The Mining Play

Medinah/Auryn - 2018 Q4 General Discussion

Thanks Mike.
(… and among the 7 presenters on day 1- Round One)
A couple highlights of interest:

The Miner Roadshow
Round One

Showcase what makes your company and assets a worthwhile investment to the audience
Every year at the Mining & Investment Latin America Summit, Miners with projects across Latin America present to a room full of investors and bankers.
Each presenter is given 8 minutes to identify what makes their asset unique and what level of investment or funding they are looking for.
Showcase what makes your company and assets a worthwhile investment to the audience
Every year at the Mining & Investment Latin America Summit, Miners with projects across Latin America present to a room full of investors and bankers.

After each round, our panel of select judges from the investment community will deliver live feedback on what they liked and what they would have wanted to hear more about. Investors want to see:

  1. Valuation arguments
  2. Differentiation from competitors
  3. Technical information or potential of resources
  4. Management Story, expertise and track record in country
  5. Community relationships
  6. The overall goal
    16 slides 30 seconds each
    If you are looking to take your project to the next stage, the Miner Roadshow is the perfect opportunity to identify new potential investors and partners.

Presenters:
Dante Conetta, Chief Financial Officer, Cerro Dorado and Masglas Corporation and Chief Executive Officer, Auryn Mining

among 3 speakers …

Day 2
New government, new directions, new objectives: An update on the future of Chilean mining
• The mining law: How is this changing to encourage the development of exploration and growth of mid-tier miners?
• How will the approval process for EIA’s change? What is being done to make this easier to secure?
• What other related infrastructure requirements does the mining industry need to be successful in Chile?
• What is the main strategy to maximise on the copper recovery? How will this help the Chilean economy?
• Developing the huge reserves of lithium and cobalt in Chile: What does the government want to achieve? What role, if any, will Codelco have in this development?
Italo Volante, Legal Council, Masglas Group

2 Likes

Do I remember that the Auryn folks bought in around 7 cents? If that’s the case, they’ve got a LONG way to go if they intend on selling at a GAIN. Hopefully they’re saving up some real GOOD news to release after December 15’ish. Maybe that’s why they never announced the signing of a final JV agreement?

3 Likes

I would be happy as a clam if we ever make it back to 7 cents.

5 Likes

7 cents MDMN = what for Auryn…?

$12.54 if my math is right this early in the day

2 Likes

A couple of things running through my mind that for me has some merit…

  1. What are the quarterlies going to report next week ?? anything new?

  2. It was reported Hochschild was to compensate Auryn;

    “AURYN will provide logistical support to Hochschild’s
    work on the project and will receive a net management fee for doing so.”

    How and to whom will this fee be given

  3. Do we have any paid employee’s and if so how and by who are they compensated??

As an employer, just things that travel through my mind…

3 Likes

Hi GC,

I too found that comment about Auryn providing “logistical support” to a mining major in exchange for monetary compensation a bit odd. The typical junior explorer with a big discovery usually doesn’t have the technical expertise or financial wherewithal to provide “logistical support” to anybody.

When you juxtapose this comment with Maurizio’s earlier comments that AMC anticipated entering into JVs (plural) with specialists (plural) in developing the deposit types present at the ADL it sounds like things are going to get busy and that Maurizio/Auryn, as providers of “logistical support” are going to be very hands on. Maurizio also cited a “massive” exploration effort being launched.

We’re still in a bit of an informational vacuum but whatever is going on behind the scenes it seems to have some “scale” to it. Otherwise Maurizio would have had a tough time attracting the Dick Sillitoes, Ray Jannas’s and Dante Connetas of the world. Sillitoe is clearly the best of the best P. Geos in the epithermal/porphyry world. Dante Conneta jumped ship from a CEO position of a Carlile Group subsidiary where he was in charge of 17,000 employees in order to take a position at Auryn. Dr. Jannas, with a PHD from Harvard and 35 years of experience is credited with the discovery of Pascua Lama and El Morro.

The two questions for us is firstly what do these guys know that we don’t know and secondly do the bread crumbs already out there STRONGLY hint at what the potential of this mining district really is. We do know that Hochschild is following the battle plan designed by Sillitoe at the LDM. The tribute to Dick Sillitoe’s career given by Rio Tinto at the following link (pages xi and xii) describes the “Career Highlights” of Dr. Sillitoe and the results of the previous battle plans he has drawn up.

5 Likes

Our agreement is probably very much like this one. Good read as some of the details are likely applicable to our pending JV. The term “management fee” shows up in this agreement as well.

Hochschild Mining for Option to Joint Venture on the Indra Precious Metals Project, Chile

Published: Oct 17, 2018 9:00 a.m. ET

VANCOUVER, Oct. 17, 2018 (Canada NewsWire via COMTEX) – Mirasol Resources Ltd. (MRZ), (otcpk:MRZLF) (the “Company” or “Mirasol”) is pleased to announce that it has signed a binding letter agreement (the “Agreement”) for the Mirasol’s Indra epithermal precious metals project in Chile (the “Project”), with Hochschild Mining plc (lon:HOC) (“HOC”). As detailed in Mirasol’s August 29, 2018 press release, the Agreement gives HOC the right to acquire, in multiple stages, up to 70% of the Project by completing a series of exploration and development milestones and making staged option payments.

Mirasol is also pleased to report that it has initiated work on the Indra Project. The initial program will comprise of detailed geological mapping and surface rock and trench geochemical sampling, along with a 2,100 line km ground magnetic and additional electrical geophysical surveys to define drill targets at the Project.

Stephen Nano, CEO of Mirasol, stated: “We are pleased to have completed the due diligence review and executed the Agreement in such a short timeframe. The exploration program is already underway at the Project and we look forward to reporting results as they become available. Indra is an attractive, conceptual epithermal gold - silver target located at low altitude, nearby to existing mine infrastructure in the highly prospective Paleocene age mineral belt of northern Chile.”

HOC is a leading precious metals producer focusing on high grade silver and gold deposits, with over 50 years of experience in the Americas. HOC has four operating mines and has extensive experience developing and operating underground epithermal vein mines.

Terms of the Agreement

Option phase:

– A US$50,000 cash payment upon signing the Agreement; – A minimum commitment for HOC to spend US$800,000 in the initial 18-month (the “Option Period”) exploration program and to drill a minimum 1,500m within 30 months of the date of the Agreement; – Mirasol will operate the Project during the Option phase and will receive a 10% management fee from exploration contracts with values of less than US$250,000 and 5% from contracts with values of more than US$250,000; and – At the end of the Option Period, HOC will have the right to exercise the earn-in phase of the Agreement.
Earn-in phase:

– Stage 1: If HOC elects to exercise the option to earn-in, HOC will have the right to earn 51% of the Project over a 3-year period (total 4.5 years) by spending no less than US$5.2 million (total US$6 million) and making two staged payments totalling US$675,000; – Stage 2: If HOC elects to proceed to Stage 2 of the earn-in, HOC will have the right to earn 60% of the Project over an additional 3-year period (total 7.5 years), by funding the delivery of a positive preliminary economic assessment, in accordance with NI 43-101 on a resource of not less than 1,000,000 ounces of gold at a cut-off grade of 0.50 grams per tonne (g/t); – Stage 3: If HOC elects to proceed to Stage 3 of the earn-in, HOC will have the right to earn 70% of the Project over an additional 3-year period (total 10.5 years) by funding the delivery of a feasibility study, in accordance with NI 43-101; – Stage 4: After completion of Stage 3, Mirasol can elect to contribute its proportionate share (30%) of further development expenditures or exercise a financing option requiring HOC to finance Mirasol’s share of the development costs through to production in exchange for a further 5% interest in the Project. If Mirasol exercises the financing option Mirasol’s interest will be reduced from 30% to 25% and HOC’s interest will be increased from 70% to 75%.
The Agreement contains other customary terms including extension rights to increase the duration of each stage 1, 2 or 3 for cash payments to Mirasol, pre-emptive rights provisions should either party elect to sell its interest in the Project, and a 2% NSR dilution royalty, triggered upon dilution of a party’s interest to 10% or below, if the Agreement proceeds beyond 51% earn-in.

The Indra Project

Mirasol’s 100% owned 21,000 ha Indra epithermal precious metals project is located in the Paleocene Age Mineral Belt, 5 km south of the 1.37 Moz Au equivalent El Guanaco gold mine in northern Chile.

The Project was staked by Mirasol as an outcome of the Company’s Atacama - Puna Generative program, encompassing what Mirasol interprets may be the upper levels of a large epithermal gold - silver system. The Project is characterized by a large carbonate - silica vein and breccia system with weakly anomalous gold - silver rock chip assays and strongly anomalous epithermal path finder geochemistry. The Indra vein-breccia outcrop shows geological characteristics in common with carbonate-silica veins known to be present overlying the ore zone in the HOC Arcata gold - silver mine in Peru. Mirasol has not identified any evidence of modern exploration at the Project despite its year-round access and its location adjacent to an operating mine. A news release providing a technical summary of the project will be issued in the near future.

3 Likes

Tom Azzopardi, a reporter with https://twitter.com/MiningOnline
wants to interview Dante next week in Peru per Twitter.

Recall that Dante will be in Lima at a mining conference on Tuesday/Wednesday next week giving a presentation on the property. Hopefully, between the presentation that Dante is giving or some news article on Auryn coming out of a potential interview, we will get some sort of an update in the near future. (Note: It appears the Mining Journal news stories are mostly behind a paywall. One example of them interviewing a CEO of a mining company can be found here: https://www.mining-journal.com/capital-markets/news/1349374/kazatomprom-confirms-25-london-listing )

One of these days, mining media will finally figure out the massive resource potential that is present at Alto under the radar. It will be a good day when they do.

7 Likes

just need to start proving this all up! Simple as that. Been here to long and probably will never see what we deserve to get but I cant for the life of me sell here I’ld rather let it ride now.

16 Likes

Dante has 8 minutes this afternoon to make his pitch for funding for the Alto at the Mining and Investment Summit in Lima. It isn’t actually clear if is seeking funding for the Alto, Masglas or both. There are several other companies giving a similar pitch. Of those, Palamina Corp and Panoro Minerals appear to be stand outs after a quick review. Dante will have his work cut out for him to make a worthy pitch in only 8 minutes. Lets hope he doesn’t dilute that time with Masglas promotion.

14.00 The Miner Roadshow

Every year at the Mining & Investment Latin America Summit, Miners with projects across Latin America present to a room full of investors and bankers.

Each presenter is given 8 minutes to identify what makes their asset unique and what level of investment or funding they are looking for.

After each round, our panel of select judges from the investment community will deliver live feedback on what they liked and what they would have wanted to hear more about. Investors want to see:
1. Valuation arguments
2. Differentiation from competitors
3. Technical information or potential of resources
4. Management Story, expertise and track record in country
5. Community relationships
6. The overall goal

16 slides 30 seconds each

If you are looking to take your project to the next stage, the Miner Roadshow is the perfect opportunity to identify new potential investors and partners.

Presenters:

_Andrew Thomson, President and Chief Executive Officer, Palamina Corp. _
James Walchuck, President and Chief Executive Officer, Zinc One Resources.
_Graham Carman, President, Chief Executive Officer and Director, Tinka Resources _
John Miniotis, Vice-President, Corporate Development, Aethon Minerals
Dante Conetta, Chief Financial Officer, Cerro Dorado and Masglas Corporation and Chief Executive Officer, Auryn Mining
_Luquman Shaheen, Chief Executive Officer and President, Panoro Minerals _
John Black, Chief Executive Officer and Director, Regulus Resource

Judges:

_Keith Spence, President and Partner, Global Mining Capital _
Alexander Tsukernik, Managing Partner, Syntella Partners

3 Likes

QUESTION: My appreciation is that our guys, although very experienced in mining/exploration, are not capable logistically of handling all that needs to be done to develop our properties - and that we are really looking for at least a mid-tier major(s) to JV with for this purpose. So, why would we be attending a conference asking for money? I thought I read in the thread above that there was a possibility that we would be getting (for lack of a better term) some spending cash in the potential deal with Hochschild? Maybe I’m misinterpreting? Maybe mid-tier majors will be in attendance?

1 Like

There no money available that we know about to develop the non-Hochschild side of the mountain. They may also need money to develop/startup the Caren/Fortuna mines. It is possible that this afternoon’s sales pitch is really for Masglas and not Auryn.

1 Like

Any news on how the presentation went?

Is there new activity showing on the mountain?

It appears there may be!
Or is it just snow still on the mountain?
My guess in retrospect is snow. :thinking:
With snow gone by now, work should be made easier for Hochschild to make progress.

1 Like

It’s for sure Snow

1 Like

I’ve searched for the answer to this question through the forum, but I don’t see it anywhere. If you have certificates of MDMN, would it be best to keep them in certificate form before the conversion to AUMC?

1 Like

I have some certificates also. The broker will not take them so I don’t have any choice but to hold them. I assume the transfer agency will have to send me the Auryn certs when they are distributed.

6 Likes

The results of Dante’s Interview appear to be here:

Most of the story is behind a pay wall.

Masglas eyes Peru mine restart in 2019

Masglas Americas Corporation plans to restart mining at the San Nicolas gold mine in northern Peru next year, the largest of a series of projects the privately-owned mining group is developing. Something about a $100 million dollar investment. You would think if Masglas has access to that kind of cash, Auryn could get some portion of that for the Alto, which is in my mind is far more lucrative than any of their properties.

Based on this, I am going to guess that Monday afternoon’s financing pitch/presentation by Dante was actually for Masglas.

1 Like

As we hopefully approach the finish line for the conversion, is there any speculation why we are still trading at .003?