Some thoughts on the new update: In the first paragraph, management reminds us that we need to keep in mind that Auryn is now operating on 3 fronts: MINING, EXPLORATION, AND CONSTRUCTION.
In the second paragraph, management followed up on something they introduced in the last update dated 7/15/25. This has to do with opening up 2 new operational sites at the historical “FORTUNA 1913” location near level 2. Each site will allow Auryn to increase production by 1,000 Tonnes per month.
Auryn drifted what’s called an “incline” which is an adit that slopes upwards. “Level 3” is located at about the 1,885 meters above sea level elevation. “Fortuna 1,913 is, of course, located at 1,913 masl. Auryn was able to accomplish this after SERNAGEOMIN (the permitting authority) granted Auryn an “exploration” permit. Now that they’ve “accessed” this ore, they will apply for the “exploitation” permit which allows them to mine the ore.
By drifting this “incline” over 30 vertical meters, Auryn now knows what kind of grades to expect in that vertical stretch in between the 1,919 masl elevation and the 1,885 masl elevation. This is Auryn’s first glimpse of that vertical stretch and the grades and tonnage revealed is fair game for MR/MR calculations.
The granting of this “exploitation” permit will allow the DL2 Vein (Fortuna project) to increase their allowable production rate from 1,000 TPM to 3,000 TPM. This approval is anticipated to land by late 2025 to early 2026. Keep in mind that Auryn is now operating under the Chilean “Small Mineral Producers Statute”. This guarantees not only favorable tax rates but even more importantly STREAMLINED PERMITTING.
Another thing you need to keep in mind is that later in this press release we learned that Auryn already has 28,000 Tonnes stockpiled and ready to be fed into the FF plant as well as over 60,000 Tonnes available to supplement that ore feed. Based on the initial 100 Tonnes per day “nominal throughput rate” for the FF plant, this stockpiled ore should keep the plant busy for 2.4 years. Auryn obviously did a great deal of stockpiling prior to the 1,000 TPM restrictions kicked in on 1/1/24 with the new statute.
We also learned that the approval to mine 1,000 TPM at the Caren Mine is due “at any time”. Management mentioned that once this approval lands, they’re going to immediately file a “follow on application” in order to increase that 1,000 TPM level up to 1,950 TPM at the Caren Mine/Larrissa Adit project. If you’re keeping score, so far we’ve been discussion a total of 4,950 TPM. The breakdown is the original 1,000 TPM already approved for the DL2/”Fortuna” project. Then you need to add 2,000 TPM for the “Fortuna 1,913” project and another 1,950 TPM for the Caren Mine once the “streamlined” permitting lands.
When you factor in the 28,000 tonnes ready to go for the new FF plant, and the over 60,000 tonnes “available to supplement that 28,000 tonnes”, you can see that supplying “feed” for the new plant is pretty well already looked after.
The 100 TPD “nominal throughput rate” translates into 36,000 tonnes per year. The currently stockpiled ore is enough to keep the FF plant busy for 2.44 years not to mention all of the ore being mined as we speak. Keep in mind that the initial 100 TPD “nominal throughput level” is not likely to stay at that level for very long. In a recent update, management cited that they already added to the original order for FF “cells” and “columns”. They did not reveal how much of an increase in the 100 TPD rate that would represent. “Nominal throughput rates” for an FF plant are almost always exceeded in actual mining operations.
Management is going to take the standard approach to commissioning the FF plant. This involves feeding in relatively low-grade ore early on while determining the calibration of the “flow sheet”. Once you learn what the settings are for the “maximum recovery rate”, then you put in the high-grade ore. You don’t want a bunch of gold heading over to the tailings storage facility while you’re figuring out the ideal settings for maximum recovery.
Management mentioned that the “commissioning” process or “dialing-in” process is scheduled to last in between 30 and 45 days. The main warehouse is completely done and they’re actively working on the dry stack tailings storage facility. The remaining approvals for the FF plant and the tailings storage facility are due “in the coming months”.
The new pictures posted on Auryn’s “X” site show a vast number of stockpiles of ore all over the plateau. They have been sorted by “GRADE”. Recall from earlier updates that in between early 2023 and early 2024, Auryn was mining “DIRECTLY FROM THE DL 2 VEIN WITH MINIMAL DILUTION USING PERCUSSION HAMMERS WITHOUT BLASTING”. In their 10/30/24 update, management cited that the ore mined in this fashion would match the grade obtained from the Enami smelter test which came in at 70 gpt “gold equivalent”. They never revealed the exact TONNAGE of the ore mined in this fashion. Based on the details of the offtake agreements, miners will “blend” different grades of ore in order to maximize the financial returns.
The Chilean winter is now over so there should be a period of “clear sailing” for the next 9 months or so from a weather point of view. By far and away the single most important thing to focus in on is that Auryn accomplished all of this with only 70 million shares issued and outstanding.
