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:
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.
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.
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.
A long while back, I posted the distance to the nearest ENAMI mill, The closest I could find Delta, in Ovalle. [426 km] in April 2022, hopefully they have a new closer one. That is a LONG way to go. If I knew the make and model of the truck, I could get the MPG of diesel fuel required to make a 2-way trip, of course loaded and unloaded would be very different.
Rod
I don’t think we have this out of the near term horizon at all. What we have is hi-grade direct to the ENAMI smelting facility. Cash on the near horizon to purchase equipment for gravimetric concentrator plant, jumbo driller and trucks to haul. Cash & more cash until flotation financing comes through.
Can anyone verify that distance? If true that is an insane trip given how long it takes to just get down the mountain. You are talking about one truck load every other day, best case scenario (one day there, one day back). I guess that’s why AUMC is claiming that 20gpt is their “cut off grade” when considering transport costs. Thats an astronomical “cut off”.
Ouch bid at .0008. I thought the news was promising. Production has started and checks being cut for the ore. A step that we have never achieved.
A question. If AURN’s current plan ships refactory high grade ore to Enami to process (even on a limited basis) because they know it will generate revenue at a fair value, why didn’t you ship the refactory ore to get your fair value over the last year and half. I don’t care if your were exploring options, trying to find a more economical way, or just baking a cake. By your own admission you had ore on hand which would have provided to you fair value and you did nothing with it. Nothing. If you had been running the truck for the last year and half you could have saves up some cash (or paid down debt) while you explored other options. If AURN had been sending the high grade refactory ore to Enami over the last year/year and half, even on a small scale basis, AURN would sit in a much better position right now to either get financing for a flotation plant or stockpiling funds for a flotation plant.
Instead, as I posted prior, AURN had an asset of value and let it sit doing nothing, gather dust. IMO, AURN made a bad decision to let this just sit. And now, they have provided no justifiable reasons as to why the refactory ore just sat. Wouldn’t a year and a half of verifiable results from Enami put AURN in a better position right now? Wouldn’t someone have more interest in financing a flotation plant with a year and half of results from Enami?
IMO, I still don’t believe MC has it out for AURN/MDMN shareholders or intends to dilute us to death; however, with all the new blood and allegedly smart people helping AURN no one thought to just start shipping the ore you had and bank the profits? So, IMO, AURN in effect just said we wasted the last year/year and half+, we should have been shipping the high grade refactory ore, but we will start now, sorry. Oh, as we really don’t have a reason as to why we weren’t shipping the refactory, high grade ore other than we got distracted with some 3rd parties who could talk a good talk.
In a prior post I suggested three possibilities RE AURN’s operations. IMO, unfortunately, this update eliminates the 2nd of the possibilities, leaving one left. Incompetence. AURN states they are a mine. Well they just admitted they did all this work, removed all sorts or ore, found wonderful seams of high grade pay, and then just sat around talking about it and patting themselves on the back; instead of getting paid!
Did everyone notice how much more terse and simple sentences AURN put in this update compared to the ones in the past? IMO, they realize they should have been shipping the ore all along and and now trying to sweep under the rug the fact they didn’t do it.
It’s real simple folks, to be a mine you must find the paying ore, you must remove the paying ore from the ground, you must process the ore, and you must sell the ore and get paid. AURN, you are a mine, let’s just mine and get paid. Stop all the bs, fancy crap and get to work. Find some way to get more trucks on the mountain, get the stupid ore shipped to Enami and get paid.
Hi easy - It’s my understanding that gravimetric processing is out of the equation because of the “refractory nature of our ore.” The update only specifies plans for direct smelting at ENAMI and to build a mineral floatation plant. Would you mind clarifying why you think Auryn might buy equipment for a gravimetric concentrator plant? I must’ve missed something. Thanks.
Nevermind, I just saw this from your earlier post:
“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:"
All good points again.
A couple truck loads of payable ore a week is mom and pop production. You’ll have to do better then that before the season shuts you down to be in profitable production.
Theres many mouths to feed here.
I love this post but I’ll offer a very logical reason why they did not ship it. Stockpiling potentially was and still could be the much more profitable option. Transporation is a major issue that we are all seeing, which is why they have been exploring a way to finance an onsite treatment facility. If it had worked out with Goldlogic, it would have been a wise decision to treat all that ore with with gravimetric methods first and sell the treated concentrate. Now they are back to the same decision except now we are talking about flotation treatment rather than gravimetric.
I say if BB isn’t completely full of shit, get a Hochschild type outfit in there to take over the entire operation. I’d gladly get diluted to expedite this thing. From the details of onsite mill construction down to the mining operations itself should be handled by a capable and well financed outfit. They SHOULD BE DROOLING to get in on this at the grades we have assayed at. Remember Baldy said 7gpt is considered high grade! So what gives here? Is it too risky for a company to put up $10M for a mill and % stake without a PFS?
Sorry BB, but you can’t hide by saying MC prefers not to share the high grade gold production. That explanation makes zero sense if there are indeed potential suitors that can offer mutually beneficial terms. And based on your constant rhetoric that this discovery would not require a PFS and that it has been sufficiently de-risked based on historical grades and corroborated current assays, there should be plenty of suitors that could offer mutually beneficial terms at these type of grades!
We have reached a point where someone needs to explain themselves. Either BB needs to stop posting this crap, or Auryn needs to explain why continuing to go it alone makes more sense. A private placement (dilution) to fund an on-site mill that still requires Auryn running the operations should not be an option worth considering. Dilution resulting in a legitimate proven company with mining expertise is the way to go. If we can’t get favorable terms still, then all that non-dilution praising that BB spouted off about can get flushed down the toilet.
If MC goal is to build his own medium sized mining company without the assistance of a JV partner, we are all going to suffer through the agonizingly long road ahead.
We most likely be in the grave by then.
In the recent quarterly update, dated Aug 10, 2023, there was a lot of information presented that needs to be layered upon information acquired earlier, in order to understand the significance of it, but there is definitely a common theme to this information. That common theme is that Auryn is FINALLY commencing extremely high-grade production, in earnest. We will know the INITIAL PRODUCTION RATES soon enough. How it ramps up with the addition of new crew members and equipment as well as the various sub levels being put into production is anybody’s guess at this point in time.
When you juxtapose the previous quarterly update, dated April 6, 2023, you might notice that there was still a heck of a lot of tasks yet to complete (thereby representing RISKS, should they not be completed) prior to the commence of production in earnest. By production “in earnest”, I’m not referring to the past shipping of “bulk samples”, “test samples” or even the recent “experimental batch” sent to Enami in order to test the DL2 Vein ore’s amenability to Enami’s “DIRECT SMELTING” process.
Instead, I’m referring to FULLY PERMITTED and FULLY REGISTERED (with the CHILEAN MINING REGISTRY) commercial shipments of ore after SERNAGEOMIN approved of the new ventilation system allowing development of level 3 and the various sub levels. This will provide “SCALABILITY”. Management referred to the recent shipment to the DIRECT SMELTING FACILITY as being the “inaugural mineral consignment to Enami”. If you’re new to the mining sector or to Chilean mining specifically, when you see a reference to an “ENAMI SMELTER” you should know that Enami, a branch of the Chilean government, doesn’t own any smelters. “CODELCO”, another branch of the Chilean government, owns 4 of the 7 smelters in Chile. They are mandated by Chilean law to provide smelting services to any Enami client if they are part of the CHILEAN MINING REGISTRY which Auryn was just accepted into. The nearest CODELCO/ENAMI smelter to the ADL is a 98-mile drive away (157 Km). There is another one that is a 103-mile drive away.
How did this DIRECT SMELTING “experiment” go? As we’ve pretty much gotten used to, the DL2 Vein ore performed extremely well. This is just like it performed for the artisanal miners, for 30 straight years, as reported by Enami and SERNAGEOMIN. Even after any penalties levied for the presence of contaminants, Auryn is still going to get a check based on 57 gpt gold, 978 gpt silver and 3.3% copper (73.53 gpt in terms of “gold equivalents) multiplied by whatever tonnage was submitted. In terms of dollars per tonne in terms of today’s prices, that equates to $4,522 per tonne). The tonnage amount for this particular EXPERIMENTAL BATCH has not been released. AN EXTREMELY IMPORTANT QUESTION HAS TO DO WITH WHETHER OR NOT THESE SMELTER FIGURES INCLUDE ENAMI’S FEES. WERE THESE GRADES ACTUALLY HIGHER BUT WERE “NETTED” DOWN TO ACCOMMODATE FOR ENAMI TAKING OUT THEIR FEES?
When you’re getting paid for 3 separate metals with varying grades, you need to start talking in terms of “gold equivalent” grades. When you do the math and include the contributions from silver and copper, this “experimental batch” averaged a “gold equivalent” grade of 73.53 grams of gold per tonne (hopefully AFTER Enami took out their fees). The DL2 Vein ore obviously responded extremely well to this “DIRECT SMELTING” process. As noted, we do not know the tonnage of this “experimental batch”/”inaugural consignment to Enami”. What we do want to know is whether or not these results are REPRESENTATIVE of what Auryn will be accomplishing in the very near future.
The price of gold has been under pressure recently and it now trades at about $1,913 per ounce which is $61.5 per gram (there are 31.1 grams per Troy ounce of gold). Auryn ships via a “20 tonne” truck that is typically filled to about 16.7 tonnes per truckload. With these grades, one truckload would equate to about $75,518 in value AFTER factoring in any penalties for contaminants. BUT AGAIN, ARE THESE GRADES “NET” AFTER ENAMI TOOK OUT THEIR FEES? Maybe Kevin could chime in here. You still have to pay the Auryn miners for mining that ore, crushing it and loading up that truck. There are also TRANSPORTATION FEES involved. There are other corporate expenses as well. Management promised to PROMPTLY report the details of their shipments.
What we want to know from management is what are the PROFITS, net of ALL expenses, from shipping a truckload of extremely high-grade ore to the DIRECT SMELTING facility of Enami and also what are the profits from shipping a truckload of less well-mineralized, wall rock ore, to the Enami FLOTATION FACILITY. Once we know the approximate number of truckloads being shipped to these two facilities per unit of time, then we have the basis for making some rough projections as to PROFITS. UNTIL YOU RUN THE NUMBERS IT’S TOUGH TO APPRECIATE THE ECONOMIC EFFECTS OF THESE EXTREMELY ATYPICALLY HIGH GRADES.
HO-HUM, WE’RE MINING 64 GPT GOLD ORE
It’s funny how things go in this sector and especially with this stock. We’ve been talking about the 64 gpt HISTORICAL SHIPPING GRADES achieved by the artisanal miners at the DL2 Vein for a long time now in a somewhat nonchalant fashion. Until you actually commence production IN EARNEST, and get a feel for how the ore does in, for example, a DIRECT SMELTING or FLOTATION FACILITY environment, you just can’t appreciate the ECONOMICS involved until THEORY becomes REALITY and there’s a paycheck and net profits involved.
I can tell you that the average grade of gold being mined in a similar underground vein mining environment is 4.18 gpt gold until I turn blue in the face, but until you read some reports covering ACTUAL COSTS and ACTUAL PAYMENTS made for delivering Auryn’s ore, then it just doesn’t resonate for many. I think we’ve finally made it to the MOMENT OF TRUTH phase of development i.e. turning the corner into “production in earnest”. The point we want to get to, is to be able to calculate the profits from 1 truckload of the DL2 actual VEIN ORE (the high-grade stuff that’s going DIRECTLY to the smelter) and 1 truckload of the lesser-grade ore in the surrounding wall rocks which is destined for the FLOTATION FACILITY. Then we want to be able to project how many truckloads of each ore type that can be delivered per unit of time. As noted, we also want to get a feel for the PRODUCTION RATE ramp up as a function of time. We’ve never been this close to learning about that which really matters. We have arrived at the MOMENT OF TRUTH.
IN REALITY, PRODUCTION COULDN’T HAVE BEEN STARTED “IN EARNEST” UNTIL A VERY LONG LIST OF TASKS WERE COMPLETED. BONA FIDE, EXTREMELY HIGH-GRADE PRODUCTION, IS LIKE A LIGHT SWITCH, IT’S EITHER ON OR OFF. THAT SWITCH GOT FLIPPED TO THE “ON” POSITION A COUPLE OF DAYS BEFORE THE AUGUST 10 UPDATE. (The DIRECT SMELTING results arrived August 9, 2023.)
Management published their DL2 Vein MINE PLAN on 4/5/22 in one of their quarterly updates. Below is a link to that update:
April 2022 – Shareholder Update | AURYN Mining Corporation
You can see the 7 stages outlined within the MINE PLAN. Stage 7, which involves advancing the Antonino Adit straight ahead, in order to intersect what management refers to as the “2 monster veins”, was reconfirmed as still being the plan in this most recent, August 10, 2023, update.
THE FOLLOWING TASKS JUST GOT COMPLETED VERY, VERY, RECENTLY:
MORE FROM THE August 10, 2023 UPDATE
The Aug. 10, 2023 update cited: “Our dedicated team is currently active at the mining site, focusing on producing and accumulating minerals DIRECTLY FROM THE VEIN (my emphasis). Our goal remains to consistently dispatch these HIGH-GRADE MINERALS (my emphasis) to the DESIGNATED FACILITY (my emphasis) at ENAMI.” TRANSLATION: We are in the INITIAL STAGES OF EXTREMELY HIGH-GRADE PRODUCTION FROM THE DL2 VEIN ITSELF (level 3) AND ALSO FROM THE SURROUNDING LESS WELL-MINERALIZED WALL ROCK. We should expect an INITIAL PRODUCTION RATE from just level 3’s two working faces and then a ramp up in production as crews and equipment is added and the various sub levels are put into production.
The HIGH-GRADE MINERALS are contained in the VEIN ORE itself and not the wall rock ore. The “DESIGNATED FACILITY” is, of course, the DIRECT SMELTER. The phraseology “DIRECTLY FROM THE VEIN” is interesting in that Auryn made a press release on January 3, 2021 citing the fact that, within the “old works”, they mined 54 tonnes of ore with average grades of over 62 gpt gold WITHOUT THE NEED FOR ANY BLASTING WHATSOEVER.
IS AURYN ABLE TO “SCRAPE” THE EXTREMELY HIGH-GRADE VEIN ORE OFF OF THE WORKING FACES OF THE LEVEL 3 ADIT WITHOUT BLASTING?
The question arises as to whether or not this “ACCUMULATING MINERALS DIRECTLY FROM THE VEIN” phrase refers to the continued lack of a need to blast the vein ore (not necessarily the wall rock ore) where they are mining from right now about 20 meters below where they mined ore without blasting, up near level 2 of the “old workings”. If you were ACCUMULATING MINERALS “INDIRECTLY” FROM THE VEIN (as opposed to DIRECTLY from the vein), then this might suggest blasting the entire working face and picking up the rubble containing both low and high-grade ore that are intermixed. If this were the case, how do you separate the two types of ore in order to determine which truck it goes into? I can only assume by visual inspection.
Elsewhere in the update Auryn cited: “we’ll be extracting the mineral DIRECTLY FROM THE VEIN and transporting it to ENAMI for processing through Direct Smelting”. This might also support this “scrapeing” theory without the need for blasting. If this is true, the obvious advantage would be a lower cost to mine the ore.
When you use ANFO or dynamite to blast the working face of an adit, the VEIN ORE and the less well-mineralized wall rock ore get mixed together. They would need to be sorted and separated by appearance, I assume, prior to being shipped to their destination. If the vein ore only needs to be “scraped” from the working face of the adit, perhaps there is a 2-step mining process going on in which the high-grade ore need only to be “scraped” and the more-dense wall rock ore (granodiorite, which, with a HARDNESS of 6 and a compressive strength of 175/N mm 2 can’t be “scraped” to my knowledge) gets blasted.
I am picturing a working face with the VEIN ITSELF on one side of the face and the surrounding wall rock to the other side of the working face. You “scrape” to a depth of “X” amount of meters on the vein side and collect the ore and send it to the DIRECT SMELTER and then blast the other side, collect the ore, and ship it to the FLOTATION PLANT, either on site or that of Enami until Auryn has its own on-site. The entire working face will have advanced by “X” amount of meters after each round of “scrapeing and blasting”, if this theory is true. Then it’s lather, rinse, repeat.
WHAT KIND OF “PRODUCTION RATE” CAN WE EXPECT INITIALLY AND THROUGH TIME?
We’ll know soon enough how long it takes to fill up one truckload of ore no matter where it is being shipped. Management’s comment was that, starting now, (actually last week) they will “CONSISTENTLY DISPATCH” these high-grade minerals to Enami. The use of this phraseology doesn’t tell us much about anticipated PRODUCTION RATE. It basically tells us that EXTREMELY HIGH-GRADE PRODUCTION, IN EARNEST, HAS COMMENCED.
Management also promised to “PROMPTLY REPORT” financial results from these “dispatches” (shipments). Now that the game has officially started, this brings us the VISIBILITY needed to gauge potential earnings over time. WE’VE NEVER BEEN ANYWHERE NEAR THIS POINT OF DEVELOPMENT OR THIS LEVEL OF VISIBILITY. We need to also keep an eye on the PRODUCTION GROWTH RATE over time as more and more sub levels are put into production. For example, once the “decline spiral” to the lower levels has commenced construction (if it hasn’t already), can we assume that perhaps one new sub level could be put into operation every “X” number of months? When the 4 working faces located on 2 levels are being simultaneously mined, should we expect a doubling of the INITIAL PRODUCTION RATE from just level 3’s two working faces?
I hope this helps to answer some of the questions recently asked on the MININGPLAY forum. As far as if this ore is so fancy, why no shipments of it for the last several months. I suppose it would have to do with the lack of completing the “ventilation” chimney and getting SERNAGEOMIN’S official blessing to mine level 3. There was also the need to complete the COMPREHENSIVE METALLURGICAL ANALYSIS in order to figure out where to ship the ore in order to get the maximum recovery rate. There also is the lack of the legal approval to ship regular consignments of ore to Enami until being granted membership in the CHILEAN MINING REGISTRY. I’m going to guess that this necessitated that sign off by SERNAGEOMIN on the right to mine level 3.
Another comment had to do with why the majors aren’t crawling all over this thing. The litany of tasks needing to be checked off on prior to commencing production JUST GOT COMPLETED DAYS AGO. The majors want everything to be DERISKED prior to showing any interest. What if SERNAGEOMIN refused to sign off for another 6 months or if the CHILEAN MINING REGISTRY needed more time to evaluate our application? Right now, things are a little slow on the Chilean mining front. The smelters and processing facilities need “feed” in order to keep their employees employed. I’m not suggesting that anybody expect a tender offer by morning. These developments are extremely fresh. Those stellar SMELTER results are a whopping 5 days old.
I will make my comments as brief as possible. Your question may be in error because it is not refractory hi-grade ore that is likely the most profitable when the bulk of transportation costs involved are considered. The hi-grade ore for smelting likely has a much reduced volume (bulk) to be shipped to the smelter. The total gold content would make this more valuable. A flotation plant would certainly solve this problem, but at a much high initial cost. Floatation would make both these types of ore more profitable by reducing the bulk being shipped into a concentrate. Some kind of multiple phase grinding circuit and gravitational concentrator would be efficient at reducing ore volume to ship directly to the ENAMI smelter facility at a cost much less than a flotation plant.
The grade of the ore being shipped to the processing facility will be the key metric for profitability. As already just explained, either the refractory ore, or the hi-grade direct to the smelter will need the gross bulk being shipped to be reduced to a concentrate for greatest cost savings. Separating both types of ores is apparently best accomplished by separating and concentrating with a flotation plant. Feasibility of installing a floatation processing plant has been under study for some time. For speed of cash flow however, it may just be quicker and less costly to invest in a gravitational processing plant that efficiently reduces the bulk of free milling ore. The layers of refractory ore (envision “horizonal plywood sheets”) which contain CU, have an economic value to recover the CU if the bulk can be reduced sufficiently prior to shipping. Because the very nature of the hi-grade content being shipped to smelter has less bulk and more gold per volume it makes sense to get the cash value of this ore shipped first.
The two most important take aways from the update are; 1.) Cash producing ore will now be shipped to one or both of the ENAMI facilities capable of processing the arriving ore profitably. 2). The Don Luis vein is producing while advancing the construction of the Antonino Tunnel.
The following article is of some interest.
(https://www.mckinsey.com/industries/metals-and-mining/our-insights/refractory-gold-ores-challenges-and-opportunities-for-a-key-source-of-growth)
BB, Having just read your post this is great information! 
Much of the hi-grade ore suitable for direct shipping to the smelter may look like this:
FYI:
further information on Soma Gold per their 12/31/22 financials:
cumulative deficits - $58million
shareholder equity - $2.766million
total assets - $52million
total debt - $49million including subordinated debt owed to a company owned by an officer of the company $22million at 12% interest. $3million per year in interest.
Debt to assets - 94%
2022 net profit - $257,000
Market cap as of 8/14/23 ($54million)/ 12/31/22 book equity (2.766million) is 20 times.
Again, let’s sit back and doing nothing when we could have gotten paid on what we have. IMO, whether it was gravimetric or flotation, you knew you needed to self fund, finance, or dilute to get a plant built. Therefore, as soon as you pulled enough high grade ore out of the ground to load the truck, it should have been on its merry way to Enami to generate revenue which could have helped you self fund, helped you get financing, or lowered any dilution while getting your plant built. Instead, we are in the same boat from a year and half ago. Nowhere.
Oh, and I forgot, what ever happened to the share conversion. Wasn’t that supposed to be complete? So now we get diluted or have to wait another couple of years while they limp along trying to self fund. And then wait longer to get the share conversion, after we get diluted.
Easy, appreciate you post, but my point goes to the fact they have no stated they will mine and direct ship the high grade, unprocessed ore now. If the ore was not profitable now via direct mine and ship to Enami, then why are they shipping it? To lose more money? No, they are shipping it because it is profitable, just to a lesser extent than if it was concentrated through a flotation plant.
Becuase AURN has previously tested this high grade, unprocessed ore and sent test sample to Enami, they knew what type of profit they could get from shipping truckloads of ore. They just decided not to do so. They could have earned revenue they were exploring options on which type of plant would best increase their profitability. They failed to any revenue because they never shipped any of the ore which they could have shipped directly from the mine to Enami. Even if it secured a lower profit, it would have helped with any self funding, financing, or dilution to have generated profit over the last year and half+
I was hoping they had a good plan as to why the saved the high grade ore, but they didn’t. IMO, they just said oops, we thought we had ore of one type, but its actually another. Well, what are the students doing on the mountain, making s’mores? It seems like those with knowledge of mining indicate its not too difficult to determine refactory versus non-refactory ore. Plus they already ran two truck loads (I believe) through Enami already.
They know the profitability of the ore direct shipped to Enami or they would not state they will start shipping the ore now. IMO this ore should have been shipping for the last year and half.
It just means the last year and half+ plus was just another waste of time. We know nothing we didn’t know then, we have not bank any revenue, and we are still looking at dilution right in the eyes.
They just got registered. We don’t know if they dragged their own feet on the application or if it takes forever just like everything else.
Can you imagine us sitting here another 2 years or so waiting for funding, more permitting and approval and then construction of an onsite facility before any meaningful production can be accomplished? No thank you.
If you don’t see them purchase several more trucks, more equipment, and hire multiple crews with any degree of urgency, this so called ‘commencement of production’ is anticlimactic. If they want to show any degree of competency and leverage to a potential partner, they better at least show they are capable of going into a meaningful rate of production. That requires posting results and showing the overall market and specifically the mining community “proof” that there is consistency in the grades being produced. Winter is coming to an end and spring is around the corner, better start making a much bigger splash.
Hey hulk I’m not picking on you, but do you recall that, for years, everyone repeated how a massive amount of work goes into bringing a mine into production. There was always the looming caveat that, because there are so many potential obstacles or risks, many miners never make it. The naysayers embraced that warning by repeating it for years.
Now that Auryn has overcome most obstacles and successfully achieved those goals (albeit much slower than we expected), why are some here reverting back to doomsday mode? Sheesh! Look how far we’ve come now.
I feel the need to condense a few important points from doc’s most recent post, at least the ones I particularly enjoyed reading. It’s all good, but maybe this can be a quick preview for those who don’t like reading much. 
He posted a list of critical tasks that were very recently completed. Shipping stockpiles to ENAMI wasn’t really an option before now. Here are a few in particular: …
Moving forward, Auryn is about to gain a lot of attention. And we have front row seats, lol!
