AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share its Q2 2022 accomplishments, Q3 2022 objectives, and outlook for the future.
Q2 2022 – ACCOMPLISHMENTS
Don Luis vein and Antonino tunnel
- In our last update we reported that the mining team was confident they intercepted the Don Luis vein on March 31, 2022, at approximately 350 meters SSW from the entrance of the Antonino tunnel. This result was pending lab confirmation. The lab results were inconclusive.
- One of the objectives in hitting the Don Luis vein is to drift a chimney to intersect the old workings and significantly improve ventilation within the tunnel. Since the team is uncertain which (if any) of the structures encountered is the Don Luis, the best course of action is to continue extending the tunnel until they can determine the precise location of where to drift the chimney. To determine precisely where they are relative to the old workings and the known high grade Don Luis vein, AURYN contracted EGV Ingeniería to produce a detailed topographical map of the tunnel and the old workings. This effort starts on July 11, 2022. Once the map is available, AURYN will re-publish the map and assay details presented below.
- The miners are encountering continuous alteration in with each blast in the Antonino tunnel. The alteration zone is now more than 100+ meters in length. The Antonino tunnel now extends approximately 390 meters SSW. Weather, equipment issues, and COVID-19 all contributed to the reduced pace this quarter. (See “other items” below.)
- On June 20, 2022, the team intercepted a structure that has the same geological signature as the thinner branch of the Don Luis that is found in the old workings. See assay sample FC074. This vein has the same sulfuric odor, coloration, angle, and grade as the thin branch of the Don Luis. Precise mapping will be able to confirm if it is in fact the thin branch of the Don Luis from the old workings. If it is, then the thicker, high-grade vein of the Don Luis is likely a few meters beyond this point.
Collaborating with Universidad de San Sebastian
- During the second quarter students from the university focused on three projects:
- Development of a new campsite
- Development of an infield lab for faster decisions and results
- A review of all the historical data available of the Fortuna Project on public and private databases
- Final reports on these projects are expected to be ready in the next month.
- To bolster our team and prepare for production, AURYN hired Hector Ledesma, Mining Engineer.
- On May 25, 2022, AURYN contracted with Andes Analytical Assays, (“AAA”), a certified lab in Chile, to analyze samples from the Antonino tunnel. The agreed time for lab results is now 6 working days from delivery of samples. Under the direction of our consulting geologist, the team identified and collected more than 15 samples of structures in the Antonino Tunnel. These samples were sent to AAA for analysis and are included in the results below.
- Weather. Weather and environmental conditions were extreme during the second quarter. Generational rains with accumulation of over 50 mm of rain in 24 hours forced the team to evacuate the camp early in the quarter. They returned to significant water accumulation which required remediation. On other occasions the team had to evacuate for multiple days due to snowstorms and extreme cold, only to return to frozen pipes in the water remediation system which need to be repaired.
Water accumulates in the tunnel at up to 10,000 liters per day. The water is removed prior to drilling and blasting which takes time, especially after heavy rains or snow melts with multiple days of accumulation. Altogether the team lost approximately 5 weeks work to weather related events and excessive water accumulation.
- Equipment issues. The team experienced several days loss of operation of the scoop due to mechanical failure. After analysis, one of the team members discovered a design flaw in the scoop’s air filter and injection system. They solved it by installing a different flow system and have not had issues with the scoop for several weeks.
- COVID-19. Despite following best practices in personal care and vaccination, the entire team came down with COVID-19 in late June. Operations ceased and the entire team was sent home for rest and recovery. At the time of this update, a large part of the team has experienced a full recovery. Thankfully, others who are still experiencing symptoms are not hospitalized and are expected to fully recover. Work is expected to resume on the mountain during the second week of July.
- On June 1, 2022, Chilean mining authorities visited (unannounced) our project and carried out an inspection. They indicated their satisfaction with the quality of the tunnel construction and of our ventilation system. No issues were raised, and work continued.
Q3 2022 – OBJECTIVES
- In the beginning of Q3 we expect to have a detailed topographical map of the Antonino Tunnel and old workings. This will enable us to identify our precise location relative to the old workings and where to begin drifting the chimney and constructing the gallery.
- Install a new high-powered electric water extraction system which will extract excessive water accumulation in a few minutes.
- Construct an evacuation/ventilation chimney following the Don Luis vein to the old workings. The chimney will have an approximate slope of 20° and length of 30 meters.
- Construct a gallery with an area of 50 square meters to support construction of a T to exploit the Don Luis vein in both directions.
- Exploit the Don Luis in both directions. At the 20-meter mark on the east side, construct a spiral to support exploitation of the vein at lower levels.
AURYN is making plans to host a shareholder meeting in Santiago, Chile. The tentative date is December 6, 2022. We are contemplating hosting small group tours of the property for shareholders during this time. Further details will be communicated in the coming weeks.
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 remains bullish as we continue to uncover new structures in extending the Antonino tunnel. These new structures, and a detailed map, will determine where to begin drifting the chimney and begin exploitation. We anticipate our mining teams to spend most of quarter preparing the mine for exploitation at the current level and sub-levels. Minor production will occur during this process. Results will be reported accordingly. Once fully prepared, exploitation begins.
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.
AURYN’s plan is to use future cash flow from production to pay off exploration debts and expand operations. Management’s desire is to eventually become debt-free and produce fully audited financials prior to seeking to move to a higher tier on the OTC Markets.
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