October 2021 – Shareholder Update
AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share its Q3 2021 accomplishments, Q4 2021 objectives, and outlook for the future.
Q3 2021 – ACCOMPLISHMENTS
Intercepting the Don Luis vein
- Our primary objective has been intercepting the Don Luis vein at shaft 4 and beginning exploitation with regular shipments of ore to Enami. This will provide significant cashflow and improve ventilation within the system. In the Q2 2021 update, we stated that we intercepted the Don Luis vein on June 23, 2021. After further analysis, it has been determined that the vein intercepted is not the Don Luis because its orientation and geochemical signature do not fit the profile of the Don Luis. It is a new structure. An initial assay returned a grade of 15.92 g/t Au, 47 g/t Ag, and 5.3% Cu. The team did not follow the new structure as it changed course and drifted toward the West. Instead, the team continued SSW to stick with the plan of intercepting the Don Luis and improving ventilation by connecting with the existing tunnels.
- On August 12, 2021, the team intercepted what appears to be another highly mineralized structure. The initial width was 0.8 meters and grew to 1.2 meters in width. The structure followed the same path the team was taking to intercept the Don Luis for approximately 8 meters before it began veering off toward the South. Samples have been sent to the lab for assaying and selected material has been stockpiled for processing.
- On September 29, 2021, the team intercepted another structure which it believes is the Don Luis. AURYN will publish an announcement once this is confirmed.
- In total, AURYN has tunneled 190 meters into the mountain, beginning at an elevation of 1880 meters above sea level and is currently at an elevation of 1833 meters above sea level. Along the way the team encountered several ramifications and intercepted three clearly defined structures which are being assayed.
Collaborating with the University de San Sebastian
- On August 12, 2021, a group of professors and students from Universidad de San Sebastian spent the day with our mining team at La Fortuna de Lampa. The visit was multidisciplinary in scope and covered all aspects involved in our project transitioning to a producing mine including infrastructure, continuous mining operations, health and safety, and environmental and sustainability issues. AURYN anticipates several reports to come from this once all the analysis is complete. In the meantime, Luis de la Torre, one of the professors who visited, offered the following comments:
“The ore extracted and stockpiled from the old and new works on AURYN’s La Fortuna de Lampa mining project strongly reminds me of the ore from El Peñon Project, owned by Yamana Gold Corp. They are very similar to the color and rock quality of the ore I personally observed during my time working on the development of El Peñon. I have the firm belief that once La Fortuna de Lampa project goes into production, and a correct evaluation of the entire project is achieved, it will be a mining operation with very similar characteristics of El Peñon.”
Luis de la Torre
Civil Mining Engineering
Universidad de San Sebastian
- On September 28, 2021, the Civil Engineering group delivered a comprehensive plan for the improvement of roads and access for the mining site. When implemented it will improve the overall safety conditions for shipping ore while increasing cargo capacity by over 50%.
- The Mining Engineering group is working on the feasibility of a flotation plant. They requested an additional 200 kilograms of ore samples for their tests which AURYN delivered.
- AURYN purchased a wheel loader in the beginning of Q3 and widened various portions of the tunnel to accommodate it.
- On September 15, 2021, the National Geology and Mining Service (SERNAGEOMIN) issued a definitive permit for AURYN’s exploitation and closure plan. AURYN received this on September 30, 2021.
- AURYN purchased a new truck for shipping ore to ENAMI. The team anticipates the truck will arrive on site sometime during the first two weeks of October 2021. It will be put to immediate use shipping the stockpiled ore to ENAMI.
Q4 2021 – OBJECTIVES
- Ship all stockpiled ore to ENAMI for processing.
- Begin implementation of Universidad de San Sebastian’s suggested plans for improving roads and access to the mining site.
- Poor ventilation within the system prevents us from scaling development. Connecting with the existing tunnels to improve natural ventilation and implementing forced ventilation is a priority. We expect to accomplish both this quarter.
- Confirm interception of the Don Luis vein to begin exploitation on multiple fronts and, once consistent production is achieved, develop a financial forecast, and begin to outline reserves on La Fortuna and Lipangue mining district.
- Continue developing the tunnel to intersect two massive, known structures encountered during previous trenching operations. (See: trenching program update.) These structures are each greater than 2 meters width in the trench.
- 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.
- David Brownrigg stepped down from his position as CEO and board member of AURYN to lead a MASGLAS owned, producing project, in Colombia. Nevertheless, Mr. Brownrigg will remain instrumental in AURYN’s development as an advisor to the board. Currently, Maurizio Cordova has assumed the responsibilities of CEO.
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.
Two atypically harsh winter weather events forced the team to evacuate the camp for several days. Once the team was able to return to the mountain, they cleaned up and rehabilitated the roads. With Spring season beginning, we do not anticipate any further weather-related delays.
Management remains extremely bullish. We continue to uncover new structures and learn more about the district as we head toward regular production and cashflow. This has been confirmed by unrelated third parties who have visited the site.
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 outstanding and AURYN does not anticipate any dilution from our exploration efforts.
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.