Auryn/Medinah 2025 1st half General Discussion

319

I think I recall you saying that 6-7 of the veins are N-S oriented with one that is E-W trending and intersects several of the others going N-S. What this means is that a person who is knowledgeable of this can draw conclusions as to the homogenous character of the veins regarding grades, etc.

Add to that the 30 years of 64 gpt by the artisan miners, the channel sampling (164 gpt and 150 gpt), and the grades of samples sent to Peru (154 gpt) and Enami (70 gpt).

Seems pretty clear to me one can connect those dots and then put the spreadsheet to work. No, it won’t be perfect, but it’s of better use than to just stand around insisting on a $30 Million drill program that would be a HUGE waste of money, not to mention all the shareholder dilution.

People prognosticate all the time based on the information they HAVE - that’s a good thing to do, and most certainly not a crime.

1 Like
320

Hi MrB,

That 64 gpt gold achieved by the artisanal miners seems pretty impressive without any technology, but don’t forget that the tailings piles they left behind were running as high as 14 gpt gold. Add those together and you get 78 gpt which is more in line with the results Auryn was getting.

As far as the Merlin 3 Vein which runs east to west, this is important because it allows more intermixing of the hydrothermal fluids with the north to south oriented parallel veins. This enhances homogeneity. The intersection points for the east to west M3 and the other north to south parallel veins becomes a target for exploration because these are areas of widening or “dilatation”. Areas of “dilatation” of veins is where super high-grade gold can occur because the hydrothermal fluids are allowed to “boil” because the pressure and temperatures drop like a rock in these areas. These are superheated fluids that literally have to cool to “boil”. The energy from the boiling breaks the bond between the sulfur and the gold in these “thiosulphate” complexes gets set free in these “boiling zones” where it can pile up in very high concentrations.

In these “boiling zones” where the surrounding pressure dropped like a rock due to “dilatation”, you’ll find a special form of quartz (a “silicate”) that is called “chalcedonic quartz” or “milk quartz”. It is “aphanatic” which means that it has no crystal formation. This is because the cooling process went so quickly (with the pressure drop) that there was no time to build the nice crystalline structures like quartz often exhibits. So, if you see an area of “milk quartz”, you’re likely to find extremely high-grade gold. This is what Auryn found at the 1,840 meters above sea level elevation at BOTH the Merlin 1 and DL2 Veins. That’s what “homogeneity” is all about, there’s a lesser need for drilling because of the higher level of “PREDICTABILITY”.

When the Antonino Adit intersected the DL2 Vein at about 1,840 meters above sea level (“masl”), which became the new “Level 3”, and the grades were literally off the charts, you knew that it was “game on” for this deposit. This is the same elevation that they found “bonanza grade” (over 100 gpt)- gold at the Merlin 1 Vein i.e. homogeneity and predictability going hand-in-hand.

Make no mistake, drilling is a wonderful tool in exploration, but the need for drilling in “Vein Sets” where artisanal miners have already put in a lot of work, is way below what it is for open pittable “disseminated” deposits.

Maintaining the position that ALL DEPOSITS (both “disseminated” and “Vein Sets” types) need to be fully drilled out and ultra-expensive formal Preliminary Economic Assessments (PEAs), Pre-Feasibility studies (PFSs), and “Bankable Feasibility Studies (BFSs) that might collectively cost, let’s say $70 million and take 4 years to accomplish NO MATTER WHAT THE DILUTIONAL EFFECT IS ON THE SHARE STRUCTURE doesn’t make scientific sense.

A miner like Auryn doesn’t need to know the exact number of ounces it has in “MR/MR” or the exact duration of the estimated “mine life”. I know that there are way over 2 million ounces of gold present and that it would take 51 years to mine all of the tonnage contained in just the DL2 Vein based on 3,000 tonnes per month. That’s all I, as an investor, need to know. There, I just saved us 4 or $5 million. There is a trade-off between information gained and dilution induced. You need to find the balance for your type of deposit and the history of your deposit. Maurizio and his team found it and saved us boatloads of dilution. The work of the artisanal miners at the DL2 Vein saved us a fortune. The 7 vertical ventilation raises they drifted and the 5 ventilation “chimneys” they drifted saved us a fortune also.

3 Likes
321

And, from what I recall, we have 6-7 of these mesothermal veins CONFIRMED.

Do I recall that there are another possible 20-25 of them?

Not to mention the two porphyries?

Either way, we are very fortunate to have a man with a BRAIN (MC), running this show (read: capitalizing on existing knowledge and not wasting money, a real plus).

And a HEART/SOUL too - a lesser man would have bent us over the chair a LONG time ago.

3 Likes
322

All this good stuff for Auryn. Doesn’t mean crap for us heavy mdmn shareholders they haven’t distributed shares to
Don’t see it happening due to clusterf&@“ LP, Juan and Claro left.
But then again Maurzio is married to Juan’s daughter
What do we have to worry about

1 Like
323

Hi MrB,

The toughest part of doing good due diligence on the ADL Mining District has to do with how long this story has been playing out. Even the most ardent Auryn/Medinah fans that participate on this investment forum have probably forgot about the history of the exploration efforts at the ADL Mining District.

A couple of decades ago, Medinah commissioned a “geophysical hyperspectral satellite imagery study” known as a “CSAMT”. The satellite aims light beams of a certain wavelength at the deposit and the beams reflect off of the surface back to the satellite with a different wavelength.

The difference between the original wavelength sent and the reflected wavelength taken back in by the satellite is interpreted by the computers. They’ll determine what minerals are contained at surface on the deposit. These beams do not penetrate the surface, they only show surface “alteration assemblages”.

Different deposit types have different surface “alteration assemblages”. It’s the mineralized hydrothermal fluids rising from underlying magma chambers whose roof has been ruptured from pressure build-ups, that do BOTH the “altering” of the surface rocks and the bringing up to closer to the surface of the sought-after gold, copper and silver in this case.

Near surface gold within a certain type of surface “alteration assemblage”, for example, will have a certain “signature” that is interpreted by the computer. The types of surface “alteration assemblages” include advanced argillic alteration, propylitic alteration, phyllic alteration, potassic alteration, sericitic alteration, etc.

What this particular “CSAMT” geophysical survey revealed was a massive 7 Km long swath of about a dozen “intrusives” (rock formations that “intruded” into the mountain from an underlying magma chamber). OK, that’s fine and dandy, but what was contained within these “about a dozen intrusives” and did the contents have any value?

What the survey basically said was that whatever is contained in these “about a dozen intrusives”, you’ve got a whole bunch of this material present. If these intrusives just so happen to have high-grade gold, copper, silver, and moly present, then the anticipated “MINE LIFE” will be significant. This survey provided the bottom layer of due diligence, which needed other layers of due diligence to be super-imposed upon it, in order to tell the real story. This provided a wide-angle view of the entire ADL Mining District. The spacing of these “intrusives” suggested that this mining district was “chock full” of something.

Fast forward to today, and we now know that these various intrusives, at least for the most part, were “chock full” of some pretty valuable stuff. In mineral economics, there is a constant overlaying of newer data over older findings. Our problem, at TheMiningPlay investment forum, is that most of us have probably totally forgot about the “older findings”. The pertinent information provided by the older findings, like this CSAMT survey, is just now being revealed in its entirety on a daily basis.

In the area of the 7 or so parallel veins present at the ADL Mining District, there is a massive width of what is called “Advanced Argillic Alteration”. The host granodiorite (think granite) was “altered” by super-heated, highly pressurized, metal bearing hydrothermal fluids into 3 types of “clays” known as illite, smectite, and kaolinite.

These types of clays just so happen to hang out near what are termed “porphyry deposits”. The CSAMT satellite survey suggested the presence of 2 separate porphyry deposits. One was of the copper-moly type (Type 21a) and the other of the copper-gold type (Type 21c). “Porphyry deposits” are the most sought-after deposit type in all of mining. The copper-moly variety are the largest of all of the porphyry types.

These things called “mesothermal veins” and “epithermal veins” just so happen to “telescope out of” porphyry deposits. “Mesothermal Veins” are by far and away the most valuable of all of the different vein types. They are like redwood trees in stature compared to the saplings that might characterize the much more common “epithermal” types of vein deposits. You might know “Mesothermal Vein” deposits as “Archean Gold deposits”, “Greenstone” deposits, “Shear Zone hosted deposits”, “Lode” deposits, or “Orogenic gold deposits”.

“Mesothermal Veins”, like those at the ADL, just so happen to tend to BOTH get wider and richer with depth. That can represent a very powerful combination from an economics point of view. This is exactly what we are experiencing at the ADL’s DL2 Vein, which we know quite a bit about. The grades found by Auryn at their new “Level 3” blow away the grades of ore mined by the artisanal miners at levels 0,1, and 2 which were stellar in their own right. Both Richard Sillitoe, the most prolific mine finder on the planet, and Rob Cinits of ACA Howe, confirmed for us this phenomenon at the ADL veins.

An ideal mineral discovery will have what are called “EARLY PRODUCTION OPPORTUNITIES” (EPOs). These are near surface, relatively inexpensive to mine, and hopefully of high-grade. The ADL Mining District has a bunch of these which is a blessing. Mining these EPOs, can often act as a “catalyst” to unlocking the value of the real behemoths which are the porphyries.

The ADL’s porphyry “prospects” (at this early stage) still need to be confirmed via drilling, but the evidence provided by Auryn’s “ridge crest sampling” done a few years back is very, very compelling. “Molybdenum” or “moly” is pretty much only found and mined from porphyry deposits and the “ridge crest sampling” program found a very distinct and fairly large “Moly anomaly” and “Copper anomaly” (as referred to by Auryn) present.

All of the attention now is on the mesothermal veins at the ADL, which is probably appropriate, but the vast majority of the ADL Mining District’s value might be associated with the porphyry “prospects”. If there is a bad thing about porphyries, it’s that they are so immense that it costs a fortune to develop them and they’re always developed via “open pit” mining which is looked upon by the environmentalists as being “dirty”. The CAPEX is almost always in the billions of dollars range.

The environmentalist also know that we need lots and lots of copper and most of the world’s copper is mined from porphyries via open pits. I’m going to guess that copper porphyries, like Auryn’s porphyry “prospects”, are going to be given a pass by the environmentalist by necessity.

The question arises as to what “NET PRESENT VALUE” should we ascribe to Auryn’s porphyry “prospects” TODAY. That question is almost impossible to answer unless and until you see a press release concerning perhaps a joint venture “strategic alliance” involving Auryn and a major, or perhaps a consortium of majors, agreeing to a program to advance exploration efforts on especially Auryn’s “Pegaso Nero” porphyry “prospect”.

I could be way off base here, but when I recently read that Robert Mayne-Nichols was appointed as Auryn/Medinah’s new “General Manager”, for ALL OF Auryn’s mining operations, I immediately thought that maybe the Pegaso Nero finally might get some attention and perhaps ascribed some value. Robert Mayne-Nichols is known as more of a “big game” hunter due to his pivotal roles at world class “Tier 1” deposits like Los Pelambres and Collahuasi. I don’t read him as being a “Vein Guy”.

From the most recent Auryn quarterly update: “Robert Mayne-Nicholls stated, “I am extremely excited to join AURYN Mining at this pivotal time. The potential of the Fortuna (MY COMMENT: THE VEIN PROJECTS) and Lipangue projects (MY COMMENT: THE PEGASO NERO AND LDM PROSPECTS???) is impressive, and I look forward to contributing to their successful advancement.”

The question arises as to whether or not Auryn should spend a few bucks and pro-actively drill a diamond drill hole or two at the Pegaso Nero in order to secure much more favorable terms on any future JV, or just keep their nose to the grindstone on the various vein projects.

4 Likes
324

Yes, the name Sepulveda-Perez rings a bell - I think he was of great repute and was employed by a major or two - thanks for the reminder and recollection of testing history. I also recall a story about how AC Howe dug up a 20-foot trench, but I can’t put my finger on it - and Howe came to very good conclusions too. Seems to me people can ignore all this evidence at their own peril.

2 Likes
325

Agreed. BB provides so much valuable insight for everyone. Why anyone would disregard the factual info BB posts simply astounds me.

3 Likes
326

Too bad in the real world the markets don’t work that way. There’s a reason why the share prices of the companies who actually did the work to define a resource are ripping while AUMC/MDMN are withering on the vine. If the market/investors were able to “connect the dots” with AUMC knocking on the door of production wouldn’t there be volume and price appreciation? It has nothin to do with a lack of promotion. Maurizio fully understand that he won’t get credit for trench samples and historical mining. There’s a reason why the Canadian and Australian exchanges don’t even allow public companies to reference those types of results to infer resources.

There’s been a lot of excellent attempts to forecast how many millions of ounces “might” be buried in this mountain. It’s a fun exercise but for those who are here to make money on this investment, it doesn’t get you very far. There’s always been a fascinating dichotomy b/w the the enormous potential of the asset (which I believe exists), and the understanding of what is needed to translate that value into investment returns.

2 Likes
327

Sure, and has been said, this is not a traditional drill and get worked over by a major investment. Thank God, MC had enough sense not to waste the money. They lost, we won. 70M shares outstanding is a HUGE blessing. The company will start making an operating profit right out of the gate. Yes, they have a few debts to pay back, which they will do rather quickly at the current price of gold.

And even when the dividends start flowing, I won’t care that the price action does not respect that fact, as we will be receiving our dividends on a regular basis (read: retirement income). At some point, the market will change its mind, and some of us here already know why.

3 Likes
328

A different way to think about all of this is to focus in on the OVERALL GOAL of a junior mineral explorer/developer WHEN THE PRICE OF GOLD IS AT OR NEAR ALL-TIME HIGHS. There is a HUGE sense of urgency when the price of gold is at or near all-time highs TODAY and TODAY’S ideal approach might be vastly different than it was in previous times. I would suggest that the overall goal under these circumstances, is to get into production AS SOON AS POSSIBLE and with as few shares issued and outstanding as possible. Time is of the essence.

The key in this DECISION TREE then becomes, does the junior explorer with a discovery need EITHER the technical expertise of a major or mid-tier or its superior financial wherewithal in order to get into production. If the answer to that is NO/NEITHER, then an extremely rare “bootstrapping” approach becomes an option.

The next question then becomes, is there a management member willing to advance the cash needed to bring the mineral deposit all of the way into production while charging a fair interest rate. In 99% of cases, the answer to this question is NO and the junior explorer is forced into raising tens of millions of dollars to drill out the deposit and then raise tens of millions of dollars to block out MINERAL RESERVES/MINERAL RESOURCES via executing a PEA, a PFS, and then a BFS, AND SPEND ABOUT 4 YEARS IN THE PROCESS. The RISK is that after 4 years, THE PRICE OF GOLD MAY NOT BE AT OR NEAR ALL-TIME HIGHS ANY LONGER.

A willing “bootstrapper” still needs to be “DERISKED”. He needs to gather all of the geological and economic information available and arrive at a POSITIVE PRODUCTION DECISION that makes sense for his wallet. A “bootstrapper” willingly transfers a great deal of risk onto his own shoulders. The clock is ticking, so any potential “bootstrapper” needs to reach a green light decision in a reasonable amount of time.

How often might a junior mineral explorer/developer WITH A BONA FIDE MINERAL DISCOVERY, go through this DECISION TREE and come up with a green light decision by a willing “bootstrapper”? I would guess maybe 1% of the time or less.

For any junior explorer/developer able to pull this off, what is the likely result? The key accomplishment is to circumvent the massive levels of share structure dilution suffered by junior explorers without the “bootstrapping” option. The likely result is a de minimis amount of “shares outstanding” compared to the other juniors with a discovery and significant earnings potential because of the favorable price of gold. IF THE DISCOVERY GOING INTO PRODUCTION JUST SO HAPPENS TO BE OF A VERY HIGH-GRADE NATURE, THEN THE POTENTIAL “EARNINGS PER SHARE” COULD BE EXTRAORDINARY BECAUSE OF THE LOW AISC ENJOYED BY MINERS WITH BOTH A HIGH-GRADE DISCOVERY AND THE OWNERSHIP OF THEIR OWN ORE PROCESSING FACILITY.

OTHER FACTORS:

  1. In this particular sector, incremental increases in the price of gold tend to drop straight down to the bottom line. This adds to both the SENSE OF URGENCY and the potential augmentation of the EPS.

  2. Being able to land a $4 million debt financing at SOFR plus 4%, at a time in which the 3,000 current junior mineral explorers are having an extremely difficult time in raising money just for exploration purposes, tends to confirm the special nature of being able to pull this off. THE FINANCIERS WILL HAVE A VASTLY SUPERIOR VIEW OF THE PLAYING FIELD AS WELL AS A VASTLY SUPERIOR UNDERSTANDING OF THE MINING INDUSTRY, OVER THE AVERAGE SHAREHOLDER. Follow the lead of the “SMART MONEY”. Who is the “SMART MONEY”? It is the “bootstrapper” as well as the financiers.

  3. Since mining companies tend to trade at industry standard “multiples” of EPS, when you have a variety of factors that tend to “supercharge” the EPS, this may bode well for future share price performance.

  4. The most difficult task for the management team of a “bootstrapper” might be to EDUCATE potential investors as to the accomplishments made and the rarity of these events. The EPS variable will do most of the educating by itself.

4 Likes
330

HYPOTHESIS: BB thinks the DL2 vein has 2,000,000+ ounces.

BB Evidence:
(1) Hyperspectral satellite study with data
(2) 30 years of artisanal miner data
(3) ACA Howe assays of 61.77 gpt and 122.2 gpt across 2 meters, with a re-assay across 1 meter coming back at 455 gpt
(4) Geochemical studies proving mesothermal veins, many of them
(5) Channel sampling by Auryn coming back at 150 gpt
(6) Samples sent to Peru and Enami with consistent, astronomical results - Peru (154 gpt) and Enami (70 gpt)
(7) Equipment purchases by men who know the industry
(8) Obtained loan from financier who might know better than shareholders?
(9) Hiring of appropriate personnel

BE Evidence:
(1) The company was defrauded over the years
(2) It ain’t supposed to happen that way - you’re supposed to drill it out
(3) The market is always right (Efficient Market Hypothesis)

That’s it in a nutshell.

GOVERN YOUR SELF ACCORDINGLY.

5 Likes
331

Bubba,

Because the deposit(s) are so shallow, your $30M drilling program is WAY off. The could have spent less than $2M with shallow holes to find out where and how deep the veins were. With the info, perhaps even a shallow open pit could have exposed enough gold to be done through flotation, etc. or Cyanidation (Leaching) Technology which is VERY low cost. Medinah & AURYN made a huge mistake by not drilling. Instead spent way too much money trying to find/follow veins underground. These veins would have been exposed by drilling short holes,(probable by RC drilling, or even diamond drilling) and the result would have been an area wide conclusion of what was beneath and where it was. SO MUCH WASTED MONEY FOLLOWING THE ANCIENT SYSTEM OF FOLLOWING VEINS UNDERGROUND.

1 Like
332

MC put his MONEY on the line and has all these smart men around him and didn’t figure that out? Maybe we don’t know the entire story, but I think I’m along for the ride and will trust him. You might end up right … if these veins turn out to be a very short-lived project.

3 Likes
333

MC involves specific experts in the mining industry and offers them intimate knowledge of Auryn’s project(s). What a brilliant way to make solid decisions going forward. No offense to anyone here, but unless opposing opinions come from mining experts with substantial insight of this project, I’ll stick with the ones we have.

And … the factual details that TMP members like BB & EZ share with us to facilitate the common sense required to put the pieces together — Priceless.

4 Likes
334

Here we are 1st week of July. Let’s see what’s in this next update.

1 Like
335

New topic for second half 2025.

3 Likes