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Mining Site and Gold Extraction

Ayni Support Team avatar
Written by Ayni Support Team
Updated over a month ago

What happens if the project cannot mine gold or operations stop?

If mining operations stop, gold production and therefore PAXG rewards would pause until operations resume. The project continues to operate transparently, and all updates are communicated through official channels. See the Whitepaper on our website for risk-related information.

Where is the mining site located?

The mining site linked to AYNI is located in Peru under Minerales San Hilario, covering an area of 8 km² and operates licensed concessions in the region. More details can be found in the Scoping Study on our website.

What type of gold is mined?

The mining operations focus on alluvial gold extraction, which is refined and sold through regulated channels. The process and environmental standards are described in the Scoping study on our website.

What are the estimated gold reserves at the site?

Up to 344,000 ounces of recoverable gold with 80% efficiency (Scoping Study by Kangari Consulting, 2025).

Who owns the concession?

The concession is owned and operated by Minerales San Hilario, the mining company partnered with AYNI Token Inc. This partnership connects the blockchain ecosystem with the real-world mining operations described in the Whitepaper on our website.

What license does Minerales San Hilario hold?

License No. 070011405 from INGEMMET (RUC 20606465255).

What is INGEMMET?

INGEMMET is Peru’s national geological and mining institute responsible for managing mining titles and geological research. It oversees and regulates mining concessions throughout the country. More about its role can be found in the Whitepaper on our website.

What is a concession?

A concession is a government-granted license that gives a company the right to explore and extract natural resources in a defined area. In AYNI’s case, it allows the mining operator to legally extract gold within a specific Peruvian concession. See the Whitepaper on our website for details.

Who is Kangari Consulting?

Kangari Consulting is an independent mining consultancy based in the US and the UK, specializing in exploration, evaluation, and auditing of mineral resources under international standards (NI 43-101, JORC). They conduct Scoping Studies, technical reports, and due diligence for mining projects worldwide, ensuring reliable data. The audit was carried out by Timothy Strong, the company’s lead geologist.

What is a Scoping Study?

A Scoping Study is a technical assessment of a mining site conducted to determine resource volumes, potential profitability, and key production parameters. It helps investors and companies evaluate the economic feasibility of the project and plan the next stages — drilling, processing, and infrastructure.

Who is Timothy Strong?

Timothy Strong is the lead geologist at Kangari Consulting with over 15 years of experience in global gold exploration. He is a “Qualified Person” under the NI 43-101 standard, recognized internationally as an authority in mineral resource assessment. Timothy has overseen evaluations of deposits in dozens of countries and has acted as an expert in projects on major capital markets, including Global Energy Metals Corp.

Can gold mining be trusted?

Absolutely. The concession is backed by a license from the state authority INGEMMET, an audited Scoping Study by Kangari Consulting, and mandatory regular reporting requirements, all of which confirm reliability.

What rights does the INGEMMET license provide?

It grants the right to hold the concession, conduct geological exploration, extract mineral resources, and carry out commercial operations.

What is the quality of the gold at the site?

Up to 99.7% natural purity. For further details please read the Scoping Study on our website.

How much gold is currently mined per day?

The current average daily gold production is around 0.5 kg.


How is the mined gold sold?

Primarily as Doré bars to Peruvian banks and state entities.

What are Doré bars?

An initial form of gold that can be easily refined to investment or industrial-grade quality.

How is the mining activity verified?

Quarterly production reports are published, technical video monitoring tools are in place for potential live access, and some of the company’s clients have visited and continue to visit the mining site in person.

What if mining is delayed?

Yes, such a risk exists. However, the project model accounts for possible delays, with operating expenses (OPEX) budgeted, capacity expansion planned, and the acquisition of new concessions considered to reduce dependence on a single site.

What is OPEX?

OPEX (Operating Expenses) refers to the ongoing costs of a company’s operations. In the context of gold mining, OPEX includes expenses for equipment, employee salaries, logistics, machinery maintenance, and other costs necessary to keep the mine and production running.

Who conducted the geological audit?

The Scoping Study by Kangari Consulting, led by expert Timothy Strong, a Qualified Person under NI 43-101.

What if gold production is lower than expected?

Token holder rewards are calculated proportionally to their share of total production. The Ayni model accounts for actual capacities, confirmed reserves, and daily mining data. Since the project’s total gold output significantly exceeds token holders’ share, and thanks to high-quality geological studies, rewards distribution remains stable and transparent. Even with fluctuations in production, the project ensures fair allocations.

How can I trust the mining process?

Reliability is confirmed by the INGEMMET license, the Scoping Study, regular independent audits, and reporting.

What technologies and mining methods are used at the Peruvian site?

The site uses alluvial gold mining, primarily from the top 5 meters of soil. Modern enrichment and flotation methods are applied, enabling up to 80% recovery of gold from explored resources. Mining is conducted according to international standards and Peruvian environmental regulations, ensuring legality and sustainability.

How is the quality and quantity of mined gold controlled?

Control is conducted through independent geological and production reports, as well as a Scoping Study by Kangari Consulting experts. Regular measurements of gold content in ore, verification of Doré bars, and production volume reports are carried out. A qualified specialist (Qualified Person, NI 43‑101), Timothy Strong, is involved to confirm data accuracy.

How is AYNI different from other tokens?

AYNI is a token backed by real gold mined at a Peruvian site. Unlike many cryptocurrencies that lack physical assets, AYNI is directly linked to actual gold production and offers a transparent reward system through staking, distributed in PAXG. This combination of a digital token with a real asset provides a higher level of trust and security.

How is AYNI different from traditional gold ETFs?

Traditional gold ETFs are financial instruments whose value is tied to gold, but the physical gold may be stored centrally and is not always directly verifiable. AYNI, on the other hand, provides a direct connection to mined gold, a transparent reporting system, and the ability to earn rewards in PAXG tokens, which are also backed by physical gold stored in Brink’s vaults. This makes AYNI a more decentralized and transparent instrument compared to ETFs.

Who sells the mined gold from the concession?

Currently, the gold is primarily sold as Doré bars to Peruvian banks and government entities.

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