Cerro/Medinah/Auryn- 2018 Q1 General Discussion 🌄

At least gold and copper seems to be in a bull market, that’s a plus for us.

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It looks like they finally took out the seller at .0033 and we are getting some real action! All I can say it is about time, even though I still had some more buying to do!

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Now that there won’t be an IPO, can they at least give some information, like the Sillitoe report.

Just noticed there’s a MDMN Board on Itapatalk, and a few of you are on there, but no post in 2017.

Bubba. Rest assured. There is no “smart money” in this investment. In order to be smart one needs an edge and without information there is no edge to be had. There have clearly been some delays in ramping things up. Show me a mining operation where that’s not the case. However, as progress is made and information is disbursed the market will begin to discount the “smart money” value attribution.

All of the theories about the company holding back information in front of the “Big IPO” where, “shockingly,” misplaced. The market would never have supported a typical IPO for a company at Auryn’s stage of development in these continually challenging markets for the precious metals. A pseudo RTO into CDCH made/makes the most amount of sense.

Another theory worth debunking: that there are some evil, ulterior motive sellers of this stock who are looking to manipulate the share price lower. For simplicity’s sake, we are dealing with an approximate value of $50M for Auryn. I would welcome a debate on whether a $50M valuation is high or low but that is the current value the market is assigning. I believe, given the limited amount of information we currently have that $50M is somewhat generous. I have direct and indirect exposure to dozens of companies with similar market caps that are both ahead and behind Auryn on various measures. There’s one company, in particular, with $20M in cash, going into production next year (project 100koz for the next many years), trading with a $45M market cap.

Yes, the market is corrupt for some and unforgiving for the uninformed but I can’t wait for the day where the conversation on this board evolves to one of fundamental discourse and debate. First we need more info from the company. Secondly, we need less people taking the easy route in explaining the endless selling vs. what the market is actually supporting on a comparable basis.

Food for thought.

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What is the property alone worth? 60 sq miles with infrastructure… roads, water, electricity, near a big city.

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Elevation too low to turn into a ski resort.

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I believe the Cerro “Management Team” page has been updated since the last time I looked before Jan 1 (maybe?). Assembling quite a crew:

http://cerrodorado.com/management-team/

Now includes a COO and a “mining claims advisor”

I think that page is a new one. Most but not all of the individuals were listed previously in the claims announcement:
> http://cerrodorado.com/cerro-dorado-acquires-auryn-mining-claims/

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Did you notice this gentlemen? Looking at his profile, I’m guessing he was hired on to work on environmental impact statements/permitting which suggests plans for expanding mining operations:

David Brownrigg

Searching for Opportunities Professional Mining Engineer - Exploration, Feasibility Studies & Operations
Exploration, Study Stage or Operations. Laurentian University
Peru

  • Canadian Citizen, Peruvian Resident - 18+ years’ progressive construction and mining engineering
    experience in Canada and Peru. - General Manager for Mantaro Peru SAC in Peru developing the Phosphate Project in central Peru with exploration programs and various studies. Pre-feasibility and exploration. - General Manager for Marcobre SAC in Peru advancing the Mina Justa (Copper, Silver and Gold) project feasibility study and environmental impact study. Very detailed and involved several local consultants. Also, highly involved in the due diligence and sale of the company. - Project Engineer for Washington Group International. Dedicated mine contractor for Agrium´s Kapuskasing Phosphate Operation. Various roles focussed on engineering and production goals. - Seconded as a Teck Corporation employee to the Antamina (Moly, Zinc…) Project in Peru. Member of the development team during the start-up and was involved in training and infrastructure planning. - Various engineering roles at Teck Corporation Coal operations in British Columbia. - Experience in management including engineering, geotechnical, operations, planning short and long term, site preparation and blasting. Exploration, environmental impact assessment, feasibility studies, various permits, due diligence studies, communication at the board level as well as at ministerial and regulatory levels. - Proficient Spanish. Qualified Person for various documents and news releases.

Experience
Exploration, Study Stage or Operations.
Professional Engineer - Mining - Searching for Opportunities
Company NameExploration, Study Stage or Operations.
Dates EmployedJul 2015 – Dec 2016 Employment Duration1 yr 6 mos
LocationOpen to discuss
Open to discuss opportunities. Available with short notice.

Mantaro Peru SAC (TSX- Stonegate Agricom) PHOSPHATE
General Manager
Company NameMantaro Peru SAC (TSX- Stonegate Agricom) PHOSPHATE
Dates EmployedMar 2011 – May 2015 Employment Duration4 yrs 3 mos
LocationLima, Peru (Project in Junin near Huancayo)

  • Engineering, community relation activities, coordination with consultants.
  • Budget and expense controls. QP for news releases. Participate in regular corporate meetings.
  • Key coordinator for the Submission of the EIAsd, Environmental Impact Assessment, semi detallado. Drill Permit Application for an 18,000 meter drill campaign in the proposed project development area. Permit granted by Ministry of Energy & Mines February 8, 2012. Pre-Feasability Study advancement.

Marcobre SAC (formerly Chariot Resources (TSX)/CST Mining) COPPER, SILVER, GOLD
General Manager
Company NameMarcobre SAC (formerly Chariot Resources (TSX)/CST Mining) COPPER, SILVER, GOLD
Dates EmployedAug 2007 – Mar 2011 Employment Duration3 yrs 8 mos
LocationLima, Peru (Project in Marcona, Ica/Nasca)

  • Responsible for engineering activities & coordination with consultants for the Definitive Feasibility Study & 43-101 reports. Completed August 2009. US$ 750 million investment required.
  • Responsible for the Development and Submission of the ESIA, Environmental Social Impact Assessment. Submitted November 2009, Approved September 2010.
  • Coordinator of the Construction Permit.
  • Key coordinator in the Due Diligence process during the sale of parent company.
  • Budgets, cost control etc…

Washington Group Northern Ltd. PHOSPHATE PROJECT
Project Engineer - Mining Contractor
Company NameWashington Group Northern Ltd. PHOSPHATE PROJECT
Dates EmployedAug 2006 – Aug 2007 Employment Duration1 yr 1 mo
LocationKapuskasing, Ontario (Project Agrium Phosphate Operation)

  • Project/ Site Engineer for the Contract Miner (Washington Group International)
  • Responsible for engineering activities at Agrium owned Phosphate Operation, daily focus on engineering and production requirement goals. - Prepare mine plans, various reports, blastng, budget and cost control. Reporting, contractor, head office and Agrium.
    Jager Building Systems Inc. (Division of Tembec Inc.); Millwork Buiding Supplies
    Design Engineer – Eastern Canada Distribution (Wood & Steel Products)
    Company NameJager Building Systems Inc. (Division of Tembec Inc.); Millwork Buiding Supplies
    Dates EmployedMay 2001 – Jul 2006 Employment Duration5 yrs 3 mos
    LocationBolton, Ontaro; Bowwmanville, Ontario
     - Responsible for engineering activities for Eastern Canada, three direct report technicians
     - Provide professional design advise, review and seal drawings for residential & commercial projects, daily use of the National and Ontario Building Codes
     - Act as liaison between construction companies and technical design staff
    See more positions
    Education
    Laurentian University
    Laurentian University
    Degree NameBachelor of Engineering (BEng) Field Of StudyMining Engineering
    Dates attended or expected graduation 1994 – 1997

Universtiy of Toronto
Universtiy of Toronto
Degree NameBachelor or Science (BSc) Field Of StudyZoology, Science
Dates attended or expected graduation 1988 – 1992

Professional Engineers Ontario
Professional Engineers Ontario
Degree NameP.Eng. Field Of StudyMining Engineering

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From Auryn’s December release…

As the majority owner of Cerro, we look forward to working with current Cerro management. This includes the following:

"1.Creating a management team and Board of Directors suitable for an exploration company intent on becoming a junior and major mining company."
It seems that this has been accomplished.Now whats comes next I would like number 2!:yum:

2.Launching a massive exploration program on the Altos de Lipangue mining district including entering JV agreements with companies that have the specific expertise necessary for exploring and mining the variety of targets we believe we have in the district.

3.Focusing our resources on becoming an active gold producer by reopening the Fortuna gold mine and actively exploring and mining the gold veins found in the Larissa tunnel.

4.Subject to regulatory approval, consolidating the capital structure, changing the name of the company, and moving to a higher exchange or tier on the OTC.

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I do like the robust individualism (at least) espoused by these gentlemen - they’re talking a good game of the “can do” attitude. The longer we do as much as we can ON OUR OWN, the better off we will be in the long run. But, they’re also smart enough to know what they CANNOT handle and are willing to hire experts … apparently. Again, lots of TALK here - can’t wait to see the action.

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They have to be generating some kind of revenue already. How are they paying these guys?

Shares…?

What kind of budget are they working with to accomplish meeting all 4 stated goals? It does look like there is quite a payroll in place to have assembled a full compliment of management & employees dedicated to Cerro:

Dante Conetta, CFO
Tomas Valega, COO
David Brownrigg, Senior Mining Engineer
Senior Staff
Christian Hub, Senior Geologist
Italo Volante, Legal and Environmental Counsel
Matias Ruiz, Logistical Manager
Edwin Yarihuaman, Data Management
Patricia del Carmen Opazo, Mining Claims Advisor

It will be interesting to see what is on financial statements that come out in the next couple of quarters. Will AURYN have updates on their website that Cerro mirrors? AURYN proper must have quite a hefty sized payroll to meet and run it’s operations also. Is the Larissa vein expansion project (Adit 3) going as well as originally anticipated? Did it extend all the way up to Adit 2, or is the hi-grade vein in Adit 2 a separate vein than that of the Larissa? Has AURYN been actively mining during the period of silence and making progress that will answer these questions?

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Could very well be

DoneDeal: “They have to be generating some kind of revenue already. How are they paying these guys?”

TradeRich: “Shares…?”

Madmen: “Bitcoin?”

MASGLAS likely footing the bill for now.

If they’re accepting Bitcoin for work done I’d be concerned.

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Whenever I/we did s start up company, we made sure the people we hired had a solid income. I guarantee these guys are not sitting in an office with cubicles and plate glass staring at each other. The ongoing huge payroll wouldn’t be supported by any means unless the company was producing, so sorcing out is what makes the most sense. Something that you could accomplish with out doing this full time for one company, thus the pay is scarce and as I think TR was referring, most are willing to work for share’s as they believe there “IS” gold in them thar hills, this reducing overhead and thoughts of extreme rewards down the road. Sometimes the problems that you run into is that the amount of time one may have to spend becomes a little taxing compared to rewards thus the high rate of turnover of personnel. The closer the group gets to achieving a self sufficient company the stronger the team and you will notice that it will be a much tighter group with stronger communication skills… Moo, but that would be my approach…

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One thing shareholders need to keep in mind - Auryn, like any legitimate mining company, is in this to make money. No legitimate company likes or wants to sell shares to fund operations, because that dilutes ownership - theirs and ours. However, as a non-producing startup, until they start producing there is no other alternative aside from incurring debt. Maurizio and Auryn know they need to get a production stream in place ASAP and they were working on that initially; however, they encountered unanticipated issues (regulations/permitting, weather, loose rock, veins veering from projected path, extra chimneys, etc.) along the way which hampered their initially publicized production goals. These aren’t excuses, they are the realities of mining.

With the spring I hope to hear something about their efforts to ramp up production in the upcoming weeks/months, but even as anxious shareholders, we have to remain patient and understand that mining is not a quick, simple or straightforward process. It takes patience, time, money, skill and yes, some luck. So when I hear someone saying “They should be producing by now” - well, that’s a limited and naive perspective and assumption taken from the comfort of our computer screens. That expectation doesn’t necessarily match the realities on the grounds and in the tunnels of the ADL. I know Kevin tried to re-educate this shareholder mindset during his tenure as CEO. And I think most MDMN (soon to be Auryn) investors in the post-Price world realize this, or are at least they are coming to realize this.

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