Madmen. If you had a stock that performed better than MDMN today I would be very impressed.
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Too bad you missed out on the big move, Baldy!
Or WAS THAT YOU moving the market?
â madmen
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Your MDMN shares will eventually convert to AUMC at a 200:1 ratio. No idea when. AUMC will go bananas in about a year once the new equipment is installed. Short and sweet!
Madmen,
Do you really think Baldy would plunk down $233.51 to pick up almost 1300 AUMC shares upon conversion of MDMN shares in a year or two? Do the math. That would come out to picking up all 1297 of those expensive shares for 18 cents each! Surely Baldy would prefer to wait until the derisking has been completed and the conversion unexpectedly takes place at $5-10! Then it will be safe to buy!
EZ
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Easy,
So you do have the capacity for sarcasm?
Just to be clear (because I canât assume you have the ability to comprehend anything beyond what is posted in black and white):
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I would never buy any security that has been downgraded to the expert market status (ironic name) as there is a VERY high probability it drops to and remains at $0.00 (where it currently trades).
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I believe AUMC will eventually distrubute shares but I certainly wouldnât throw money at a $0.0001 stock in the hopes that this will happen,.
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I, nor anybody else, CAN buy MDMN given the exchange downgrade. You can sell (somebody sold 1M today) but you canât buy. Suggesting that the failure to make timely financial filings was somehow a âstrategyâ for the company to create a âsell, no buyâ market is beyond comical. How has this strategy worked out so far?
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From a pure valuation standpoint I believe AUMC is attractive at $0.20 (not attractive enough to buy shares in MDMN hoping for a conversion at $0.18). This is consistent with what Iâve been saying for the better part of two years (high teen, low 20âs entry point).
However, even if I could arrange to buy those shares today, at $0.20, thereâs no urgency to do so for two main reasons: first would be the volume. For anyone owning more that 10k shares thereâs really no way to exit this investment without taking a significant, additional, loss given the bid/ask spread and liquidity. Second, if AUMC is able to execute on their stated plan, I believe there will be plenty of time to buy at these levels. Nobody here has any bullets left and nobody else is paying attention. Alternatively, if AUMC does not execute and/or it takes them another 12 months to line up a new round of expensive financing, there will be plenty of opportunities to buy at lower levels. Pretty simply risk/reward mumbo jumbo analysis.
$5 a share?!! (a $350M market cap company), now that is indeed entertaining.
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Just a question. If you can sell your MDMN shares in the expert market yet you canât buy, then who are you selling to?
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Deleted post
By âappointmentâ. I canât tell you exactly how it works b/c I donât own any shares to sell. My guess is that you would call your broker, where the shares are custodied and tell them you want to sell and they would come back with a crossing price (which looks to be .00001). In other words, unless you are looking to lock in a realized loss for tax purposes thereâs no reason to sell.
Its a wet dream for any market makers who might be short through the MM exemption. They can cross shares (buy back their short) at essentially nothing.
For this, and many other reasons (mainly not allowing actual invetors to add or establish a position) companies work very hard to avoid the âexpert markets.â
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USING THE FRUTA DEL NORTE (âFDNâ) DEPOSIT (OR THE EL PENON MINE) AS A POSSIBLE âTEMPLATE/ROADMAPâ FOR PREDICTING THE PATHWAY FOR THE DEVELOPMENT OF THE DL2 MINE AND FUTURE OPERATIONS AT THE ADL MINING DISTRICT
In studying the characteristics of a mineral deposit or those of a mining operation like those at Aurynâs DL2 Mine, it helps immensely if a close-fitting recent historical âtemplateâ can be identified that can serve as a roadmap/guide for predicting the path of development of the deposit under study.
Historically, certain deposit types involving ore with certain characteristics, like âsulphideâ ore that is somewhat ârefractoryâ in nature, have been developed in certain manners via certain methodologies. The economic results tend to follow a distinct pattern which is most closely dictated by GRADE. As they say in the mining industry, âGrade is everythingâ.
DEFINING THE DL2 VEIN PROJECT OF AURYN AND COMPARING IT TO THE FDN PROJECT OF LUNDIN MINING
Geoscientists love to use models to categorize various deposit types as well as types of mining operations. In the case of the FDN and DL2 deposits:
- both deposits involve low to intermediate sulphidation types of deposits in South America.
-both involve atypically high gold grades.
-both involve UNDERGROUND operations versus those involving an open pit.
-both involve âsulphideâ ore with a ârefractoryâ nature to it (microscopic gold particles).
-both involve the use of âfroth flotationâ facilities to efficiently recover these âmicroscopicâ gold particles while discarding unwanted âgangueâ material.
-both deposits feature arsenopyrite (APY) which probably led to the atypically high gold grades in the first place. APY is known as a âgold magnetâ or âgold spongeâ because of how it attracts gold at the atomic level. A recent study by McKinsey and Company revealed how ârefractoryâ ores are actually an economic blessing in that the extremely high grades of these deposits exceeds any added cost in recovering the gold contained in these deposits.
Although a world class deposit like the FDN that has clearly proven itself as such and the ADL Mining District which is currently nowhere near its stage of development, I think the Fruta del Norte (FDN) project of Lundin Mining might still serve as a worthy template to study because of its similarities to the DL2 Vein deposit at the ADL Mining District.
The âFDNâ operation, like Aurynâs DL2 Mine, is an underground operation. The average grade being mined worldwide in underground operations is 4.18 gpt gold. The ârun of mineâ, âhead gradesâ, or âore feed gradesâ of the ore found in the adits at the FDN average nearly 3-times that worldwide âaverageâ grade at a robust 11 gpt gold. I would posit that the âore feed gradesâ at the DL2 Vein, over the first 5 years of production (but not necessarily initially), might have the potential to double or even triple those at the FDN. The FDN deposit is in year 5 of production currently. Iâll present the evidence supporting this seemingly bold hypothesis momentarily.
I like using the FDN deposit as a template for the DL2 Mine project for several reasons. First of all, the FDN discovery is a Tier 1 discovery, and is truly world class. Therefore, everybody in the mining sector knows about it and it is extremely well-studied. The NI 43-101 Technical Report (âF-1â) is located at the link below:
Technical Report | Lundin Gold Inc.
At the current stage of development of the DL2 Mine, donât think for a minute that Iâm predicting that the DL2 Mine is destined to become âthe next FDNâ. It is the TYPE of deposit and the TYPE of mining operation that is the key here for comparative purposes. It is far to early to predict the potential scale of the mining operations at the DL2 Mine and the adjacent 5 other Main Veins at the ADL Mining District. The former Head of Underground Operations at the massive El Penon Mine in Chile, Professor Luis de la Tierra, who is intimately familiar with the DL2 Mine, commented: âI 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.â
As far as the ore goes, the FDN ore is somewhat ârefractoryâ sulphide ore, as is the ore at the DL2 Mine. This means that some of the ore present is not âfree-millingâ and therefore not amenable to gravity-based recovery methodologies. Thankfully, there are two initial recovery methodologies that are both inexpensive and very effective in treating ore. They are gravity-based methodologies for âfree-millingâ gold ore and froth flotation for somewhat ârefractoryâ sulphide ore.
At both the FDN and the ADL Mining Districts, the particles of gold found in association with sulphides are extremely small and in the âfineâ and âultra-fineâ categories. These particles tend to get incorporated into the crystalline lattice network of the surrounding âsuphidesâ (particularly arsenopyrite and pyrite) that the gold travels with during the formation of the deposit. This is why âfroth flotationâ is used in order to recover this âinvisible goldâ. The microscopic particles of gold need to be separated from their sulphide âhostsâ via their vastly different affinities for water.
In froth flotation, the sought-after metals are covered with a âcollectorâ reagent like ethyl xanthate, which makes them hydrophobic (water-fearing) and likely to âhitch a rideâ on a nearby stream of air bubbles flowing to the top of an FF âcellâ. Meanwhile, the sulphide remains âhydrophilicâ (water-loving) and prefers to drop to the bottom of the FF âcellâ from which it is discarded to the tailings storage facility. An âFFâ cell forces a âtug of warâ between the water-fearing (âhydrophobicâ) gold particles clinging to the rising air bubbles and the water-loving arsenopyrite and pyrite molecules. Dropping to the bottom of the FF âcellsâ.
At the FDN deposit, the gold represents the lionâs share of the value of the ore. It is technically a âgold-silverâ mine but the silver is low grade (about 10-12 gpt, which is relatively low for silver) and does not contribute much to the value of the ore. There is no copper present at the FDN, but at the ADL, the copper grade is high enough (3.23% after Enami took out their smelting fees) to make the copper a âpayable metalâ. The silver grade of the DL2 Vein ore, measured at 978 gpt silver after Enami took out their smelting fees, is easily high enough to be in the âpayableâ category. Extremely high-grade gold ore is often found with extremely high-grade silver ore due to the presence of what is referred to as âelectrumâ, which is a mixture of gold and silver found in nature.
Copper is critical nowadays because to the environmental community, mining is a âdirty businessâ but copper is critical to the environmentalists because of its critical role in the decarbonization and electrification of the planet. Those mining projects featuring the production of copper, almost by necessity, tend to get a âpassâ from the environmentalists.
The FDN deposit, discovered by Keith Barron of Aurelian Minerals, represents one of the most impressive discoveries ever made because it is buried under 200-meters of post-mineralization volcanic rocks underneath a tropical jungle canopy in southeast Ecuador. On the contrary, at the DL2 Mine, and in regards to the other 5 Main Veins at the ADL, the mineralization made it all of the way to the surface of a flat plateau where it is easy to access. The infrastructure at the DL2 Mine and ADL Mining District in general, is vastly superior to that at the FDN.
The mineralization at the FDN is much wider in extent than that at the DL2 Mine. At the FDN, the gold is contained in a wide âstockworkâ of tiny veinlets with intense brecciation involving fracturing of the host rocks. This provides the metal-bearing hydrothermal fluids a âplumbing systemâ available to transport the metals upwards from the progenitor magma chambers. The ADL also has plenty of brecciation, but the majority of the economic value is held in what are called ânarrow mesothermal veinsâ, which might average perhaps 1-meter in width throughout the mine life of the deposits.
The grades at the DL2 Mine need to be quoted in terms of âgold equivalent gradeâ. This is because the grade of the âby-productâ metals silver and copper are high enough, by themselves, to qualify as a âpayable metalâ in this âpolymetallicâ deposit.
In order to make an âapples to applesâ comparison of the âore feed gradesâ (that âfedâ into the FF plants at each mine) of the DL2 and the FDN, you first need to determine the âaverage vein gradeâ, at the DL2 Vein, in terms of âgold equivalentâ grams per tonne, and then multiply that figure by the percentage of the âworking faceâ of the DL2 adits that are made up of vein material, as opposed to less well-mineralized granodioritic wall rocks.
For example, IF (accent on the âIFâ) the average âvein gradeâ (not the âore feed gradeâ), at the DL2 comes in at 90 gpt âgold equivalentâ, and if the DL2 vein averages, letâs say, 1-meter in width of a 3-meter-wide adit (33% of the adit width), the âore feed gradeâ is going to be about 30 gpt âgold equivalentâ (.33 times 90), with approximately 25 gpt of that coming from the gold component of the DL2 Vein ore.
At the DL2 Vein, the gold, copper, and silver do extend into the granodioritic âwall rockâ surrounding the vein proper, but the wall rock is much less well-mineralized than the vein proper. Iâm rounding this wall rock contribution of sought-after metals down to zero for the sake of conservatism. Note that with froth flotation of the DL2 Vein ore, most of the somewhat âsterileâ but water-loving/âhydrophilicâ wall rock will drop to the bottom of the FF âcellsâ, and end up being discarded to the on-site tailings piles as the sought-after metals end up in the âfrothâ at the top of the FF âcellsâ. This helps reverse the âdilutionâ of the âore feed grade/intra adit head gradeâ caused by the somewhat sterile wall rock. The entire 3-meter width of the âworking faceâ of the adit typically needs to be mined in order to allow heavy equipment to pass.
Please do me a favor and write down this statement from the Lundin Mining website on a piece of paper, and thumb tack it onto a wall where you can view it when Maurizio provides the production and grade projections he has indicated are forthcoming at the proper time:
âThe process plant (at the Fruta del Norte deposit) has been generally treating ore feed grades of approximately 11 g/t Au and achieving approximately 89-90% average gold recoveryâŠâŠâŠthe Companyâs 100 percent owned Fruta del Norte gold mine, located in southeast Ecuador has been in production since late 2019, and is among the HIGHEST-GRADE OPERATING GOLD MINES IN THE WORLD.â (my emphasis via CAPS)
This should provide you with a comparative benchmark i.e. an operation with âore feed gradesâ (âfedâ into a froth flotation plant) averaging 11 gpt gold is among the highest-grade operating gold mines in the world. Thereâs your benchmark, now the question becomes can the DL2 Mine exceed that benchmark and if so by how much.
Every year, the mining community ranks the highest-grade actively mined gold deposits on the planet. Every year, this award always seems to be shared by 2 famous deposits. These are at the Fosterville and Macassa Mines.
In order to qualify to be considered for this list, the deposit needs to be not only fully drilled out but it must also have recent tallies of Mineral Reserves/Mineral Resources or âMR/MRâ that were calculated in compliance with the NI 43-101 standards or any similar standard. The DL2 Vein is never going to make this list because no drilling was necessitated due to the work of the artisanal miners at the DL2 Mine.
Auryn gambled and was able to make a âPOSITIVE PRODUCTION DECISIONâ without all of that expensive drilling and the share structure dilution it induces. Auryn had a choice. They could have raised money by selling shares and have perhaps 700 million shares outstanding while spending perhaps a decade or so drilling out the ADL Mining District, or they could opt to go into production quickly at the very spot where the artisanal miners left off at. Auryn rolled the dice and chose the latter.
This is why Auryn currently has only 70 million shares outstanding. If they would have drilled out the entirety of the DL2 Vein, they could easily have 10-times that amount of shares outstanding and their EARNINGS PER SHARE would be one-tenth the amount they are soon to be. As will be explained shortly, Auryn did not have the typical âdiscovery holeâ, instead they had a âdiscovery intersectionâ.
Knowing that 11 gpt gold figure for the FDN deposit, now all you have to do is to wait on the official results from the DL2 Mine. The âore feed gradeâ which is also known as the âintra adit head gradeâ is obviously critical to the ECONOMICS of a mining operation.
There is, however, a grade that is even more critical. That is the grade of the âfloat concentrateâ which is the PRODUCT of the froth flotation process, that will be TRANSPORTED and sold. This grade factors in the âore feed gradeâ plus the efficiency of the froth flotation process in not only ârecoveringâ the contained gold but also getting rid of the worthless material/âgangueâ associated with the gold. The grade of the âfloat concentrateâ will typically be in between 2 and 20-times the âore feed gradeâ entering into the FF plant. The worldwide average âconcentrating factorâ for an FF plant is about 4-times. The average cost to froth float ore worldwide is only about $10 per tonne.
The enhanced ECONOMICS of the froth flotation process has partly to do with the fact that the worthless âgangueâ, discarded to the on-site tailings storage facility, never needs to be TRANSPORTED anywhere at a moderate expense, or SMELTED, at an even greater expense.
Gold Mining involves recovering the contained gold and getting rid of the valueless material, as inexpensively as possible, so that less tonnage needs to be exposed to the TRANSPORTATION expenses and to the more expensive methodologies of ore purification, like smelting and electrowinning.
DOES THE TOTALITY OF THE SCIENTIFIC DATA ACQUIRED TO DATE AT THE DL2 VEIN, SUPPORT THE POTENTIAL FOR A PROJECTED, LETâS SAY, 20GPT TO 30 GPT GOLD EQUIVALENT âORE FEED GRADEâ AT THE DL2 MINE VERSUS THE 11 GPT GOLD âORE FEED GRADEâ AT THE FDN?
First of all, wait for the results of Aurynâs recently completed âDETAILED CASH FLOW ANALYSISâ, or their official production results, prior to placing any investment bets. The more tonnage run through the FF plant, the greater the statistical accuracy of any projection will become.
By now, you may have noted that Aurynâs management is very tight-lipped and ultra-conservative. In a recent communication with Maurizio, I learned that he does not want to make what he referred to as âguesstimates without complete informationâ (his words) and he also stated that he prefers to âunder-promise and over-deliverâ, rather than the reverse.
If one is going to estimate the average âore feed gradeâ (into the FF plant) at the DL2 Mine, the first thing you have to denote is over what timeframe. Iâm going to set that at the first +/- 5 years of the operation. Why is this? Itâs because the grades being mined at the DL2 Mine are very likely to improve with the depth of the operations.
At the DL2 Mine both London-based Dick Sillitoe (the most successful geologist in terms of discoveries made, on the planet) and Rob Cinits of ACA Howe, have independently told us that at the DL2 Vein BOTH THE GRADES AND VEIN WIDTHS ARE IMPROVING NICELY WITH DEPTH. What does this mean?
Letâs hypothetically say that at the current âlevel 3â of the DL2 Mine, the average âvein gradeâ (with no dilution from sterile wall rock) comes in at that hypothetical 90 gpt âgold equivalentâ figure and the average vein width is about 1-meter. When you do the math, the average âore feed gradeâ or ârun of mine head gradeâ (fed into the FF plant) would come in at the aforementioned 30 gpt âgold equivalentâ (.33 TIMES 90), with about 25 gpt of that coming from the gold component.
If at the future level 5, the âvein gradeâ has improved to, letâs say, 100 gpt âgold equivalentâ (up from 90) and the average vein width increased to 1.33-meters (up from 1-meter) then the vein width would now represent 44% of the width of the 3-meter-wide adit âworking faceâ instead of 33% as at level 3. The new âore feed gradeâ would become .44 times 100 gpt gold or 44 gpt gold equivalent instead of the hypothetical 30 gpt gold equivalent found at level 3. This is why setting a timeframe for the calculation of average âore feed gradesâ or average âfloat concentrate gradesâ, is critical.
The artisanal miners of the DL2 Vein, over the course of 30-years of mining, mined approximately a 350-meter length of the DL2 Vein which has a strike length of about 1,000-meters. They mined the vein down to about 100-meters in depth. The results showed a striking increase in grade and vein width with depth.
SCALABILITY: THE ABILITY TO RAMP UP PRODUCTION RATES OVER TIME
Recall that when Auryn successfully intersected the DL2 Vein via the Antonino adit, they later successfully drifted a âventilation/safety egress raiseâ in order to access the historical 7 âventilation raises/shaftsâ and 5 âventilation chimneysâ that the artisanal miners had constructed at the DL2 Mine. Iâm going to assume that some of these structures have since collapsed but many have not.
This accessing of the historical ventilation system was followed up by the Chilean permitting authority, SERNAGEOMIN, signing off on Aurynâs new ventilation and safety egress system. This then allows Auryn to SIMULTANEOUSLY mine from level 3 as well as several of the future sub levels found underneath level 3, in a safe manner. The DL2 Vein has a known depth of about 700-meters as evidenced by outcroppings on the southern downslope off of the ADL plateau.
OPTIONALITY: THE ABILITY TO SELECT THE AREAS IN WHICH TO FOCUS THE PRODUCTION EFFORTS
As these sub levels are opened up for production, Auryn will likely encounter areas with superior grades over the âaverageâ grades found at the various levels. They will, no doubt, selectively concentrate their efforts on the areas with the highest grades and widest vein widths. This is termed âoptionalityâ. The ideal scenario would be to intersect what is referred to as an âore shootâ. These are areas of widening/âdilatationâ of a vein structure often with incredibly high grades. Once you intersect an ore shoot, you simply follow it wherever it leads you.
SUFFICE IT TO SAY, IT IS A VERY POWERFUL COMBINATION WHEN BOTH THE GRADE AND THE VEIN WIDTH INCREASE WITH DEPTH. This phenomenon is the norm for mesothermal veins, it is not the exception.
THE MERGING OF THE DL2 AND THE DL1 VEINS
Note that at the DL2 Mine, we are actually dealing with 2 veins. The DL2 Vein (formerly known as the Fortuna Centro Vein) is the main vein that was mined by the artisanal miners. The DL1 Vein is thinner and located extremely adjacent to the DL2. It is likely a branch of the DL2 Vein. The path of the DL1 Vein, located just to the east of the DL2, is rapidly converging on the path of the DL2 as you go lower in the vein structure. They should meet somewhere around level 4 or so, and probably merge into a wider DL2 Vein. Note the similarity to the widths of the branches of a tree as they merge towards the trunk.
Below is a link to the Lundin Mining website where some of the information on the Fruta del Norte (âFDNâ) discovery is contained.
Interestingly, it was the arsenic found in the soil at the FDN, which is the âAâ in âAPYâ/arsenopyrite, that led to the discovery of the FDN deposit. Arsenic is known as a âpathfinderâ element for gold in nature. If you find one, the arsenic, you tend to find the other, gold, in high concentrations.
A junior miner that I was following at the time, Aurelian Resources, actually made the FDN discovery prior to being taken out by Kinross and then later by Lundin Mining. The Aurelian stock price went up approximately 50-fold i.e. a â50-baggerâ, subsequent to the discovery. The 3rd hole of a 3-hole drill program intersected a long stretch of 8 gpt gold ore and it was âgame onâ for the Aurelian shareholders. This was termed âthe discovery holeâ.
AURYN ACTUALLY HAD A âDISCOVERY INTERSECTIONâ, INSTEAD OF A âDISCOVERY HOLEâ
Auryn/Medinah never really had a âdiscovery holeâ. Management was able to make a âPOSITIVE PRODUCTION DECISIONâ without suffering the share structure dilution associated with selling shares to fund a diamond drill program. Instead, when the Antonino Adit finally intersected the sought-after DL2 Vein (after 3 false alarms), Auryn announced the results of a group of channel samples taken of the DL2 Vein at the intersection site. The results were literally off the charts.
Did the share prices of Medinah, the 24% owner of the ADL Mining District, or Auryn, break out to the upside? No, these share prices actually down-ticked on this exciting news when the accusation was made on an Internet investment forum, âtheminingplayâ, that the samples were done incorrectly and nobody on Wall Street should believe them because they allegedly did not even report the channel sample widths. In actuality, the widths of the samples were contained in the text of the press release, namely 0.6-meters.
In essence, what should have led to a breakout in the share prices of both stocks, ended up being spun into a net negative i.e. management was publishing fraudulent assay results. In retrospect, if you carefully study all of the press releases made by Auryn or Medinah through the years, youâll note that pretty much each one was spun into a net negative by negative comments made on that investment forum by the same individual in each case. The question becomes, can Auryn have a second shot at a significant increase in the share price from the re-announcement of this âdiscovery intersectionâ.
WHAT IS THE SCIENTIFIC EVIDENCE ACQUIRED TO DATE AS TO THE GRADES ONE MIGHT EXPECT WHILE MINING THE DL2 VEIN?
The first group of 4 channel samples of the vein only, at the intersection site of the DL2 Vein and the Antonino Adit, came in at an insanely-high average grade of 164 gpt gold over 0.6-meters in width. The second group averaged 150 gpt gold.
Later, the DL2 vein ore, from near the intersection site with the Antonino Adit, was sent for an independent smelter test at the renowned Plenge Lab in Lima, Peru. The result FOR THE GOLD GRADE ONLY AND NOT ACCOUNTING FOR THE SILVER OR COPPER, came in at a stellar 128 gpt gold AGAIN, FOR THE GOLD ONLY. If you factor in the silver and copper, assuming the same ratios as found with the Enami smelter results, the âgold equivalentâ grades of the Plenge Lab smelter tests would be at approximately 157 gpt âgold equivalentâ. As you can see, this is right in line with the channel samples taken at the intersection site. The Plenge Lab smelting results, in essence, corroborated the results received at the DL2 Vein near the intersection site with the Antonino Adit.
A âtest batchâ of the VERY SAME ORE was sent to the Enami smelter in Chile. The âagreed to/settlementâ grades came in at 57 gpt gold, 978 gpt silver and 3.23% copper AFTER ENAMI HAD TAKEN OUT THEIR SMELTING FEES AND DEDUCTED ANY PENALTIES FOR IMPURITIES. These Enami results were stellar for smelting results, but nowhere near the results from the Plenge Lab in Lima, Peru.
Auryn also performed a channel sampling of the DL2 Vein at levels 1 and 2 of the âold worksâ of the artisanal miners of the DL2 Vein. They came in at an average of 85 gpt gold. Auryn also did a sampling of the DL2 Vein at the intersection of level 2 and âShaft Aâ of the âold worksâ. There were 12 samples taken, averaging over 100 gpt gold.
Auryn removed 54 tonnes of ore from the âold worksâ (levels 1 and 2) where the artisanal miners had their operations. The results of this âbulk sampleâ came in at âover 2 ounces per tonne goldâ (over 62 gpt gold). This ore extraction was done without any blasting needed. The historical production results of the artisanal miners involving the mining of 2,000 tonnes of ore, came in at an average of 64 gpt gold after Enami had taken out their ore processing fees. What jumps out at an observer, is the CONSISTENCY of these stellar grades found at the DL2 Vein.
In regards to the smelter tests done at the Plenge Lab and at the Enami smelter, Auryn management thought that the 57 gpt gold grade received at the Enami smelter, should have been a lot closer to the other smelter testâs result of 128 gpt gold. After all, the samples were of the same ore. Already realizing that the DL2 Vein ore had a ârefractoryâ nature to it, Aurynâs BOD knew that froth flotation was the approach to take. Although Enami does have froth flotation facilities available on a âtollingâ basis, Auryn management unanimously decided to build their own froth flotation plant in order to recover the small-particled ore of the DL2 Vein, and take control of the processing of the DL2 ore. In managementâs mind, Enami was only willing to pay about half price.
WHATâS THE BIG DEAL ABOUT HAVING A CLOSE-FITTING TEMPLATE OR âCOMPARABLEâ DEPOSIT STYLE/OPERATION STYLE FOR A COMPANY LIKE AURYN OR FOR ITS INVESTORS?
It helps provide existing shareholders or prospective investors with a roadmap for future developments and make more of an âapples-to-applesâ type of comparison when you have a deposit with ore that has similar characteristics to a well-known deposit, and that will involve similar styles of mine operations. Itâs usually a good idea to study history and take advantage of the experiences of those that preceded you in a similar endeavor.
At the DL2 Mine, Auryn might be initially feeding in ore that was previously stockpiled and taken straight âfrom the vein itselfâ with no wall rock material to dilute the ore grade. The âore feedâ grade of this ore will no doubt be higher than that one might expect from ore that was blasted from the working face of an adit in the conventional manner.
Auryn management mined and stockpiled ore âdirectly from the veinâ without blasting, for a period of over 200 days prior to the construction of the FF plant. The grade of this stockpiled ore would be helpful in estimating the average âvein gradeâ of the DL2 Vein, without the dilutional effect of the wall rock. We do not know the tonnage of this previously stockpiled ore, but the sample size might be statistically significant and helpful in making projections. Now go find your thumbtack! Hereâs the quote:
âThe process plant (at the world famous extremely high-grade Fruta del Norte deposit) has been generally treating ore feed grades of approximately 11 g/t Au and achieving approximately 89-90% average gold recoveryâŠâŠâŠthe Companyâs 100 percent owned Fruta del Norte gold mine, located in southeast Ecuador has been in production since late 2019, and is among the HIGHEST-GRADE OPERATING GOLD MINES IN THE WORLD.â
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This all sounds great Doc, but we have to get there 1st.
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Auryn management mined and stockpiled ore âdirectly from the veinâ without blasting, for a period of over 200 days prior to the construction of the FF plant
I didnât know that the FF plant had already been constructed. What I do know is that there is nowhere near 200 day of stockpiled ore. BB was posting about growing stockpiles of gold for many, many months post the cessation of mining. I also know that if there were any value to these piles of stockpiled gold (read collateral) the company wouldnât have to agree to 500% ROI debt financing.
Thereâs nothing wrong with making a mistake when it comes to investing but trying to blame otherâs and/or the market for âbeing wrongâ while posting analysis that is grossly off the mark (again and again) is just plain pathetic:
In essence, what should have led to a breakout in the share prices of both stocks, ended up being spun into a net negative i.e. management was publishing fraudulent assay results. In retrospect, if you carefully study all of the press releases made by Auryn or Medinah through the years, youâll note that pretty much each one was spun into a net negative by negative comments made on that investment forum by the same individual in each case.
BB is essentially saying that one schmuck on an investment forum, with limited readership, is responsbile for a âlacklusterâ share price (.0001). What was the total volume on the days of these momentus PRs? Did anyone make claims of fraudelent assays to knock down the share price or did the market simply interpret the results as they were in reality vs. is BBâs fantasyland? Has this individual been generally accurate on almost every one of their net negative âspinsâ (false starts on production, offtake financing, mining stoppage, etc, etc)?
I did read the entirety of BBâs post and did notice that there is a subtle shift (hedge?) down to more realistic grades (30-40gpt). Still 20gpt away but we are getting there!
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Congrats Doc !
I believe itâs your longest post ever 
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Thank you, I wasnt sure if that was still going to happen.
Waiting & Waiting & Waiting ⊠Perhaps when hell freezes over
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Why no quarterly update yet? They have been pretty consistent getting them out timely.
At the rate weâre going we might be into the next update due in October. Very unprofessional to not at least put an update stating the reason for the delay. Transparency goes a long way, but hey itâs Auryn the never ending story.
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I have no inside information on this but Iâm guessing that the delay could be a good thing. If
AUMC wasnât close to finalizing the financing they would have put out another generic PR at the beginning of the month. They are clearly holding back on a timely PR with the goal of announcing a deal.
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Artemis Res (ARTTF)- Titan Prospect High Grade Gold Vein Discovery samples 10,000gtAu 23.8%Cu, 10.4oz Gold Bar from samples. {10,000gt is the highest assay capacity of the lab which is 1% Gold ! , so these samples were OVER 1% Gold}
Might be a good time to get in early. for those of us who are suffering with MDMN !
The company has extracted multiple hard rock gold samples from the quartz-iron veining with the largest being an estimated 10 cm by 4 cm.
⊠these gold occurrences originate from a hard rock source which indicates a potentially large gold structure.
Sampling work was conducted around the Titan prospect with about 300 kg of material removed. This material was sorted, crushed, separated, extracted and a bar weighing 10.4 oz was subsequently produced.
Rock chip samples were analyzed in the ALS laboratory in Perth and included Gold grades of as high as 10 000 g/t, 6 520 g/t and 10.2 g/t.
Copper assay results also returned high values, including 23.8% and 14.55% .
The Titan mineralized trend has been tracked for about 700 m and appears to remain open under shallow cover. Furthermore, recent field observations suggest it also occurs on a much larger and strike extensive structural zone.
âWe remain excited by the prospectivity that our tenements continue to deliver. The re-focus of exploration efforts and strategy on a tenement-wide scale is continuing to deliver evidence of multiple new zones for gold mineralization, which we believe could contain the potential for large-scale deposits. The next steps will allow us to refine these zones, delineate bona-fide prospects and work towards more targeted exploration efforts,â commented executive director George Ventouras.
Titan is located within the Artemis owned Carlow tenement and about 2 km from the Carlow project, which has a mineral resource of 374 000 oz, or a mineral resource of 704 000 gold-equivalent ounces.
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Congrats to Gold now at 2500! Hey Jimmy, how much is the stockpile worth now??
Thanks Rod, This really belongs on a different thread ⊠perhaps move to Other Mining Stocks Thread 2024. Actually this stock was very popular back when Pilbara stocks were all the rage. I have a ton of it left from 2017 that was moved to my ROTH account long ago. It fared the same fate as MDMN and is now down over 90%, but it is very cheap. I do hope Artemis turns up on this new discovery and returns to its glory days and former heights. Itâs in the same sock drawer as AUMC!
Worth keeping an eye on. Is it possible I got in a little too early on both of these highly speculative stocks? lol
EZ