January 2022 – Shareholder Update
AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share its Q4 2021 accomplishments, Q1 2022 objectives, and outlook for the future.
Q4 2021 – ACCOMPLISHMENTS
Intercepting the Don Luis vein
- Our primary objective remains intercepting the Don Luis vein and beginning exploitation with regular shipments of ore to ENAMI. The Don Luis vein has a much more vertical orientation than initially forecast. The mining team has extended the Antonino tunnel approximately 255 meters SSW and is encountering larger extents of mineralized rock and more frequent branches indicating closer proximity to the Don Luis vein.
- Along with the structures mentioned in previous updates, during Q4 2021, the team has encountered the following structures which warrant analysis and consideration for exploitation.
- Nov 9 – a branch of the Don Luis – 1m in width
- Nov 10 – 12 – 2 additional branches of the Don Luis – 15cm and 20cm width
- Nov 17 – 18 – a mineralized fault – 2.5m width
- Nov 22 – 23 – 1 additional branch of the Don Luis – 25cm width
- Nov 27 – 28 – 8 different branches of the Don Luis – each 5-10cm width
- Dec 30 – 31 – 2 additional branches of the Don Luis
- In total, AURYN has tunneled 255 meters into the mountain, beginning at an elevation of 1880 meters above sea level and is currently at an elevation of 1845 meters above sea level. The team has discovered more than 15 ramifications over the 255 meters.
- During the last week of October 2021, AURYN shipped 3 trucks of ore selected from several structures encountered during the development of the Antonino Tunnel as a test production run. In total AURYN delivered 48 tons of ore for processing. This included ore from the new structure intercepted on June 23, 2021, with assays of 15.92 g/t Au, 47 g/t Ag, and 5.3% Cu announced in the Q3 2021 update.
- On November 30, 2021, AURYN received a pre-liquidation value from ENAMI for the 48 tons shipped. The accepted total was 15 g/t Au, 31g/t Ag, and 3% Cu with an anticipated liquidation value of $36,207. AURYN expects to receive final payout from ENAMI in January.
- AURYN still has approximately 50 tons of ore on site to ship to ENAMI.
Collaborating with Universidad de San Sebastian
- On December 10, 2021, a new group of professors and students from Universidad de San Sebastian spent the day with our mining team at La Fortuna de Lampa. The visit focused specifically on the development of the Antonino Tunnel and covered all aspects involved in its development. Students took samples from each of the structures and several of the Don Luis branches encountered during the development of the tunnel. The university expects to provide us with a full report on their analysis of these samples during Q1 2022.
- Developing the Antonino Tunnel has not been without setbacks. In mid-November the new scoop broke down and was sent back to the manufacturer for repair under warranty. It took the team four weeks to locate another scoop. The new scoop, although smaller than the original scoop, allowed the team to continue their development of the tunnel. While we await the return of the repaired scoop, we are evaluating options to limit these kinds of delays in the future.
- Covid-19 has created a significant backlog in sampling analysis. AURYN and the Universidad de San Sebastian are still awaiting assays results from samples. These will be published once received.
- During the downtime, the team worked on expanding the ventilation system, installing a new water pump with greater capacity, and improving the road system based on recommendations from Universidad de San Sebastian.
Q1 2022 – OBJECTIVES
- Continue the extension of the Antonino tunnel and intersect the Don Luis vein. Once intercepted, an announcement will be made, and production will start immediately.
- Start production on multiple faces on the Don Luis vein. Once consistent production is achieved, develop a financial forecast, and begin to outline reserves on La Fortuna and Lipangue Mining District.
- Increase the number of personnel on our mining crew to support multiple shifts for blasting, clearing, crushing, and shipping ore. This will also require purchasing additional equipment and implementing improvements to the base camp as suggested by Universidad de San Sebastian.
- Explore the feasibility, timing, and permitting requirements for the development of an on-site concentration and processing plant.
- Evaluate the timing and cost-benefit of purchasing a drilling jumbo and adding an additional mining crew.
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.
Management and the mining team are extremely bullish. We expect to immediately be in production once the Don Luis vein is intercepted.
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 shares issued and outstanding and AURYN does not anticipate any dilution from our exploration efforts.
Initial cash flow from production will be used to pay off exploration debts and expand operations. We anticipate being debt-free and having fully audited financials prior to seeking to move to a higher tier on the OTC Markets in 2022.
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.
Auryn Mining Corporation