Could someone please put this in a nut shell for me 
Sure. Stay the course. Youāll be fine.
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We are lucky to have this board to have information, even if some are speculations, otherwise we have been kept in the dark all these years.
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SMDH, Auryn has provided a ton of information and they are doing actual WORK. Sure, weāre not getting up to the minute updates, but I have to believe thereās a method to their madness. This is much better and healthier than the rumor mill which made people feel good and informed but was BAD info. No info is better than bad info.
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Edward, Iām one who appreciates the writings of Brecciaboy, so following is my take from what he wrote (somebody might want to correct me here and there and even draw up a summary of what I write too, as I can be long-winded):
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A world class deposit (WCD) is defined as 3.2 million ounces of gold equivalent.
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Because the five main subdivisions of the ADL Mining District (PN, LDM, breccias, Merlin veins, and Fortuna veins) have not been entirely drilled/trenched/sampled, the best we can do is to study the information we have to date and use statistical probabilities to assess the likelihood that the ADL is a WCD (not to a certainty).
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We have so much knowledge about porphyry deposits (a la Singer, Berger, Drew, Sillitoe, et al), that once we know we have a porphyry we can use that knowledge to predict various aspects of what is present at the ADL.
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Dozens of geoscientists have studied the ADL. Here is what we can put together:
a. C.S Perez was commissioned to compare the results of his own hyperspectral satellite imaging report to the historical work performed by prior geoscientists (from Alejandro Faunes of Shell Chile to Gordon House of ACA Howe). Perez concluded that there are AT LEAST TWO porphyries on the ADL and that there are hundreds of millions of tons of resources in the UPPER portion of the porphyries and skarns; that the ADL is without a doubt a WCD. Brecciaboy says if we consider what Perez conservatively, we can extrapolate that the ADL has 6.4 MILLION ounces of gold equivalent just in the UPPER portion of the porphyries and skarns ā and that would be using only 200 million tons and 1 gram per ton average, both of which are EXTREMELY conservtive.
b. From all that has been studied/written on porphyries, we know that Cu/Mo porphyries average about 450 million tons of ore ā and that Cu/Au porphyries have an average of 350 million tons. So, the 200 million tons of ore (along with the 6.4 million resulting gold equivalent ounces) we presumed for the sake of argument above is indeed conservative. The number of ounces per ton could also range from 1 to 10. These assumptions are well within statistical probablility analyses in accordance with historical information on which well-known geoscientists have written. Add to that the very favorable infrastructure, which makes the ADL even MORE economic. Note also that the top of the Cu/Mo porphyry occurs right AT surface, when on average the top occurs at 4,500 meters depth ā this makes it even more economic.
c. The ADL also has a well-preserved intermediate sulphidation epithermal system which has been defined to date to include 5,000 meters of admittedly narrow veins having made it to surface (which normally widen at depth). Luciano Bocanegra estimated about 664,000 ounces of gold equivalent in these veins within 2,900 meters of these veins ā and only within the top 200 meters of this system.
d. Gordon Houseās work on the centrally located āGordon Brecciaā pipe outlined 1.5 million ounces of gold equivalent. Auryn Miming Chile (AMC) did work to expand this breccia zone to the south and west, saying that there is conservatively an additional 1.0 million ounces of gold equivalent in this new breccia zone.
e. Brecciaboy feels uncomfortable even talking about the in situ ounces that could possibly be at the LDM stratabound deposit. The two nearest such deposits are the Lo Aguirre and El Soldado, which range in size.
The best nearby deposit with which we can compare the ADL is the Andacallo Mine to the north (a Cu/Au porphyry, surrounded by 5 km of relatively high grade gold deposits (just like the ADL). The Andacallo Mine is made up of the same type rocks with the same age. But, Brecciaboy asserts that we shouldnāt even worry about whether we have a WCD; that we should be more concerned with WORLD CLASS ECONOMICS, as that is what the majors are more concerned with at this time. The early production opportunities at the Caren Mine should be the focus, as we already know that some 5,000 meters of veins have made it to surface and that is most likely open-pittable, as we are blessed with infrastrucure (nearby water and power). There are other factors that could affect a positive economic assessment of the ADLās early production opportunities.
* MDMN has a %51 Million net operating loss (NOL) carryforward, which can be utilized and which would result in higher dividends for shareholders (as less tax would be paid, meaning more net profit which would be distributed to shareholders).
* Instead of distributing profits, AMC could do share buy-backs, which would reduce MDMNās outstanding shares, which would increase dividends for shareholders going forward. This is a very good idea at this point, since there seems to be a very large market disconnect between the current price per share and what we anticipate the value of the ADL to be. Does the market even have a clue as to the value of a junior explorer that is about to go into production with a $51 Million NOL carryforward? Hopefully AMC is open-minded and will act accordingly at the appropriate time.
* The value assigned to early production opportunities is bolstered by a potential LONG mine life. The Caren vein system that has made it to surface is open in all directions, which need further testing.
* Early cash flow and AMC going public also bolster negotiating strength āthis will discourage low-ball offers by majors.
* The positive production decision at the Caren, along with the 5,000 meters of veins that have made it to the surface via the epithermal system (is this separate and apart from the Caren?) suggest a well-developed āplumbing systemā (I think he means there is good structural control ā the ability to know where things begin and end underneath).
* The fact that we are in production at the time AMC goes public will add to value.
* Early cash flow could attract the attention of royalty streamers who buy future streams of income.
* Private miners do not necessarily need to spend time and money drilling out an epithermal system for a NI 43-101 compliant report when it is not for sale and the private miner has the ability to self-develop.
* Statistically, there is a 1-in-1,000 chance of a junior explorer will make a discovery, much less go into production. Add to that the average 25 years it takes to get into production AND there is currently a 25-year LOW in such new discoveries.
* AMC, Masglas, et al are very closely alligned with MDMN shareholders, as they own some 600 million shares of MDMN. They want to increase THEIR value too.
* Production numbers greatly aid in the valuation of junior miners. Once production is commenced, it can be ramped up and there are economies of scale which can be realized from bulk production. Iām not sure how a gravimetric concentrator can be used to increase head grade by 100-to-1 and how that affects us economically (Maurizio recently made reference to this at a recent meeting).
Finally, note that when AMC does go public, it will be necessary for a prospectus to be issued, which will give us much detailed information; information which has been kept secret for a long time.
In summarizing why good modeling is useful and important:
Mineral deposit models are important in exploration planning and quantitative resource assessments for a number of reasons including: (1) grades and tonnages among deposit types are significantly different, and (2) many types occur in different geologic settings that can be identified from geologic maps. Mineral deposit models are the keystone in combining the diverse geoscience information on geology, mineral occurrences, geophysics, and geochemistry used in resource assessments and mineral exploration. Too few thoroughly explored mineral deposits are available in most local areas for reliable identification of the important geoscience variables or for robust estimation of undiscovered depositsāthus we need mineral-deposit models.
Porphyry Copper Deposits of the World: Database and Grade and Tonnage Models, 2008
Weāve had some of the best geoscientists recognized world wide not only in the past, but very recently, work to compile an accurate model defining the diverse deposits comprising the ADL district. AURYN has undertaken a serious effort to understand and plan the most efficient way to successfully bring these deposits into an economically profitable operation. Many unanswered details will necessarily be made known once AMC publishes a prospectus when it gains access to the US public markets.
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I appreciate the short and sweet explanation, I look forward as Iām sure all here do to a great future of earnings from our big chunk of earth
Merry Christmas to all
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Frankly, I donāt see another deposit with the potential like ours in the world, they are not a lot of deposits like this left.
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I met and spoke with the Auryn team in Vegas and was very impressed. I was also excited to hear about going into limited production in 16 and then upscale in 17.
We are not sure why that didnāt happen but all hope there is a good reason.
Weāve been told many things over the years that did not come to fruition so we are hopeful what was portrayed comes through with Auryn.
If anyone from Auryn is reading this board, thank you for bailing us out of a disastrous situation.
The shareholders of Mdmn have been thru the ringer. If Auryn is reading the board, any type of positive information for a Christmas present would be greatly appreciated by the beat up Medinah shareholders!!
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Letās not all pile on at onceā¦
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We are definitely not Fadein, my big question is, will we have a Christmas gift from Auryn ?
Per wizard cerro site is up! It can mean we could hear something before years end. We can only hope
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I would hesitate to call news from Auryn a Christmas Gift. I would call it keeping a public promise.
We hope that the Medinah and Cerro shareholders rest a little easier now that their ownership interest in AURYN is secured and their overhead is reduced. AURYN continues to execute its mining plan. All shareholders of AURYN will be treated equally as we move forward with our intention to access the public markets and provide eventual liquidity to all shareholders.
Further details WILL be announced in the coming quarter.
I added the caps.
Thank you so much.
Respectfully,
Maurizio Cordova
MASGLAS Limited
AURYN Mining Chile SpA
AURYN Holdings Corporation
American Sierra Gold Corp.
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to bad, that we had a sensational property held by idiots, you know who they were.
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Just a reminder of what these types of units are capable of (not an endorsement of this particular equipment, but it was mentioned in an early AURYN announcement by brand name. At the āinformational meetingā I remember it well because I asked the question where it was mentioned by Maurizio).
Falcon SB Gravity Concentrators
*Unit capacities up to 400 t/h ā¦
The typical application for a Falcon SB Gravity Concentrator is recovering liberated precious metals (Au, Ag, Pt, etc.) within a grinding circuit. Outside of grinding circuits, Falcon SB Gravity Concentrators are also used for precious metal separation from aggregate or placer deposits. The target mineral will usually be in extremely low concentration (grams per tonne) and a very high upgrade is desired (up to 10,000x).
http://seprosystems.com/products/gravity-concentrators/_falcon-sb-gravity-concentrators/
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So, I think Iām reading here that the Falcon SB Gravity Concentrator can take ore that one would normally throw away and turn it into something that is economic?
cant they just throw us a bone for godās sakes dont they realize that we have been taken advantage of for a decade? A friggin bone after sitting here watching the markets gain this year and us sitting here with huge losses is not asking to much. Especially when they said they were going to start doing just that. THROW A BONE!
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George we have 17 days left in the 4th quarter. Letās give them that
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Sorry if I oversimplified expectations. Determining the pre-sorting and concentration methods for ore is not a simple one with a one size fits all solution. A rather detailed explanation can be found at the site following the excerpt below:
There are many steps and methods used to bring a mining claim to economic profitability. The earliest reference using the Falcon system that I recall was actually mentioned on maximizing production on the Merlin 1 vein (Caren mine).
āWe have conducted metallurgical test runs at recognized laboratories in Chile and Peru. These have resulted in an average gold recovery of over 90% from concentrated ore obtained by a gravimetric Falcon system. Based on this, AURYN expects to produce a total of 5,000 troy ounces of gold in 2016 and over 25,000 troy ounces in 2017.ā
Acquisition of Altos de Lipangue Mining Claims | AURYN Mining Corporation
A somewhat earlier nuanced reference was made here:
ā¢ Gravimetric Fire Assay results confirmed bonanza grades up to 124 g/t Au.
ā¢ Update on bonanza gold grades in Caren mine, have returned over 100 g/t Au at Fortuna - Merlin system in the Altos de Lipangue project, Chile. - AURYN Mining Chile
The Caren Mine is the most likely area of use I see for maximizing and upscaling production with use of a Falcon gravimetric system to the expected 25K ounces per year that was announced in the summer of 2016 before the disappointments that consumed much of the past 1 1/2 year. The āpreviously concentrated oreā would then be shipped to ENAMI:
Metallurgical tests conducted at laboratories in PerĆŗ returned an average gold recovery greater than 90%. Test conditions confirmed the best recovery method entails use of a Falcon gravimetric system processing previously concentrated ore.
These results make us confident that we can produce a total of 5,000 troy ounces of gold before year-end 2016, and over 25,000 troy ounces in 2017.
Caren Mining Preparation Commences | AURYN Mining Corporation
Even though there is silence, I expect the necessary steps to meeting or exceeding earlier expectations are well underway.
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It appears someone is determined to drag the bid as low as they can possibly get it, and somebody is playing right into it. Just an observationā¦not whining here. How low can you go?
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