::: originally posted by AURYN Mining SpA :::
May 16, 2016 @ 8:01
AURYN Mining Chile SpA (“AURYN” or “the Company” or “AMC”) is pleased to announce the successful completion of the Memorandum of Understanding (MOU) signed with Medinah Mining Chile and Medinah Minerals Inc. (MDMN OTCBB-Pink). Pursuant to the previously announced MOU (http://aurynmining.com/auryn-mining-chile-spa-amc-signs-mou-to-consolidate-100-of-altos-de-lipangue-project/), AURYN has acquired 100% of Medinah’s Altos de Lipangue (ADL) mining claims in exchange for 25,000,000 shares of AURYN Mining Chile SpA. The 25,000,000 shares, which represent a 25% equity stake in AMC, have been delivered to Medinah Minerals.
AURYN is very confident and excited about the potential of this project and has consolidated the 10,000+ hectares which make up the ADL mining district. With the closing of this agreement, AURYN has full control over the project. It should be noted that along with owning 25% of AMC, Medinah Minerals is a 15% shareholder of NUOCO, a company in which AMC holds the remaining 85%.
AURYN is working toward the exploitation of the Caren Mine. We have hired a team of Peruvian experts in underground mining. They have completed the project engineering and mining layout. According to the current exploitation license the maximum tonnage of production allowed is 5,000 tons per month. AURYN’s engineers plan to achieve this level of production within the next 6 to 8 months with a cut-off grade of 15 g/t of gold once production begins.
We expect to start mine preparation during the second week of June. Mine preparation will take approximately two months.
We 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.
The cash flow generated from production at the Caren Mine will fund an aggressive exploration program of the Pegaso Nero and further drilling of the Merlin-Fortuna targets. The Pegaso Nero target has great potential to begin proving up a mineralized porphyry.
As we progress toward full scale production AURYN will provide updates regarding costs, mine life, and reserves. In addition, we will be updating our shareholders regarding possible cash distributions after the first quarter of full production.
For further information and regular updates, please visit http://aurynmining.com.
Submitted on Behalf of the Board of Directors AURYN Mining Chile SpA