AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share the following update with its shareholders.
AURYN Mining Corporation has successfully extended a 40-meter ventilation chimney, connecting our Level 3 tunnel to the historic Level 2 tunnel structures. This significant enhancement accelerates ventilation after drilling and blasting events within the Antonino Tunnel, streamlining operations. Notably, this development has substantially improved our safety standards. Following a rigorous evaluation, the mining authorities have formally accepted our updated ventilation measures. Our commitment remains steadfast to operational excellence and safety.
Lab Works and MOU / Term Sheet
After comprehensive metallurgical testing at a specialized laboratory in Peru, we’ve identified that our ore possesses a refractory nature. This characteristic means it is unsuitable for gravimetric processing, a fact which directly impacts our initial plans with Goldlogic.
Originally, our intention was to employ gravimetric processing methods and then sell the concentrates to Goldlogic, as laid out in our MOU and term sheet. Due to the refractory nature of our ore preventing gravimetric concentration, we are unable to proceed with our agreement with Goldlogic.
Adjusting to these circumstances, we’ll be extracting the mineral directly from the vein and transporting it to ENAMI for processing through Direct Smelting. However, to ensure efficiency, scalability, and improved margins, the establishment of a flotation plant is in our purview, given that this method is the most effective for our ore’s composition.
We remain committed to deploying the most efficient and beneficial techniques in our operations and value the ongoing understanding and support from our shareholders during these critical adjustments.
Ore Production Update
On July 4th, ENAMI granted us the Mining Register, which authorizes the delivery and sale of minerals from our operations to ENAMI. This encompasses both Direct Smelting and Flotation Recovery techniques – the latter specifically for mineral shipments with reduced gold concentrations. On July 19th, we dispatched an experimental batch of minerals to ENAMI’s direct smelting plant. The settlement results, received today on August 9th, are as follows:
- Gold (Au): 57.5 g/t
- Silver (Ag): 978 g/t
- Copper (Cu): 3.23%
Our dedicated team is currently active at the mining site, focusing on producing and accumulating minerals directly from the vein. Our goal remains to consistently dispatch these high-grade minerals to the designated facility at ENAMI.
University of San Sebastian Projects
Throughout this quarter, the university’s research teams continued their projects. In June, when weather permitted, they evaluated our operations for the practical implementation of their findings. By the end of June, two significant project reports were finalized:
- Automation Project: This centers on the integration of exoskeletons for physically intensive tasks such as drilling and lifting heavy objects. We are in talks with two Chilean suppliers to trial and procure lumbar and upper back support exoskeletons for our crew.
- Antonino Tunnel Water Management: A cost-effective system has been devised to capture, treat, and repurpose the water from the Tunnel for all mining operations. This initiative paves the way for a sustainable approach to our water resources.
Q3 2023 – OBJECTIVES
We remain committed to extracting high-grade minerals from the Don Luis vein while advancing the construction of the Antonino Tunnel. All extracted minerals are designated for processing at ENAMI plants, utilizing both direct smelting for the high-grade output and flotation for yields with concentrations under 20 g/t.
We will promptly report financial results from these dispatches.
Following our recent metallurgical insights from the Peruvian laboratory and our inaugural mineral consignment to ENAMI, we’re evaluating the potential for a dedicated mineral flotation plant. This initiative aims to amplify our production in Altos de Lipangue and expand into other lucrative sectors of the mining district.
AURYN will continue to publish required financial disclosures at OTC Markets. Quarterly shareholder updates will also be released on OTC Markets and on our website during the first week of each calendar quarter along with a gallery of images and videos. To receive notification of these via email, subscribe on our website. For occasional intra-quarter updates, follow @aurynmining on Twitter.
Having successfully completed the ventilation chimney and having received the outcomes from our metallurgical studies and experimental batch sent to ENAMI, our mining team is set to continue operations within the Antonino Tunnel. We’ll be extracting minerals directly from the Don Luis vein for processing at ENAMI. Concurrently, we’re embarking on a technical and financial assessment for the establishment of a flotation plant.
To date, a third party is paying for AURYN’s exploration efforts. AURYN’s Board of Directors is monitoring expenditures with a commitment to reimburse the third party (without interest) from production. There are 70,000,000 common shares issued. Regarding the establishment of a floatation plant, AURYN is considering several options, including raising funds via a private placement.
For further information please visit our website, https://aurynminingcorp.com.
Submitted on behalf of the Board of Directors.
This news release contains certain forward-looking statements within the meaning of the United States Securities Exchange Act of 1934, as amended. This forward-looking information includes, or may be based upon estimates, forecasts and statements of management’s expectations with respect to, among other things, the completion of transactions, the issuance of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining or milling charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially and substantially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.