As 2018 draws to a close, AURYN Mining Corporation (OTC: AUMC) would like to thank its shareholders for their support and provide the following updates.
Contract with Hochschild Mining PLC
We are pleased to announce the signing of an agreement with Hochschild Mining PLC. The contract was finalized after Hochschild completed its due diligence on the Las Dos Marias project (“LDM”). The terms of the agreement remain as previously announced upon the signing of the binding Letter of Intent. Hochschild has an option to invest US$7,000,000.00 into the LDM project over a 5-year period to earn a 51% joint venture interest in the LDM properties. An option to invest an additional US$23,000,000.00 is available to Hochschild to gain an additional 9% interest. If all US$30,000,000.00 is invested, Hochschild will own 60% of the LDM project with AURYN holding the remaining 40% as a joint venture partner.
David Brownrigg Appointed AURYN CEO
We are delighted to announce that David Brownrigg has been named the CEO of AURYN Mining Corporation. Mr. Brownrigg replaces Maurizio Cordova, who will remain a director and Board Chairman.
We continue to provide logistical support to Hochschild’s work on the LDM project. Hochschild recently completed Phase 2 of their work on the project and plans to start Phase 3 in early January.
We recently started working on the Fortuna de Lampa and Lo Amarillo claims. State records indicate some historic sales of ore from this area contain more than one ounce of gold per ton. We are in the process of removing water from the existing tunnels and expect to conclude this year. After that, the old tunnels will be enlarged and made safely accessible to evaluate the historical work, systematically sample the area, and consider mining plan options.
We continue to work on the Larissa and Merlin claims and are finishing the chimneys and exit routes. Once approval has been given, we will make a new cut on level 3 to intercept the high-grade ore vein uncovered in a new tunnel found between levels 2 and 3.
We wish everyone a joyous holiday season and look forward to the possibilities for 2019, including advancement of the Hochschild JV, drilling activities on the mountain, and possible production from the Lampa / Lo Amarillo and Larissa / Merlin targets.
For further information please visit our website, https://aurynminingcorp.com.
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.