Mexus will not go bust. Worst case scenario is they are forced to run the printing press and our upside is papered over and we drift into the sub-penny stuff. It may seem like a distinction without a difference but it means that Mexus stock will definitely exist in two years. If we wait that long and there is still no interest and gold is low it might be time to pack it in and reassess. Right now Mex is at about 250 M shares up about ~50M in the past year or so. We are good up to 350M shares (about 2 years of lingering/subsistence) I think after that it starts getting into the realm of reverse splits and other "fun" stuff.
As for the drilling it is a typical somewhat vague and somewhat informative Mexus PR:
August 19, 2014
Mexus Gold US reaches agreement to begin drilling its Julio/Santa Elena property; San Felix update
CARSON CITY, NEVADA August 18th, 2014- Mexus Gold US (OTCQB:MXSG)(“Mexus” or the “Company”)
Mexus announced today that it has reached a tentative agreement with a driller to operate the companies two track mounted core drills. The initial agreement is to produce 2500ft of core drills. The results of these core samples will give engineers the information needed to lay out a reverse circulation program. The reverse circulation operation will include 30,000ft of drilling to a depth of 300ft.
Along with Geologist Cesar Lemas report (Cesar Lemas Report) and the data gained by drilling the quartz veins and the adjacent shear zones, we hope to prove a 500,000oz gold resource with little over burden.
CEO Paul Thompson stated, “I’ve met with a mine engineering firm and they are preparing a drill program for us. This is just a start for Mexus and will give us a stronger position when dealing with potential partners.”
Mr. Thompson added, “I had a meeting with a group in Arizona this weekend who are very interested in partnering with Mexus. We’ve been in discussions with this group for quite some time and I’m now hopeful a deal can get done in the near future.”
San Felix Sale Update
Mexus recently received an update from Benjamin Lagarda of Silver Pursuit. Mr. Lagarda assures Mexus that the project is going as planned and 2015 will be a good year for Silver Pursuit and Mexus. CEO Thompson added, “I’m comfortable with what Silver Pursuit has done to date and look forward to seeing their project progress.”
So are drills turning? I don't think so although they may have started the 2500 ft which would be 8 or 9 holes and since Mexus owns the drills instead of ~80 grand it would just be labour which is big savings over time and may substantially reduce the cost of the drill program. When are they going to start? Presumably sometime soon but not before a deal is done, again presumably with the mystery Arizona company. The driller and the engineering firm are separate entities as far as I can tell. There is a hundred holes in the program to an easy open-pitable depth. All we need is a partner...
We will see what we get this week. We have been patient (for the most part) and we are right, if we but sit tight we will be rewarded.
Take care.
TM
