AURYN Mining Corporation (OTC: AUMC) Provides Key Operational Update on the Fortuna de Lampa Project.
Dear Shareholders,
We want to thank you for your continued support and provide you with an extraordinary update addressing recent developments and plans at the Fortuna de Lampa Project. This update is structured to provide clear insights into our operational progress and financial arrangements.
Operational Permitting and Production Capacity
As part of our operational strategy, AURYN has applied for permits under Chile’s small miner law, which allows for a maximum mining production capacity of up to 1,000 tonnes per month. This decision aligns with the throughput capacity of our flotation facility (FF) plant, allowing us to optimize mining operations within regulatory frameworks.
Current Project Status and Stockpiling
We are currently advancing mine development and completing various pre-operational requirements, including the establishment of a new campsite. As part of our strategy, we expect to have a stockpile of approximately 20,000 tonnes of ore when the plant becomes operational, positioning us to optimize plant throughput and maximize production efficiency from the outset.
Vein Dimensions and Ore Characteristics
Historical records indicate that the DL2 Vein’s width varies significantly, ranging from 0.15 to 1.4 meters. This variability will dictate our extraction approach and the mine’s overall productivity. In addition, the ore from the DL2 Vein is extracted with jack legs, ensuring precise, controlled removal directly from the vein and minimizing dilution with wall rock.
Product Strategy and Sales Agreements
Our goal is to produce and export mineral concentrates, which we plan to sell on an FOB basis to major traders such as Glencore or Trafigura. This sales strategy aligns with our commitment to establishing stable, long-term revenue streams for the corporation.
Laboratory Testing and Grade Expectations
AURYN recently submitted an experimental batch from the DL2 Vein to Enami’s smelting facilities, which returned promising results, showing 57 grams per tonne (gpt) of gold, 978 gpt of silver, and 3.23% copper in a one-tonne sample. This sample represents vein ore with minimal dilution, providing a solid baseline for grade expectations. While mining grades may vary due to natural dilution factors, we anticipate achieving a plant head grade of at least 10 gpt on average as we advance the project.AURYN is committed to advancing mine development across the entire project area, and we will continuously update shareholders as progress is made. We appreciate your confidence in our journey as we work diligently to unlock the full potential of the Fortuna de Lampa Project and the Altos de Lipangue mining district.
Important Notice on Production without Mineral Reserves
The decision to begin production at the Fortuna de Lampa Project is based on economic models and management’s understanding of the property and existing mineral resource estimates. Consequently, the project involves greater economic and technical uncertainties, including the potential for lower-than-expected mineral grades, unexpected construction or operational challenges and costs, and significant variability in production and economic factors due to the decision to proceed.
Thank you for your continued support and dedication to AURYN Mining Corporation.
Submitted on behalf of the Board of Directors.
Forward-Looking Statements
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.
Contact Information
Auryn Mining Corporation
https://aurynminingcorp.com/
ir@aurynminingcorp.com