I can’t predict what type of “colorful commentary” Maurizio is going to provide but, as far as substanitive news, as previously stated, it is my opinion, that the project is nowhere near the stage of warranting a legitimate offtake agreement. There may be some unknown Peruvian/Chilean entity that is willing to buy some rock but you won’t see an an exclusive agreement with Traxys, Trafi, Glencore, or even an Ocean Partners, These groups will not commit the time and resources based on historical shipping grades and cool pictures. They need a mine plan: how many tonnes will be produced in any given year and for how long? They also need to understand the metallurgy and recoveries of the concentrate. On this point, they seem to making an attempt to gain some visibility (not sure why they have to ship to a lab in Peru to get it) but the sample set is so small that it would be way too risky to build a projected model on these results. Another wild guess but I bet the upcoming announcement will continue to be very vague on the status of these results:
"We expect to receive assays in the third quarter and are very optimistic that these will lead to definitive terms with a “global metals trader.”
Lab results shouldn’t take more than 6 weeks in the summer, closer to 3 weeks in the winter.
If I were invested in this stock I would be asking why some of the hyper grade ore, already stockpiled, isn’t making its way to Enami. Where are the revenues from the last two truckloads? Processing some volume of rock with Enami would ultimately attractive a legitimate offtake and there could/would be empircal date on metallurgy and grades and recoveries. The excuses as to why this isn’t happening are a bit hollow to me. If there is so much high grade material the company doesn’t need to waste a year and burn through cash by just sitting on the stockpiled material. Move a bit of it. Use the truck. Start generating datapoints and draw actual attention from the actual players.
As for a JV with favorable financial terms, I don’t understand what has changed since the last JV (with H) which had unfavorable terms and no follow through.
Maybe a shareholders meeting that they said they were going to happen soon was way to optimistic for auryn
Now they are knowing how slow it takes
I agree that we need production first before the meeting
It is taking alot slower than I expected
I guess I am going to downplay my expectations on time frame
I agree we need a tweet or update soon because they have always been on time with updates
Dec 23, 2022
Jan 27, 2023
Feb 22, 2023
March and April were at the beginning of the month…
My take is when they are ready with something solid like returns or actual completed segways, we’ll get our update.
They have been pretty forthright about letting us know if there’s nothing to say why say anything…
Refreshing in my book.
Of course we know others that would just make up something to appease shareholders.
I can wait…
GC.
Thank you! So it’s fair to say that none of the these objectives have been completed to date after 3 months
Q2 2023 – OBJECTIVES
Complete the evacuation/ventilation chimney and connect with the old workings to provide improved ventilation and safety for our operations.
Develop and complete a comprehensive metallurgical study to evaluate the viability of using gravimetric plants for the concentration and recovery of gold in AURYN’s ore, with the aim of finding a higher margin alternative for processing and sale. Based on the results of the study, we can make informed decisions regarding the most efficient and profitable method of gold recovery and concentrate production
DD, of course I honestly couldn’t say if they have or haven’t.
In the past I would have jumped on a conversation as this but my views were horrendously wrong.
So… I wait for updates that are usually lagging behind and quarterly filings which usuall are about one and a half month’s after the quarter ends.
I make no judgments before then.
I can only hope that with the outgoing cash flow and small but steady crew working on the mountain we are getting somewhere…
Thanks GCC,
I should rephrase that.
Of more interest (to me) is the information on the quarterly filing.
We’ll see what appears on or before August 15.
That’s my question as well. When any business tries to “bootstrap” operations, you manage your costs and you don’t turn away revenue. The more you can generate, the more your books and history improve, and the easier time you have securing expansion financing, partners to invest, and getting interest from the marketplace. The longer you sit on your hands with “promises” of big results, but never any actual activity, then no third party will look at you.
Further, IMO, it doesn’t matter whether the grades are just “ok” and not a “home run”. IMO, it’s more important to show you have a functioning business model that can generate revenue. Even if it’s small revenue. Then when grades improve and you get the info you need to really push forward with promotion and bringing in third parties, you have improved your negotiating position as you have a history of producing revenue and a viable business model, even though it may be small.
The tweet said:
“AURYN management is delaying the quarterly update, pending results. Once results have come in, management will provide an update with current information along with the Q2 summary.”
In the last update, the 2 main goals were to 1) intersect the “old works” in order to enhance the ventilation and create a safety/egress manway/chimney, and 2) complete the COMPREHENSIVE METALLURGICAL TESTING at the 2 labs in Peru in order to test if our ore was amenable to whatever beneficiation system the “INTERNATIONAL MINERALS TRADER” insisted on us using.
Possibility #3 might be results from the sampling of the 80 tonnes of mineralized ore removed during the construction of the “gallery”. Possibility #4 might be the grade of the ore being removed while drifting the “ventilation/safety chimney”. This would probably be many times the tonnage of that 80 tonnes removed from the “gallery” construction. #5 might be the FLOW SHEET determined to lead to the highest recovery for our ore i.e. maybe gravity followed by flotation or….#6 might be the initial grade of the 120 Kg of ore sent to the 2 Peruvian labs and the final grade post-beneficiation. This would involve the ”recovery rates”.
Intersecting the “old works” is super-important because that extra ventilation capacity is critical to expanding safe production by opening up the various sub levels which will lead to an increased PRODUCTION RATE. Auryn will probably have to convince any potential OFFTAKE PARTNER that they can provide a CONCENTRATE FLOW of “X” amount per unit of time. The OFFTAKE PARTNER would then be able to cut a deal with the end user (smelter?) and guarantee a concentrate flow of “X” amount to them. A happy OFFTAKE PARTNER might be willing to advance any cash needed to ramp up the PRODUCTION RATES rapidly because it would be beneficial to them also.
Possibility #7 might be the PERMITTED EXPLOITATION RATES approved by SERNAGEOMIN after they did an inspection on the new ventilation system. SERNAGEOMIN will make sure that 17 to 20% oxygen will flow to any area being mined.
Management has been very reliable in updating us during the first week in each new quarter. When they recently broke this pattern, it might have had to do with something they were waiting on that was not quite in hand yet but due soon.
BB,
Nicely done. All necessary steps. I believe it is most likely a combination of all your enumerated possibilities, but most likely they will first need a new exploitation permit, followed by acquisition of an affordable gravitational circuit (sorting, grinding, gravitational concentrator(s) suitable to permit size). This will allow direct shipment to ENAMI, or possibly TilTil to save on transportation fuel expenses. The final offtake agreement will likely involve the additional step of a flotation circuit before shipping. Because of the expense of adding a flotation circuit to reduce the bulk being shipped for final processing and roasting, an offtake agreement will await raising the financing and permitting for this final step.
EZ