Exclusive Interview Of Auryn Resources' COO Michael Henrichsen

Given your extensive experience & credentials, what enticed you to leave Newmont to join Auryn Resources?

Newmont enabled me to travel as its global structural geologist. My highly skilled technical team was able to significantly increase reserves and resources in Ghana, where Newmont was active. I also worked extensively at major gold camps in South America, the Carlin Trend, Nevada and in Canada. Like most gold Majors, Newmont had its share of bureaucracy. I wanted to close deals, make things happen, to execute, to get things done. I met Ivan, [Ivan Bebek, Executive Chairman] and Shawn, [Shawn Wallace, President & CEO] while working for Newmont.

I really liked their approach. Nimble, no bureaucracy or hierarchy, proven results, successful and focused on building companies. My technical team, several of whom worked with me at Newmont, now has the autonomy to follow up on prospects, develop targets and actually drill without undue delay. Since my joining, Ivan and Shawn have continued to demonstrate the ability to raise capital, enabling us to drill with minimal constraints. Auryn has a loyal and committed shareholder base from among investors that were involved in Keegan and Cayden.

Might Auryn be interested in tuck-in acquisitions, assets located elsewhere? How about silver or copper? 

That’s a good question. It’s times like these, when we feel that the gold price might have bottomed, that one finds attractive valuations to pounce on. Since we recently looked at close to 200 opportunities, we have a good sense of what is attractive and available in multiple jurisdictions. Having said that, we are focused on the Americas at this time. We have a select group of prospects or targets that have passed initial investment hurdles, but I’m not at liberty to say more than that. Regarding Auryn’s possible interest in non-gold assets, we want to stick with our expertise, gold. I believe that our shareholders are on board with that approach.

What are the key points of your October, 14th press release? Are there takeaways from the results that will inform next year’s drilling? 

We were pleased to find that the RAB (Rotary Air Blast) drill results compared favorably to the diamond drill results with no significant variations in grade or length of intercept. Being able to determine the geometry of the high-grade mineralization at West Plains was a key finding. For example, Drill hole # 15WPPR001 was an infill hole, confirming previously reported historical diamond drill results of 8.73 meters of 14.76g/t Au and 8 meters of 13.14g/t Au.

Drill hole # 15WPPR027 was a 50 meter step out to the southwest of known high-grade zones to establish the orientation of high-grade mineralization at the West Plains target. The resultant intercept demonstrated that the high-grade zone is open at depth. This makes us confident in our ability to follow it. Each drill campaign gives our technical team additional information to utilize in subsequent campaigns. Today’s results are no different, they will be studied and incorporated into our database.

Given that your team evaluated nearly two hundred prospects, what attributes compelled you to stop the search in Nunavut of all places?

The simple answer is, it had to be high-grade, especially for a Nunavut play, it had to have district scale potential, meaning not just 1 or 2 discoveries but the potential for more, and it had to be in a safe jurisdiction. As I sometimes call it, a Major’s project run by a junior, with the ability to be nimble, make acquisitions, advance exploration or development work both prudently and rapidly. For example, we control the entire greenstone belt, 300 km, the overwhelming majority of which has never been explored.

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Disclosure: Auryn Resources has a small market cap. Small market cap stocks are highly speculative, not suitable for all investors. I, Peter Epstein, ...

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Angela J. Brode 3 months ago Member's comment

Very helpful information share with us.