January 30, 2017 @ 9:00 am
AURYN is pleased to provide the following update regarding its mining operations on the Altos de Lipangue project.
- Visual Aids
- AURYN receives liquidation from first test shipment
- AURYN opens up a 42m section of high grade vein in the Larissa Adit
- Representatives from Freeport-McMoRan visit the ADL
- Dr. Raymond Jannas to assist Maurizio Cordova and AURYN as a geological consultant
- District-wide Analysis Planned for February
The maps below provide a visual overview of the Larissa Adit. The first one gives the perspective of looking down on the mountain from the sky. The second one provides a lateral view. The blue area is Level 2. This is a previously mined area that is still being investigated and mapped. The red area is the Larissa Adit Level 3.
The entrance to the Larissa Adit is on the north side. To intersect the vein we expanded the Larissa Adit approximately 90 meters toward the southeast. The vein was intersected in the vicinity of topographical point LC-3.
AURYN receives liquidation from first test shipment
On January 13, 2017, AURYN received a liquidation from ENAMI for its first test shipment. ENAMI received the shipment of approximately 12.4 tons of ore on December 26, 2016. The ore returned grades of 11.5 gpt of gold, 31 gpt of silver, and 1.62% copper.
Four additional truckloads containing 63.6 tons of ore from the same section of the vein were sent to ENAMI for processing. The last one was sent on January 9th, 2017 closing out that order. We expect the results will be similar to the first shipment.
These initial shipments of ore were extracted from a 28 meter section of the vein between LC-3 going south toward LC-6. Although the results are slightly below the modeled grade of 15 gpt gold equivalent, they are economical and very encouraging given our stage in the project development.
AURYN opens a 42m section of high grade vein in the Larissa Adit
Ore was extracted from the Larissa Adit until the LC-6 vicinity. At that point the vein disappeared and reappeared approximately 4m later. It’s reappearance visually appeared to indicate an increased level of mineralization.
We have spent the last two weeks advancing the adit toward the southeast keeping the vein on the east side of the adit. We have left the vein mostly unexposed so that we can define the boundaries of this section of the vein without having to extract, sort, and stockpile the mineralized sections of ore. Every several meters we have been taking samples and verifying that the vein is still on the east side of the adit. Sample results indicate the grades are higher than the test production runs which were sent to ENAMI.
We expect that this intersection extends vertically at least 30 meters in each direction with similar grades and width. Our speculation is that this vein is not the same vein that we uncovered in September on level 2. The vein on level 2 returned bonanza grades which we reported on at the informational meeting. However, further exploration and analysis is necessary to make a conclusive determination.
Representatives from Freeport-McMoRan visit the ADL
At our informational meeting we indicated that we entered a Confidentiality Agreement with Freeport-McMoRan. In the middle of January representatives from Freeport-McMoRan spent several days on the property to begin their evaluation of the project. This involved touring all known targets for the entire project and taking samples. Freeport-McMoRan will evaluate their findings over the coming weeks.
Although we are encouraged by Freeport-McMoran’s interest in evaluating the project, shareholders should not assume this will lead to a joint-venture agreement. There is still much work to be done, and other companies have also expressed interest in visiting the project as AURYN continues its exploration efforts.
Dr. Raymond Jannas to assist Maurizio Cordova and AURYN as a geological consultant
Maurizio Cordova, Executive Chairman of AURYN Mining Chile, SpA, has engaged Dr. Raymond Jannas to serve as a geological consultant for the next six months. This will include a significant amount of work evaluating all the targets on the ADL Project including, the Pegaso Nero, the Las Dos Marias, and the Fortuna targets.
Dr. Raymond Jannas is Independent Director at Regulus Resources, Inc., Independent Director at Revelo Resources Corp., and President at Gexsa Ltda. He is on the Board of Directors at Regulus Resources, Inc. and Revelo Resources Corp.
Dr. Jannas was previously employed as Vice President-Exploration & Geology by Hochschild Mining Plc, Chief Executive Officer by Minera Fuego Ltda., and a Manager-South America Exploration by Gold Fields Ltd. He also served on the board at Iron Creek Capital Corp. and Southern Legacy Minerals, Inc.
Dr. Jannas received his undergraduate degree from the University of Chile and a doctorate degree from Harvard University.
District-wide Analysis Planned for February
Dr. Jannas will work with other mining engineers, geologists, and consultants during the month of February to help AURYN determine the best strategy for expanding and developing the project. This involves
- uncovering the full length of the 42m intersection of the main vein and taking 20 samples for a detailed analysis,
- continuing the mapping and evaluation of levels 1 and 2 in an effort to further understand the vein’s behavior and the topography, and
- beginning exploration and analysis on the Fortuna and the Las Dos Marias targets.
This effort will help us refine our business plan as we consider the development of the entire project, including the possibility of bringing on additional partners for the porphyry targets.
The information in this notification contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
The Company’s forward-looking statements are based on management’s current expectations and assumptions regarding the Company’s business and performance, the economy and other future conditions and forecasts of future events, circumstances and results. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances.
Investing in specific mining companies is filled with company risk and geological risk. If you cannot tolerate these kinds of risks, please consider another investment.