AURYN Mining Corporation Shareholder Update
AURYN Mining Corporation (OTC: AUMC) is pleased to share the following update with its shareholders.
Mining works on Fortuna
AURYN Mining Corporation is happy to report that our mining operations at Fortuna are going strong. We’re consistently pulling high-quality mineral from the Don Luis vein. Currently we’re stockpiling this valuable ore on-site. At the same time, we’re actively reviewing ways to make our mining efforts even better and more expansive.
Strategic Decision: Building an On-Site Flotation Plant in Lipangue
We’ve previously reported that the Plenge Laboratory identified the gold in our Lipangue site as refractory, requiring specialized methods for optimal extraction. This key finding was compounded by a notable discrepancy between Enami’s reported gold content of 57.5 g/t and the 128.57 g/t figure we obtained through independent smelting tests in a Peruvian lab.
The Catalysts for Decision-Making
These two pieces of information – the refractory nature of the gold and the significant variance in lab results—translate to a direct financial impact of around $5,000 per ton. This is the driving force behind our Board of Directors’ decision to take control of our ore processing. Simply put, shipping unprocessed ore to Enami is not giving us the best value.
The Board’s Resolution
Armed with this compelling data, the Board has unanimously agreed to establish a flotation plant on-site in Lipangue. This facility will provide us with the technology to concentrate and optimize the value of our refractory gold and other minerals.
Immediate Next Steps
Beginning in October, we will initiate the necessary permitting process for the flotation plant, including all required submissions for plant operations, tailings ponds, and an on-site lab. In parallel, preparations are underway for the launch of new mining operations in the Lipangue area.
“Our decision is rooted in rigorous data analysis and a well-considered strategy, positioning us for a more profitable and efficient operation. We’re confident that this is the right move for maximizing the value of our resources.”
– Maurizio Cordova, Board Chairman and CEO
Unpredictable Climate Conditions Impact on Operations
The recent winter season posed unexpected challenges at our Fortuna site, with an increased frequency of disruptive weather events such as rain and snow. This led to multiple temporary cessations and evacuations of the site over the past two months.
Accumulated water within the site has become a substantial operational issue. It demands additional time and resources for removal and has disrupted regular activities. As we transition into spring, it’s evident that traditional seasonal patterns are becoming less reliable. We anticipate encountering more extreme weather events in the months ahead, even during seasons typically known for milder conditions.
This situational complexity is now part of our ongoing operational landscape. We are proactively developing strategies to mitigate these climate-related disruptions.
Collaboration with the University of San Sebastian
While this quarter has been focused on internal improvements, our collaboration with the University of San Sebastian remains active. We are in the planning stages and anticipate launching new joint ventures soon. These upcoming projects aim to advance our strategic objectives and offer mutual benefits for both organizations.
Q4 2023 – OBJECTIVES
Once we submit the permit application for the flotation plant, we plan to promptly initiate the preparatory civil work for construction and installation. Our ongoing efforts will focus on the continued extraction of high-grade minerals from the Don Luis vein. Additionally, we are gearing up to explore and prepare other promising areas on our site.
Management is also actively engaged in discussions and presentations with potential investors for financing the construction of a milling facility. This effort reflects our commitment to leveraging all available resources to optimize the value of our mining operations.
Our long-term goal is to transition the Lipangue project from exploration to full-scale production. The cash flow generated will not only fuel further exploration but will also enable us to return value to our shareholders, reinforcing our commitment to stakeholder profitability.
AURYN will consistently update investors through required financial disclosures on OTC Markets. Expect quarterly shareholder updates during the first week of every calendar quarter. To stay informed, subscribe to email notifications on our website.
With our ventilation chimney now complete and actionable insights from metallurgical studies and our trial batch sent to ENAMI, we’re all systems go in the Antonino Tunnel. We’ll be focusing on extracting high-grade minerals from the Don Luis vein and storing them for future processing.
Currently, a third party is covering the costs of AURYN’s exploration activities. Our Board of Directors is closely monitoring expenses, with plans to reimburse this third party from future production, without interest. We’ve issued 70 million common shares. In line with our strategy to establish a flotation plant, we’re exploring various financing options, including a potential private placement for fundraising.
For more details, please visit our website, AURYN Mining Corp.
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.