Here is another graphical synthesis of what Auryn calls the “Caren-Merlin-Fortuna area” in their Jan 13 PR, which announced the positive environmental study results. This shows the known veins, a few trench samples, the claims involved, and the environmental study area. The redish claims in the middle are MMC, the greenish are AMC, as best as they can be placed at this time.
From this you can see that added that little box in the upper left to the main box for the environmental study to include the adits, but also the road they created wind down the north side of the mountain to gain access to the adits.
I really like the discussion going on here today. Nice to get off focusing on the way the stock is trading and instead on the important aspects that will eventually raise our value and cause the stock to move higher.
You guys are knocking it out of the ballpark with your educational efforts! Attaining a working knowledge of the hundreds of individual steps needing to be taken to go from exploration through development and into production allows us starving for “news” to generate news by recognizing PROGRESS as these milestones are reached and passed.
I definitely agree with CHG that it is critical to understand the difference between Phase 1 and 2 of the “early production opportunities”. Since there is definitely no lack of ore here and since it takes a while to put the permitting into place for crushing the ore to the appropriate size for optimal production results as well as heap leaching that ore, you might as well direct ship some ore in the meantime.
Your transportation costs will be higher on a per tonne shipped basis but if the high grades offset this then you can still make a lot of money and learn a lot about the metallurgy in the process of direct shipping. ENAMI’s payment structure rewards very high grade ore in a non-linear fashion. They don’t want low grade ore occupying precious space on their leach pads. If you don’t have extremely high grade ore you pretty much have to wait for your concentrating/crushing circuits to go into place or perhaps send it to a mill like Til-Til that might accept lower grade ore.
I can’t overemphasize the significance of actually going into production. This is because the litany of milestones needing to be met and surpassed is enormous. The most common statistic cited in the mining industry is the 1-in-1,000 chance that a junior explorer will not only make a SIGNIFICANT discovery but get it financed and into production. I’m not referring to a Northern Vertex 5 year mine life type of discovery. My gut is that many of us will be amazed at the cash flow numbers emanating from our early production opportunities and how early production opportunities can provide the catalyst for the overall project.
It will be interesting where they put the base camp, those roads look awfully treacherous. It looks like the progression would start with Caren and move into the Merlin 1, then to Fortuna and then hite Merlin 4 and 3 and leave Merlin 2 for last.
In the past you have commented on how the overlay of claims occurs in Chile, something like you can over-stake and if the other party fails to pay their fees then you can get the claim? Is that roughly correct? I can not recall all the Chilean terminology associated with these states.
Is there a way via the Chilean database or some other method that someone (maybe @Hurricane_Rick?) can determine with certainty that MDMN’s claims are the primary claims over those Merlin veins and not the over-staked claims? As Kevin stated, those claims are in the ADL contract. I only put “red” on those claims that were in the contract. But is it possible they may be included in the contract if they were just the over-staking claims? I am just trying to be thorough since there have been different interpretations by different parties here.
These are the entries in the contract for those two claims. They are not treated any differently than the others listed there.
Dear MDMN shareholders, there has been a lot of info presented, some of which I don’t fully comprehend, I get lost on the claims and the topography of the claims. This forum was created to provide DD, opinion and thought as to the claims and share price. Don’t be shy, join in. Ask questions, make statements, etc.
Frankly, I am disoriented on the claims maps and am trying to understand.
No one has the all the answers, join in on the discusion. I, at least, welcome it.
Any guesses when we can see north of .02 again??? Thanks for any feedback. I understand we are all just guessing at this point. But it HAS to move up eventually…I think…
I agree with you of course that the current SP sucks but the lack of communication to shareholders about any recent developments is even worse. Even the recent positive update to shareholders on this forum , they have yet to news wire . Nevertheless, it is encouraging and appreciated for our more knowledgeable posters to be sharing their thoughts and their efforts in their searching for answers
There is no doubt that the ADL etc is a WCD based on the immense historical available resource data however I am still unconvinced whether Auryn’s interests are totally aligned with the interests of us shareholders, mostly based on their disregard to ensure that we are informed on recent developments and the story behind the possible dumping of insider shares.
I personally don’t want to be naive and say that everything is fine when there are specific issues which are very tormenting. That being said I will remain invested in MDMN and CDCH for the long haul even though I have like many of you already been here for a long haul.
But I will say I am glad I sold a minority portion of my shares at the last lofty highs and since then I have been reloading , especially at these lows, in anticipation of the SP again recovering, which based on most informed opinions appears inevitable.
To conclude , it is great for Auryn to be spending capex on our properties but I am still anxiously waiting to see Auryn give some hard cold cash for total control of MDMN/CDCH. I am just jaded on account of getting screwed by Juan so many times and I know I am not alone on that feeling.
Anyway, hopefully now onwards and upwards.
If you go to the Cadastre Mining Concession data base…those claims are described as having the same type of “situation” so it is not clear from that if the Caren which was formed back in 1971 overstakes Medinah claims.
However, the LDM claim also had a mining claim that was marked/formed at the same time as the Caren that appears to completely overlap it yet presumably the LDM is a valid claim in itself since going back to the 1990’s as evidence by all the activity that has been allowed to go on there.
It appears then that these older 1970 claims boxs that are marked on red on the map only exist where a new claim hasn’t been formed over top of it that has a equivalent “situation”.
I can’t speak to Chile, but in the US, mining titles are rarely clear. But in instances where a company overstakes an old claim and needs to obtain legal title, they goes through a legal process. 9 times out of 10, the original claimant has passed and the family does not care about it and does not want to hire an attorney. Not to mention the fact, that it original claimant won, they would be responsible for reimbursing the original claimant any fees that have been paid to maintain the claims.
This also happened with coal claims I was working on in Columbia. The orignal claimant never responded.
Lastly, as MG pointed out. Here is an image showing the overlap with Exploration Concession Code 1983 and Exploitation Concession Code 1932. The red diamond area is the Caren area that CHG has in his maps. That’s covered under Exploitation Concession Code 1932.
Right now it’s beyond my pay grade until someone can explain to me the differences between Exploration Concession Code 1983 and Exploitation Concession Code 1983 and Exploitation Code 1932.
Looking at it a little more, here is a Version 3.0. I think it is better.
MDMN’s old map was clearly taken from the Chilean government database.
This version does not require we assume the Caren “box” is misplaced in MDMN’s map or the government’s database.
I think this placement reconciles with Auryn’s maps as well. So it does not require anyone’s maps be in error.
In this map:
The white outlined box is the Caren “exploration” claim
The green boxes are AMC claims besides the Caren - gained from NUOCO and CDCH
The blue triangle is the area where the Caren claim does not overlay some other claim
The red boxes are MMC/MDMN “exploitation” claims WHICH ARE IN THE ADL CONTRACT
The black outlined box is Auryn’s Environmental Study Area
I do not show the Green “exploration” Auryn claims - code 1983 - it seems like Auryn added these claims to cover up any gaps in the other claims. A wild guess would be that the “1983” and “1932” refer to laws or codes the claims are made under.
The rest should be obvious
Notes:
There are enough maps here I am trying to spacially reconcile that you can tell dimensions are slightly off - e.g. the white box is not exactly square in the bottom close-in map. That is my overall error. So you can not take every detail as gospel - for example, exactly where Merlin 2 is in relation to the Caren claim. But it seems close enough to be useful
This agrees even better with Auryn’s description of the “Caren Mine sector” as “the northern extension of Merlin I vein and there are three old adits exploited in the past by artisanal miners.”
I think Jim can opine on the exploration vs. exploitation topic. Wake up Jim!
I know everyone is getting map overload. But here is one more attempt at placing the elements mapped in the previous post on top of Auryn’s Slide 11 of their Projects Presentation, which shows the various Merlin veins including the hidden vein which shows up in the IP plots included there. See below. The yellow box outlines are MMC’s (our) claims.
From all of the above, as per the ongoing discussion, I still conclude:
The northern part of Merlin 1 lies in the Caren claim or on Auryn’s other claims
The southern extension of the Merlin 1 is solely on MMC’s claims. While there is no public hard data yet on the southern extension, other than the surface results, there is no reason not to believe that at depth the same type of grades exist that are seen on the northern extension. We have the example of the Fortuna vein to add conviction to that supposition
Probably part of Merlin2 and surely Merlin3 including the potential hidden vein (see at the top of the map in the red circle - this plot was discussed by CHG and brecciaboy in the past on TMP) and possibly Merlin 4 lie on MMC claims
The “exploitation” claims of MMC take ‘ownership’ priority/precedence over Auryn’s ‘exploration’ claims where they overlay each other
FINAL SUMMARY:
I certainly still believe that the Merlin veins and the high grade gold ultimately provide major motivation for Auryn to exercise the option or take other equivalent action in the long term, totally apart from whatever develops with the P.Nero copper porphyry which Auryn apparently is now giving some attention to according to their PRs.
However, in the short term (certainly all of 2016) Auryn has plenty of space on the northern extension of the Merlin 1 (the old Caren mine) to keep them busy without intruding on MMC’s claims. So I do not see how the high grade gold motivates them to exercise the option in the short term (2016). So the exercise seems unlikely to me in 2016 from what we know at the moment in the public domain. But as with anything MDMN, I wouldn’t bet all my marbles on any one conclusion as there always seem to be moving parts to everything.
Will somebody be so kind to repost the latest update at the start of tomorrow’s weekly posting session? I am having difficulty trying to find it. It will be a nice reminder to the start of the week.
Is there an archive where all these nuggets are kept?
