Auryn/Medinah - 2024 1st Half General Discussion

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Maybe Amparo has been added to the board in anticipation of moving up to Nasdaq and complying with the Board diversification rules.

Board Diversity Disclosure Five Things.pdf (nasdaq.com)

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And maybe the AUMC shares will be distributed, and I have a bridge for sale if anyone is interested. :rofl:

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No response to my inquiry from Auryn regarding the stockpiled ore.

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But they are willing to do this

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.

How can they share the latest developments in private to a shareholder before the next company update in April?

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DD. Despite claims to the contrary, public companies can share a wealth of information to investors that is not considered “proprietary.” The only reason those claims have been made is because some folks realize that their narrative will be exposed if people actually speak to the company. Its a twisted situation which I have been attempting to expose.

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Hi JimmyP,

In regards to your comment that you haven’t heard back from management on your request to get more information on the GRADE and TONNAGE of the stockpiled ore: If management feels that the GRADE and TONNAGE of the stockpiled ore is significantly different than previous GUIDANCE, then perhaps they should feel compelled to address that since that information would be of a “MATERIAL” nature. “MATERIAL INFORMATION” is often defined as information that might affect the investment decisions of a reasonable and prudent person. It’s also defined as “information whose disclosure is likely to affect the price of a security”.

If management has been regularly disclosing information regarding the GRADES of the DL2 Vein that are being encountered or the MINING RATE or PRODUCTION RATE that they anticipate once they intersect the DL2 Vein via the Antonino Adit (40 tonnes per day), and if this prior GUIDANCE is not materially different than what they are currently experiencing, then I would think that they have fulfilled their fiduciary duties of care owing to their shareholders. Nobody wants a clear and concise fresh statement from management addressing the AVERAGE GRADE, TONNAGE and NOMINAL VALUE of the ore stockpiled to date than I.

But what if management is thinking to themselves, our shareholders already have that information. Our shareholders know exactly what the grades are of the ore we’ve encountered in the DL2 Vein since Day 1. Our shareholders know that we already gave GUIDANCE that we anticipate that our INITIAL PRODUCTION RATE will be 40 tonnes per day. Our shareholders already know that we have been in PRODUCTION AND STOCKPILING mode for about 180-days. Maybe management feels that we should be able to “do the math”.

THE PREVIOUS GUIDANCE ON THE GRADE OF THE DL2 VEIN ORE

  1. The artisanal miners averaged 64 gpt gold “settlements” from Enami after Enami took out their fees. The intra-adit “head grade” would have averaged 64 gpt gold plus “X”, with “X” being Enami’s fees in terms of gpt gold.
  2. The “sample size” of the mining efforts of the artisanal miners was 2,000 tonnes mined over the course of 30 years. (A mom and pop size of operation from a “production rate” point of view). “Sample size” is critical for statistical validity and this is the one bit of historical information that has not only plenty of “sample size” but the “sampling” was done in direct proximity to where Auryn is now mining. This historical data is priceless especially if it is easily corroborated by Auryn after they finally intersected the DL2 Vein on 1/3/24.
  3. The artisanal miners mined a 350-meter length of the DL2 Vein down to a depth of about 100-meters. The known dimensions of the DL2 Vein are over 1,000 meters in length “on strike”, at least 700-meters of depth, and of varying widths. About 4% of the total vein contents were mined and assayed. Both Sillitoe and ACA Howe’s Rob Cinits confirmed the presence of a MESOTHERMAL VEIN that was both becoming richer with depth and wider with depth. As is the norm for MESOTHERMAL VEINS. These “norms” that have now been corroborated might likely lead to “future expectations”.
  4. Within the 100-meters of depth mined by the artisanal miners, the grade in the top third averaged about 54 gpt gold, the middle third about 64 gpt gold, and the bottom third about 74 gpt gold. There is a clear trend of increasing grades with depth.
  5. Auryn commenced production at about 15-meters below the area where the 74 gpt gold material was found. Based on these facts, perhaps expectations should have been at approximately 80 gpt gold for the “head grade” when factoring in the grade of the discards, Enami’s fees and the nature of mesothermal veins.
  6. There were no beneficiation methodologies deployed by the artisanal miners like froth flotation, gravity-based concentration or CARBON IN LEACH treatment. They only shipped raw “nonbeneficiated” ore.
  7. The mining technology used by the artisanal miners was so bad that the discards/tailings were running at up to 14 gpt gold. They were discarding ore grading 3.5-times the average grade of ore being mined today in similar underground “narrow vein” operations. Based on this, the “head grade” would have been 64 gpt gold plus “X” plus perhaps 7 gpt gold in the discards (assuming Auryn’s discards/tailings average 7 gpt gold which would represent about a 90% “recovery).
  8. After intersecting the DL2 Vein with the Antonino Adit, Auryn’s geoscientists did 4 “channel samples” at the site of the intersection within the DL2 Vein over a width of 0.6 meters. The AVERAGE GRADE of these four separate samples was 164 gpt gold.
  9. A second “channel sampling” program was completed near the intersection site and it came in with an average of 150 gpt gold. Clearly, the stellar grades accomplished by the artisanal miners had been corroborated and surpassed ON A LIMITED SAMPLE SIZE BASIS. THIS IS WHY A “REPRESENTATIVE SAMPLING” OF THE STOCKPILED ORE WOULD BE VERY INFORMATIVE.
  10. An earlier sampling of the DL2 vein taken from the “old works” of the artisanal miners (levels 0,1, and 2) by Auryn’s geoscientists came in at 85 gpt gold “and no blasting was needed”.
  11. An “experimental batch” (no tonnage given) of DL2 Vein ore was sent to the Codelco/Enami smelters as “DIRECT SHIPPING” ore. The grades came in at 57 gpt gold, 978 gpt silver and 3.23% copper AFTER THE SMELTING CHARGES WERE DEDUCTED. This represents 70 gpt “gold equivalent” ore which carries a nominal value of about $4,500 per tonne at today’s price of gold.
  12. Another smelting test was done at the Plenge Lab in Lima, Peru. These results came in at an astounding 128 gpt gold (4 ounces per tonne). The silver and copper numbers were not reported.

DISCUSSION
When the mine plan is to recommence high-grade ore mining at the exact spot where the artisanal miners left off, there is no more critical data to study than the HISTORICAL SHIPPING GRADES accomplished by the artisanal miners especially being that the “sample size” was 2,000 tonnes. The story here is not of a virgin greenfield mining project that has never been explored. It represents the recommencement of production from an existing gold mine. The amount of time that passed in the timeframe between past production and current production and stockpiling has nothing to do with it. The metals present did not go anywhere in the interim time period. Like the old adage say, “Where is the best place to discover gold? In a gold mine.” The EXTREMELY HIGH GRADES found in the DL2 Vein have been very well-established through time and have been extremely consistent. Expecting a significant departure from these grades as Auryn mines deeper into the vein structure, especially in a MESOTHERMAL VEIN known for improving grades with depth, does not stand to reason. This does not change the fact that the GRADES being mined need to be constantly monitored.

THE PREVIOUS GUIDANCE ON THE INITIAL PRODUCTION RATES AURYN JUDGED THEY WOULD ACHIEVE ONCE THEY INTERSECTED THE DL2 VEIN AND WERE ABLE TO SIMULTANEOUSLY MINE FROM 2 WORKING FACES

  1. The commencement of mining was approximately 180-days ago.
  2. Management originally projected that they could average 40 tpd while mining just 1 working face in the “old works”. They later retracted that GUIDANCE and cited that this rate could not be accomplished until AFTER they intersected the DL2 Vein directly beneath where the artisanal miners left off at, and could thereby mine 2 working faces simultaneously. They were extremely confident that they could accomplish this rate of production once that occurred.
  3. The DL2 Vein was successfully intersected on 1/3/24. After that, it took several months to construct a “gallery” and a “ventilation/safety egress chimney”.
  4. SERNAGEOMIN signed off on the new “ventilation/safety egress chimney”. This allowed Enami to place Auryn on the Chilean Mining Registry’s approved list. This then allowed Enami to accept “regular shipments” of ore from Auryn IF AURYN CHOSE TO DO BUSINESS WITH ENAMI.
  5. The new ventilation system would allow Auryn to increase PRODUCTION RATES in 2 manners. First, Auryn could now open up for mining sub levels under level 3 and add 2 new working faces per sub level added. This provided the all-important SCALABILITY for the project. The new ventilation system also allowed Auryn to more rapidly remove the blast debris and toxic gases from each blast made. This works to streamline operations and it allows more blasts per unit of time.
  6. Auryn was taking advantage of the fact that the artisanal miners had already constructed 7 vertical “ventilation raises/shafts” and 5 “ventilation chimneys” exiting at the plateau surface. Chilean Mining Laws mandate that the work environment for miners include access to at least 17% oxygen and de minimis levels of toxic gases like sulfur dioxide and carbon monoxide.
  7. Historically, Auryn’s miners averaged about 24 tonnes of mining/rock removal per day while drifting the Larrissa and Antonino Adits. We know a lot about their past DAILY MINING RATES. The workers put in 10-hour shifts from Monday thru Thursday and 5-hour shifts on Fridays. They were only mining 1 working face at a time. Now they are mining 24-hours per day on 2 separate working faces. The longer workdays (2.4 times as many hours per day) and simultaneously mining 2-times as many working faces simultaneously, should theoretically allow the miners to mine 4.8-times that 24 tpd figure or about 115 tpd. I’m rounding that 115 tpd down to “easily accomplish a 40 tpd INITIAL PRODUCTION RATE” for now until management speaks out. Observers should realize that mining at a 40 tpd rate while mining 2 working faces is a pathetically low production rate in today’s mining world.
  8. As information starts to flow, you might want to picture a graph of PRODUCTION RATE over TIME as the various sub levels are put into production as well as other sites at the ADL as hinted at recently by management. You might anticipate a “stair step” increase in PRODUCTION RATES as new sub levels are put into production. When TECHNOLOGICAL INNOVATIONS like “jumbo” drill rigs are deployed, you might expect a significant increase in PRODUCTION RATES. Auryn management has already cited their intent to deploy a “jumbo” drill rig.
    SUMMARY

I think that it’s fair to say that WE KNOW MORE THAN WE THINK WE KNOW about what to expect as Auryn executes on their mining plan. The DYNAMIC GROWTH PROFILES achievable by young gold producers is very well known in this sector. “Bottlenecks” in production will be detected and addressed. The EXPLORATION PROCESS does not stop just because the PRODUCTION PROCESS has taken center stage. Extremely high-grade “ore shoots” can be located at any time which will cause the miners to focus on certain sub levels with greater intensity than other sub levels.

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Fact Sheet: Regulation Fair Disclosure and New Insider Trading Rules (sec.gov)

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Z. While I admittedly did not read the entirety of BB’s post I got the basic drift. He’s basically saying “hey Maurisio told us we would be a mid-tier producer 100 years ago at the shareholders meeting” and “hey AUMC told us that they would be mining at a 40tpd rate after hitting the DL2 vein.” These assumptions are, candidly, juvenile. If you don’t connect the company’s forecasts to other variables, like the 40tpd previous forecasts were assuming regular shipments to Enami then you are basically lost in the woods. “Material information” is related to earning, change of control, etc. If anyone invested in an OTC penny stock is reading PR’s from a literal perspective, based on projections from 5 years ago, there are no words beyond empathy.

As a hypothetical, if I’ve been an investor in this stock for 30 years, and was still basing my investment decisions on PRs vs. converstations with management I’d need to own my predictions/forecasts. If those predictions had been off the mark for the same three decades I’d need to own the responsibility of inaccurately forecasting based on penny stock PRs. Subsequent to this “ownership” I would apologize to all of the poor souls that have lost a fortune based on my “pie in the sky” predictions.

Most importantly,. I would immediiately seek communication with management for clarity: walking, bus, train, airplane.

I participate on this board for entertainment purposes with the hopes of re-establishing a stake in the company. If I was writing a novel through posts on this board or in a literal sense for the better part of many lifetimes, offering a hightly “educated” and “technical” viewpoint, there is NO way I could validate my position without speaking to the company. Different strokes for different folks BUT if anyone here justifies their hyperbolic forecasts based on previous company PRs, without putting those forecasts within context. Shame on them

Here’s a bet. If BB is right and AUMC is currently mining/producing the BIG BAD BALDY will never post here again. If BB is wrong and AUMC is currently producing nada, he can take six months off from posting ( a healthy exercise for all involved). Do we have a bet?

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deleted by poster… no need for redundancy

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If Auryn is meeting their prior projections, a simple message to confirm same is reasonable and takes little time and effort. The absence of confirmation leaves a logical conclusion that projections are not being met. Occam’s Razor.

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Sorry BB. Your conclusion from your interpretations of company updates is that there is $30M+ of stock piled ore that should be booked on the balance sheet. If this was the case, it would be easy to get a $5M-$10M loan when you have 3x collateral already out of the ground. Why wouldn’t they get audited financial statements to record this value immediately, publicize it, use it to obtain quick and affordable (non-dilutive) financing and promote their stock. Why would they not want their shareholders to know this? Does’t add up. Sorry

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NOTE 4 - RELATED PARTY TRANSACTIONS
Certain stockholders have paid expenses on behalf of the Company which are to be
repaid by the company. These payables are considered due on demand and are noninterest-bearing. The total amount due as of September 30, 2023 and 2022, were
$100,124 and $85,408, respectively.

**The Company holds a mining option contract with a related party. Pursuant to the **
**agreement with that related party they would incur all expenses related to the **
**exploration and exploitation of minerals. There will be no repayment of those **
**expenses from Auryn Mining. When minerals are found and sold the profits will **
**reimburse the related party for all expenses incurred before profits are shared with **
**Auryn Mining. As of September 30, 2023, the related party has incurred approximately **
**$4,938,000 in expenses. These funds will not be refunded or repaid by the Company **
**and are not payables of the Company and have therefore been excluded from the **
income statement for the nine months ended September 30, 2023.

Currently whatever ore is stockpiled does not belong to AUMC, so there is nothing to be booked on our balance sheet.

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Pretty slippery if you ask me
They report expenses incurred but we have no idea how much ore has been processed for what $ amount
If so, they could ride this horse for a while

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Hi JimmyP and Zotron,

I’m not an accountant, but stockpiled ore is often treated as a “current asset.” It’s not quite CASH but, in this case, the stockpiled ore could be sold TODAY to Codelco/Enami’s DIRECT SMELTING facilities for somewhere around $4,500 per tonne if the grades match those of the “experimental batches” sent to Codelco/Enami recently i.e. 57 gpt gold, 978 gpt silver and 3.23% copper or about 70 gpt “gold equivalent”.

Of course, the reason they’re not selling it right now is because they want to cash in on that $5,000 “bonus” if they do some of the ore processing on-site starting with froth flotation. Codelco/Enami charges a fair amount for smelting. It’s about $200 per tonne. The private smelters in Chile charge around $150 per tonne and if you put the ore on a boat to China, the Chinese will charge you about $50 per tonne but you pay for the boat ride.

Froth flotation only costs about $10 per tonne and I think that Carbon in Leach (CIL) is about the same. So, you can save a fortune if you do as much “beneficiation” on-site as you can afford to do. The problem is that if you’re mining 1 gpt gold ore, you’ll never be able to afford your own on-site beneficiation facilities and you’re stuck with Enami.

The way the accountants set up the Auryn Holding Corp cash advances makes sense. If Auryn sold the ore to Enami or whomever, Auryn gets a check and records that as income. They pay the taxes and then they cut a check to Maurizio. In an off-balance sheet set up like this, Maurizio deals with Enami and they pay him directly. Maurizio has to deal with the tax man but since Maurizio is the largest shareholder of Auryn it’s kind of a push to him but a good deal for us shareholders. I’m sure it’s much more complicated than this, however.

As far as the ore processing goes, almost all of the “float concentrate” resulting from any froth flotation facility, goes immediately to a CIL facility. The CIL process is what really kicks butt in the ore purification business. An FF plant will increase the grade of the ore an average of 4-fold. So, the “float concentrate” in Auryn’s case, might convert, let’s say, 40 gpt gold ore into a 160 gpt “float concentrate”. The range is from 2 to 20-fold. A CIL plant will increase the grade of the 160 gpt “float concentrate” an average of 400-times the grade it started out at. The range is from a 200- to 600-fold increase.

Almost all sulphide ore like ours and 95% of all mines is somewhat “refractory”. Sometimes the gold particles are super tiny, like ours, and is considered “fine” or “ultra-fine”. The particles hide in the crystalline lattice of the surrounding sulphides and the cyanide solution, used in the CIL process, can’t get to it and dissolve the gold. The FF process removes some of the sulphides so that the cyanide can do its EXTREMELY POWERFUL thing. The artisanal miners had a terrible time with the fines and ultrafines. They were so inefficient that they were discarding 14 gpt gold ore as “tailings” yet they still somehow averaged a stellar 64 gpt gold grade AFTER ENAMI TOOK THEIR FEES.
Sometimes the gold ore is bound tightly to CARBON. The FF process helps deal with this also so that the cyanide in the CIL process can get to and dissolve the gold particles. FF and CIL are like a 1-2 punch, the FF process sets up the CIL process to be much more efficient. I’m going to guess that our new FF plant will have a CIL facility incorporated into it but I don’t know this to be a fact.

If the product of the relatively inexpensive FF plant is a 160 gpt “float concentrate” and if a relatively inexpensive attached CIL plant concentrates that “float concentrate” another 400-times, then the resultant “CIL concentrate” might weigh in at around 64,000 gpt gold. If a $200 per tonne smelting process is still needed, then the weight of the ore needing smelting will be de minimis because all of the discards from the FF plant and CIL plant, known as “tailings” will be sitting on top of the plateau. They will not need to be TRANSPORTED or SMELTED. This is why there is a $5,000 differential between DIRECT SHIPPING to the Codelco/Enami smelters and Auryn doing a bunch of the inexpensive beneficiation measures on-site. The name of the game is “keep away from the much more expensive smelter”.

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That does not seem correct. So MC personally owns everything until the debt is repaid? That is exactly the opposite of what the Note to F/S says.

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Sadly, we don’t have the details to the mining contract that is operating currently. The private party has the rights to explore and exploit. I assume that once the private party has paid themselves back, then all mining rights as well as any remaining stockpiled ore reverts back to AUMC.

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It’s not correct. If a third party had control and security over all of AUMC’s assets until they were repaid it would basically be a major violation of shareholders rights. That is not the current agreement.

Separately, it seems odd that BB isn’t calling me a fraud when I claim there is no production nor mining. I’ve even offered to disappear from this board when proven wrong. Imagine the blue sky predictions that he’d be able to propagate with nobody calling him out. And yet, he continues to post about 40-60tpd production without addressing my outlandish claims. No accountability normally translates into no credibility with the exception of Vegas, cults and this board. Bizarre.

Aaaand, as we drift further from the last update more unsubstantiated forecasts emerge. Now we are to believe that a CIL circuit will inevitably be part of the new plant. No considerations for the level of permitting required for a CIL nor any mention from the company. When this prediction fails to materialize, like every other one, disappointment follows, folks sell, etc. Rinse and repeat.

As was previously stated by an astute contributor:

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.

Claiming, with authority, that AUMC is actively producing, sitting on $10’s of millions of stockpiled ore, making decisions based on 120gpt material, and not needing to consider equity financing, is inarguably damaging to investor sentiment.

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John why are you contradicting the update? Has this changed from talking to MC? See the last update where it states

“Our mining team is diligently carrying out ore extraction and accumulation directly from the vein on a modest production scale.”

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I think the first clue for anyone reading the PRs literally that AUMC is NOT producing the previously mentioned 40tpd is the reference to “modest.” It’s pretty clear.

I don’t think they will continue producing anything until they have financing lined up. Maurizio isn’t going to piss away money to continue mining that isn’t generating $. Once the company was able to stockpile a couple months of feedstock there wouldn’t have been a reason to continue. In the real world, stockpiled ore, doesn’t provide collateral for loans unless it’s exhaustively sampled (and even then its very rare). One can ( or at least should) assume that they are not “exhaustively” sampling based on 1) no onsite laboratory and 2) no disclosure or even reference to the grades of the stockpiled ore. Therefore if there is no value to mining until a plant is built you could conclude there is no mining. Sometimes a modicum of common sense goes a long way.

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Makes logical sense.