Exclusive Interview Of Auryn Resources' COO Michael Henrichsen

How much due diligence was done before acquiring a stake in the assets? 

We did a tremendous amount of due diligence. We benefited from due diligence questions from other interested parties. We engaged industry consultants, including frozen tundra mining experts. We evaluated the exploration work and capital deployed by prior owners (and found it to be quite substantial in terms of both infrastructure and exploration). We scoured the database and visited the property several times. We interviewed geologists and technical personnel involved with CBGP. We spoke with various people with knowledge of the asset’s history. There were few red flags. No asset is perfect, so we did not resolve every red flag, but we became sufficiently comfortable to get involved. Having looked at so many other properties, we were, of course, quite familiar with Canada and Nunavut.

What do you, as COO, think that your technical team is doing especially well?

Well, first, I think that we helped enormously in picking a potential world-class property. Second, we are very happy with our drilling methodology, enabling us to spend just a third or half that of peers. We’ve been using RAB drilling for shallow holes, making our drilling campaigns highly cost effective, in some cases drilling more than a single hole a day. We believe this approach has changed the paradigm of costs associated with Arctic exploration. It will allow Auryn to effectively test targets from across the belt as we move to potential new deposit footprint discoveries.

The fact that we were able to define the orientation of high-grade mineralization using RAB rigs demonstrates that exploring the top 100 m allows us to define deposit footprints through various thicknesses of till cover. RAB drilling would have successfully discovered the Three Bluffs deposit footprint at a fraction of the cost of diamond drilling. Therefore, our exploration team is better able to make timely decisions and increase operational efficiencies. Third, I think that we’re doing very good quality till sampling, using a somewhat innovative and effective approach.

I imagine you get asked this all the time, how does Auryn Resources compare to Cayden? Can a comparison even be made? 

Yes and no, comparisons can be made but they will be biased and subjective. I like to believe that Auryn will be a monster with multiple economic, high-grade discoveries. There’s no doubt that Cayden was good, look at how it has fared since we sold it. Auryn has a bigger property, 300 km long, so it has the potential to be larger scale. I would say at this time that Auryn compares favorably to Cayden. For example, we bought CBGP with a NI 43-101 compliant Indicated & Inferred resource, whereas Cayden’s flagship property did not have that. Ivan and Shawn considered Cayden more of an exploration-stage company, but we refer to Auryn as an advanced exploration stage company, if that helps. A recent, detailed audio interview of CEO Shawn Wallace by Jay Taylor can be [found here].

Every gold explorer claims to have a top-tier technical team. Why do you believe that your team is superior to others?  

Well, without hesitation I also say that we have a top-tier technical team, perhaps the best of any gold junior in North America. I highly encourage readers to visit page nine of our corporate presentation. To be clear, I’m referring only to our technical team in this case. Other juniors point to their management team and Board, probably lacking on the technical front. Notice how many on our team have prior experience with Newmont, Cayden or Keegan? Both investors and key employees follow the winners. With all due respect to Ivan and Shawn, a company’s technical team is of paramount importance. NOTE: Interviewer adds,

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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.