AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share its Q3 2022 accomplishments, Q4 2022 objectives, and outlook for the future.
Q3 2022 – ACCOMPLISHMENTS
Don Luis vein and Antonino tunnel
- AURYN contracted EGV Ingeniería to produce a detailed topographical map of the tunnel and the old workings. This effort was scheduled to start on July 11, 2022. Weather delays prevented the team from beginning until August 4, 2022. A significant portion of the topographical work is complete. However, surface snow on the Alto de Lipangue prevented EGV Ingeniería from completing the aerial imagery/surface portion of the mapping. This will be completed in the coming weeks and overlayed against the results from mapping the tunnels.
- AURYN’s consulting senior geologist analyzed the data from the tunnel mapping and was able to calculate the precise heading and distance to intersect the Don Luis vein.
- At the conclusion of the mapping, the team was approximately 51 to 61 meters from intersecting the Don Luis vein. The variation in distance provides an allowance for any change in the angle of the vein between the current elevation and the elevation of the old works.
- To date, the team has advanced the tunnel an additional 27 meters. After each blast and cleaning, the distance covered and the precise heading are recalculated. Our mining team estimates we are now 24 to 34 meters from intersecting the Don Luis.
- The geological alteration throughout the Antonino tunnel continues. Two more clear structures have been identified and will be investigated at some point in the future.
- Water in the tunnel is increasing significantly as we advance toward the Don Luis vein. The newly installed water extraction system is working well so this is no longer a cause for delay.
Collaborating with Universidad de San Sebastian
- During the third quarter students from the university focused on three projects:
- Completing a financial assessment for a new campsite
- Modeling and evaluating a new ventilation system that combines the existing forced ventilation system and the future chimney at the intersection of the Don Luis vein
- Evaluating the incorporation of photovoltaic energy in transit areas
- Final reports on these projects are expected to be ready in the coming months.
- Weather. During July and August AURYN faced unusually harsh winter weather conditions preventing mapping and tunneling for several weeks. In early September the weather improved somewhat but is still not ideal for exploration work.
- Equipment issues. The team experienced approximately two weeks of delay due to mechanical failure of the scoop and the time required to get parts and make repairs. This is a recurring issue which will be rectified as future cashflow allows.
- Inspections. On September 22, 2022, Chilean mining authorities visited (unannounced) our project and carried out an inspection. Much like the results from their visit last quarter, they indicated their satisfaction with the quality of the tunnel construction and of our ventilation system. No critical issues were raised other than the requirement for a vent chimney, which will be constructed at the intersection of the Don Luis. This satisfied the inspectors.
Q4 2022 – OBJECTIVES
- We anticipate intersecting the Don Luis vein within 34 more meters. Barring unforeseen circumstances this should occur before the end of October. Once this important objective is achieved, AURYN will make a public announcement and immediately begin our exploitation plan including:
- Constructing 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.
- Constructing a gallery with an area of 50 square meters to support construction of a T to exploit the Don Luis vein in both directions.
- Exploiting 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 still plans to host a shareholder meeting in Santiago, Chile. Once the Don Luis is intersected and work on the exploitation of the vein has begun, management will determine a date for the meeting and communicate this to the shareholders. Expect further details 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.