That might be the professor, don’t know.
And, I might add that the CRYPTO sector is on the doorstep of what many believe is a bull market, or “mooning” as they say, which could provide many who would like to get OUT of that sector and into some other sector (such as gold) the financial wherewithal to do so. Just saying.
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Helmut Mischo - Google Scholar
Mr b,
If you think he’s a “hottie”, then that’s just fine. Who am I to criticize? (just kidding)
Here is the Wikipedia curriculum vitae of Auryn’s new consultant, Dr. Helmut Mischo. Note that there is a “C” in his last name that the Twitter link didn’t contain. Helmut is the Chairman of Underground Mining Methods at Frieberg University’s School of Mining and Technology in Saxony, Germany. He has published 258 scholarly papers on various mining topics including robotic mining and the supply chain for rare earth elements. Dr. Mischo holds professorships in both Mining Production and Civil Engineering.
As “Drifter” noted, Maurizio has a soft spot for providing “externships” to up and coming graduate students in the Mining Engineering and Professional Geoscientists curricula. Auryn has had a long-term relationship with Chile’s University of San Sebastian’s School of Mining Engineering. Maurizio has made a lot of money in this industry, and now he’s giving something back to it.
Helmut Mischo
Helmut Mischo (born 1969 in Püttlingen, Germany) is a German mining engineer.
Life
After military service (1989–1990), training as a diligent (1990–1995) and internships at home and abroad, studying mining (1990–1996) at RWTH Aachen University and obtaining his doctorate (1997–2000) as a doctor of engineering at Clausthal University of Technology, he held the professorships “Mining Production” and “Civil Engineering” at the School of Engineering of the Polytechnic of Namibia in Windhoek from 2007 to 2011. Namibia. [1] Since 2011, he has held the professorship “Raw Material Extraction and Special Processes Underground” at the Institute of Mining and Special Constructions at the TU Freiberg. Since 2012, he has been the scientific director of the Research and Teaching Mine at TU Freiberg. [1]
Its main areas of activity are the extraction of deposits by underground mining, the construction of tunnels and other underground cavities, the introduction of backfill and residues into underground cavities, the design, equipment and operation of conveyor systems and transport systems and safety engineering.
SAMPLE WRITINGS
(Ed.): Entdecker unter Tage 1919–2019. 100 Jahre Forschungs- und Lehrbergwerk. Halle an der Saale 2019, ISBN 3-96311-190-9.
G. Barakos, J. Gutzmer, H. Mischo: Strategic evaluations and mining process optimization towards a strong global REE supply chain. In: Journal of Sustainable Mining. 15, 2016, p. 26, doi:10.1016/j.jsm.2016.05.002.
Barakos, G., Mischo, H., & Gutzmer, J. (2016). An outlook on the rare earth elements mining industry. FromIMM Bulletin, (Apr 2016), 62–66.
F. Günther, H. Mischo, R. Lösch, S. Grehl, F. Güth: Increased safety in deep mining with IoT and autonomous robots. In: Mining Goes Digital, CRC Press, 2019. ISBN 9780429320774. Link.
S. Grehl, M. Donner, M. Ferber, A. Dietze, H. Mischo, B. Jung: Mining-RoX – Mobile Robots in Underground Mining. In: Third international future mining Conference. Sydney, 2015.
↑ Hochspringen nach: a b TU Bergakademie Freiberg: Head: Univ.-Prof. Dr.-Ing. Helmut Mischo, Pr.Eng., retrieved 20 July 2022.
What you may have noticed over the years, is that Maurizio is constantly surrounding himself with the best of the best in different mining specialties. Richard Sillitoe, who spent 4 and a half days at the ADL Mining District, is arguably the most accomplished Professional Geoscientist/”Mine Finder” on the planet. Auryn recently appointed to the BOD 2 new appointees with impeccable credentials especially in the “deal cutting” arena. The arrival of Dr. Helmut Mischo, with his credentials, is interesting. His forte is enhancing the efficiency of underground mining operations. The quality of the “HUMAN CAPITAL” that a project can attract, tends to parallel the merits of the assets. Remember, we’re looking at the overall playing field through a tiny crack in the door. These guys got an unfettered view before they signed up.
Dr. Mischo complimented the job that Maurizio is doing at the DL2 Mine. So too did the various Chilean Mining Ministers that recently visited the operations. They cited the technological innovations that Auryn had deployed as well as Auryn’s commitment to following the various ESG protocols. Professor Luis de la Tierra, formerly Head of Underground Operations for Yamana Mining at their enormous El Penon Mine, was also complimentary of the DL2 Mine operations. He predicted that this project had the potential to become another El Penon Mine.
Clearly, Maurizio has some grandiose plans for Auryn/Medinah and the ADL Mining District. It’s the available “HUMAN CAPITAL”, that separates the average junior producer from those with a shot at being a big player in the mining industry. It’s interesting how Auryn has been so successful in attracting the “illuminati” within the mining industry, but not so much in regards to the “Average Joe” investor. The pooling of junior explorers is currently a very crowded field while the universe of “junior producers” is much less concentrated and much more in demand, especially as the price of gold hovers around all-time-highs. Auryn is now at the “production” stage, where it can distance itself from the “junior explorers”.
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I’ve had a couple of inquiries in regards to what Maurizio was referring to in the most recent quarterly update wherein he hinted at a new location going into production at the ADL. You might remember from previous updates how Maurizio kept saying that in addition to commencing production from the 2 new working faces of level 3, where they finally intersected the DL2 Vein, they’re going to continue to drift the Antonino Adit straight ahead, to the SSW, in order to intersect the 2 “monster veins” they’ve referred to a couple of times. My immediate thought was why would you do that when you just intersected the DL2 Vein at a spot where the assays came in at in between 150 gpt gold and 164 gpt gold. Just go make a fortune there and stop exploring. Later, I started thinking that if the target is very close to where they are mining now and is potentially a very wide vein, then go ahead and go for it.
Back when they did the exhaustive (over 160 samples) trench sampling program in 2015, they mentioned that they identified over 5,000 meters of mineralized veins that had made it all of the way to surface. Two of these were termed “monster veins” because they were over 2-meters in width AT SURFACE. These types of “MESOTHERMAL VEINS” are known to widen with depth and to also get richer with depth. One of these “monsters” was a branch of the “Merlin 3” Vein known as “Fortuna Oeste” (Fortuna West) or as the “Don Enrique Vein” or the “DE” Vein.
Within the 7/6/21 quarterly update we were given access to a map showing the relationship between some of the various veins. Below is a link:
Microsoft Word - DL Map.docx (aurynminingcorp.com)
On the map you’ll see 2 circles. The lower circle shows the junction of the Antonino Adit, represented by 2 parallel lines going from the 1 o’clock position on a watch dial to about 7 o’clock, and the DL2 Vein, which rums from about 11 o’clock to 5 o’clock on a watch dial. Just to the west of this intersection point, you’ll see a vein labeled “DE” Vein. This is the Don Enrique or Fortuna Oeste Vein which is one of the 2 “monster veins”.
You can see why management opted to extend the Antonino Adit just a little bit further to the SW in order to intersect this structure. If it was 2-meters wide at surface, then at this depth of about 150-meters below the plateau level, it may be considerably wider than that.
In the most recent quarterly update dated 10/9/23, management referenced “making our mining efforts more EXPANSIVE”. They also cited, “In parallel (to putting in a new flotation plant), preparations are underway for the launch of new mining operations in the Lipangue area”. They also cited, “preparing other promising areas on our site”.
My thought is, maybe they did indeed intersect the Don Enrique Vein, and they’re attempting to put it into production. To my knowledge, they have not referenced any other sites that were close to going into production but we should wait on management to clarify exactly where these “new mining operations” are located. The beauty of the Don Enrique Vein being put into production (if true) would be that it is at the same level as level 3 not to mention its potential width and grade.
Originally, we were thinking that ramping up production rates would be associated with putting in a “decline spiral” and exploiting the various sub levels underneath level 3. Management could also be referring to other veins amongst the 6 Main Veins, or possibly an early production opportunity associated with the Pegaso Nero, the LDM or any of the other deposit types like skarns, breccias, stockworks, stratabound structures, etc.
SIGNIFICANCE OF ANOTHER PRODUCTION SITE OVER AND ABOVE THAT OF THE DL2 VEIN
The overwhelming story of the ADL Mining District has to do with the GRADES being found time and time again within the DL2 Vein. We recently learned that if Auryn were to build a froth flotation plant on-site and store the tailings on-site, then at the end of the day, the ECONOMICS would improve by $5,000 per tonne mined or $100,000 per 20-tonne truckload shipped. This is OVER AND ABOVE what Auryn would have earned by sending in their extremely high-grade ore to Enami and have them do the froth flotation and the various other steps needed to result in the production of gold dore bars.
Being paid $5,000 per tonne of ore is an insanely high number, in and of itself, let alone in addition to what Auryn could have made by sending their unbeneficiated (unconcentrated), extremely high-grade ore directly to Enami. To some, that $5,000 per tonne DIFFERENTIAL figure sounds too good to be true. How can we reverse engineer that figure in order to have it make more sense?
This entire can of worms opened up when the Plenge Lab in Peru tested a “gravity separation” system of a company known as “Goldlogic”, that was looking for a source of ore that was amenable to being concentrated/beneficiated with their particular “gravity separation” technology. The DL2 Vein ore was not a good fit. What worked a lot better with the DL2 Vein ore, than “gravity separation”, was “froth flotation”. These 2 methodologies are the first line in INEXPENSIVE beneficiation of ore.
Auryn had sent in a sample of their ore for a DIRECT SMELTING test at Codelco/Enami’s SMELTERS. The results that came back were excellent. After taking out their TCs (treatment charges) and RCs (refining charges) and after subtracting out any “penalties”, Enami was willing to pay based on 57 gpt gold, 978 gpt silver and 3.3% copper. These were huge results.
The problem arose when Auryn sent a sample to an INDEPENDENT SMELTER in Peru. Their results came in at their willingness to pay based on a “settlement” of 128 gpt gold instead of the 57 gpt gold quoted by Enami. Auryn lost a lot of confidence in Enami upon learning of this DIFFERENTIAL. Auryn knew that “froth flotation” worked well on their ore, so they decided to build their own froth flotation facility and take the Enami “middle man” out of the equation in regards to the froth flotation of their ore.
FROTH FLOTATION IS INEXPENSIVE
If a miner owns its own froth flotation plant, the average cost worldwide is about $10 per tonne of ore processed. The process itself will increase the grade of the product of the system, a “flotation concentrate”, by an average of over 4-fold. The range is from 2X to 20X. We do not know the multiple achieved with the DL2 Vein ore. All we know is that the DIFFERENTIAL between Enami doing the froth flotation and Auryn doing it represents $5,000 per tonne of ore.
Increasing the grade 4-fold is synonymous with getting rid of 75% of the impurities. If you start out with 1 tonne of gold ore with an intra-adit grade (“head grade” or “run of mine grade”) of 60 gpt gold, after going through the froth flotation process, you’ll end up with about one-fourth of a tonne of ore with a “float concentrate” grade of about 240 gpt gold.
But, doesn’t that $5,000 per tonne DIFFERENTIAL still seem a little high? You need to remember that the froth flotation process is not the end of the road for that gold ore. It still needs to go through the more EXPENSIVE beneficiation methodologies like “carbon in leach”, “carbon in pulp”, smelting, etc. Among other things, that $5,000 per tonne DIFFERENTIAL has to do with not getting screwed by Enami plus a lesser weight of ore having to go through the other MORE EXPENSIVE beneficiation methodologies later on. Recall, that in this example, three-fourths of a tonne of “tailings/discards” stayed on-site at the ADL plateau. It didn’t have to get TRANSPORTED, CARBON LEACHED, OR SMELTED.
As mentioned, I don’t have the stats for the DL2 Vein ore’s amenability to being concentrated via froth flotation. The average is 4-fold. What if the DL2 Vein ore got concentrated 10-fold? I don’t really care what the exact number is. It’s already “baked into the cake” in regards to that $5,000 per tonne BONUS figure.
SO, WHAT’S GOING TO HAPPEN IF AURYN CAN RAPIDLY RAMP UP PRODUCTION VIA GETTING MORE PRODUCTION CENTERS PRODUCING GOLD ORE?
What’s going to happen is a lot more of those $5,000 per tonne “bonus checks” are going to get cut. Can you see the massive level of incentive to pull out all of the stops and crank up production via whatever it takes? There is a lot of information contained in that $5,000 PER TONNE DIFFERENTIAL FIGURE. When you have Enami froth float your ore, you need to pay to transport the extra weight associated with the “discards/tailings” to Enami. When you have your own flotation plant, those discards stay on-site and they don’t have to be “transported” anywhere. When you have your own plant, the froth flotation process will be customized to your specific type of ore instead of being treated in a “one size fits all” manner by Enami.
The first clue as to the DAILY PRODUCTION RATE that management anticipates, might be encased in the “daily throughput” rating of the flotation facility. I would imagine that management doesn’t want to OVERBUILD the initial size of the facility so that they can save some money. We do know, however, that the DAILY PRODUCTION RATE is going to go up as management opens up new levels under level 3 and/or other production sites. What we need from management is some indication of the anticipated increase in the DAILY PRODUCTION RATE over time.
The artisanal miners of the DL2 Vein had a difficult time recovering the small-particle gold known as the “fines” and “ultra-fines”. “Gravity separation” does not work very well with these “fines” and “ultra-fines”. “Gravity separation” works much better with large particle “coarse gold”. The new generation of “froth flotation” methodologies was specifically designed for these smaller particles.
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You still haven’t heard back from Maurizio?? Doesn’t that give you a little pause before spewing out more ridiculous speculations? That’s a rhetorical question but, come on man. Have a little dignity and at least speak to or hear from the company before you dig an even deeper hole.
I appreciate the time you take to research Auryn’s updates and find bits of info that most certainly deserves speculation. We all know how vague the updates can be. You mention ‘possibilities’ based on management’s own updates, together with your own extensive mining knowledge. You never present the speculation as hard fact - you make that clear right from the beginning. Whether it turns out to be right or wrong doesn’t matter, it’s beneficial to dig into what info we have and explore likely/possible outcomes.
Nobody is “digging any holes.” Presenting possible outcomes with logic leads to productive discussions. We’re all adult enough to think for ourselves, except for those scant few who can’t seem to grasp that concept. They want to be in-control of this forum, so they feel threatened. They should be embarassed for sadistically attacking you.
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Yes, additional information is just that. A possibility to be considered does not in itself have anything of value other than to add to the base of additional information. In that context this most recent Google Earth image from 4/13/2023 shows the surface area of the Antonino Adit entrance lower right and to center upper left the area surrounding the original Fortuna mine entrance. North is to the image right, rotated 90 degrees clockwise from a traditional view.
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THE ELEPHANT IN THE ROOM
Auryn management recently let us know that if they were to build their own froth flotation plant at the ADL, AND IF THEY WERE WILLING TO STORE THE DISCARDS/”TAILINGS” ON-SITE (instead of Enami storing them at their facilities), THEN THE ECONOMIC IMPACT WOULD RESULT IN AURYN EARNING AN “EXTRA” $5,000 PER TONNE OF ORE MINED. This would translate into an “extra” $100,000 per 20-tonne truckload of ore shipped.
I keep trying to “reverse engineer” management’s statement, so that I could get a better understanding of the breakdown of this “DIFFERENTIAL”. Even if management was only producing 40 tonnes per day (2 truckloads), which is an extremely low production rate, this “DIFFERENTIAL” would result in an EXTRA $200,000 PER DAY in profits over and above what Enami would pay them if Enami were doing the froth flotation of that ore. Based on 300-working days per year, this would translate into an EXTRA $60 million in annual profits, over and above the profits made if Enami did the froth flotation of the ore.
One thing I’ve learned is that Enami DOES NOT want to store the discards/tailings of their client’s ore on their premises, and they are willing to pay handsomely if their clients do their own “froth flotation” on-site, and store the discards also on-site. Operating on a plateau makes this fairly easy for Auryn.
The math is kind of interesting and it tells us how much money people are willing to pay for this silly stuff called “gold”. If you are mining 1 gram per tonne gold, then this means that the grade of the gold is only 1 PART PER MILLION. Why is this? There are 1,000 kiligrams in 1 metric tonne and there are 1,000 grams in 1 kilogram. So, 1 “GRAM PER TONNE” (1 gpt) gold is equivalent to 1 “PART PER MILLION” (1ppm) gold.
For crushed ore, this means that for every “grain of sand” of gold in a stockpile, there are 999,999 grains of worthless “gangue”. Yet 1 gpt gold is the average grade of gold being mined in open pit operations worldwide. So, mining is basically a “how and where do we store the discards” business, and Enami’s attitude is you keep your own discards and we’ll reward you handsomely.
Miners willing or financially able to build their own “froth flotation” plant, will pay an average of $10 per tonne of ore mined after you factor in the CAPEX of one of these facilities, the life expectancy of the facility and the “daily throughput” of these facilities. The daily “OPEX” or “operating expenses” are also factored into that $10 per tonne statistic. This is a very INEXPENSIVE “beneficiation” process.
Wait a minute, how can a young gold producer willing AND ABLE to build its own froth flotation plant, and pay an average of $10 per tonne mined to build and run it, SAVE/EARN an “extra” $5,000 per tonne? The LEVERAGE available here is 500-to-1, IF, IF, IF the junior gold producer can swing it, and build its own froth flotation facility, and store its own tailings. My investment philosophy is to only add to my position in a stock, IF certain milestones are met. Accessing this 500-to-1 LEVERAGE, via building a flotation plant on-site, is therefore one gigantic milestone to reach if it happens, especially if it happens in a NON-DILUTIVE fashion.
Well aware of these numbers, the Auryn BOD UNANIMOUSLY voted in favor of building their own flotation plant. I don’t think they would have announced this fact until AFTER they had the financing in place. It wouldn’t surprise me a bit if Maurizio continued his policy of advancing all of the cash needed until production commenced, but time will tell.
Historically, “froth flotation” will increase the grade of the ore mined by an average of over 4-TIMES. The range is in between 2-TIMES and 20-TIMES. The University of San Sebastian’s Mining Engineering Department has been fine-tuning the most efficient “customized flow sheet” for the froth flotation of the ore from Auryn’s DL2 Mine for a little over 2 years. Whatever they came up with is “baked into the cake” in that $5,000 per tonne “EXTRA” income figure. I’m going to guess that when Enami does the froth flotation for their customer’s ore, their approach is more of a “1 size fits all” approach. I would assume that they’re certainly not in a position to put in extended amounts of time to tailor-design every one of their thousands of client’s froth flotation flow sheets, but I do not know this to be a fact.
As I recently learned, a lot of that 500-to-1 LEVERAGE is not associated with simply increasing the grade of the ore by an average of 4-fold via froth flotation. The next step in the process after froth flotation is typically the “CARBON-IN-LEACH” (CIL) process. This particular process, which is made a lot more efficient if the ore had been previously “froth floated”, magnifies the grade of the ore by an AVERAGE factor of in between 667-fold and 2,000-fold. In other words, 3 gpt gold ore gets converted into 2,000 to 6,000 gpt gold ore. THIS APPEARS TO BE THE SOURCE OF THAT 500-TO-1 LEVERAGE AND NOT THE FROTH FLOTATION IN AND OF ITSELF. Froth flotation “sets up” the CIL process to be much more effective.
In the case of Auryn, “CARBON IN LEACH” would involve dissolving the gold within the “flotation concentrate” resulting from the froth flotation process, in a dilute cyanide solution rendering it a liquid. This liquid is then exposed to activated carbon and the gold “adsorbs” onto the surface of the carbon. The gold is then separated from the carbon.
The keys to accessing all of that 500-to-1 LEVERAGE would have many components. The foundational component would be HIGH-GRADE ORE. Without HIGH-GRADE ORE most miners could never afford to put in their own froth flotation system. Other factors would include, being willing and able to store the discards on-site, having your own “customized flow sheet” for the froth flotation process, being able to bypass Enami’s fee structures, and being able to prepare the hyper-concentrated “float concentrate” for a more efficient “CARBON IN LEACH” process. Keep in mind that if the grade of the “float concentrate” was enhanced by a factor of 4-fold, then three-fourths of the tonnage of the ore originally mined, never needed to be TRANSPORTED or run through the CARBON IN LEACH process which is more expensive than the froth flotation process. Getting rid of a significant percentage of the waste rock/”gangue” right from the start, via an INEXPENSIVE beneficiation methodology like froth flotation, saves a lot of money when the resultant “flotation concentrate” advances to the next, MORE EXPENSIVE, step in the beneficiation process.
When the froth flotation process increases the grade of the resultant “flotation concentrate” by 4-fold, this means that three-fourths of the worthless “gangue” has been removed. This translates into the ability for the cyanide ions to “find” the gold particles and dissolve them in a much more efficient manner. The huge multiplying effect in concentration of the gold, occurs during the CIL process, not the froth flotation process. We don’t know what the multiplier effect is for the froth flotation process Auryn is about to deploy. All we know is that whatever it is the ECONOMICS are greatly improved.
People talk about the “head grade” or “run of mine grade” of ore taken out of the adit and that’s important in order to be able to afford your own flotation plant. What’s even more important is what is the grade of the material being transported in a truck, down the North Road, to its next destination, whether it be a CIL plant or a smelter. What’s also critical is what did it COST, to achieve that SHIPPING GRADE, on-site, between the mining of the ore and the froth flotation of the ore.
Spending an average of $10 per tonne in order to access that 500-to-1 LEVERAGE seems like a pretty good deal. As the cash starts to flow, Auryn will no doubt be considering building their own CIL plant on-site just as they did when considering building a froth flotation facility. Junior gold producers in Chile that are mining 1-2 gpt gold ore are probably never going to be able to access these sources of LEVERAGE. Recall that the artisanal miners that mined that very same DL2 Vein, averaged SHIPPING GRADES to Enami of 64 gpt gold without any beneficiation done on-site. The average froth flotation plant in service today takes an average of about 158 days of production to pay itself off.
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Then why aren’t the financiers lined up at the door? With all this talk about the piles of collateral and no need for drill programs etc, why would we have a problem getting non-dilutive financing? Why wouldn’t another off-taker jump in right now?
Your postings seem to make a lot of logical sense on the surface but the big ELEPHANT IN THE ROOM for me is the major disconnect in what is actually happening. If the company doesn’t announce successful non-dilutive financing, you can take all your recent postings and dump them in the garbage can because smart money isn’t buying what you are selling.
Hi JimmyP,
The fact that management stated in a quarterly update that the BOD unanimously agreed that the project is a “go”, suggests to me that they had a pretty good idea as to how it was to be financed. Management stated that they were submitting the permitting paperwork in October of 2023. They also stated, “Once we submit the permit application for the flotation plant, we plan to promptly initiate the preparatory civil work for construction and installation. “
As far as the chances for some sort of dilutive financing being on the table, management has the most to lose because they own 60% of the Auryn shares. In their back pocket, they have a perfectly viable option of just shipping the extremely high-grade ore they have been stockpiling NOW to Enami for “X” amount of months until they can cash out the CAPEX costs for the plant. I can’t see the logic of doing a dilutive financing when the share price is in the toilet when they don’t have to.
If the miners that bought their own flotation plants and are mining “average grade ore” need 5-plus months to pay it off, how long would it take for Auryn to pay off their plant with the grades they are encountering?
As far as a press release citing that a financing deal has been officially completed, I don’t think I’d expect that until the permitting is in hand and the ink is dry. In the interim timeframe, I would assume that Maurizio is probably cutting the checks for the permitting and preparatory civil work.
Maurizio seems to be in pretty good with the permitting authorities, SERNAGEOMIN. They were recently on-site heaping praises on Maurizio as to what a wonderful job he has done in constructing the mine as well as Auryn’s compliance with the ESG protocols.
We still need to figure out what Maurizio was referring to when he recently stated, “Management is also actively engaged in discussions and presentations with potential investors for financing the construction of a milling facility. This effort reflects our commitment to leveraging all available resources to optimize the value of our mining operations.” Which “available resources” is Maurizio busy “leveraging” in order to pay for the new mill?
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Seems to be obvious but when BB is proven, once again, to be way of the mark, he will just pivot again. There’s no pride in his ownership. Its been well over a month since he reached out to the company. Seems odd that he can’t get a response and I can guarantee you, based on this recent posts, he hasn’t received a response. If he hadn’t destroyed so much wealth while accusing those who raised cautionary flags as frauds, I’d almost feel sorry for the guy.
There is plenty of upside to this investment at these levels without the need for “pie in the sky” speculations. I think BB truly believes that management has a “keep cards close to the vest” mentality and he doesn’t think much of your conversations with them nor that he hasn’t received responses from them. He truly thinks that must indicate the massive potential here of a major event is not worth management spilling the beans. I won’t speak for him, but that’s the impression I get. It’s also pretty apparent from his postings that he is confident in his own DD and analysis that he isn’t phased by management’s lack of promotion or promises. Your assessment of him is that this is all defense mechanisms for being down 1000% on the investment, but I think he really is super confident that an incredible outcome lies ahead.
Just my take on it.
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Hi JimmyP,
I’m not waiting for a response from management. I do not want to directly communicate with management. I used Kevin as an intermediary to relay onto management some suggestions I had in regards to the stockpiling of ore. My request was that they keep shareholders periodically posted on the approximate tonnage of ore stockpiled and the approximate grade they were encountering. I was also interested in an approximate DAILY PRODUCTION RATE.
I’ve been a member of a group of securities lawyers, economists, investors and Ex-SEC employees that are very much into STOCK MARKET REFORM. We represent the needs of the MAIN STREET INVESTORS and we often butt heads with WALL STREET “PROFESSIONALS”. In 1999, we suggested to the SEC that they address what we referred to as “SELECTIVE DISCLOSURE” of non-public material information, by corporate issuers, to Wall Street “professionals” acting in the capacity of analysts and hedge fund and private equity investors. We noted how these “professionals” acted like they were “ENTITLED” to such information whether or not they had any interest in doing business with these corporations.
The SEC enacted what is referred to as REGULATION FULL DISCLOSURE or “Reg FD”. This mandated that when corporate issuers relayed nonpublic material information to parties on Wall Street, that they simultaneously make that information available to all investors. I am the last person that would approach management in order to acquire actionable inside information. If I did, I would demand that management have me sign a NONDISCLOSURE/NONCIRCUMVENTION AGREEMENT forbidding me from any market participation until all information that was conveyed to me IN TRUST was made public.
Many months ago, a poster on this forum asked me a question that was tangentially related to REG FD. I mentioned that my group was active in pushing through some legislation. Baldy immediately called me a liar and told all of you that I was “DELUSIONAL”. How would Baldy know what I was doing 24 years ago?
Being that I am not done establishing my final “long” position in Medinah or Auryn, the last thing I would do is to handcuff myself from buying more shares. I’ll know if my recommendations bore any fruit at the next shareholder update.
My group was also very active in contributing many dozens of pages of testimony to the SEC and others while pushing for another SEC Regulation, this one banning “ABUSIVE NAKED SHORT SELLING”. This resulted in what is referred to as “REG SHO” which was enacted in 2005.
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I’m a bit confused, BB. I see a few posts by someone trying to discourage me from reading your posts. He claims that you’ve been proven to be ‘off the mark’; but I’ve not seen any solid claims or projections from your posts that fit that bill.
You post what may be a possible outcome based on your mining knowledge and what little management tells us. The data taken from the Shareholder Update communications should be explored exactly the way you’ve been doing it all along. If he has a different opinion, then he can post what he thinks could happen without trying to drag your name thru the mud all the time. But, he doesn’t have as much mining knowledge as you do.
No. I’m not confused at all. The unreasonable claims against YOU are the problem. I would like to see him point out any one of his specific claims against you without generalizing, grasping at straws, or outright lying. He just keeps throwing pasta against the wall to see if anything sticks. He’s not doing too well, though. 
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I think this is an accurate assessment, but can you imagine being so wrong for the better part of two decades and not changing one’s approach? Maybe consider speaking to management to receive non insider information to make sure you aren’t offering insane commentary on a public forum. At some point one needs to take a step back and reassess.
I agree that there is some potential upside form these levels with proper execution. High teens in AUMC is a good level, as I’ve stated on multiple occasions. I also agree that many of BB’s ridiculous speculations are a cancer to this stock. There’s no need for his pie in the sky commentary. If Maurizio finally delivers the share price will take care of itself. Not a great place to currently “park” your money given that everything else in precious metals is ripping…but
November 2015 (BB Post). Truly amazing that this guy hasn’t learned a single lesson in all these years. AUMC and MDMN down 99% since this “Illuminating” post. There are so many more but this was the first I found when querying “Les Price.”
John,
You don’t even want to get it. Your arguments are so weak yet convincing to those that don’t understand markets and mining that it’s scary. Let’s tell the whole truth in an unbiased fashion for a change. You say in a very convincing fashion:
“Great Jim. Who owns the Picasso? I can promise you that your stake has been reduced by more than 95%.”
Let’s rephrase that in a responsible unbiased fashion. Jim used to own “X”% of a company that started with a tiny mining concession called the Millalelfun 1-55. There were no interested buyers at the time as it was an unproven asset. The stock was trading at $1 at the time and JJ was handed a small chunk of shares. So I owned “X”% of pretty much nothing.
Today I admittedly own much less than “X”% of a corporation that has an option deal on the table that I feel there is compelling evidence will be exercised. You know the terms of the option, they’re very lucrative. A lot of time, effort and money was spent building a “package” of assets that would attract the attention of the big boys. That’s what successful junior explorers do. That was accomplished and I knew going into this investment that my initial ownership was destined to be diluted. I was prepared for that. I was more interested in the VALUE of my ownership stake itself throughout the many years I knew it would take to build a “package” worthy of the interest of the big boys.
Those initial 275 hectares now stand at somewhere around 11,000 ha. Since Medinah, as well as no other junior explorers, are cash flow positive then they are forced to pay their monthly burn rate by selling shares to investors or having management pay the bills and later reimburse them. I knew there was going to be a day of reckoning via a “debt settlement” when I noticed that management was paying all of the bills. I was mentally prepared for this news. With the lack of any share distributions over the last several quarters I am preparing myself for the fact that somebody is paying the bills now and is going to want to be reimbursed at some point in time. I realize that the bills need to be paid and the monthly burn rate for a corporation in Medinah’s position is going to go nowhere but up with everything that is going on. There will be another day of reckoning in the future to repay those that are funding the paying of the bills today. I’ve prepared for that.
When you say that my ownership interest got diluted by 95% the key to me who doesn’t have an “anger itch” needing a daily scratch, but obviously not you, is how much the VALUE of my overall stock position has gone up. By “value” I mean NPV not the share price the market assigns. I find the comment you made to be full of DECEPTION but I have witnessed and have accepted that this is something that you just have to do because that anger itch is much stronger than your desire to shoot straight with the investors that rely upon your comments as being unbiased. I know this just as I know that Les’s timing predictions are seldom accurate. BUT THAT’S OK BECAUSE I’M AN ADULT AND I KNOW THIS TO BE THE CASE. I find no need to regurgitate it on a daily basis. When I lock horns with somebody, I like to sit down and find out exactly where we disagree otherwise it has a tendency to consume me.
I gave a talk many years ago to a group of lawyers and economists in Houston when I was employed by a law firm there to train their lawyers on the securities laws related to abusive naked short selling crimes. I remember it because I had the good fortune to meet face to face with a 91 year old attorney that happened to have filed the very first 10 b-5 fraud case in the U.S. Rule 10 b-5 specifically deems it UNLAWFUL to engage in any act of DECEPTION in conjunction with the purchase or sale of securities. The associated case law often deals with specific incidences where there is a specific “pattern of behavior” involving DECEPTION.
Recently you witnessed some selling. At first you said that’s Les Price selling. Then the story became that its not only Les Price but he’s actually ILLEGALLY selling RESTRICTED shares. Why was it illegal? You told us that he was not filing the forms that an insider needs to file if they are a 5% owner of shares. You told us that Les had been doing this ILLEGAL selling since September. Later the story became that Claro too was ILLEGALLY selling RESTRICTED shares without filing the appropriate forms. Then you told us that Medinah’s BOD has been doing this all along. Your certainty level was its usual 100%.
Let’s slow down a bit and review the TRUTH that somebody not needing to scratch an “anger itch” on a daily basis might say. First of all, there is no 5% ownership laws demanding the filing of any forms. There is a 10% law BUT IT ONLY APPLIES TO CORPORATIONS REQUIRED TO REPORT TO THE SEC UNDER THE TERMS OF SECTIONS 12 AND 15 OF THE '34 SECURITIES EXCHANGE ACT. These are SEC Forms 3 (initial),4 (any changes in beneficial ownership) and 5 (late reporting of a Form 4) that are supposed to be filed. Medinah is NOT one of these “SEC FILING” corporations. As an OTCMarkets Pink Sheet company “current” with the “alternative reporting requirements” Medinah disseminates public information by filing 211 (a)(5) reports accompanied by an “attorney’s letter”. There are 9,800 companies trading on the OTCMarkets. The reporting requirements of SEC registered issuers involving 10 Q’s and 10 K’s are vastly different than 211(a)(5). BUT WE KNEW THAT OR SHOULD HAVE KNOWN THAT BEFORE BUYING OUR FIRST SHARES.
Thus there are no 5% ownership “filing requirements” for Medinah affiliates/control persons nor are there any 10% requirements to file Forms 3,4 or 5. Further, as far as Les allegedly ILLEGALLY selling RESTRICTED shares there is no way you or anyone else can detect the sale of RESTRICTED securities in our markets. If your allegation is true, this would involve the COMPLICITY of Medinah’s Transfer Agent (for illegally removing restrictive legends)and their Corporate Counsel for falsifying the attorneys letter needed to remove a restrictive legend.
John, your pattern of DECEPTION in these matters is so clear that you must, as an investment professional subject to all kinds of codes of conduct, realize this. Recently you engaged in a campaign to solicit funds from Medinah shareholders in order to pay the legal expenses to audit the sale of shares of insiders that you already informed us in a declarative fashion have been going on. Did the cart accidentally get in front of the horse? To my knowledge and that of several of my colleagues, there is no legal theory available to compel compliance with such a demand. Who’s going to tell the donors?
You made the suggestion that the results of this campaign might even end up in Les Price being forced into the open market to buy REGISTERED securities and it might even result in Les going bankrupt. Notice the scratching of that “anger itch”. Shouldn’t you pay the legal expenses involved in seeing if your assertions of ILLEGAL behavior are true or not and shouldn’t the results of any such audit antecede your accusations. John, you just can’t engage in DECEPTION like this in conjunction with the purchase and sale of securities of issuers whether “registered” with the SEC or not. The same goes for soliciting the funds of others under false pretenses. That’s why 10b-5 is called the “omnibus anti-fraud” rule.
I think it’s time you came clean with the forum participants that have been making buy/sell decisions based on your allegations. I would include the legal issues involving your family and Medinah as a starter in order to provide some context to your behavior. Why do I request this? It’s because your actions have put me into an ethical “no man’s land”. My faith does not allow me to engage in the type of behavior you have undertaken. I brought your Dad into this deal. He has the exact same tempermant that you have. He made the exact same accusations you are now making and in a similar fashion. Medinah had no choice but to handle it in a legal fashion. In a derivative fashion, I am responsible for your behavior and your Dad’s which bothers me a lot. You brought this upon yourself, not me. What’s amazing to me is that even knowing that management is transitioning out you actually have accelerated your campaign. One question I have for you is don’t the clients that you put into this deal have recourse to recoup any investment funds lost when the party that suggested the investment has done everything in their power to crush the invested in company due to personal family issues?
Not a great place to currently “park” your money given that everything else in precious metals is ripping…but
Actually 95% of gold and silver miners are at their yearly and all time lows even though gold is over 2000.00. Hopefully they will break out when gold breaks the 2200.00, but for the time being they are not ripping…
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Should we address the Elephant In The Room with your post, baldy? You say that you found BB’s “illuminating post” from 2015. Did you not realize that you presented a personal letter (BB to you) from about 8 years ago? That was not an open post for everyone to read. It’s a personal letter that touches on personal things about you & your father, which explains why you were once very angry with BB. He has since apologized to you a few times, which you never acknowledge.
But here you are, 8 years later, still conjuring up this perceived horrible injury which only proves you’ve been harboring this anger . t h e . w h o l e . t i m e. You’ve been fabricating so many accusations about BB for so long that you’ve acquired a taste for it. Based on your own words, it’s clear that you enjoy making nearly every one of your posts include an accusation against BB.
So 1 trade so far 10,000 shares @ .0007. What kind of games are these??