that the single most important news ever released by Auryn was the one-line statement that the assays received from the initial round of sampling at this intersection, which came in at an average of 164 gpt gold over 0.6-meters, had been CONFIRMED by the second round of sampling which came in at 150 gpt gold. So, the CONFIRMATION of these extremely high grades, by the second round of sampling, must have triggered something.
When the first sampling comes in at 164 gpt gold, at a time in which the average worldwide grade for underground vein mining stands at 4.15 gpt gold, you obviously have to do a second sampling to corroborate it. Usually you would use a different lab, with different QA/QC standards, on the second go round. Auryn posted the assay certificate on the first sampling but not the second, at least for now anyways. We donât know with 100% certainty who did the sampling on that second go round. Was it Aurynâs engineers and P. Geos? Was it an interested third party in combination with Aurynâs staff? If I were an interested party in the property right below this intersection, i.e the PN, Iâd sure as heck demand to do an independent sampling of that vein with my own crew or send it to a lab of my choice.
Kevin went on to say that the second most important press release in the history of Auryn was the PR citing the addition of the 2 new deal cutters to the BOD. He then went on to say that the two PRs, ranked in importance of #1 and #2 in the history of Auryn, somehow, CONFIRMED each other. So, the second round of assays that corroborated the first round of assays, as well as the appointment of the two new BOD members, were linked and the CONFIRMATION OF THE GRADES triggered the appointments of the new BOD members. Now layer over this, the recent breakout of gold to the upside.
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Itâs certainly not rocket science to come up with earnings projections for the DL or valuation potential for PN, etc. Anyone with multiplication skills can assign whatever number(s) they choose and come up with an opinion, high or low, on what the project may yield. However, anyone who does decide to pursue that game of darts should, especially after all of these years, do so with a major disclaimer and humility because NOBODY has any idea on what numbers to use.
I might suggest that most investors here have learned through experience that it probably makes sense to first, at a minimum, receive at least ONE formal assay before wasting their time extrapolating any forecasts. Other investors, may be waiting for the project to generate the first dollar of positive cash flow before throwing out comps to industry standard P/E ratios. Others may be waiting to actualy receive shares of AUMC as the expense/dilution argument is only getting worse with AUMC trading down 40% since those discussions originated (and AUMC is arguably stil expensive based on the life cycle and lack of confirmed resource).
Its hard to argue the benefits of waiting for the company to deliver on something before jumping to delusions of grandeur. There are still a TON of hurdles to clear before the company can justify even being public.
Fortunately, for observers like myself or others looking to add to their position, I believe there will be a considerable window to buy shares at current prices if and when the company clears some of these hurdles. This stock is so far off anyoneâs radar screen and the junior mining sector is so out of favor that investors and spectators have the luxury of âwait and seeâ for AUMC to actually deliver on something before accumulating shares.
I can and am regularly wrong on my predictions but feel pretty comfortable that the stock ainât going anywhere until the start uninterrupted production. The market impact of the other, recent âcatalystsâ seem to validate this opinion.
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deleted by me.
Did you get to the specific gravity hurdle and I missed it?
Agreed on the importance of the two recent announcements - hiring ringers should be a sign to anybody whoâs been following this saga that something good is gonna happen.
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