Auryn/Medinah 2026 1st half General Discussion

A little more clarity from AI:

Municipal Authority Over Auryn’s Mining Camp: What Can Curacaví Actually Do?

The Short Answer

The Municipalidad of Curacaví has real but very limited authority here, and it is far weaker than its declaration makes it sound. The mayor can create serious nuisance and political pressure, but has essentially no direct legal power to stop actual mining, processing, or tailings operations. Here’s why.


1. The Building Permit Question — The Mayor’s Strongest (But Still Weak) Lever

Chile’s Ley General de Urbanismo y Construcciones (LGUC), Article 116 (DFL 458) establishes the general rule that construction of buildings and urban works of any nature — urban or rural — requires a permit from the municipal Dirección de Obras Municipales (DOM).

Under Article 116, the construction, reconstruction, repair, alteration, expansion, and demolition of buildings and urbanization works of any nature, whether urban or rural, require a permit from the Dirección de Obras Municipales at the request of the owner. Leyes-CL

This is the legal hook the mayor is using. If the mining camp’s habitation buildings, administrative offices, and warehouses were built without permits, the DOM has a legitimate basis to issue a paralización de obras (works stoppage) or denuncia (formal complaint) against the unpermitted structures.

However — and this is the critical limitation — mining infrastructure works are explicitly outside this framework.

Hydraulic, electrical, and mining infrastructure works are not expressly exempted from Article 116 because they are naturally not covered by it at all — they do not have the character of “buildings” or “urbanization works.” Chilean government circulars (ORD CIRCULAR Nº 815 of 1996 and DDU Nº 218 of 2009) from the Ministry of Housing and Urban Development confirm that such works do not require intervention by the Dirección de Obras Municipales. The Contraloría General de la República has issued multiple opinions confirming that this class of infrastructure requires no municipal permit. Cde

This means the flotation plant as a mining process installation, the tailings storage facility (TSF), and the wellfield infrastructure are almost certainly outside the DOM’s permitting jurisdiction entirely. The municipality’s declaration may cover dormitory/accommodation buildings, the cafeteria, the administrative offices, and similar habitation structures within the camp — but even that claim will be contested.


2. Can the Municipality Stop Mining, Flotation, or Tailings Operations?

No. This is the clearest part of the analysis.

Regional governments, provinces, municipalities, and other administrative entities have little or no authority over the mining sector. Municipalities are restricted mostly to granting extraction permits over surface clays, sands, rocks, and other materials directly used for construction, which are located within their territory. Lexology

The Chilean Constitution vests ownership of all mineral deposits in the State, and the concession system operates entirely outside municipal control. Under the Organic Constitutional Law on Mining Concessions, exploitation concessions are real rights distinct from and independent of the surface real estate (Article 2), with no depth limit (Article 3), and owners of a concession are the only ones entitled to sample and dig in their concession. Wikipedia

The main permit required for mining operations is the environmental permit known as the Resolución de Calificación Ambiental (RCA), granted by the environmental authority after an environmental assessment process in which all public entities with environmental competence participate in a centralized manner. Municipal participation occurs within that process — it does not stand outside it as an independent veto. Lexology

So: once Auryn holds a valid RCA and SERNAGEOMIN approvals, no mayor can shut down the pit, the flotation plant, or the tailings facility through a building permit declaration.


3. What Actual Enforcement Tools Does the Municipality Have?

The municipality’s tools are narrow and mostly structural/civil:

What it CAN do:

  • Issue a formal paralización order for the specific unpermitted buildings (habitación, offices) under the LGUC, requiring the company to either demolish them or regularize through the DOM permit process.

  • Refer the matter to the Contraloría Regional or the judiciary if the company ignores the order.

  • Impose minor fines under the LGUC for unpermitted construction (these are generally small relative to a mining operation’s scale).

  • Deny future municipal licenses or patentes for commercial activities based in those structures.

  • Generate political and media pressure that may complicate social license.

What it CANNOT do:

  • Order cessation of mining, blasting, or ore extraction — SERNAGEOMIN jurisdiction.

  • Shut down the flotation plant — subject to the RCA and SERNAGEOMIN oversight.

  • Order closure of the tailings facility — governed by SERNAGEOMIN under DS 132 (Reglamento de Seguridad Minera) and the RCA.

  • Interfere with the mining concession — a court-granted property right.

  • Block roads on public rights-of-way to prevent access (Carabineros/MOP jurisdiction).


4. Auryn’s Recourse to Reoccupy and Restart Operations

Assuming Auryn holds a valid RCA, SERNAGEOMIN approvals, and mining concessions, their path is well-established and legally strong:

Step 1 — Challenge the municipality’s declaration directly. File a recurso de ilegalidad municipal before the Corte de Apelaciones of Santiago (or the regional court), which under Article 151 of the Ley Orgánica Constitucional de Municipalidades (Ley 18.695) allows any person harmed by an illegal or arbitrary municipal act to seek annulment and damages. Given the doctrinal clarity that mining infrastructure doesn’t require DOM permits, this is a strong claim.

Step 2 — Engage SERNAGEOMIN. SERNAGEOMIN (not the municipality) is the competent authority over mine safety and operations. Auryn can request SERNAGEOMIN formally confirm its jurisdiction and, if needed, issue a statement that the mining operations are authorized and within federal regulatory control — effectively preempting the municipality.

Step 3 — Regularize what genuinely requires permits. If dormitory or administrative buildings were in fact built without municipal permits, the pragmatic path is to simultaneously fight the illegality claim while filing for regularización of those structures under the LGUC. This neutralizes the municipality’s strongest legitimate argument and restores access to the camp buildings.

Step 4 — Seek precautionary relief (medida precautoria). In parallel with the recurso de ilegalidad, Auryn can seek an injunction from the civil courts protecting their concession rights and enjoining any municipal interference with operations covered by national permits.


5. The Ferry Workaround Question

Yes, workers can legally be transported from a nearby town (e.g., Curacaví town center or Lampa) to the concession area by vehicle on public roads. A mayor’s declaration about unpermitted camp buildings does not create a legal authority to blockade public roads or prevent workers from entering the concession area on foot or by vehicle. Carabineros would not enforce a road blockade absent a court order, and no court would issue one based solely on a building permit dispute.

That said, this is operationally costly and creates friction — particularly during the protest environment. If activists (rather than authorities) physically block the access road, the company’s remedy is to request police intervention, which the current political climate around environmental protests in Chile makes complicated in practice.

The more durable solution is the legal route in steps 1-3, which can realistically produce a result within weeks to a few months given the clarity of Chilean law on municipal versus national mining jurisdiction.


Bottom Line

The mayor’s declaration is primarily a political act dressed in legal clothing. It has real teeth only over the camp’s habitation structures, and even that claim is contestable. It has zero legal authority over the mine pit, flotation plant, or tailings facility. With valid federal permits in hand, Auryn’s legal position is strong, and Chilean courts have a well-established doctrinal basis — confirmed by the Contraloría General and MINVU circulars — for setting aside this kind of municipal overreach into nationally-regulated mining operations.

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Mike,

Your mastery of sucking every morsel of information on a topic via AI is truly remarkable. We all thank you kindly!

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Now, a wait and see on how long it takes to hear from the Man.

It reads like this response is working under the assumption that the permitting issues are specifically related to the “mining camp.” It seems more likely that this will become an environmental conflict (not a building permit question). I have no doubt that any PR from AUMC (insane that one hasn’t already been issued) will downplay the signficance of any hurdles going forward but, keep in mind, they already claimed to be running material several months ago. Without municiple permits?

In your earlier post you provided the necessary steps to alleviate this issue. Application with the RCA which will obviously be rejected and requiring an appeal to the environmental courts. If the permits in hand are sound there should, ultimately, be a favorable resolution over a long stretch of time. This being said, its very difficult to run a mining operation, and even more difficult to scale, when you don’t have the local communities in your tent. While it might be “illegal” to block roads or impede operations, that will do very little to disuade the locals from doing whatever they deem necessary. AUMC will ultimately need to find an avenue to make nice nice with the yocal locals. Welcome to mining in South America

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Few more details available here:

“immediate and total shutdown of all plant functions”….”areas of environmental and heritage risk” was identified by inspectors for the “Directorate of Environment, Cleaning and Beautification”

“Operations will remain suspended indefinately, opening a period for legal representatives of Minera La Fortuna Lampa to present to the municipal offices the relevant documentation and technical background to regularize their legal situation.”

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AI Translation and Impact

This article reports that the municipality of Curacaví, Chile, ordered the closure of the mining operations of Minera La Fortuna Lampa after an inspection found the company was operating within Curacaví’s jurisdiction without the required municipal permits.

Key points from the report:

  • Municipal inspectors determined that the mine’s facilities and infrastructure are located within the boundaries of Curacaví, specifically in the Cerro Carén area.
  • A review of municipal records found that the company lacked the local permits and authorizations required to conduct its operations.
  • Environmental officials also identified potential concerns involving the nearby Estero Puangue watershed, native forest areas, and archaeological heritage sites.
  • Based on these findings, the mayor of Curacaví issued a closure order, requiring the immediate and complete suspension of plant operations.
  • The suspension is indefinite while the company’s legal representatives are given an opportunity to submit documentation and technical information to regularize the operation’s legal status.

For investors or observers of mining projects, the significance is that this appears to be a permitting and jurisdictional enforcement issue rather than a final revocation of mining rights. The company may be able to resume operations if it successfully obtains the necessary permits and satisfies municipal requirements, but the article does not indicate how long that process could take or whether additional environmental reviews may be required.

Assess the potential impact on production timelines and valuation

Based on the article you shared, the key question is whether this is:

  1. A short-term permitting dispute that can be cured in a few months, or
  2. The beginning of a broader environmental/community challenge that triggers multiple regulatory reviews.

The valuation impact can differ dramatically.

Base Case: Administrative Permitting Issue (Most Likely)

The municipality’s order appears focused on operating without local municipal authorizations rather than a finding that the mineral resource is invalid or that mining rights have been revoked.

In many mining jurisdictions, these issues can be resolved through permit applications, fines, operating plan revisions, and negotiations with local authorities.

Potential timeline impact

  • 1–3 months: minimal disruption if permits are largely in order.
  • 3–9 months: more realistic if additional documentation is required.
  • 6–12+ months: if environmental agencies become involved.
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I’ve never read any post claiming a future $30 pps for AUMC. Any speculative claims are usually said tongue-in-cheek and might come across as humor — hence your inclination to laugh. :wink:
No worries. In reality, a claim of $30 pps was mentioned “theoretically;” not to make predictions, but to illustrate how share prices can climb under certain circumstances. I’m guessing that you were referring to the following post …

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I’ll restate my question again, why should we trust these guys to do ANYTHING RIGHT? They’re over here bragging about how environmentally compliant they are yet they dont even know how to file and obtain the required permits?

Hey Wizard, can you be unbiased and admit that MC f**ked up? The never ending story……….

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So this isn’t just about the camp? It’s about the operations. Remember when Wiz was hinting at July 2025….:roll_eyes:.
Whats next?, our AUMC share conversion is going to get f**ked too? Not a word on that after several months. Silence does not equate to “GOOD” things with this investment. It usually means things are FUBAR.

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Just need to apply a bit of common sense. A mayor isn’t going to show up to close a mining camp (with an associated video using an ACDC soundtrack) to close a bunk room while allowing a mine to operate. Again, my familiarity with these issues is more related to Peru where community spats can be extremely challenging. Chile will have its own nuances but the “environmental” concerns will be what they try to leverage. Regardless of any actual concern for the environment. It would be very helpful to know if they used geotubes in their tailings which pretty much eliminates spillage. There’s so little information on the important, granular details, that investors are forced to operate in the dark or just make up their own version of reality. The latter gets pretty old and has never proven to be accurate.

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Ironically. That was from Jan of 2025, in response to my questioning the pace at which they were trying to advance the project BEFORE having the permits in hand. They have stated they received the federal (Sernageomin) permits but maybe they missed the municiple ones given their “reverse order” approach. Can only speculate.

Its good to see a bit more details on progress on construction. Not sure having Starlink is worthy of a PR but baby steps. The only point of confusion: until Sernageomin issues the engineriing permit, AUMC can’t really do much to advance the construction. Even ordering custom parts/equipment for manufacturing can be a risky endevour prior to a permit. By way of example, the company I’m involved with in Peru experienced 9 months of delays b/c it took them 6 months to get their engineering permit (maybe Chile is more responsive?) and therefore could not begin construction nor order key equipment until after receipt. The permit required several modifications to the proposed flow sheet. If they had already strarted to build the plant it would have been an issue.

Similar to AUMC, the Peruvian company issued debt to finance the plant. A CP (condition precedent) of the first tranche was receipt of both the environmental and enginerring permit. This is pretty standard. Because we have no details of the debt facility one can only speculate but I’d be surprised if they have access to $ (beyond the $500k already received), until the second permit is issued, to start allocating $ to construction.

I would be impressed if the company is able to be in production prior to 2026.

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This one is a keeper

There’s a good reason very few people attach not even an ounce of credibility to what you say:

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That’s been their loss. What is the purpose of including links of past PRs? I would point out that a) they have been inaccurate as it relates to any timeline b) the last company update was from January where they were guiding towards completion of plant construction with commissioning to follow by late January and c) the only information covering a VERY material event can be found on an investor message board. If you equate that to “being very good about keeping investors informed on a regular basis”, your bar is just as low as the company you keep.

In the same post, you speculated that the six months of silence could have been because some of the big boys were considering a buyout or stake. Or maybe Glencore was buying their silence so they could get in on the cheap (LOL).

There’s nothing wrong with being of the mark but if you’re going to be “loud” in expressing your aspirational speculations, its a bad look when you get emtotionally defensive every time you’re called out.

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Me getting emotionally defensive?

Honestly, I don’t give one %&#$ what you have to say - and ignore you 99% of the time, as I know the source of your bitterness.

But, I think I’ll let the rest of the local denizens make that judgment. You being here talking about this stock and constantly criticizing management (accusing them of malfeasance), when you admittedly don’t even own it is a case all its own. I’m trying to think of just ONE stock that I used to own where I go on their chat board to talk … and I’m coming up dry. I have much better things to do. There’s a reason for that. Get help.

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You participate in multiple chat boards? And I need help?

And yes, you’re entire post is an “emotional” response b/c you have no grounds to defend yourself. If you don’t care what I have to say try to avoid responding to 99% of my comments. I actually still own a couple million shares of MDMN in a legacy IRA account if that makes you feel any better. However, unlike you, I don’t let owning or not owning shares bias my analysis.

In an attempt to keep you focused: you’re claiming that AUMC keeps shareholders updated on a regular basis while the mine has been shut down and the last update from the company was in January. I disagree with your assertion.

In my opinion, they’ve obviously done most things right otherwise they wouldn’t have come this far. And they can’t really be criticized with ‘all or nothing,’ either. However I do agree that communication is definitely not their strong suit.

Yet still, none of this means MC or the current BOD are untrustworthy or deliberately deceitful. I don’t think this will negatively affect a profitable outcome for us. But they sure tend to run head on into the craziest of setbacks within or without their control. Right now, we cannot say for certain that they failed obtaining any permits. We’ll soon find out.

In OTC land, companies are not required to announce every detail. Sadly, AUMC does not either — Too many details are left unknown. This long period of the operation shut down needs an explanation. Especially since my Schwab account shows zero activity on AUMC’s fundamentals since 6/9/25. Was trading halted too?

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Snide remarks by a former shareholder fail to carry much weight with those here that have stayed informed. Perseverance has it’s own rewards. It is unfortunate this poster who lost his shares was badly bitten by his incredibly smartest sense of investment. He forgot to learn one important lesson … that the school of hard knocks also teaches when it is time to move on. Perhaps one day, soon.

EM

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From Feb in response to my saying “come back to me in 9 months when the realities of actual mining come into play.

I’m watching. September is just around the corner.

EZ, in reviewing your 2026 “contributions” you clearly have a fascination with the Lassonde Curve (which has zero relevancy) while predicting an imminent uplisting (never happening with their disclosures, financials, or trading volume), and, similar to Bubba, an inability to discuss the issues vs make personal attacks.

An informed individual wouldn’t dismiss my points (which have mostly been accurate) simply b/c I’m not a shareholder (which also isn’t accurate). While you and the vocal minority were predicting price targets and timelines to mid-tier mining status others, grounded/humbled by historical context and experience investing in actual mining Co’s, were flagging the pace at which AUMC was advancing the project prior to receiving permits.

It begs the question: who looks more informed at this point? Or the dozens of points preceding this latest hiccup? The archives are available for anyone to review.

My final thoughts/conclusions on this is that Auryn’s work is still proceeding on the mountain(including mining) within the constraints of the mining camp closure. Doubt we will hear much until the camp operating permits are issued which could be awhile. (I will keep an eye out still if there is any news locally.) Till then, enjoy your summer vacation!

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