Auryn/Medinah - 2024 1st Half General Discussion


Whether we like it or not, we Auryn/Medinah shareholders are operating in an INFORMATIONAL VOID. Management’s communication style is what it is and the best we can do is to communicate to them that we would like MORE GUIDANCE on a variety of issues.

The problem with operating within an INFORMATIONAL VOID is that those meaning harm to a corporation, for whatever reason, are going to “paint” every situation in which clarity is lacking with the most damaging interpretation they can think of.

In order to expose this kind of behavior for what it is, it is critical to carefully study all of the facts that you do have access to, and put together models, supported by the facts, even though they may be still lacking corroboration from management.

You do this “model building” because it allows an investor or shareholder the ability to see the interrelationships between things like STOCKPILE TONNAGE, STOCKPILE AVERAGE GRADES, EFFICACY OF BENEFICIATION MEASURES, etc. on the potential economics of a mining project. The model building allows you to recognize the formula, that you can fill in the blanks to later on, when the definitive information becomes available. Just because there’s a current INFORMATIONAL VOID, doesn’t mean that the due diligence process comes to a screeching halt. WE KNOW MORE THAN WE THINK WE KNOW.

Let’s address the topic of estimating the AVERAGE DAILY PRODUCTION RATES for Auryn over the first year of production at the DL2 Mine. The Auryn miners have been doing an awful lot of MINING, day in and day out, over the last 6 or so years at the ADL Mining District. We know how many tonnes per day they have been averaging over extended periods of time. The extended timeframe provides statistical validity.

A while back they were drifting the Larrissa Adit over at the Caren Mine/Merlin 1 Vein. Management kept us up to speed fairly well on the progress being made. More recently, the Auryn miners drifted the approximately 450-meter long “Antonino Adit”. The dimensions of the adit are 3-meters in width by 3-meters in height. We know that the SPECIFIC GRAVITY (SG) of that granodiorite ore is about 2.6 Tonnes per cubic meter. If you don’t know what SG refers to or if you don’t know what the SG of granodiorite is, or if you didn’t know that our mountain is made up of an intrusive rock known as granodiorite, then you’re 100% dependent on there being no INFORMATIONAL VOIDS in regards to DAILY PRODUCTION TONNAGE. Thankfully, we have all of that information at hand.

The cross-sectional measurement of the working face of the Antonino Adit is 3-meters by 3-meters or 9 square meters. The VOLUME of a 450-meter adit with a width and height of 3-meters is 450-meters times 9 square meters or 4,050 CUBIC METERS. The TONNAGE of the ore that was removed is 4,050 CUBIC METERS times 2.6 TONNES PER CUBIC METER equals 10,530 METRIC TONNES of rock.

After reaching out to the company many months ago, I was informed that the miners were working four 10-hour shifts and one 5-hour shift on Fridays. This represents a 45-hour work week. We know that the drifting of the Antonino Adit commenced in February of 2021. They finally intersected the DL2 Vein on Jan. 3 of 2024.

Going by the calendar, the miners worked about 94 weeks but they were forced to take off several weeks due to Covid, weather, mechanical breakdowns, water issues that were later addressed, etc. I have the actual number of weeks worked at about 85 weeks or 425 days averaging 9-hour days. When you divide 10,530 tonnes of rock removed by 425 days it equals 24.7 tonnes per day being “mined”, WHEN YOU CAN ONLY MINE 1 WORKING FACE DURING A 10-HOUR WORKDAY.

The question then becomes, after intersecting the DL2 Vein and the miners are given the ability to simultaneously mine 2 working faces for 24-hours per day, as opposed to 1 working face for 10 hours per day, (as stated by management), what might the average production rate be on a tonnes per day basis? Note also that with the new ventilation system being in place, the amount of time post-blast to clear the air of debris will be much less. Management has also cited the intent to deploy a “jumbo” drill rig to prepare and fill the blast holes once cash flow permits it. In the past and even now in the present, while “bootstrapping” their way along, Auryn used somewhat archaic handheld “jack-leg” drills to prepare the blast holes.

I feel like I could make the case that Auryn could have been averaging 60 tonnes per day since they successfully intersected the DL2 Vein. I’m not going to, I think that the 40 tpd figure is plenty conservative.

The next question becomes what guidance has management provided in regards to forecasting an INITIAL PRODUCTION RATE now that they have successfully intersected the DL2 Vein. In their April of 2021 update, management cited: “AURYN’s objective for Q1 was to achieve a mining rate of 40 tons per day (in the “old works” of the DL2 Vein which they thought they had just intersected but were wrong). However, this was not possible without completing the tunnel (which was completed 1/3/24). With the tunnel being completed shortly, AURYN will hit the 40 tons per day target this quarter.”

I’d say that this is pretty clear GUIDANCE as to what INITIAL PRODUCTION RATES to expect. They knew what they could do because they had been doing it for 6 years. This GUIDANCE is very consistent with their past mining efforts in a new environment where they could be simultaneously mining from 2 working faces during longer workdays.


Once again, we have a huge volume of information available as to the average grades to expect within the DL2 Vein.

  1. The artisanal miners mining the exact same DL2 Vein, in the exact same area where Auryn is now mining, averaged 64 gpt gold over the course of 30 years while producing 2,000 tonnes of ore. They had no beneficiation techniques. Their mining was so technologically challenged that their discards/”tailings” were running as high as 14 gpt gold. The “discards” were running at a grade of 3.5 times the average grade of gold being mined in similar underground “narrow vein” operations which is 4.18 gpt gold.
  2. After finally intersecting the DL2 Vein, Auryn ran 2 sets of “channel sampling” programs. The first one averaged 164 gpt gold over a width of 0.6-meters. The second came in at 150 gpt gold.
  3. Auryn did a sampling program of the DL2 Vein in the “old works” (levels 0,1 and 2). The average came in at 85 gpt gold. This is consistent with a 64 gpt historical average involving 14 gpt gold in the “discards/tailings”.
  4. Auryn executed 2 smelting tests of the DL2 Vein ore found at the intersection of the DL2 Vein and the Antonino Adit. This is where they have been producing from over the last 170 days. The first shipment was made to a Codelco/Enami smelter. The “settlement” results came in at 57 gpt gold, 978 gpt silver, and 3.23% copper. The “gold equivalent” grade came in at 70 gpt “gold equivalent” or about $4,500 per tonne of ore AFTER ENAMI TOOK OUT THEIR FEES. The second smelting test was done at the Plenge lab in Lima, Peru. The results came in at 128 gpt gold (4 ounces per tonne) for just the gold. The same ore was shipped to each smelting destination. The disparity between the results told management that shipping ore directly to Enami was not giving Auryn the best bang for the buck. The “Mining Engineering Department” at the University of San Sebastian, had been collaborating with Auryn for several years. They had been testing the efficacy of the froth flotation process on the DL2 Vein ore for over 27 months. Management made a brief press release stating that the lab results were “EXTREMELY ENCOURAGING”. This should not have come as much of a surprise in that the artisanal miners, mining that same DL2 Vein ore had a difficult time in separating the gold from the arsenopyrite (“ARP”) that it coexisted with. They also had difficulty with recovering the small-particled “fines” and “ultra-fines”. Both of these difficulties are now easily treated with specially-designed froth flotation circuits.
  5. People need to understand the critical information contained in management’s comment that there is a DIRECT FINANCIAL IMPACT of $5,000 per tonne involved if Auryn were to “take control of their ore processing procedures” and build a froth flotation circuit on-site.
  6. Management knows that if the grade of the ore shipped to the Codelco/Enami stays consistent with the earlier shipments, they can realize approximately $4,500 per tonne. After running all of the numbers associated with the testing data available to date, they know that if they froth float the ore on-site they can improve the economics by another $5,000 per tonne. Management did not disclose what “beneficiation” methodologies were to be deployed after froth flotation. Usually, the next step is a CARBON IN LEACH circuit perhaps followed by smelting. For now, it’s not really critical to know the exact “flow sheet” for purifying that ore. The important thing is the enhanced ECONOMICS, which is significant.

The Plenge lab smelting results basically told Auryn management that Enami was taking a big piece of the action via their fees.

As I’ve said before, I’m currently “penciling in” an average of 40 gpt gold until I hear more definitive results involving larger sample sizes. The historical results from the artisanal miners, however, did involve a significant sample size (2,000 tonnes).

Again, the estimated 40 tonnes per day INITIAL PRODUCTION RATE as well as the estimated 40 gpt average projected gold are “penciled in” for now.


Dr. Helmut Mischo, the author of 258 scholarly articles on mining issues, is intimately familiar with the DL2 Mining operations. He recently stated this about future production rates:” Once the most efficient recovery method is established, production scaling would be straightforward and highly effective.”

Professor Luis de la Torre, the Headmaster of the University of San Sebastian’s Mining Engineering Group and the former Head of Underground Operations at Yamana’s immense El Penon Mine, who is also intimately familiar with operations at the DL2 Mine, had this to say about the project: ““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.”

(The El Penon Mine is currently mining ore from 6 veins via 38 different working faces.)


Hey Doc,
Thanks as always. I just wanted your thoughts on Gravity batteries for power generation in mining and if the topography on our mountain would work. How much power will our operation require once operational? I know we own some of the top and some of the bottom.
From Wikipedia, the free encyclopedia

A gravity battery is a type of electricity storage device that stores gravitational energy, the energy stored in an object resulting from a change in height due to gravity, also called potential energy. A gravity battery works by using excess energy (usually from sustainable sources) to raise a mass to generate gravitational potential energy, which is then lowered to convert potential energy into electricity through an electric generator. One form of a gravity battery is one that lowers a mass, such as a block of concrete, to generate electricity. The most common gravity battery is used in pumped-storage hydroelectricity, where water is pumped to higher elevations to store energy and released through water turbines to generate electricity.[1]

Our big advantage is we only want to send the stuff one way. what about a gravel production operation at the bottom of the run so we could make use of the over burden. Anyway I only know what I see in pictures. I thought you and some of the other experts could see if this is even feasible from a topography aspect. Thanks in advance.

BB. To be clear, I do NOT want to harm AUMC. In fact I’m rooting for the them to succeed. I’d like to purchase shares if/when we get signs that they will succeed. The stock is already a zero so there’s nothing I can say to make the price go any lower. There’s no “pivot.”

As I’ve stated, the harm comes from planting ridiculous forecasts that the company can’t possibly meet. If a new investor stumbled on to this board at any time over the last 10 years and bought shares based on these forecasts they are either obliterated on their investment and/or have already sold. If they are still holding based on hopes these forecasts there is only room for disappointment.

If the company responds to Jimmy’s question with a 100 ton or 500 ton stockpiled number will BB face the music this time? Unlike every other time? If AUMC issues shares will BB retract all of his accusations of fraud, and ulterior motives? If the last 15 years is any indication the answer is NO. I believe this creates exponentially more harm than a schmuck like me trying to offer a more grounded opinion (which has generally been accurate) of what is happening on the ground.


Hi Kevin,

Sorry for being so slow to get back to you. I don’t have a lot of familiarity with “gravity batteries”. The ADL has been blessed with excellent access to Chile’s power grid. The portion known as the “Central Interconnected System”, goes right over the area near the eastern edge of the ADL plateau just west of Lampa. Everybody in Chile seems to be big into the “ESG” movement and that’s fortunate for us because the sourcing of that electricity is about 70% from “clean” sources: hydro (27%), wind (9%), solar (12%), nat gas (19%) and only 20% from coal.

A lot of investors nowadays, want to limit their investments to “green projects”. You might remember a press release from Maurizio a while back citing that Auryn is looking into intra-adit transport and haulage machinery run by photo-voltaic energy (PVE) using solar-charged batteries. The various Chilean Mining Ministers and reps from SERNAGEOMIN were on-site recently heaping praises on Auryn for the technological advancements of their operations as well as their compliance with “ESG” standards and guidelines. Maurizio invented the software used by mining corporations to maintain compliance with those standards.

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Baldy your thoughts? BB gave us a very specific justification for his estimate. That puts into question whether your estimate of 500-1,000 tons is simply a baseless guess.

Jimmy. Clearly no response from AUMC yet? Hopefully they haven’t lumped you in with the fanatics.You won’t get a response.

You really seem to be struggling by the wiiiide diference of opinion b/w BB and myself. Go back over the past several years of archives and past predictions/opinions provided. If that doesn’t provide some perspective, nothing will.

As it relates to your question (confusion), I’m not sure how the 4,050 cubic meters or 10,500 tonnes of rock removed in trying to find the DL2 vein is relevant. Are those numbers accurate? Could be but a worthelss pile of rocks has nothing to do with a heap of stockpiled ORE.

BB has the opinion that they have been mining 40tpd of high grade material SINCE locating the DL2 vein. He’s using that opinion to assign $10’s of million of inferred value (chuckle) within 6000 tonnes+ of stockpiled ORE.

I have no idea where they stacked all of the low grade/no grade rock (10,530 tones?) in their attempt to find the vein but my opinion of 500-1000 of stockpiled tonnes is for the ORE mined from “production”. I have no idea why BB is calculating the “ore that was removed”. For all I know he’s assumng the entire mountain is 100gpt material.

My “baseless opinion” is supported by the points listed in my previous post and accuracy in past predictions. I could come up with some crazy formulas and calculations to sound more legitimate but that would require me having a vested interest in having foks like yourself believe what I’m posting.

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Fair rebuttal. Just moving the dialogue forward. I’m trying to bridge the gap between extreme viewpoints. You answered very succinctly, the rock removed should not be considered ORE. Got it. And no, the company has not responded to my inquiry.

I doubt Auryn is going to just discard all that rock as if its worthless. There has been evidence of mineralization all around the DL vein. So reality again likely lies somewhere in between both of your view points. I would agree that rock doesn’t contain anywhere near 40gpt, however I would also not take the position that all that rock was simply disgarded as worthless. A decent percentage of that rock could be monetized once run through the FF circuit.

Somewhere in between, somewhere in between


You may be right in that the correct answer liies somewhere in the middle but I would argue that my numbers/opinions/predictions aren’t extreme nor worst case scenarios. The numbers I’m using are the high end of what I anticipate and, based on industry averages, place this project at the top percentile of the highest grades mines. If they can acheive 20gpt that is phenomenal. The decisions that Maurizio is actually making (not shipping to Enami to make money today) would indicate that he is also anticipting more realistic, average grades, over any type of scale/volume.

Let’s all be honest, if there was an opportunity to realize 60gpt material (outside of a handpicked shovel of an “experimental batch”) over a consireable tonnage, Maurizio would jump at the opportunity to recoup his persoanl invesmtent/loan, jumpstart production/cashflows during the wait to build the FF, and build credibility to the investors he’s seeking to finance construction. To say that he’s pushing all of that out, risking $6M of his own money and the eventual survival/solvency of the compnay, even though there’s supposedly 100s of 1000s of high grade ore because he doesn’t want to give up a premium (call it $1000 a ton vs. $5000) on a sliver of this deposit, flies in the face of sanity.

The foundation of my baseless opinion starts with Maurizio NOT being insane. IMHO, he viewed the massive discrepancy in the grade that Enami reported vs. the Peruvian lab as a secular business risk. If the company managed to mine 15-20gpt material but got “screwed” by Enami while adding in the transportation costs there’s a risk that the company might not make any money. The calculated decision to build the FF plant isn’t based on expectations of hitting 130gpt and not wanting to give up any of the “juice” but rather an assessment of needing to control the concentration at site to manage transportation costs if/when they are acheiving blended average grades closer to 10-20gpt (or whatever number they are forecasting over the duration). As I’ve state previously, I think this is a savvy, proactive measure taken by the company but, I do NOT think it’s because they plan to make $5,000 more per ton.

Hopefully, AUMC answers your question. If not, I’m hoping the company provides more granularity on what has been stockpiled, if they have been able to assay a sample of the stockpiled ore, and even some guidance of gpt targets over the next 1/2/3 years, in the next update. The biggest elephant in the room remains HOW the FF will be financed. If they haven’t landed financing by the next update all of these conversation and baseless opinions become moot.


I don’t think so. This is not an open pit operation. When pursuing underground mining/“vein chasin” the cutoff grade is consirably higher. I do not know what the number would be b/c the company has not completed a 43-101. For open pits its a low as .5gpt. Given the transportation costs, etc. the cutoff for AUMC would have to be 2-3gpt minimum. I’m not sure how they could possibly have acheived that grade unless the majority of the cleared material was in the vicinity of the DL2 or other veins. Even if the average grades was 5gpt it may not be economical. It certainly wouldn’t be a priority feed for the FF. And then you have to start visualing all of these piles of rock. This isn’t a level football field on top of a platuea. They have a truck, not a crane, or other heavy machinery capable of stacking 10ktonnes of material.

In the past, some of the more technology savvy participants here have found somewhat recent satellite photos. The size of these supposed stockpiles would be very visible in aerial photos taken any time within the past year.

Even better, anyone on the mountain with an i-phone could take a picture and post it on Twitter. Here’s the last picture of the “stockpile” taken by the company in March 2023. Yes, it is possible there is a mountain of stacked ore not included in the small stockpile in the backgound of this picture but, is that likely?

The better question to ask AUMC would be: how much is it currently costing the company to mine one working face and/or the equivalent of the guided 40 tonnes per day? It ain’t cheap. Is Maurizio really willing to mine without monetization for the next year? He might as well STOP mining, pay for the FF himself and then restart the mining after they have processed the stockpiled ore. It would be cheaper than mining, non-dilutive, secure the $5,000 premium, etc, etc.

And yet…


From Auryn

PDAC 2024 – Come Visit Us

Feb 12, 2024

We are excited to announce that we will be attending the PDAC convention again this year from March 3-6 in Toronto. We will be available to meet with investors at our booth, number 2209. We are looking forward to this opportunity to share with you the latest developments and insights on our company.

What latest developments and insights are they willing to share to investors?


Then where has the $6million MC has expended gone?

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huh? remember that they had find that DL2 vein? are you asking where the cleared rock went? you don’t stockpile worthless piles of rock.

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I need a little clarification, please, because you’ve posted this a few times now. You say that AUMC labels some shareholders as fanatics. Then you tell Jimmy that he will not get any response from Maurizio, as if it were a fact.

Valid Question: How could you possibly know if Maurizio thinks poorly of any particular shareholders? How could you possibly know that Maurizio/AUMC won’t respond to any shareholders that they refer to as fanatics? Your statements, as such, are indirectly telling Jimmy that he must be considered a fanatic since he hasn’t received any response from him.
I don’t know if MC or anyone at AUMC reads this forum, but I’d like to know what they would say about these claims. Maybe they aren’t even aware of what you post about them.

By speaking to him. I highly doubt Maurizio spends his days reading this board but he’s aware of what is posted and who is posting. I was semi-kidding with Jimmy. There’s no reason why he would be considered a “fanatic” and hopefully he does receive a response in due time. Your question is valid but I’ve answered it before: Maurizio does not appreciate some of the “fanatical” forecasting that occurs on this board as he recognizes that setting unrealistic goals is not constructive for investor sentiment. Do you really think that some of the fanatics around here, who spend endless hours on their version of “due diligence” haven’t at least attempted to speak to the company? A few minutes speaking to the company is exponentially more informing than blindly trying to decipher company PRs. The excuse provided is that these folks don’t want to be restricted after hearing “inside information.” There is SO much to learn that would not be considered proprietary or in violation of Reg FD. Do you really think that attempts to speak to the company have not been made? Just a modicum of common sense answers a lot of these lingering questions.

Jaded. I have missed our interactions but will refrain from further engagements out of respect for this board.

Please explain why the 10,530 tons of rock is not worthless as Baldy claims it is.

I believe they were following a vein while trying to intersect DL2, in the process finding a rich spot that was later deemed Not to be the DL2 yet.


Let’s stick with the common sense thematic for a bit longer. The good dentist is basing his grade forecasts on 1) the assays from 200lbs (a bucket) sent to two labs and 2) the average grade attained by artisenal miners. I have 100% confidence in the grades from the assays and slightly less on the artisenal results as anything “historical” tends to have a fudge factor (which is why the market assigns zero value to historical anything when it comes to mining). When you are chasing a vein you can visually see the mineralizaion. That’s the easy part. The difficulty comes with trying to find the direction of the vein which also tends to “pinch and swell.” The rock surrounding vein, the “host rock” tends to be worthless (which is why I’ve opined the that majority of the 10k tonnes cleared in finding the DL2 isn’t worth anything).

Because you can see the vein its very easy to take a sample, directly from the visible mineralization to acheive eye wattering, hyper grade rock. Soooo, when you chip away at the vein and assay it you will inevitably have great results. Similarly, the artisnal miners were only focused on the veins. While 2000 tonnes is a decent sample size it has to be viewed in the context of DECADES of mining. These guys weren’t loading their mules with host rock, they were only loading ore directly from the vein. The problem with these handpicked assays and historical results is that they have ZERO representation of scaleable mining. In other words, when you actually blast the face and are forced to truck both the host rock and the vein material the average grades are NOTHING like the handpicked assays. The tonnage of the actual vein is a microcosmically small fraction of total amount mined.

Obviouysly AUMC understands this seemingly obvious fact which is why they aren’t shipping to Enami. They might be able to acheive consistently high blended grades (10-20gpt) as long as they are diligently following the path of the vein but there WILL be periods of time when they lose the vein and are mining at a loss (a reality of not having a mine plan). Nobody, on planet earth, is forecasting 60gpt mining, and this is why Enami does NOT represent an economic option. When you factor in transportion costs, extended periods of time when they are mining at a loss, and a 10-20gpt blended grade, Maurizio simply cannot afford the “tax” that Enami is charging.

This is not an extreme view point but I DO think it’s important for AUMC to provide guidance on grades and tonnage in their next update so that investors have a realistic foundation from which to analyze progress. In my conversations with Maurizio he’s veen very transparent about his aspirations for up to 20gpt material. It’s a very high bar but he’s a determined individual. Again, this is not “inside information”, just common sense.


John will you be attending the show in Toronto and meeting up with MC? If you do go, maybe you can get a lot of these questions answered and if we are close to having a financier to put the money up for the mill.

From Auryn site it mentions we are looking forward to this opportunity to share with you the latest developments and insights on the company.

I am planning to attend. Unfortunately, I’m pretty limited on what I can share. I’ve already signed an NDA. This is why I’m encouraging investors to request a Q&A with management. If enough of you signed an email asking for the same, I’m sure Maurizio would oblige. IMHO, the company updates often create more questions than answers and, given the critical stage of the company, investors deserve a more transparent discussion on the 1-5 year plan. The “informational void” only serves as a platform for the “fanatics” to irrationaly hype before being proven wrong again, and again, and again. I do not know where things stand on the financing but, if the process has hit a snag, it could be a good idea to issue a rights offering where existing shareholders are able to participate.

Its worth noting the irony that the guy who’s been accused of “fraudulently” disparaging the company for ulterior motives is the one encouraging investors to get answers from management while the accuser hides behind his computer.

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