The Mining Play

Cerro/Medinah/Auryn- 2018 Q2 General Discussion ⛰


#489

few things there Wizzard as a business owner a real one not the scumbags that I fell for I would have 1 not stole from us. 2 never would have agreed to a carried interest if I was already broke. 3 held the new company accountable in keeping us informed. With that said the people that have invested with us were scammed as well by these idiots and are working through the garbage left behind. None of this is the investors fault but believing all parties. Its been a very long time since w actually heard progress and actually been assured we are still on target. I just want to understand where we are and where we are headed. this has been a decade of bleeding and I just want to see if we are able to get out of this with a few bucks.


#490

Maybe I didn’t express it clearly enough. I’m asking you to put yourself in AURYN’s shoes, not Medinah’s. Think from AURYN’s side and don’t let your investment in the rags to riches dream bias you.

If you were AURYN, are you giving Medinah a lot of up $100 million cash and a 15% free carried interest for a modest portion of speculative mining district when it has very little work done on it?

No way!!! Yet most of us throw our own bias and hope believed the lies that that LP and company were selling, i.e. we were millions up front and a 15% FCI.

The lies are on LP. Each of us can own and learn from our own naivete in believing it or not.

My point is, your initial post reiterates the same complaint that expects the lies to be true. Basing your complaint on the lies does nothing but reinforce the belief in the lies to those who have yet to come to terms with the loss and level of deceit that we gave into.

I cannot make it any clearer.

  • Medinah never owned the entire district and neither did Cerro.
  • Medinah was never going to get a huge JV with money up front and an FCI
  • Medinah had well over 2 billion shares + preferred shares issued before they signed the initial option.
  • The initial drilling did not indicate a huge porphyry so the option was never going to get exercised.
  • For over 8 years Medinah care/of LP was filing false financial statements on OTC Markets.

Yet for all that time, we were told and believed the opposite.

I want to see that too. However, I don’t need to be coddled or spoon fed lies at this time to placate my own insecurity about my investment. (I’m not saying you or anyone else does. However, I did before which is why I believed all the lies.) AURYN is making a legitimate go of it as best they can given their constraints. I’ll leave them to do that and see where the chips fall.

AURYN, CDCH, and MDMN made it clear what the path is in the update last December. The capital structure is being consolidated into CDCH and they are looking for a JV along with moving forward on the exploration and development of a couple of targets.

If there is substantive progress toward that, I expect to hear about it. Until then, apply Occam’s Razor: nothing has changed yet.


#491

So LP steals millions of $s by lying, falsely issuing shares and selling them on the lies and is not in jail or dead.
Everyone knows this to be true yet he’s still a free man. We’ve heard his issues needed to before things could move forward and appears to be for slight recovery of where we are now.
If the pps is not going to recover I’d rather see that POS suffer.
Kevin, you made mention of the property being everything you thought it was after your trip to Chile and I think we all appreciated those comments and I was a buyer again after hearing that.
Auryn has lost $ but they also stand to make a ton back with their heavy ownership of the district if the property has what we think.
I appreciate what you are telling us but there are things Auryn can safely say unless the whole thing is still largely at risk. Since they’ve taken over our pps has tumbled down and down and down.
If that’s true, there’s still a chance we make nothing on our money and in fact lose it all.
Yes, we could sell now but at this point I’m looking at a heavy tax write off instead of the crumbs left.


#492

It’s not the first time it’s happened and won’t be the last. I spent a significant amount of time going over everything with the SEC to prevent a halt and demonstrate the company’s position as stated in the lawsuit it filed against LP. We were not halted. I agree with you that most people believe LP was culpable based on the record and statements from the directors and the allegations in the lawsuit. However, the government rarely goes after small time crooks when they see little chance of recovery for them, especially in a market that they deem unregulated, buyer-beware, etc.

This story is a repeat of many before it and I was arrogant to think that I was the exception, I wouldn’t get taken. Never believe and hold story stocks in the pink sheets. Never. That’s my view today.

Kevin, you made mention of the property being everything you thought it was after your trip to Chile and I think we all appreciated those comments and I was a buyer again after hearing that.
Auryn has lost $ but they also stand to make a ton back with their heavy ownership of the district if the property has what we think.

This was my trip report.

“The ADL is truly a massive greenfield mining site.”

It’s still high risk with great targets and a possible significant economic find. Until it’s not a greenfield, that remains the case.

This is mining. There is absolutely a chance that the property is not economically viable.

Auryn can say a lot of things. Given the history and the crazy speculation that shareholders make and continue to make at times, they prefer to say what is real and limit the forward looking statements.


#493

Are you saying that all of the geo speculation/analysis over the past 20 years was misplaced? Brecciaboy would probably dispute your point that the project didn’t become economic until Auryn spent a few million $$ on development. I’m not disagreeing with the majority of your points but to say that we were sitting on an empty hole for two decades seems like a gross exaggeration. Even Nuoco advanced the project. It’s not like Maurizio got us much closer to being able to define a resource. He didn’t show up on the scene because he didn’t think there was incredible value present. Obviously Les misled everyone to the terms and timing of deals, the capital structure, etc. but he didn’t have as much influence on the underlying asset, IMHO.


#494

I do believe much of the geo speculation / analysis over the past 20 years was misplaced.

Baldy, we both know that the project has yet to demonstrate it’s economic. It will take a lot more than the consolidation of claims and the several million spent to date to demonstrate economic viability.

Nuoco did not advance the project. In fact, they set it back with how they approached it, imo.


#495

In other news unrelated to Medinah and Cerro, but involving our largest shareholder.

https://globenewswire.com/news-release/2018/06/29/1531932/0/en/Western-Troy-Announces-RTO-with-MASGLAS-Peru-S-A-C-and-a-One-for-Five-Share-Rollback-of-its-Common-Stock.html


#496

I guess Brecciaboy’s book has to go back on the shelves.

Of course it’s not economic. Technically, no project is economically viable until it has completed a bankable feasibility study or, at a minimum, has established reserves but there can still be value, even at our present stage. I can’t comment on what Maurizio has accomplished or spent because there hasn’t been enough disclosure of the same. We are undeniably in better hands.


#497

Refer to this time line:

The original MDMN / Auryn JV was signed in June 2014:

After the first phase of work done on the Gordon Pipe had mostly been completed, I think it became obvious the Pipe was no easy target and not easy or cheap to exploit or maybe not even economic on its own.

Auryn then turned to the Merlin veins as an easier target. And by Sept 2015, one year later they had spent $4.8M on exploration:

AURYN has spent over US$4.8 million to date within the JV partnership with Medinah Mining Chile (MMC).[1]

Obviously they spent millions more on the Caren development thru late 2016 when things started to grind to a halt. They also added 3400 hectares under their control to those hectares which had been under control of MDMN, CDCH, LDMC, NUOCO [1] to reach that total of 10,500 hectares they have spoken of since the final consolidation in May 2016.

They may have announced other totals later but I haven’t been able to find them.

In spite of this, it is obvious that there are millions and millions more to spend before all or even most of the targets on the ADL are explored / understood. The Caren mine seemingly is the closest to some kind of return on investment made to date.

==============

  1. https://finance.yahoo.com/news/medinahs-option-agreement-partner-auryn-152900646.html

#498

THanks Wizard I am merely asking for Auryn to update us as little progress that might have occurred a year has gone by there should be a progress report and what has transpired. I dont need to be coddled not one bit by money sitting here Need some type of encouragement to stay here. Or for that matter more to see if we can make money on this new ERA. I am waiting its only been a decade to see this happen. I also know LES and company have screwed us big time. I also know roundmot deserves that apology from the AGM who solely stood up and question the guy in the jumpsuit and got hell for it. :slight_smile:


#499

Yes many of us are simply asking for Auryn to act responsibly as they did in the beginning and keep us informed on what is going on. Not a difficult request and one that shouldn’t even need to be asked because that is the responsibility of management to its shareholders. Yes I know Auryn is private but MDMN is not and using that as an excuse is simply unacceptable and lame since doesn’t say much about the character of Auryn. JMO


#500

Happy Independence day to everyone!


#501

Looking forward to Financial Independence Day!!:joy::rofl::joy::rofl:


#502

So, we were talking about 5,000 ounces in 2016 and then 25,000 ounces in 2017, and we were being “conservative”.

We were conducting runs for metallurgical purposes.

Then, Dr. Sillitoe shows up on the scene in February, 2017.

Our guys say the results of his studies are going to be for the use of the company only.

So, something must have happened to make it so our anticipated production was either not worth it or there was something better to come.

We don’t know.


#503

Just reading between the lines on Kevin’s most recent posts.

“Only thing I can say wrt to CDCH and MDMN is read the last news release and wait patiently for a bit longer.”"
The story is FAR from over."

“AURYN, CDCH, and MDMN made it clear what the path is in the update last December. The capital structure is being consolidated into CDCH and they are looking for a JV along with moving forward on the exploration and development of a couple of targets.”

“If there is substantive progress toward that, I expect to hear about it.” Until then, apply Occam’s Razor: nothing has changed…yet."


#504

It was June 2016 when AURYN 1st announced:

These results make us confident that we can produce a total of 5,000 troy ounces of gold before year-end 2016, and over 25,000 troy ounces in 2017.

Obviously, as we all know this did not happen. So what did happen? Many have already commented on this. Impugning the integrity of AURYN because of the silence just does not work for me. As much as we’d all like to hear exactly what is going on it is AURYN, and not Medinah or Cerro, that will determine when we hear something concrete. Medinah and Cerro have little to say on this other than what is minimally required to be filed with the alternative reporting requirements for the OTC filings.

The entire intention and purpose of going public was to raise cash for mining operations, exploitation and exploration, and gain exposure on the international markets as a Foreign Private Issuer. This was largely derailed, the full extent of which was not known until October 2, 2017 with settlement of the last lawsuit. It appears to me an alternate plan and method is presently underway. I conclude this resulted due to the complications and uncertainty brought on by Medinah having to deal with the multiple lawsuits. Not an excuse, it is just a fact. AURYN must earn a reputation of honesty by creating results if it is to succeed in becoming an active gold producer and entering JV agreements.

We were actually told some time ago that AURYN may hold back the release of public information from time to time for its own strategic reasons. I think Dr. Sillitoe gave AURYN sage advice on how and where to move forward. During the year of 2016 there was a great deal of activity and progress moving forward with 13 notifications coming directly from AURYN. Little was held back during this time as there was a great deal of optimism that the Okanadian scrivener’s error was a minor slip and would be resolved amicably. This was a major miscalculation as things unfolded.

What we heard from Medinah was:

On January 1, 2016, the Company entered into an agreement with Okanadian Management Corp whereby Okanadian would purchase 100,000 shares of Class C Redeemable Convertible Non- Voting Preferred Stock of the Company. On January 11, 2016, the Company issued the 100,000 shares of Class C Redeemable Convertible Non-Voting Preferred Stock to Okanadian. Subsequently, due to a scrivener’s error in some of the documentation, a dispute arose regarding the number of shares to which Okanadian felt entitled. Discussions are ongoing to resolve this dispute.
https://backend.otcmarkets.com/otcapi/company/financial-report/155023/content

There was a great deal of good news while dynamically dealing with the increasing uncertainty created directly from the Okanadian lawsuit. The uncertainty became more severe as additional lawsuits were filed in Canada and continued to be dealt with during 2017. Note the following notifications from AURYN during 2016:

Discovery of Bonanza Gold Grades at Caren Mine within the Altos de Lipangue Project.

Positive Results in the Environmental Survey at Caren-Merlin-Fortuna Area in the Altos de Lipangue Project

Update on bonanza gold grades in Caren mine, have returned over 100 g/t Au at Fortuna – Merlin system in the Altos de Lipangue project, Chile.

AURYN Mining Chile SpA (AMC) Continues Land Consolidation Adds Three New Areas to Portfolio

Preliminary Exploration at Pegaso Nero Target Suggests the Discovery of a Copper Molybdenum Porphyry System within the Altos de Lipangue Project.

AURYN Mining Chile SpA (AMC) Signs MOU to Consolidate 100% of Altos de Lipangue Project

Completion of Shares Acquisition

Acquisition of Altos de Lipangue Mining Claims

Caren Mining Preparation Commences

AURYN & MEDINAH Informational Meeting

Additional Adit Uncovered During Caren Mine Preparation

ADL Project Update – November 2016

ADL Project Update – December 2016

A quick recap of events:
The flurry of several additional lawsuits filed by Les and his associated cohorts near the end of 2016 and into 2017 were clearly meant to destroy the company and hide the extent of the rampant fraud over the years. Over $345K was spent on legal fees to quickly resolve the lawsuits at a time Medinah was essentially broke. Considering the extent of damage to all shareholders there was actually little recovered financially, but the lawsuits were resolved with prejudice, meaning they were permanently resolved. 2017 was the year the “fallout” from these things had to be taken care of by Medinah and AURYN.

It was during this time, increased uncertainty forced AURYN to change how it would meet it’s intended goals and continue Medinah’s equity in AURYN. AURYN used this time in a cost efficient way that was difficult for shareholders to comprehend. It is keeping both Medinah and CDCH alive as corporations while doing what is necessary to secure and expand the claim areas adjacent to the known areas already under exploration. It is also on a path to convert MDMN’s AURYN shares to CDCH shares.

The efforts of AURYN speak much louder than the current silence. It is the integrity and character of AURYN that will result in success and a reputation earned only by results and performing to meet it’s goals. Shareholders have yet to see if Cerro/AURYN/Medinah can meet all regulatory requirements and gain the approval for consolidating the capital structure, changing the name of the company, and moving to a higher exchange or tier on the OTC. This is the stated goal of AURYN.

I find the silence as unsettling as any other shareholders here, but don’t dwell upon it. It is not wholly unexpected under the present circumstances. First, I expect that either my Medinah shares will show up as CDCH shares in my brokerage account or the current restricted CDCH shares will become unrestricted. Then my expectation will be for the silence to end and news begin flowing again to inform all shareholders what is and has been transpiring. As the WIZ said “…nothing has changed…yet."
But also heed where WIZ said:

It’s still high risk with great targets and a possible significant economic find. Until it’s not a greenfield, that remains the case.

This is mining. There is absolutely a chance that the property is not economically viable.

Pink sheet companies are inherently risky and speculative. If things improve before 2019 I will be pleasantly surprised.


#505

“The capital structure is being consolidated into CDCH and they are looking for a JV along with moving forward on the exploration and development of a couple of targets.”

Uneverknow and Easy, thanks very much for your perspective(s). I feel like I am very patient (I have actually been buying lately), but the business sense of the current state of affairs is not adding up. Admittedly, I’m not a miner (or not even a professional investor in mines), but some things stand out to me.

Yes, so the lawsuits were resolved back in October, 2017, about 9 months ago. So, it seems to me that our guys would simply go back to where they left off in latter 2016; that is, we have confidence we can produce 5,000 ounces in 2016 and 25,000 ounces in 2017. After all, as has been admitted many times on this board, a company that is PRODUCING enhances our financials. And, I might add that existing production would provide huge LEVERAGE on any potential JV partner. So, something MUST have happened that made our guys NOT pursue the low-hanging fruit. Speculation:

(1) The principals of Auryn don’t have the money (or cannot access the money) to even commence such production. How much would be involved? Management has not indicated that they are seeking such money - a high-rate loan (maybe 25%?), payable with a preference out of production would be VERY attractive in a climate where fixed income of such magnitude is scarce. I’m confident that even this internet chatroom board has denizens who would entertain writing huge checks, if they were convinced that it is worth it. Maybe some have clients who could write such checks if they were armed, for example, with the report of Dr. Sillitoe, et al. - or anything else for that matter - to convince them of the attributes of this project. This option seems unlikely to me, but it is there.

(2) Auryn does not want to spend the money to initiate production because they do not believe they NEED to because they believe a JV is eminent (just a matter of choice amongst potential partners) and we have been given due credit in the financial terms of any proposed JV that we are actually in a position to produce (as has already been admitted). Waiting on consolidation of capital structure it seems would be no excuse, as the ADL is simply an asset that is being developed.

(3) Auryn is preoccupied with other deals and just doesn’t want to be bothered with the ADL/Medinah/Cerro at this point in time.

(4) Dr. Sillitoe came to the conclusion that pursuing the low-hanging fruit would actually prejudice our ability to monetize this project in the long run. Just having this little tid-bit would be helpful and would help on the confidence end of things. Yet, we bask in ignorance.

I’m sorry to dwell on this, but I find the failure to proceed with production is at very least questionable. I have continued to invest lately, for the simple reason that I still believe that the EVIDENCE of mineralization we have (Sepulveda-Perez, Jones, et al) is worthy of the bet that humans cannot (or will not) screw this thing up. But, I do feel like I’m dating a gal who just can’t make up her mind about … anything - and my experience is those matters don’t usually turn out so well (I’m not the most handsome guy in the world, and I don’t take too well to indecisiveness). So, do forgive me for inquiring and facing the issues head-on, as I am simply averse to “surprises”.


#506

I do believe the thread name should be 3rd Quarter. Time flies when you’re losing money !

Cerro/Medinah/Auryn - 2018 Q3 General Discussion


#507

Yes, thought about changing it but decided to let it go as long as good conversation kept up, waiting for another lull as many don’t go back and comment on last quarter


closed #508