The Mining Play

MDMN - 2016-02-08 Weekly Discussion

If you look at the diagram in Auryn’s release here:
http://bit.ly/1Q3xF8I

You see where the concentration of red dots are - where primitive mining was done a long time ago. Basically, just like on the other side of the mountain (and as LDMC did on the LDM), Auryn started from where mining had been done before, found some good stuff, and expanded out.

On Google Earth I zoomed in and positioned around to look at that spot on the ridge and we see something that looks similar to what was seen on the other side of the mountain Here, they found high copper and moly anomalies. Note the elevation is 3775 ft / 1150 m.

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From that spot, if you again look at the Auryn release, you can tell they basically followed the ridge line up and down the mountain doing surface samples. We can plot that on a wider scale with the other known finds. It is impressive esp. considering the grades at surface (at least those reported so far). You can also see how the ridge runs right up to the Gordon breccia, as Auryn has already mentioned. This is looking nearly north as you can see in the upper right hand corner.

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And in a repeat, on the other side of the plateau, now looking south, you can see where the Merlin 1 vein cuts down the mountain like a vertical line separated east from west. The vein has been traced clear across the mountain to that south side near the Gordon, 1.8 km away.

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And finally, do not forget the LDM, and this report and the later LDMC mining plan which was pushed under the cone of silence as soon as the JV agreement was signed with Auryn:

http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=3422

This report gives an estimate of between 3MT and 9MT of ore in the LDM skarn. Later in the April 30, 2015 report from NUOCO (http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=14704) they confirmed their continuing belief, even increasing the estimate:

NUOCO’s Geologist identified a strata-bound copper manto structure on the Las dos Marias property, containing a minimum of 1 million tonnes of high-grade copper ore, proximate to the DDH-002 gold structure. The manto structure is open along strike and to depth and up to 12 to 15 million tonnes of copper ore are anticipated, corresponding with similar regional deposits.

And of course recently, Auryn has gathered even more claims around the LDM and finally, with terms yet to be disclosed, they took ownership of that property, thus explicitly indicating their agreement at least in general of the valuable nature of the LDM.

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Great due diligence and graphics @cornhuskergold! Thank you.

I created the following new topic: Pointers to Important Weekly Discussion Posts

If anyone wants to labor through the old weekly discussions and email me links to important posts like these that we should make sure aren’t lost in the shuffle then I’ll create links to them like I’ve done for these posts. This way we’ll have one place that archives these posts and the discussion that follows from them.

Also, I have to renew the license for our server next week. How is performance for everyone? It seemed a little slow for me the last few days, but I don’t know if that was more because of my own Internet connection.

Thank you for those who support the site by supporting the relevant advertisers.

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Thanks cornhuskergold, nice, also thanks Tup for setting this up, I would say that the speed seems fine to me, it is a bit slow, but I’m not that fast… Lol

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Thank you CHG and the Wizard for all the great DD and all you do help us all. :sunglasses:

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GOOD STUFF CHG!

I sense that these recent results from the surface sampling in the area from the plateau itself down to the Pegaso Nero and beyond provided a puzzle piece resulting in a Eureka moment as to the potential SIZE of this deposit in 3 dimensions.

We’ve always had a wonderful two dimensional portrayal of tons of good things going on at the plateau and hints of good things going on 700-plus meters below the plateau at the LDM. The Nuoco geoscientists have been using the “P” word (porphyry) for quite a while. They found a Cu/Au Andesitic porphyry with ocoitic texture which is found in the rocks that underly our property that came from a certain famous rock formation called the Veta Negro. There are 2 subdivisions of it known as the Lo Prado and the Ocoite.

The key to these new moly findings is not just the very high grades IT IS THE DISTANCE (both lineally-3.6 Km and elevational)OVER WHICH THESE FINDINGS STRETCH i.e. from the 2,000 meter plateau all of the way to the valley floor and along the valley floor. This information brings into context what’s been going on over at the LDM at about the 1,300 meter level. Now we’ve got porphyry well to the west at the 1,300 meter elevation level, well to the south all of the way to sea level and right under the plateau at 2,000 masl.

AMC for the first time now feels comfortable using the “P” word. They cited 4 reasons why in their last PR. Keep in mind that there is a famous “Early Cretaceous Porphyry Belt” which was thought to end just north of us at Colliguay. AMC recently dated Medinah’s molybdenite/rhenium samples and sure enough it came in as “Early Cretaceous” of 95 million years of age just like the porphyry deposits north of us. What’s interesting is the timing in which this 3 dimensional modeling in regards to porphyries has occurred at the nearly the same time as the early production opportunities have come center stage. All of a sudden a big pow-wow is called in Santiago and AMC goes back to Lima with 3 new deals being done.

It appears to me that the work programs needed to secure an 85% stake in the Nuoco and Cerro properties were suddenly cast aside and everybody went straight to the negotiating table. It’s as if AMC said “We’ve seen enough; let’s dance”. The original work programs were probably designed to block out MR/MR so that AMC could make a decision as to whether or not to exercise these options.

In the quartet known as grade, tonnage, infrastructure and early production opportunities, AMC checked off on the infrastructure a long time ago. The recent moly developments stretching from the plateau 3.6 km down the southern downslope when combined with the LDM findings pretty much addresses any “tonnage” concerns. The average run of mine (ROM)grade will be determined over the years. I sense that it is now “show me the money” time and the early production opportunities are about to be exploited. This somewhat completes the formation of a promotable “package” if AMC is of a mind to promote the project at this time. Thanks CHG, it’s very refreshing to have a Google earth image to help assimilate the contents of the recent press releases.

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Now that’s a classic Doc, thank you for the commentaries.

I suppose we’ll be dancing to the Quartet…??? Grade, Tonnage, Infrastructure and Early Production Opportunities.

Gold chart update is done on the old MP site, fwiw.

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For those interested I’ll be blogging about this investment at http://aurynblog.com and tweeting from @auryn_blog if you prefer twitter. I’ll be working through history, stories from the past, present, and future developments. When Spielberg is ready to make the movie, this will be where he starts. :wink:

Please note: This has no impact on this forum. It’s not being discontinued, changed, or moved and I’ll remain active here. I’m blogging because I personally like the medium and some people prefer getting information from a blog rather than reading through lots of chatter. Along with my own posts, I’ll be highlighting relevant content from this forum.

Feb 08, 2016 09:37 NY Time
Updated at Bid
Ask Change
% Change Low
High
Gold 1189.40 +15.90 1163.40
09:36 1190.40 +1.35% 1190.40

Gold moving up nicely again! Do we see 1200 today?

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Hmmm gold moving fairly aggressively and Chinese markets closed all week. Fingers crossed we luck in and timing works for us for once!

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Mike, do we still believe institutional investors are going to start doing some serious investing?

Do we expect any additional news this week?

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The Junior Gold Miners ETF Has Bottomed; It’s Time to Add
By BRUCE KAMICH Follow | FEB 08, 2016 | 10:10 AM EST | 0

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Stock quotes in this article: GDXJ, AEM
The gold market has been around for centuries. Probably everybody follows it to some degree, like the price of gasoline. If you live in Switzerland or India or China, you may be following it even closer.

The gold market captured the American public’s attention in the late 1970s, when some people hoarded the shiny Krugerrand or Maple Leaf and feared the worst, while others became scale-up sellers of their high school rings and silver pieces they hated to polish.

As gold approached $800/oz. it became dangerous to wear bling on the subways. Today, fancy electronics are the grab-and-go high-value items of choice. Times change.

I could take shortcuts in my analysis, but it has proven its mettle over the years, so why change? Some analysts just watch the London gold fix, but there is so much more to the market. With the London market, we don’t know the volume of trading. Volume is a great confirming indicator for chartists. Mutual funds, futures, ETFs and ETNs can give us volume.

The behavior of the gold mining stocks is also important. Imagine that you have analyzed the fundamentals for gold and determined that it should rise in price. Because the timing of this rise (and any rise for that matter) is uncertain, you probably don’t want to buy futures or options.

Your first choice should be to buy shares in the best run gold mining companies. These miners should benefit when the price of gold rises. If we knew exactly when gold would rise, we could buy futures or options and get a faster, leveraged payoff.

Instead, money comes into names like Agnico Eagle Mines (AEM) first (where the On-Balance-Volume line turned up back in September). When we are really sure that a gold rally is underway, we tend to move into smaller and more volatile gold names.

Speculative names can have some big percentage moves to the upside, but they tend to move later. The Market Vectors Junior Gold Miners ETF (GDXJ) is an easy way to watch this part of the precious metal market.

I don’t have anything useful to add at the moment.

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FYI - AMC will not have a booth at PDAC 2016. There will be three members from AMC in attendance, but no official booth. Depending on how things go this year, AMC may have a booth at PDAC 2017.

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