Interview with Ivan Bebek, Exec. Chairman of Auryn Resources (TSX:AUG).

Auryn Resources is a focussed gold, silver and base metal junior exploration company. Auryn Resources has seven projects. Their two flagship projects are the Committee Bay (high-grade) gold project in Nunavut, Canada, where they have spent a lot of money drilling and exploring without getting the results the market was expecting and the share price has been punished for that. And they are being shorted. Sombrero, their copper-gold project in Southern Peru, seems to be the current focus of time and attention.

Bebek is articulate, intelligent and can tell a story. And the company is well priced currently, but they need to raise money in Q1/20, c.$15M-$24M. And then they need some solid drilling on Sombrero, once the drill permit comes in. Less talking and more doing in 2020 is the message.

The management team at Auryn Resources has a track record in finding and flipping exploration assets. They have a track record of successfully bringing assets to a profitable state for shareholders. The team strives to mine in a sustainable fashion and employ operational stability in everything they do. Auryn Resources was established in 2008.

Auryn Resources has a market cap of CAD$175M. For a junior, this is an impressive valuation, and the management deserves praise for the way in which they've achieved this figure.

Bebek explains how management have learned from their last venture. Their last enterprise followed a project of rapid drilling: around 100 holes in Mexico. The company was sold in its exploration phase for c. CA$200M. Bebek is following the same strategy here. All exploration companies have risk, but by maintaining a diverse, varied portfolio, Bebek is able to mitigate potential problems by focussing on different assets, with different metallurgies, and different commodities (copper, gold, silver, base metals) in different, stable jurisdictions. Bebek is candid regarding the risk-reward ratio that so many Chairmen are keen to push under the carpet. Their message is clear: they are going to hit something good, so get on-board now before you miss the upside. Drill away the risk, drill out the value. Got it.

Bebek explains the company is yet to drill out that "one big discovery hole." This will be a primary focus as the company moves forward, and is crucial in order to maximise the return for shareholders. Auryn Resources is using modern technology to seek out these copper-gold cash cows and bring evidence to the surface.

Auryn Resources will target marquee strategic investors in February of 2020. They are hoping for around CA$15M of investment to allow for continued drilling at their Sombrero copper-gold project. The money raised will go towards financing further preliminary copper-gold drilling at the Sombrero site, with the hope of providing the market with evidence of excellent copper-gold potential. Bebek bases the hope for the Sombrero project on solid historic data, and prolific surrounding copper mines that are possibly in the same system.

Company page: https://www.aurynresources.com/ 

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