Auryn/Medinah - 2024 2nd Half General Discussion

Second half of 2024 coming up.


What will it bring? Coal or gold?

I private messaged BB and Wizard about asking shareholders to raise the financing rather than giving away $20M potentially in dividends. There was no response from them. I find that very odd. I’m not convinced this isn’t an insider deal. A simple survey here on TMP was requested to see if this could be a possibility given that Wizard has created several surveys in the past. I’d be willing to contribute $30k.

Message to Wiz, if this is an insider deal, please convince MC to disclose this because it wouldn’t sit well with some. Thanks.

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Water under the bridge. The time to have acted was when we knew they were searching, not after we were unhappy with what they found. He who hesitates!

If its an insider deal, then its not acceptable without explanation.

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You’re sitting in a stock that’s not tradable any more. We got hosed!!!
Wtf is adding more funds to this pig?


I am in total agreement. Where’s the beef? Lmao.

It’s sure beginning to look like it, I didn’t see that coming without notice.

Medinah :

In 1998 there were 28,800,334 common shares, 8,965,000 Preferred shares. In 1999 116,940,330.
In 2000 137,802,194. In 2007 565,435,301 shares,

The Long Term Debt, due to “Related Parties” kept growing, $255,553 in 2004, $1,303,853 in 2009.

The share count kept growing because the “Related Parties” kept issuing shares to themselves to ‘cover’ the debt. In 2011 there were 711,810,270 shares !!!

To my knowledge they never asked the shareholders for a private placement of shares to cover debt or exploration expenses.

This is how you take control of a public company.

And of course, that ballooned to 2.88 BILLION shares !!!

There is Zero chance that they are going to give up any control of what they now own. Never have, never will.

I know the question in your mind, and the answer is (I’d bet on it) YES THIS AN INSIDER DEAL, whether through some company owned or partially owned by the principals or by some handshake Quid Pro Quo.

You don’t give up ‘$20 million over five years’ for a $4 million loan. This to my knowledge is absolutely unheard of in the mining community. In reality $4M would get you maybe a 0.5 - 3% NSR.

Just another way to take more control of the company and/or any profits for 5 years.

Interesting that ‘Strategic Investments S.A.C. Santiago, Chile’ doesn’t have a website.


Well, after 17 years in this great investment, I just want SOMETHING to happen! And soon please!

Where’s the 3rd quarter update? Is there nothing to report? Sure like to know the status of my MDMN shares.


Did you mean 2nd Quarter update ? I don’t think you’ll hear about your MDMN shares for quite a while. See my previous post.

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Yes, 2nd quarter update with 3rd quarter projections.

As for as the shares go, I find it very reckless for the company to not tell their shareholders that they’re moving to the expert market. Is it part of the grand plan to scare the shorts once the shares get converted? I don’t see any reasonable explanation outside of that they couldn’t let the shareholders know why they’re doing this. I guess we’ll have to wait.


Just a guess, but maybe that’s why we haven’t seen BB here lately? He IS the expert when it comes to NSS. :thinking:

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News on MDMN will likely remain quiet and be a non-issue. Everything will revolve around things coming together to have the mill in place, producing ore, and having AUMC PPS remain tight. Value will emerge and the low float will experience rapid price increases into the several dollar range. Exercise patience if you desire to be handsomely rewarded. There are many severely underpriced development stage PM projects going through similar growing pains. AUMC will be one of the few that emerges as a decided winner.


A response from mdmn mgt regarding why is there no mdmn news and a delay with AUMC report and status of our AUMC shares fwiw

MDMN has no money and its only asset is its AUMC shares;
that today are not liquid, therefore any decision takes longer than we hope.
Saying that, there are no changes to our last update regarding allocation of
AUMC shares. When we can all investors will be updated accordingly,


Reads like a reasonable response. The suggestions that the “expert market” designation was some sort of corporate strategy is consistent with many of the past “glass half full” assumptions on what any objective observer would admit is/was a clear negative.

It would be difficult to explain why removing the ability to buy/add shares of MDMN would hurt the shorts or serve some otherwise beneficial purpose. I actually received a few calls from some poor souls still holding shares that threw in the towel after the position was officially listed as 0.0000 (for tax loss purposes).

Probably doesnt make much difference for the majority of folks who have and will continue to hold sock drawer shares, waiting for the AUMC distribution. MDMN has no money, they aren’t bothering to stay current on their filings, the sooner they stop accruing expeneses, get paid and disolve the better.

Shutting down the MDMN market has clearly had no impact on any “AUMC arbitrage.”

Reading earlier claims that one of the primary reasons AUMC has done down 75%+ since Maurizio took over being due to the “MDMN drag” seem misplaced.

Wouldn’t it be possible that AUMC being down so much has very little to do with the MDMN arbitrage and a bit more to do with fundamentals and issues with execution (along with a terrible market for PM equites)?

Even at only 50 cents, AUMC has a market cap of $35M but, more importantly, has an enterprise value of somewhere between $45M and $60M (when you include the debt). This is NOT a cheap valuation based on any comparison to a junior pre-production company. I can list dozens of companies, already in small scale production with considerably smaller market caps. Yes, there is a lot of exploration upside, most of these co’s have upside in ounces but there is a heavy discount assigned to that potential value. .

Beyond valuation we are talking about a company who has been forecasting production since the day they bought the assets. They were also making claims that they were fully funded. Over the past 7 years the deal with Hochschild has evaporated, plans to bring the Caren mine into production evaporated, they claimed to find the DL Vein three times before actually finding it, and their multiple claims to be shipping to Enami never materialized. They subsequently announced plans for offtake financing which also failed to materialize. After two years they finally made the right (and only) choice to build a FF plant after revealing refractory ore (which would have been obvious from the beginning) and pursue financing to build the plant. After 10 months (!) they finally announce a non-binding LOI for extremely expensive (allbeit nondilutive) financing and are now a minumum of 12 months from production.

Nobody of right mind would expect the value of their invesment to be up when considering the track record described in the previous paragragh. Nor would they be able to make the argument that a $50M enterprise value is “cheap”.

I’m not convinced that the recent financing is an “inside deal.” Maurizio has already committed $6M of his own $$ and, if he was willing to add another $4M, it would not have taken 10 months to do so. In my conversations with Maurizio he has spoken about this financier in terms that would describe a third-party (just my opinion). Yes, the equity financing he was previously pursuing (when I entered an NDA) would have been a lot less painful/expensive vs. the LOI currently in hand but, as I attempted to point out in this post, it will be very difficult to place shares at these levels. New investors/financiers will demand security and a lot of upside (in this case via dividends). If AUMC is able to acheive and ramp production the equity market will open up.

I believe investors NEED to be updated on the status of the previously announced LOI. I have not spoken to the company in over three weeks and have no visibility on the status but LOI’s typically need to turn into binding agreements within 5-6 weeks.


Thanks for making contact & sharing the info, Dentman. I just want to add, I don’t think an LOI is necessarily something to be expected (within a short timeframe) from an OTC stock. I think it was brecciaboy who explained that OTC stocks don’t have management’s feet held to the fire as much. Don’t quote me on this cuz I’m not 100% certain. I believe he also elaborated about splits & dividends and their effect on market makers/NSS. I’ll try to find those posts for clarity.

Nice to see Gold back over 2415! Hey Jimmy that stockpile must be a fortune!

Hi Done Deal,

I saw the inflation numbers this morning and it became obvious that the POG was about to go on a run. I immediately thought that you’d be the first to post something, as you have done in the past, with tongue in cheek, to JimmyP, about the value of Auryn’s stockpiled ore.

We don’t know how much ore Auryn stockpiled during that 200+ days they were stockpiling. All management said was that the ore was very “valuable”, it was taken “directly from the vein” (which I assume means minimal dilution by wallrock), and that the rate of production was “modest”. I think you guys might have recognized by now that Maurizio is the most non-promotional CEO of a mining company on the planet, but that’s fine as long as you realize this fact. He is well aware that the EARNINGS PER SHARE (with only 70 million shares O/S) will do the talking. What I’m wondering has to do with if there is a POG at which Maurizio says, what the heck, at these prices, now it makes sense to just ship the stockpiled ore to Enami’s smelters and let the proceeds buy the new FF plant. I think we need to be getting close to that POG if this is accurate.

I’ve communicated several times with Maurizio recently and he was genuinely ticked off at Enami after the Plenge Lab smelting results came in at 128 gpt gold for just the gold component of the DL2 Vein ore while Enami, THAT GOT THE VERY SAME ORE THAT PLENGE GOT, said they’d pay 57 gpt gold, 978 gpt silver and 3.23% copper AFTER ENAMI TOOK OUT THEIR SMELTING “TREATMENT CHARGES” (“TCs”), their “REFINING CHARGES” (R/Cs”) and their PENALTIES (“castigos por impurezas”) assessed for impurities like arsenic. When you factor in the contributions made by silver and copper, WHICH ENAMI AGREED ARE “PAYABLES” AND THEY’D PAY FOR THEM BECAUSE OF THEIR HIGH GRADEs, the “gold equivalent” grade came out at 70 gpt “gold equivalent”.

Now, think about it for a second, the average miner in Chile and worldwide, is mining gold averaging 4.18 gpt gold in similar underground “narrow vein” operations. After Enami processes this gold of an “average” grade, these “average” miners might be getting perhaps 2.5 gpt gold after Enami took out their fees and penalties. Yet even these “average” miners are currently making good money. Maurizio got offered 70 gpt “gold equivalent” AFTER ENAMI TOOK OUT ALL OF THEIR FEES AND PENALTIES AND HE SAID “NO THANKS ENAMI”, WE’LL PRE-PROCESS OUR OWN ORE ON-SITE, VIA FROTH FLOTATION. The fallback scenario APPEARS TO BE, that Auryn can make a fortune by just “direct shipping” their ore to the Codelco/Enami smelters.

Why would Maurizio refuse an offer like that when the other miners in Chile are saying “yes” to maybe 2.5 gpt gold after Enami takes out their fees? It’s because the smelting test done at the Plenge Lab (which Maurizio reminds me is a very well-renowned lab in Lima, which parenthetically Ross Beaty uses for his various companies), came in at not 57 gpt gold but 128 gpt gold. Maurizio did not like this “differential” whatsoever. Maurizio is either thinking how dare Enami gouge us with such high fees and penalties or he’s thinking, we need to get rid of those “PENALTIES” (“castigos por impurezas”) probably associated with the presence of arsenopyrite.

The question becomes, at what POG does Maurizio say, screw it, we’ll send the stockpiled ore to Enami as is, and fund the new ore processing facility (or perhaps part of it) via selling the stockpiled ore to Enami now that the POG is through the roof. If you do the math, you wouldn’t have to ship much raw, unprocessed DL2 Vein ore carrying a 70 gpt “gold equivalent” grade to pay for the new plant. Recall the Auryn update citing that the differential between the Plenge smelting results and the Enami smelting results, came in at about $5,000 per tonne. I admit, that’s a lot of money that would be left on the table if you “direct shipped” the ore to Enami. The froth flotation process is the best way to decrease the “PENALTIES” assessed by Enami for “refractory” ore due to the ore having “ultra-fine” particles associated with arsenopyrite.

ARSENOPYRITE, a “sulfide”, is weird stuff and at the DL2 Vein, 6.7% of the sulfides are indeed “APY”. It is known as a “gold magnet” or as a “gold sponge” in the mining industry. Ultra-fine particles of gold, known as “INVISIBLE GOLD”, is attracted to ARSENOPYRITE like nobody’s business. I’ve studied many dozens of articles in the mining journals on ARSENOPYRITE and one of them cites that the attraction between gold and APY is so strong, on the atomic level, that the gold concentrating ability of APY can be as much as 1 million-times that of gold ore without APY. Here’s a link to a good article on APY:

Why gold loves arsenic - MINING.COM

It’s a crazy phenomenon, which clearly explains the insanely-high gold grades we’ve experienced at the DL2 Vein since Day 1, but it’s also true that froth flotation can be done to get rid of the arsenic toxicity prior to smelting. All of the major manufacturers of FF plants, and there are over a dozen, have their own line of equipment specifically addressing ore with APY. It appears that most of the differential between the Plenge Lab’s 128 gpt gold as being the original grade of the ore, and the 57 gpt gold that Enami is willing to pay after charges and PENALTIES is the PENALTY FOR THE ARSENIC COMPONENT OF THE APY.

You might have noticed how, after getting the results from the 2 different smelting tests, the AURYN BOD “UNANIMOUSLY” decided to immediately finance and build their own on-site FF plant. They were part of the press release announcing their appointments to the BOD. They know their stuff. It’s kind of nice when the #3 guy at Hochschild, Isac, decides to join your BOD. Here’s a link to their curriculum vitaes as referenced on an Auryn update:

AURYN Mining Corporation Strengthens Leadership Team with Two Key Board Appointments | AURYN Mining Corporation

Ideally, you’d have a bunch of previously stockpiled ore on-site prior to commissioning the facility, so that you could maximize the 100 tonnes per day “throughput” of the FF plant on Day 1 just in case your daily production rate was short of 100 tpd at the time. So, I get that aspect of it. I have no doubt whatsoever that Auryn can easily average the 100 tpd production rate.

Thankfully, froth flotation is a very inexpensive process. Worldwide, the average amount paid by those with their own plant is only $10 per tonne, and that includes CAPEX and OPEX (operating expenses). It takes an average of 158 days to pay off these facilities. The artisanal miners at the DL2 Vein had a terrible time recovering the ultra-fine gold associated with the APY, YET THEY STILL AVERAGED GETTING PAID 64 GPT GOLD AFTER ENAMI TOOK OUT THEIR FEES AND PENALTIES. What does that make the original intra adit head grade of the ore? Just think what they could have averaged if they could have recovered most of that ultra-fine gold via froth flotation and at the same time decreased their Enami PENALTIES. By the way, the price of gold at the time the artisanal miners were mining was $35 per Troy ounce. Today, it’s $2,400.

A recent update cited how Auryn had completed “DETAILED CASH FLOW MODELING” (no doubt assisted in by the 2 new BOD appointees), which led to the decision to build the FF plant. Maurizio wants to run a fair amount of tonnage through the new FF plant prior to providing guidance and economic projections to us shareholders or to the mining world. This is the responsible way to do it. In his words, he refuses to provide “guesstimates based on incomplete information”, and I respect him for that. However, that shouldn’t deter interested observers from taking the information we have in hand, as well as industry averages and historical statistics, in order to estimate a wide range of possible outcomes.

The freshest information we have from the DL2 Vein at the site where it was intersected by the Antonino Adit, tells us that the channel samples done at the intersection site came in at averages of 164 gpt gold and 150 gpt gold over a 0.6-meter width that didn’t include the “selvage” or zone of alteration, at the area where the vein proper meets the surrounding wallrock. The smelting results from this ore came in at 128 gpt gold (without any charges or penalties) from the Plenge Lab in Lima and 70 gpt “gold equivalent” from Enami after their fees and penalties were assessed. Earlier samplings done by Auryn in the “old works” (levels 0,1, and 2) of the DL2 Vein, came in at an average of 85 gpt gold. A dozen samples taken at the intersection of “Shaft A” and level 2 came in at an average of a little over 100 gpt gold. The historical production results involving 2,000 tonnes of ore came in at an average of 64 gpt gold but this was AFTER Enami took out their various fees and penalties. I would assume that the intra adit head grade of the ore might have been in between 80 and 100 gpt gold. To state that the grades from the DL2 Vein have been BOTH CONSISTENT AND CONSISTENTLY STELLAR might be an understatement. I’ve done a bunch of “back of the napkin” modeling based on all information available on the DL2 Vein.

I concluded that a conservative figure to use as an average intra adit head grade was 40 gpt gold until the actual results come in. Write this “in pencil” for now and wait for management’s projections. Keep in mind that the grade we really are interested in is the average grade of the “float concentrate” that Auryn will be selling. THIS IS GOING TO BE MANY TIMES THAT OF THE (PRESUMED) 40 GPT GOLD INTRA ADIT HEAD GRADE BECAUSE A LOT OF THE IMPURITIES WILL BE DISCARDED TO THE NEW TAILINGS FACILITY THAT IS BEING BUILT.

Keep in mind that 100 tonnes of ore (the daily “throughput” of the new FF plant), will be processed on a daily basis. Based on an average intra adit head grade of 40 gpt, this represents 4,000 grams of gold being processed daily. Since there are 31.1 grams in each Troy ounce of gold, this represents 128 Troy ounces of gold contained in the ore being processed on a daily basis.

A high percentage of the gold in this ore will be successfully “recovered”. This is called the “recovery rate”. It will not be 100%, however. For the sake of this exercise, I will swap out the lack of a 100% recovery rate in exchange for not factoring in the “byproduct credits” associated with the copper and silver present, which are indeed “payables” that will be compensated for. The price of gold (POG) today is $2,415. I’m fine-tuning 4 projection methodologies which I’ll share once I do a little bit more fact checking. Done Deal, if the Fed cuts rates at their meeting at the end of July, I think you’ll see a sustained run in the POG.