The Mining Play

MDMN - 2016-05-02 Weekly Discussion


#210

http://masglas.com/altos-de-lipangue/
"CAREN MINE

During the past century Caren was an active Au-Cu underground mine of gold-copper veins. AURYN’s team resampled and mapped mineralized structures and old adits. We obtained encouraging bonanza gold results with values up to 124 g/t Au.

Metallurgical test over samples from the old Caren mine are in progress, and preliminary results demonstrated up to 85% gold recovery. AURYN is confident of reactivating the Caren’s mine during the second quarter of 2016, facilitating the cash flow for exploration."

The good news is that as of the todays updated information Auryn is now confident of reactivating the mine in 56 days, or less. :grinning:


#212

The end of the quote says “. . . facilitating cash flow for exploration.”

I cannot overemphasize this. Shareholders need to get their heads around the idea that AMC is a legitimate mining company. They are not going to run their business around what’s best to move the stock as fast as possible. They are not going to pump and dump. They are going to be methodical and adjust their plans like based on what they discover, just like any good company can do.

I suggest you forget any ideas about getting immediate dividends or mandatory payouts or any other such fiction.

When AMC is ready they’ll announce their plans for the project. Until then we wait.

What we already know is they’ll be putting the Caren into production and they’ll be drilling the Pegaso Nero. Looking forward to the timelines.


#213

Out of curiosity…Was this Masglas site always up? I was not aware of it until today. Either way, I like it…


#214

Kevin have you heard when they might release that stack of timelines? Tia


#215

I wonder you could answer that question. Not even AMC I bet.

.


#216

Did they just update there website today?


#217

This is an excerpt from the news release on the Pegaso Nero…

The previous rock sampling detected highly mineralized Mo-Cu±Au breccia, in this campaign the rock sampling was extended with preliminary results of 1.2% Cu, 860 ppm Mo and 0.12 g/t Au in the hydrothermal breccia.

"Furthermore, one sample of molybdenite from the breccia was sent to the ALS laboratory in Quebec, Canada, for Re/Os dating, the result was 91 ± 0.4 Ma, which is the age of several known Copper, Gold and Molybdenum porphyry deposits in Chile, such as Andacollo, Dos Amigos, Johana and Frontera.

The extensive molybdenum anomaly, the presence of hydrothermal breccia, the high Copper – Molybdenum results on that breccia and the age of the mineralization, are showing to AURYN Mining Chile team that is in front of a new Porphyry Copper system and this new discovery is opening the cretaceous porphyry belt to the south of Llahuin and Andacollo porphyries on the IV region in Chile."

And this is on the updated Masglas site.

“A Re-Os dating in Molybdenite, resulted in 91±0.4 confirming a Late Cretaceous age to Pegaso Nero system, indicating a similar age of mineralization to Andacollo mine (92 Ma).”


#218

When are we going to see the contract?


#219

The only negative I see about Auryn is that we have been tied to a private company that holds our destination. They don’t have to release any news so we are prone to MM manipulation and restless investors. I just hope they release some info on the company…who they are what assets they have, their BOD’s, etc… Masglas has on their website “about us” and the description is the same as Auryn? why? who is Maglas? who did we sigh our fate with? lot of questions are we going to get the answers?


#221

[quote=“hulkster, post:219, topic:1234”]
Masglas has on their website “about us” and the description is the same as Auryn?
[/quote] Masglas site:

AURYN now owns and controls over 10,000 hectares of mining properties and has consolidated the entire historical mining district of Altos de Lipangue.

AURYN site:

AURYN now owns and controls over 7,500 hectares of mining properties and continues its effort to consolidate the entire historical mining district of Altos de Lipangue.

Not quite the same…


#222

No not the same by a few thousand hectares.lol. My point is who are they? we know Auryn(a bit) but we know nothing about Masglas.


#223

We do know the executive Director of both is Maurizio Cordova. :smile:

Has everyone reviewed their preferences lately, especially emails?
This one is quite nice to use.

Send me an email when someone messages me


#224

Hi bring it,

For me, the “sweet spot” in mining investing is right around the time that initial production is commenced. You can’t fake clearing all of the hurdles needed to go into production. Most of the DERISKING has been accomplished and the ultra-high risk aspect which is typically borne by the early investors is off the table. The one statistic that almost all mining analysts agree upon is that the typical junior explorer has a 1-in-1,000 chance of not only making a significant discovery but getting it financed all of the way into production (without giving away the whole farm).

This investment philosophy is basically analogous to camping on top of “Mount Production Commencement”. If a junior explorer can make it to the top of this mountain and stumbles into your camp you sit them down and get all of the pertinent information. You spend your days looking down over the side of the mountain watching the junior explorers slipping and sliding trying to get some traction.

Once a successful junior makes it to the top of the mountain there is typically a hyper-growth phase where production goes from zero to “X” quite rapidly. Going from “X” to “3X” can also go very rapidly if you do what AMC has done and completed all of the paperwork needed to not only increase the permitted production tonnage at the initial site (the Caren/Merlin Mine) but to also get more production sites lined up in the pipeline.

Once decent cash flow is established then the RISKS that typically claim the lives of the junior explorers like the inability to get financed after you came up with a few dry holes are off the table. Most successful deposits put into early production have plenty of other “blue sky” production opportunities with mineral assets similar to what is being produced at the original production site. The initial production cash flow can then act as the catalyst to develop the entire property complex without incurring a lot of debt or further dilution.

The other mining statistic that comes into play is the inordinate amount of time involved for even the lucky junior explorers to go from the commencement of exploration activities to actually going into production. The majors don’t have time or the risk tolerance to do this so they grow by ACQUISITION. They are typically the ones setting up camp on the top of “Mount Production Commencement”. The shareholders don’t need to sell into any bid made by a major but the bid itself or any contemplated cash dividend issuances down the line are sure nice in getting your share price to a level reflecting the fair market value of the assets.

As far as Medinah specifically, the one issue I see as acting as the primary LOGJAM is the Quijano block of shares. That seems to be hanging over our market like the sword of Damocles. Any success in getting that block of shares into Auryn’s hands would represent a huge victory. They would move from a FREE TRADING status to a RESTRICTED status greatly diminishing our “float” of readily sellable shares. It would also prime the pump for subsequent M and A activities.


#225

I don’t think I had given that concept it’s due. If AMC gains control of Medinah they would certainly use Medinah’s 25% interest to shoehorn Mr. Big Miner into a position on the mountain through a tender offer by Mr. Big.

They retain their original position and easily get back a X-banger over whatever they’ve invested to gain the original control.


#226

Many of you have been around for as long as I have. Collectively we have a tremendous amount of experience between our investment in MDMN, CDCH, and other mining companies. I’m working through some ideas and welcome your feedback.

Suppose I were to setup TheMiningPlay.com as an independent company and social media platform for the mining community. It would become something of a cross between Seeking Alpha and The Motley Fool with a mining specific niche. Its purpose would be multi-faceted.

  • Support, educate, and grow the community of individual mining investors.

  • Encourage and facilitate direct communication between companies and their shareholders by lobbying mining companies to officially participate in the discussion forums and social media channels with their shareholders and by facilitating management conference calls.

All current users of TheMiningPlay.com would be grandfathered in. The site would charge some kind of access fee to certain areas or discussion forums or perhaps for premium content. The site would make active investments in its own “TMP” portfolios. Mining companies would also pay a fee to participate in their discussion forums in any official way.

The forums would be moderated in a professional manner by the community and the quality / level of discussion would be significantly increased from where it is today. If any of you read Seeking Alpha you’ll realize there is a qualitative difference between the articles and comments there vs something like us or IHUB.

Questions . . .

Do you think this type of site and service would be helpful to the industry as a whole and the junior mining industry in particular?

  • Yes
  • No

0 voters

All current members will be given a grandfathered in membership. However, supposing you weren’t grandfathered in, as a mining investor would such a site interest you?

  • Yes
  • No

0 voters

How much would you be willing to pay for high-quality mining company analysis and discussion?[poll name=c]

  • $10+ per month
  • $25+ per month
  • $100+ per month
    [/poll]

Let’s look at a hypothetical situation. Suppose we have an AURYN discussion page and Maurizio or an IR rep is willing to engage with shareholders directly on the page. How much is that worth?

Suppose we as a community can separate the wheat from the chaff with respect to junior mining companies and publish a portfolio and shared due diligence? How much is that worth?

Suppose TMP establishes relationships (non-remunerative) with companies so that it can visit the properties, take pictures and publish unbiased, and unpaid for reports and analysis? How much is that worth?

If you have other ideas or want to relay private comments, feel free to message me.

Thanks much!


#227

Wiz, i like the direction you are taking the MP. Really, most mining stocks we invest in are US or TSX. Maybe dual listed US/TSX or AUX/US/ AUX/TSX. I can personally vouch that most OTC Mining stocks are scams. It is near impossible to raise the type of financing to do substantial exploration on the OTC.

Why do I bring this up? There are two main sites that cover TSX companies, Stockwatch and StockHouse. Stockwatch does not provided a blog while Stock House does, but their site is dreadfully slow. So I believe there is room for the MP.

In terms of investments, and I don’t know how successful it is, but Stock House has a deal room where private placements are pitched. http://www.stockhouse.com/dealroom I am sure companies would pay to have their deals on there. I only question whether they can legally advertise in a non-Canadian venue. From my time on the TSX-V, I remember there were restrictions and in fact, some TSX press releases specifically state “not for distribution in the US”.

There is also a nascent site, which has been in the works for quite some time, but the bugs are not fully worked out. I have been trying to get my project listed on there for a couple of months. https://www.klondikestrike.com/Default.aspx#listings. They don’t list their fees and I until I can list, I don’t know what the fees are.

Lastly, there is http://www.minesonline.com/ out of Australia, which has gone from an upfront fee to 3% of consideration. They do not advertise financings, but only sale of JV opportunities.

Hope that helps


#228

These MM’s are ruthless they keep offering shares @ .0169


#229

Anybody watching the trading today. Looks like there is some decent volume. Not much change in price, but it is hard to tell if it is buying or selling. Over three million shares traded and they will not let the pps go above .017. Not yet, anyway. Any comments???


#230

WOW. 1.7m shares traded in 11 mins. Looks like they may have been buy order.


#231

Hopefully a good signal information is going to be released tomorrow.