The Mining Play

Medinah/Auryn - 2018 Q4 General Discussion


#101

Medinah seems to be getting increasingly sloppy of lately with all these late filing notices and now not bothering to keep current in Nevada. I assume it means that a conversion to AUMC is near?

https://www.nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=Hcp2ORHEHqAVMOpDj8SDuQ%3d%3d&nt7=0


#102

A $2 trade is not for tax loss. Still games being played by some.
I suppose if you’ve already sold your position and had intentions of buying back after 30 days, a $2 trade would help work the price down.
I’m sick of this fing stock


#103

I agree, there’s no reason I can come up with that anyone would sell or anyone would put a buy in for 517 shares at .0024. I’ll never figure this stock out, thank God it’s almost over …


#104

Hey GC. I am just curious what you mean by…it is almost over?
Did I miss something? Or do you just mean that Dec 15th is getting close?
But I presume that we still do not know what will happen in Dec, other than we will find out if Hochschild is following through with JV or not.
Am I right about my presumptions?
Appreciate any response before I decide to finally take my tax loss which I need for my 2018 MJ gains.
Thanks.


#105

Agreed I had a 500,000 buy order @ the .0024 and got the 517 plus a few more but it cost me as much in fees than the trade was worth. Games oh well still adding a little. lol


#106

Lol, I figured it was something like that, someone else probably had a sell order that didn’t fully get sold and left an odd number of shares that they just decided to get rid of to clean up their books… Oh well, to bad you didn’t get your 500,000


#107

The prediction was that Medinah would be converted into AUMC share’s in first quarter, I can see this happening so no big surprise.


#108

Auryn had more than 4 million dollars in operating expenses over the last 9 months. What did they spend all that money on?? Mining? Exploration? Salaries? Attorney fees? https://backend.otcmarkets.com/otcapi/company/financial-report/206769/content


#109

It looks to me to be an “amortization expense” due to the asset valuation change of the claims from roughly $56M to $51.2M due to whatever method of evaluation they have set. So it looks like it is just a part of the accounting process to keep track of the value of the claims.

No shares issued. No cash used (because there basically isn’t any).

http://indianmba.com/Faculty_Column/FC458/fc458.html


#110

OT; On a sidenote….oops


#111

Medinah’s quarterly financial report. Doesn’t appear to be any unpleasant surprises. https://backend.otcmarkets.com/otcapi/company/financial-report/207121/content


#112

Interesting to see that our investment in Auryn went up by almost $3M, not sure why from last quarter.


#113

I’m showing no trades for both MDMN and AUMC today. Is this correct? Or just my system glitching?


#114

Your system is glitching. 27,500 shares at .0027


#115

Be nice to get some news we can share with our families over thanksgiving dinner.

Ps SP sucks!


#116

Today almost all share prices suck.


#117

Maybe CHG can put up the countdown clock to December 15 JV contract signing deadline.

Also the lifting of restriction of Medinah into Aumc shares.

Hope it will be an exciting end of the year for Aumc and all us shareholders.


#118

Just some thoughts on the eventual conversion and the significance of the December 15 date…

A countdown clock to the December 15 JV contract signing deadline is an OK idea, but I wouldn’t bet that we hear much on that date, (a little before or after); Much anticipation, though.

I agree with CHG that there will no penalty if the LOI just expires, but think the likelihood of that is rather low. Even though money and markets are in turmoil, $7M over 5 years is an extremely low investment for a 51% interest in a large property with great potential. Also, $23M for an additional 9% is a large bump that signals Hochschild anticipates there will be an economic deposit worth developing.

Aside from that, Dec 15 was only when CDCH purchased all of AURYN’s mining concessions. It says nothing about shares actually being issued on that date, only that the purchase agreement was exercised. Shares being issued likely followed sometime shortly after, exact date unknown. 1st quarter conversion for MDMN shares to AUMC shares is therefore more probable.

Now if the Hochschild signed agreement is announced in December, what will be the effect on MDMN shares? Will AUMC/AURYN management do what was done with WRY? Will a trading halt be requested until the exchange/conversion of MDMN shares for AUMC shares fully takes place? At some time AURYN has to transfer shares to Medinah corp. If there is a prolonged halt, a NOBO/OBO list can be ordered, and shares shuffled over to individual accounts without affecting share price of MDMN. The affect on AUMC would likely be quite noticeable, and I wonder if the halt would additionally be requested there. WRY is on a prolonged halt until after the special meeting, so there is a good reason for it. We don’t know the exact date AUMC shares held by AURYN were issued and don’t actually know when they become unrestricted.

Alternatively, the less complicated thing would be for Hochschild to announce, and AURYN to do nothing until it’s AUMC shares become unrestricted. It wouldn’t make sense for AURYN to put restricted shares into individual MDMN shareholders’ brokerage accounts. We’ve experienced quite a hassle getting different brokerages to unrestrict them in the past. Not being allowed to trade converted but still restricted AUMC shares in accounts would be unwise. Would this kind of situation increase active trading and increase PPS of AUMC? It would be a big plus for current shareholders, but may be seen as quite unfair to all those holding MDMN shares.

Additionally, how much of ongoing expenses are going to eventually be taken out of MDMN? Who will be paying for the NOBO/OBO list and distribution? Anyway, I’d be interested to hear some thoughts and discussion as to just how this will all turn out, provided Hochschild does come up with a signed agreement by December 15. Perhaps the signing will be delayed/extended one more time until the AUMC shares are unrestricted and distributed to Medinah corp. Then an announcement of the transfer, along with an announcement of a date of record and date of distribution could proceed smoothly. I share your hope that it will be an exciting end of the year for AUMC and all shareholders. Anyway, we wait until there is an announcement to see how things proceed.


#119

My 2 cents. Nothing is immediate. Once the restriction is lifted, paperwork needs to be filed to remove the restriction. AUMC needs to distribute the shares to MEDINAH. Medinah needs to work with the attorneys, transfer agent, and FINRA to determine best method of distribution or exchange. This includes efficiency, regulation, and easy or difficulty to shareholders. They also need to pay off any remaining debts.

As I mentioned previously, you’re better off thinking you’ll get AUMC shares for MDMN shares sometime in the middle to end of 2019, Q1. After that we all are in AUMC, MDMN is valueless and without any asset at that point. ::: moo :::. I don’t expect the ratio to change.

By the time we get shares Hochschild drill results will be on their way (if everything works to what AUMC announced as their forward looking plan.)

Happy Thanksgiving all! And thanks to the mods, sponsors, and link clickers who pay the bills.


#120

Ditto that. I have a very diminished worry about Hochschild coming through in a big way. I had most recently thought the “big prize” at the LDM was copper, and maybe it still is. But, I did find it interesting from the Hochschild website:

We are a leading underground precious metals producer focusing on high grade silver and gold deposits, with over 50 years’ operating experience in the Americas.

We currently operate four underground mines, three located in southern Peru and one in southern Argentina. All of our underground operations are epithermal vein mines and the principal mining method used is cut and fill. The ore at our operations is processed into silver-gold concentrate or dore.
http://www.hochschildmining.com/en/about_us/overview

I was puzzled that copper isn’t part of their main expertise. That is, until I ran into something that must have been written by DOC circa 2011 (apologies for not having the exact citation):

Historically, most of the mining activity at the LDM property has been in the mountains to the west of the flat surface expression of the shear zone. This is where the “Las Dos Marias Mine” can be found. The mountains to the east of the shear zone consist of easterly dipping layers of “mantos” stacked one upon the other. Mantos are layered “replacement” deposits wherein hydrothermal fluids from below have been thrusted upwards under tremendous pressure where they dissolved layers of usually limestone and “replaced” them with metal bearing rock after the cooling of the fluids. These mantos have both copper and gold. In one of the existing tunnels into the manto area ACA Howe took a vertical channel sample revealing 1.96% copper over 1.5 meters. The average copper grade in porphyry copper deposits worldwide is about 0.55% copper. There is certainly no implication that the manto deposit will average 1.96% copper.

… Although the 6 Kilometer-line IP/IR study done at LDM identified a variety of “phase anomalies” on each of the 6 one Kilometer lines Medinah only had the budget available to drill 2 holes into the shear zone. The original plan was to drill 8 holes. Both went vertically down from what ended up being the middle of the shear zone in an E to W direction. As you might imagine the drill holes totally missed the hanging wall but in the case of drill hole #2 ACA Howe found a 2 meter section containing 454 gm per tonne gold. It intersected this metal-laden “shear” at about 68 meters in depth and it encountered several other gold rich shears on the way down. Hole #1 also had some very nice gold intersections one of which was only 11 meters under the surface. Both holes were in the central aspect of the surface manifestation of the shear zone in an N to S reference. The 155 meter deep diamond drill Hole #1 was located 80 meters north of the 300 meter deep hole #2.

You might picture the shear zone in its entirety as a gigantic piece of plywood that is over 700 meters long (N to S) instead of 8 feet long. Its thickness is about 100 meters instead of perhaps a half inch. Its width (to depth) instead of being 4 feet wide is much wider than that but it has yet to be determined. This metaphorical piece of plywood sits pretty much on its lengthwise side with its top edge at ground level leaning slightly to the east when compared to its lower edge.

Although Medinah didn’t have a drill intersection into the hanging wall we do have some suggestions that it is also fairly rich in gold as suggested by ACA Howe. Why? It’s because the LDM Mine is situated at the junction of the west mountain of that flat bottomed “V” and the flat bottomed floor of the shear zone. Its main tunnel dips at 48-degrees to the west to intersect what appears to be the hanging wall of the shear zone. This mine appears to have been mined all the way back to the Inca times and that of the conquistadores. They had their own mill on site. The discarded tailings piles from the mine workings are extensive and still carry high grades (5.39 gm/tonne average over a full 20 meter sampling) in gold even after the high grade material was removed. This reflects just how rudimentary the mining techniques of the predecessor miners were as well as the richness of the original “head grade”. As far as the size of these resources the ACA Howe report refers to “significant sized dumps and tailings piles”. ACA Howe suggests collaring a hole well to the west and then drilling at a minus 70-degree angle in order to pick up both the hanging and then the footwall in the same hole. At LDM the gold has a tendency to coexist with pyrite and arsenopyrite while the copper occurs as chalcopyrite (copper sulphide) or chalcocite (copper oxide).

It makes sense that Hochschild already has a very good indication of where to drill from some of the early work performed by ACA Howe. Thanks Wiz, 2019 is a year to look forward to.
Wishing everyone a blessed and Happy Thanksgiving.