Auryn/Medinah - 2023 2nd Half General Discussion

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We finally have an announcement explaining the delay. Management has reaffirmed it’s commitment to utilizing the most efficient and beneficial techniques for improved margins. The refractory nature of the ore quite simply is not suitable for shipping and processing to Goldlogic. A test shipment to ENAMI provided results necessary to continue active mining high-grade minerals from the Don Luis vein. Construction of the Antonino Tunnel will also proceed to advance. These are no small achievements. Given the complex nature of the ADL, I’d venture to guess that there are zones encountered that are not refractory in nature and will be very suitable to gravimetric concentration techniques. It is premature to venture into that discussion at this time, but I firmly suspect it will occur. I’ll assume some selective preliminary sorting and possibly grinding may occur on site to reduce the bulk of ore shipped.

With the results from comprehensive metallurgical testing completed, and the granting of authorization for the delivery and sale of material to ENAMI, shareholders can look forward to hearing the financial results from these initial shipments on a regular basis. We could all use some good news as things progress. Both direct smelting methods for the high-grade extracted ore, and flotation for yields with concentrations under 20 g/t, will be utilized to maximize profitable exploitation of the sulfide containing vein material. Thankfully, much of the complex processing will be carried out by ENAMI.

For anyone doubting the complexity of processing refractory ore, I offer the following information from a commercial processor. We are fortunate that ENAMI has given us the terms for how this ore will be handled.:

Refractory gold ores generally contain sulphide minerals, and as such, a primary flotation stage is the obvious choice to concentrate the sulphides into a smaller mass for downstream pre-treatment prior to cyanidation rather than whole of ore processing. Gold sulphide flotation is relatively straightforward and ALS can seamlessly marry this into the testing program via its fully equipped flotation laboratory in conjunction with other process flowsheets.

Once recovered into a smaller mass, the sulphides can be pre-treated via the following processes:

  • Ultra-Fine Grinding: In cases such as ore containing pyritic gold, the gold is often finely disseminated in the mineral matrix at sub 10 µm particle size and consequently can be fully encapsulated (i.e. unliberated) at typical free-milling ore grind targets between P80 75-150 µm. These ore types can benefit from ultra-fine grinding to liberate the gold prior to cyanidation, which is effectively still within the so called “physical liberation” realm. Several technologies including IsaMillTM, Metso Verti-mill and Stirred Media Detritor (SMD), Deswik, and Metprotech are available to grind ores or concentrates as fine as 2-3μm to liberate fine particulate gold.
  • Roasting: This traditional refractory gold pre-treatment option uses superheated air to fluidize the ore, thereby causing the sulphides to oxidize, separate from the gold, and volatilize into sulphur dioxide (SO2). This method is sometimes referred to as a “Chemical Liberation” process and results in a calcine product that is amenable to cyanidation. In recent decades, environmental restrictions on SO2 emissions have increasingly precluded roasting as a pre-treatment option, but it may hold a place in selected programs. ALS has available batch muffle furnaces, Midrex rotary kiln reactors, and a small-scale fluid bed roasting to investigate the amenability of roasting the ore at bench scale. A Dorr-Oliver continuous 100 mm continuous fluid bed roaster unit is also available for pilot testwork to establish the optimum roasting scheme in terms of temperature and gas composition.
  • Low Pressure Cyanidation: Tests are performed at slightly elevated pressures and temperatures with oxygen sparging. This can include the Activox® process.
  • High Pressure Oxidation (HPOx): Refractory ores where gold is contained within sulphides, such as pyrite or arsenopyrite, can be chemically oxidised to enhance gold recovery. Oxidation is carried out in an autoclave at temperatures of 180 – 240° C and at oxygen pressures up to 3000kPa. Batch oxidation tests are conducted in a 3.8 litre Parr autoclave. The pressure leach residue is neutralised by washing with lime and then leached using conventional cyanidation.
  • Bacterial Oxidation: Several strains of bacterial have been identified and successfully cultured for contact and oxidation of refractory gold ores. Bacterial Oxidation is a slow and involved process but has been implemented successfully in a number of industrial sized projects. Batch and pilot scale facilities are available.
  • Ammoniacal Cyanidation for Gold bearing, Copper-rich Sulphide ores: Ores containing soluble copper can have very high cyanide consumption. Ammoniacal cyanidation can dramatically reduce the overall level of cyanide consumption and ALS can carry out leach tests to optimise reagent conditions. Our expertise covers all aspects of processing copper-rich sulphide ores, from flotation to selective leaching, CIP, elution and fully integrated electrowinning circuits.

(Refractory gold evaluation)

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Great post EZ !!! I wish Auryn had offered you the job of writing the August Shareholder Update. Your post offers a degree of optimism which I believe is warranted.Their announcements are typically too sedate, respectable and unadventurous. jmo
*I meant to reference EZ, not DoneDeal

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Good, sober, level-headed thinking - not unexpected from EasyMillion.

The only thing that has changed is the METHOD in which our ore will be processed (which for the time being will cost us a bit of money) - and, as EZ states, this can CHANGE if we hit a different zone.

The ventilation chimney has been connected to the Level 3 Tunnel and it has been APPROVED by the Chilean mining authorities - that MEANS our boys are hot on the trail of production. Deny it all you want, but it’s happening.

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SOME THOUGHTS

At the end of the day, Auryn is going to have to install some type of beneficiation equipment to concentrate their ore. This will decrease TRANSPORTATION CHARGES in that less valueless material (“gangue”) will be transported. The 2 most common methodologies include “Flotation” and “Gravimetric Separation”. Both methodologies have their pro’s and con’s. The “refractory” nature of the ore at the current level of the DL2 Vein (at about 1,840 masl), has rendered “flotation” as the preferred methodology for now. I personally don’t know enough about the cost differential and the performance differential to have a dog in this fight.

With the COMPREHENSIVE METALLURGICAL ANALYSIS now completed for the DL2 Vein ore, any interested potential OFFTAKE PARTNERS now have enough information to throw their hat into the ring for consideration if they so choose. The goal for Auryn is to find a buyer with better terms than Enami offers and perhaps to land a partner willing to advance the cash needed to ramp up production which would be of benefit to BOTH Auryn and the OFFTAKE PARTNER.

  1. It was unfortunate that a press release as important as this one was “packaged” as it was. This is not a critique of management that had “material” news they needed to disseminate. There was tremendous news and there was also disappointing news. Sometimes, we humans have a tendency to focus in on the “hiccups” and fail to appreciate the breakthroughs.

I think what set the table for the disappointment some are experiencing is the fact that management opted to keep quiet during the “COMPREHENSIVE METALLURGICAL TESTING” process instead of making their normal quarterly update. In retrospect though, since the new update was dated one day after the receipt of great news regarding the results from a shipment of ore to Enami, maybe management was waiting for the results of BOTH of these endeavors.

Maurizio was approached by, or maybe he reached out to, Goldlogic, and they said that they’d be interested in purchasing our ore concentrate if it passed muster with whatever “gravity plant” system they insisted on. It did NOT pass muster with that system even though the ADL ore had excellent results (over a 90% recovery rate) with the Sepro/Falconer gravity system at the Merlin 1 Vein just west of the DL2 Vein.

From the June 16, 2016 quarterly update.
“Metallurgical tests conducted at laboratories in Perú returned an average gold recovery greater than 90%. Test conditions confirmed the best recovery method entails use of a Falcon gravimetric system processing PREVIOUSLY CONCENTRATED (emphasis added) ore.”

The question becomes how did this lab “previously concentrate the ore”. Was it “flotation”, which was then followed by “gravimetrics”? With the 7 different Main Veins, as well as the LDM and Pegaso Nero, I’m going to assume that at the end of the day there will be a “flotation” facility as well as “gravity plants” on the plateau at the ADL. The “gravity plants” will typically be built into the “crushing/grinding” circuit.

“Goldlogic” purchases ore concentrate flow from miners. They are also a “fund” that will advance cash to a miner so that it can rapidly ramp up production which would mutually benefit both “Goldlogic” and their investors as well as Auryn i.e. a “Win-Win”. We shareholders don’t know what the “cost of capital” would have been but Maurizio seemed to think it was a good deal. I too am disappointed that the ore didn’t perform in such a way that we could have inked a deal with them and taken advantage of this “Win-Win”. I have a sneaky feeling that we may end up doing business with them elsewhere at the ADL Mining District. Why do I say that? Because Maurizio mentioned that the plan now is to advance the Antonino Adit straight ahead to the SSW. This is where the 2 “monster veins” (as referred to by management) reside. These are the 2 high-grade veins that showed widths at surface of over 2-meters. They are called the “Don Enrique” and the “Leopoldo Antonino”. The “DE” Vein, on the maps anyway, is very close to where the adit terminates now. The “LA” Vein is further to the SSW. I’m going to guess that the hope is that the ore character for these 2 veins is not “refractory”.

The question becomes, what will the cost of capital be in regards to a “flotation facility”. With a “flotation” system, I would assume that you’d start out with a small facility that matches the daily production rate at the time. Then, you could add “flotation cells” to the plant as production ramps up. The COST OF CAPITAL is typically inversely proportional to the grade of the ore being mined. Extremely high-grade ore, like that at the DL2 Vein, will have a relatively low ALL IN SUSTAINING COST (AISC) per ounce of gold mined. This leads to high MARGINAL PROFIT RATES on a per ounce basis. Financiers enjoy visibility of how they are going to be paid back. As the saying goes in the mining sector, “GRADE IS EVERYTHING”.

  1. So, what was the tremendous news?

First of all, we successfully intersected the “old workings” via the completion of a 40-meter “ventilation/safety egress chimney”. This will allow the simultaneous mining, in a safe manner, of several sub levels as well as level 3 at the same time. It provides SCALABILITY of production and therefore, of profits especially when that being mined is extremely high-grade. This was a huge accomplishment.

Secondly, SERNAGEOMIN already inspected the new ventilation system and checked off on it. The PR cited:” Following a rigorous evaluation, the mining authorities have formally accepted our updated ventilation measures.” Every positive step in the permitting process is a BIG DEAL. The question that might arise is what is the VALUE gained, in monetary terms, of accessing the “old workings”, getting the new ventilation system inspected and checked off and gaining access to SCALABILITY involving the ability to simultaneously mine several levels at a time. Over time, how many millions of dollars might we be talking about?

Thirdly, during the construction of the “chimney”, Auryn mined 972 tonnes of high-grade ore. This would include the extremely high-grade vein ore as well as the less well-mineralized wall rock.

Fourthly, with the completion of the COMPREHENSIVE METALLURGICAL ANALYSIS done in Peru, Auryn did learn that “flotation” is the preferred method to concentrate the ore at the DL2 Vein. Enami does offer flotation. There has been no mention of any need for “roasting”, Pressure Oxidation (POX) or BIOX (Bio-Oxidation) measures. “Flotation” is a very common, straight forward, environmentally friendly and predictable process.
Fifth, Enami has placed Auryn on the “MINING REGISTRY” which allows, which authorizes the delivery and sale of minerals from Auryn’s operations to ENAMI. This encompasses both DIRECT SMELTING and FLOTATION RECOVERY techniques.

Sixth, On July 19th, Auryn dispatched an experimental batch of minerals to ENAMI’s direct smelting plant. The settlement results, received today on August 9th, are as follows:
• Gold (Au): 57.5 g/t
• Silver (Ag): 978 g/t
• Copper (Cu): 3.23%

Yet once again, the assay results corroborate the HISTORICAL SHIPPING GRADES as well as a vast array of previous sampling measures. These are “settlement results” which are sometimes referred to as “liquidation results”. Any penalties for contaminants have already been removed and the grade lowered. On site, Auryn currently has no “beneficiation” methodologies available other than visual sorting. Not including the copper, the “gold equivalent”, factoring in the silver component, is right at 70 gpt gold for unbeneficiated ore.

Seventh, Auryn has officially COMMENCED EXTREMELY HIGH-GRADE PRODUCTION.

With the COMPREHENSIVE METALLURGICAL ANALYSIS now completed for the DL2 Vein ore, any interested potential OFFTAKE PARTNERS can now throw their hat into the ring for consideration. The goal for Auryn is to find a buyer with better terms than Enami offers and to land a partner willing to advance the cash needed to ramp up production which would be of benefit to BOTH Auryn and the OFFTAKE PARTNER.

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How does the flotation method work? Simplistic answer.
Froth flotation works by exploiting the hydrophobic properties of gold molecules. First, ore is ground into an extremely fine powder. The powdered ore is mixed with water to create a slurry, which is mixed with surfactants to increase the gold’s hydrophobicity. This mixture is placed into a large tank filled with distilled water. Air bubbles are pumped into the tank and the water is agitated.

Aided by the surfactant, the water repels the gold into the air bubbles, which rise to the top – creating a bubbly golden froth. The froth is skimmed from the surface and collected and later condensed into metallic gold. Meanwhile, the tailings and waste material sink to the bottom of the tank.

Along with mechanized mining equipment, froth flotation dramatically improved the efficiency of gold mines. Thanks to this process, miners and refiners are able to extract quality minerals from ore at lower grades than has been previously possible – making it perhaps the most important mining industry innovation of the 20th century.

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Continuing the discussion from Auryn/Medinah - 2022 - 1st Half General Discussion:

Soma is running grades less than 7 g/t on average. In the for FWIW department, since you repeated citing this company for comparison purposes.:

The El Bagre Mill processes approximately 450 tonnes per day (tpd) when running at full capacity and is permitted for up to 1,000 tpd. The mill historically achieves gold recoveries of ~87% and silver recoveries of ~81%. The plant consists of the following main circuits:

  • Three-stage crushing
  • One-stage grinding
  • Flash coarse rougher flotation in the grinding circuit
  • Gravity concentration and intensive cyanide leaching
  • Flotation, thickening, and clarification
  • Regrinding and cyanidation
  • Filtration and cyanide detoxification
  • Merrill Crowe gold recovery
  • Smelting
  • Reagent preparation
  • Tailings disposal
    (https://www.somagoldcorp.com/projects)

The company is mining in Columbia. Current market cap for Soma is C$57.55 (US$42.8M). The process needed to refine this ore for Soma is much more complicated than what ENAMI has already determined can be done economically and beneficially for AURYN after ENAMI. I conclude this is not a company that can reasonably be compared to AURYN. I appreciate you mentioning it. Out of curiosity may I ask what your Peruvian company is? It sounds more interesting.

Additional Thoughts
I don’t think AURYN took all this time to determine this was refractory ore. Given the high content CU content it was already a given this particular ore vein zone was refractory and was going to need floatation to recover the value of CU. The unspoken part was looking forward to when a gravitational circuit can be bought using the profits of ore shipped to ENAMI. Remember there was a large component of “fines” that were free milling contained in the surface ore historically mined. CU recovery was not a necessary component of this lower grade ore, so long as there was a significant free milling component present. When there is also visible gold in addition to the “fine” present, a gravitational circuit will be employed to recover the free milling gold to produce a very economical high grade concentrate. The crushing and grinding circuit that will eventually be added to process the lower gold grade content can be successfully concentrated 100X or better. This gold concentrate may actually be what AURYN management was negotiating with GoldLogic. It may be a very good delay for determining a future off take agreement with GoldLogic, or possibly a different processor, to help with financing some of the other free milling targets contained on the ADL such as Merlin 1.

EZ

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I would agree that comparing Soma and AUMC is a bit of a stretch as one company actually has a resource, is profitable, ramping production and spending money on the expansion of the resource via exploration. Averaging 7gpt is considered high grade. You may want to refer to the hand picked experimental batches (akin to a bucket) AUMC has decided to disclose as a good barometer of what to expect but I’d argue that they would already have been processing this material via Enami if there was enough of it. The processing of ore may be more complicated for Soma vs. Enami (I couldn’t tell you) but the difference is that they don’t have to truck the ore down from a peak on a mountain and, more impoortantly, they own their own plant (which has a replacement value north of $30M). Night a day vs. having to depend on a third party like Enami to process (as we have witnessed over many years). So, YES, the only real similarity between the two companies is their market cap which I why I opined that AUMC would need to offer a very steep discount if they wanted to attract equity financing.

It usually takes at least a week post the REALITIES of what the company is actually reporting for many of the “blinded” optimism to return to this boad. This time it was only 24 hours. Already fresh discussions on another offtake agreement even though the company clearly pointed towards a private placement to meet the capital requirments for a floatation circuit. One would assume that management would have referenced offtake financing as another (significantly better) option but they did not. Ignore what the company is telling you at your own risk.

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Baldy,
… And only 2 minutes to present your usual pessimistic view of reality. As Wiston Churcill once quipped, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

Perspective
Perspective847×423 179 KB

Max Planck :point_up:

“Prediction is very difficult, especially about the future.” ― Niels Bohr.

EZ

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Yes. It doesn’t take long to continue offering a view of reality that continually proves to be RIGHT. My point: its a bit surpising it doesn’t take at least a week before the bind optimism version, which has never been right, finds its way back to this board.

There is no perceived accountability posting on a message board. If the analysis provided by folks like yourself and BB had actual “real world” consequences based on the accuracy of past predictions, there would be a higher level of humility and, perhaps, more grounded commentary.

But instead we get a series of misplaced, googled quotes and lots of CAPITALIZED words like PRODUCTION in the hopes that makes them more believeable.

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“We’ll be extracting minerals directly from the Don Luis vein for processing at ENAMI” = PRODUCTION, no?

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  1. that would be called a forecast for production not actual production.
  2. this is a forecast that could have and has been made frequentlly over the past 18 months.
  3. while I assume some level of “production” will ultimately occur, it’s important to crystalize expectations. Will investors be happy with a few truck loads of ore making its way to Enami on a monthly basis? That is technically considered bulk sampling but some may still consider that production. Everyone is allowed their perspective but, as it relates to the stock, I believe AUMC needs to be producing at least 25k ounces a year to grow into their current valuation.
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Is always being Right and dismissive of other possibilities so important? Actually Baldy, you skipped noticing a few things, like:

Regarding the establishment of a floatation plant, AURYN is considering several options, including raising funds via a private placement.

Raising funds does not exclude some of the other possibilities mentioned. Considering raising funds via a private placement means giving serious and careful thought to this as an option. It is not a commitment to it. Other options are also under consideration. A timeline for establishing a floatation plant is not specified, nor are the other several options being considered. AURYN remains committed to deploying the most efficient and beneficial techniques for exploitation that is currently underway. Specifically, that is using the designated facility at ENAMI for high-grade minerals being shipped. Other options are in play and under consideration for future economic production. It is helpful to look back at some of the previous announcements.

In April 2021 AURYN obtained a temporary permit for exploration and exploitation. Subsequently, AURYN shipped 9 tons of ore at 45 g/t Au to Enami for processing. AURYN is a meticulous strategic planner. AURYN then announced it “will ship to two different processing plants. Material with grades over 25 g/t Au will be shipped to one location for direct smelting. Grades below 25 g/t Au will be sent to a second location for flotation processing.” Isn’t this exactly what they just announced they would proceed to do with the most recent announcement?

In July 2021 AURYN announced "On May 17, 2021, AURYN received approval from the National Geology and Mining Service (SERNAGEOMIN) on its closure plan. On May 18, 2021, SERNAGEOMIN requested more information regarding AURYN’s exploitation plan.
also:

•As announced AURYN sent 9 tons of ore to Enami for processing with a result of 45 grams of gold per ton.

Nineteen samples have been taken from the Don Luis vein and surrounding area. Lowest grade samples were taken from surface. All other samples are from underground development with eleven having grades of more than 20 grams per ton. The highest grades identified are 103.9, 112.5 and 1220 grams per ton.

During the pandemic AURYN reached an agreement with the Universidad de San Sebastian to further analyze the entire district, feasibility of an infield lab for analysis of gold, silver, and copper for samples collected, evaluation and feasibility of improving roads and access, a new evaluation of La Fortuna and Lipangue district geology and explore the feasibility, timing, and permitting requirements for the development of an on-site concentration and processing plant which included feasibility of a flotation plant project.

It was during the October 2021 announcement that this intriguing information was included:

Luis de la Torre, one of the professors who visited, offered the following comments:

“The ore extracted and stockpiled from the old and new works on AURYN’s La Fortuna de Lampa mining project strongly reminds me of the ore from El Peñon Project, owned by Yamana Gold Corp. They are very similar to the color and rock quality of the ore I personally observed during my time working on the development of El Peñon. I have the firm belief that once La Fortuna de Lampa project goes into production, and a correct evaluation of the entire project is achieved, it will be a mining operation with very similar characteristics of El Peñon.”

  • On September 15, 2021, the National Geology and Mining Service (SERNAGEOMIN) issued a definitive permit for AURYN’s exploitation and closure plan. AURYN received this on September 30, 2021.

  • Explore the feasibility, timing, and permitting requirements for the development of an on-site concentration and processing plant.

  • Evaluate the timing and cost-benefit of purchasing a drilling jumbo and adding an additional mining crew.

I note the definitive exploitation and closure plan was issued by SERNAGEOMIN, although it did not include specific details as to tonnage. Also, development of an on-site concentration and processing plant sound more like gravimetric processing techniques and not specifically for flotation even though the presence of hi-grade CU has long been known to be present and would require flotation. The component of economic concentrations of CU in January’s that followed confirmed that CU had economic value and would be of overall benefit to capture where hi-grade CU was present. It is clear some areas have free milling AU without the presence of copper.

The January 2022 Production efforts produced the following:

  • During the last week of October 2021, AURYN shipped 3 trucks of ore selected from several structures encountered during the development of the Antonino Tunnel as a test production run. In total AURYN delivered 48 tons of ore for processing. This included ore from the new structure intercepted on June 23, 2021, with assays of 15.92 g/t Au, 47 g/t Ag, and 5.3% Cu announced in the Q3 2021 update.
  • On November 30, 2021, AURYN received a pre-liquidation value from ENAMI for the 48 tons shipped. The accepted total was 15 g/t Au, 31g/t Ag, and 3% Cu with an anticipated liquidation value of $36,207. AURYN expects to receive final payout from ENAMI in January.

It is worthy to note this test run was not from the DL Vein and established that 48 tons containing 3% CU provided an additional $36,207 beyond the value of the gold and silver. This is why the on site flotation plant would be very valuable, especially for any of the ore extracted from a CU super enriched zones. You’ll also notice that AURYN has been keeping track of which areas test for ENAMI’s hi grade direct smelting (103.9, 112.5 and 1220 g/t) and those that test for the lower grades to be sent to ENAMI’s flotation processing facility. I read the latest announcement to say that ore shipments would be prioritized to first ship the extracted hi-grade ore directly to ENAMI’s smelter facility. AURYN hosted workshops in March 2023 attended by mining producers, relevant mining associations, and authorities, including the Minister of Mining, (Marcela Hernando.)

The workshop decision was made following a visit by Mr. Carlos Hunt, SEREMI de Minería-Region Metropolitana, and Mr. Christian Orellana, Central Regional Director for SERNAGEOMIN, to AURYN’s La Fortuna de Lampa mine in the Altos de Lipangue Mining District. The mining authorities expressed their satisfaction with AURYN’s operation and its high level of compliance with ESG standards.

April’s 2022 announcement included, “We have evidence that the Don Luis vein extends across the plateau with outcroppings appearing 700m below the plateau." I surmise from this that this near surface outcroppings may not be refractory and may be very amicable to gravimetric concentration processing for direct shipment to ENAMI’s smelter. Additionally, October’s ASSAYS included:

  • To bolster our team and prepare for production, AURYN hired Hector Ledesma, Mining Engineer.

· On May 25, 2022, AURYN contracted with Andes Analytical Assays, (“AAA”), a certified lab in Chile, to analyze samples from the Antonino tunnel.

ASSAYS
ASSAYS640×521 11.2 KB

These assays are lower grade, do not contain CU, and would be quite amicable to onsite gravimetric processing for concentrate once funds are available for purchase of a gravimetric concentrator circuit. Purchase of a jumbo driller will also be of more immediate importance to efficiently extracting ore from the narrow veins.

It is worth considering the foregoing information before outright dismissing the importance of the August announcement that exploitation for cash has finally begun.

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Easy. There’s no sense in debating this with you. I commend the company for trying to be transparent with investors. This was not a good update but some shareholders are in such deep denial and/or desperate for a win that there is always a positive spin. It’s impossible to argue with that type of logic.

If you are searching archived press releases to demonstrate that they are finally delivering on something they said they would do 30 MONTHS ago, thats impossible to argue with. I’m 49 years old. If this is a pace your comfortable with I can only hope you just got your driver’s license. This company desperately needs to pick up the PACE if any of the legacy shareholders want to see actual production while they are still standing, above ground.

image

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As I said, dismissive and always RIGHT! :rofl:
Cash for a jumbo driller and purchase of a gravimetric concentrator will certainly pick up the pace for getting to that 25K production. Count on good things happening!

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Let’s look at things from a cash flow scenario rather than from a stock price, which no one can control.

Assumptions:

issue additional 130 million shares at .25 to raise $30million.
25 million oz. produced annually.
AISC is $1,000 per oz.
Annual profit is $25million.

$25million/200million shares =.125 per share.
.125/.60 (current share price) = 20.8% annual dividend yield. I think this type of yield would attract new shareholders who would drive the share price up.

If the stock price drops to .25 after the money raise, then the dividend yield will spike to 50%. Again, this yield would drive the share price up.

It is going to be the cash flow generated by the company that will drive the share price where it needs to be. Dilution is not always a bad thing when it acts as the catalyst to producing significant cash flow.

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I know it’s Friday, Z, but really what planet did you stay you’re from? :rofl:
Enjoy the weekend everyone!
EZ

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Easy, Seeing how you brought it up, I mentioned Soma Gold in Jan 2022. The stock has doubled since my post in a lousy market for the precious metals while AUMC has collected dust. Soma is still cheap, AUMC still expensive (even more so now) but yet you are focused on whether 7gpt is high grade and the complexity of the processing at the mill they actually own. Its hard not to find this a bit humorous. Maybe I can google an appropriate quote. Here’s one:

image

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Brecciaboy spouts off about how we are just as de-risked as having a PFS in place because of the historical record of the production corroborated by the current assays.

So if we are going to let that kind of talk go unchallenged and demonize Baldy, then someone better answer why the hell don’t we have our pick of legitimate mining companies lined up at the door willing to kick this into full scale production on all possible working faces ASAP?

If its a slamdunk that there’s decades worth of production just contained to the DL vein alone, why wouldn’t a capable JV partner be willing to come in, advance the funds and actually run the operation for a piece of the pie. I’d be much more in favor of that, as all of you should, versus some private placement or other dilutive event that still ends with these amateurs running the operations. They don’t have the ability to kickstart this on all cylinders with any degree of efficiency. Waiting years for them to continue bootstrapping is completely unappealing. Especially given they have so much more untapped mineralization on the property that hasn’t even sniffed a market evaluation.

They would be wise to get an outfit in there ASAP to accelerate this whole thing. The question is if that is pie in the sky type talk. According to BB, MC doesn’t wanna share the DL. He also makes the presumption though thatcif he did want to, he would be ablebto on very good terms because it has been de-risked with leverage shifting in our favor. That was the the huge accomplishment of self funding our own way to this point. Well if that is not pie in the sky talk, then we should all be questioning why MC would be foolish enough to ever consider limping any further along. It’s completely stupid. So is raising money via an equity financing just to continue running the operation like amateurs. If you are going to give away equity, bring in someone that can do this thing RIGHT, with expertise and efficiency. Give them a taste of the other untapped mineralization as a sweetner, whatever is needed. This is painfully slow. Reading the next two years worth of quarterly updates on how the financing raise is going followed by ongoing updates of the mill construction should not be appealing to anyone invested here. It has taken way too long to get to this point even after MC was handed the keys.

Approaching a decade after MC took over to bring on full scale production should not be looked at as a success. When you have the fogged glasses of comparing it against a fraudulent old regime, it may be looked at as a great success. However, objectively speaking it is not. If this thing always had the ability to NET PROFIT $30M a year for several decades, then thats a piss poor job on the amount of time it took. The failed Hochschild JV is a perfect example of this regime’s notable failures.

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It’s nice hearing someone besides Baldy who has a differing opinion on where we go from here. I like hearing the pie in sky stuff but I think it’s time to move in a different direction. Thanks for your comment and insight on the subject.

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I’m disappointed with this update like everyone else, but not as much. Now we take gravimetric processing back out of the equation. And any potential deal with Goldlogic is gone. Auryn took a few steps back to the point before they announced the MOU.

The good news is that they stayed busy on the mountain and finished the ventilation chimney during that time. Auryn’s goals are pretty much the same now as they were a few months ago, so I don’t see this as a doomsday scenario. We already know Auryn has the goods; that hasn’t changed either.

No hopium about it, we are still moving forward with extracting high-grade minerals from the DL2 and deliver it to ENAMI via Direct Smelting. Meanwhile, Auryn is weighing options to build an on-site floatation plant for minerals with less AU concentrations — hopefully without dilluting shares. The glass is half full.

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