In light of today’s update I would humbly recommend my post from one hear ago in Jan 23. Aside from some details it seems to be proving largely decent guidance.
https://theminingplay.com/t/auryn-medinah-2023-1st-half-general-discussion/3097/129?u=cornhuskergold
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The dilution issue described there largely due to the narrow vein reality of Fortuna and the ADL generally is the root cause of a. second thoughts about shipping up to 90% barren rock, and b. considering a flotation circuit to remedy or counteract this issue not inside the tunnel, but once you get it out of the tunnel, but still on property as opposed to transporting so much barren rock.
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The modest 100 tpd starting plant is not only a reflection of our very humble financial situation but also due to the physical constraints described in that post imposed by the narrow veins, corresponding narrow tunnels, and corresponding smaller equipment. If you make these bigger, you just end up transporting more barren rock. 100 tpd still represents 5+ operating faces and hundreds of trips per day up and down the tunnel moving rock.
The good news is that reality is being addressed and has some legitimate and known remedies. A few comments:
- I think the lack of precision in mining grade guidance is due to reality behind the sentence:
Prof. Mischo emphasized the critical challenge of optimizing mining operations for maximum efficiency. He advised that each mining site’s unique physical and chemical characteristics necessitate a tailored approach,
In other words, no one knows with precision how this will turn out. They don’t want to set expectations of a certain grade number and then get punished later if they miss it by a few gpt. On the other hand, they have to convince themselves and potential investors that it will in the end be profitable. Getting some experienced eyes on the subject is part of this process. It remains a risk.
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There is still a risk of meaningful dilution depending on financing options.
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A meaningful amount time remains before this thing is an operational 100 tpd mine. Financing, permitting, construction → time.
CHG