My answers in BOLD.
So MG:
The Merlin vein crosses into territory that is part of an MMC claim, the Millalelfun 1-55, which is explicitly part of the ADL contract, section 2.1.ii.
But that Caren claim, the odd square-on-a-corner claim as I understand it, overlays that MDMN claim.
Refer to Page 7 on Auryn’s Project Page for the correct shape of the Caren.(Note the light colored triangle shape claim block which is still Medinah’s)
Q1: Do you agree with that statement?
And Auryn keeps referring to the Caren claim and the 5000 tpm permitting there not the Millalelfun.
Q2: How do the Caren claim and the Millalelfun (and others the Caren overlays) relate to one another?
My guess would be that the current 5000 tpm permitting that Auryn keeps mentioning is tied to the Caren claim not the Millalelfun. We know that Auryn’s 2016 plans are to get to 5000 tpm by end of the year. And so it is all about the Caren claim / Merlin 1 vein in 2016.
I think the 5000 tpm limit effectively is for the area that was covered under the environmental study: Positive Results in the Environmental Survey at Caren-Merlin-Fortuna Area in the Altos de Lipangue Project - AURYN Mining Chile
Yesterday’s article mentions reaching that 5000 tpm within 90 days.
Q3: When and by whom was this permitting put into place?
Q4: What is the expected timelines for further permitting and expansion of early production, or is there one?
I was told by our former CEO that LDMC had two 200 tpd permits in place for the LDM back at the last AGM. My confidence in that statement is low. But that’s what I was told to my face.
So anyone can see that there isn’t going to be much production going on on MMC/MDMN claims apart from what the Caren overlays before Aug. 2017, potentially longer. There will be no local processing facilities and no major increase in tonnage per month/day until that happens. So one should view this next stage as simply a next “heavy” phase of exploration, IMO.
No. Production agreements are already in place and are in fact public information in Chile. The Wizard has already spelled this out as far as Medinah’s cut from each area. Auryn may decide to mine the areas that Medinah’s share is low or none until the Option is exercised. I speculated previously that Auryn may have already offered Medinah a new Option agreement during the last trip to Chile which Medinah did not accept. So in the meantime, Medinah may get very little from production until the Option is exercised. The amount of revenue that Auryn is able to generate may be surprisingly high. If so, you can bet Medinah will not want to miss out on it.
So in summary, at the half-way mark of a 3 year exploration contract:
we have no formal reserves in place on the Gordon or anywhere else
we have had no drilling at all in season 2 so far (which is clearly odd)
It is odd because your statement is false.
the requirements to explore and formally define resources on a large copper porphyry are enormous. Tens of thousands of meters of drilling and months and months of report writing are required. And right now with $2.18 copper porphyry deposits are not at the top of the ‘interesting’ list these days. The P. Nero is a long term play. Not an ADL option play.
“The P.Nero is a long term plan. Not an ADL opton play”. Read this carefully…false!
I am still clearly of the opinion that MDMN claims are necessary for long term mining both of the high grade gold between Fortuna and Caren, and certainly in the longer term. But at this point I would definitely not have any expectations for the Option (or a TO) until they dig around for the next period. Explore away Auryn. Give us some good updates with production numbers to entertain us while we wait.
