Mexus Gold US (MXSG)

[KansasCrude]

Below is the the best report I have seen on what we have grade wise. Its pretty solid my caveat is that its not a drill hole evaluation its somewhat generic. I will also add the drilling that has been done seems to me to be pretty shallow and does not really show what we have at lower depths. I would again think that if we have what seems to be in the resource trend the grades should get better as we go deeper. One of two projects Fresnillo has at La Herradura is going deeper on veins uncovered after 18 years of heavy mining.....

Here is a bullet from Fresnillo's new project/exploration page

"Centauro Deep (Bottom of Herradura main pit)



Indicated and inferred resources:
(attributable) 2.17 moz Gold

37,607 metres core drilling; good gold grades continued to be found in the vein system below the final Herradura pit. 3,254 metres of underground mine workings were completed, totalling 12,482 metres in the project area. Mineralisation now extends for at least 800 metres along strike showing good grade continuity

FYI "Attributable means the 2.17 MILLION oz would NOW be at 100% ownership 3.875 MILLION oz. Try the link I posted yesterday showing an aerial of La Herradura its massive


http://www.fresnilloplc.com/what-we-do/exploration/centauro-deep/


Now back to Mexus and the mystery of what we have. From Oct 2012
PR

As mentioned this report would indicate a 1 GRAM cutoff so that is pretty solid for a heap operation of course that includes some richer vein materials. Again this if from October 2012, I really don't know how much if any deep drilling has been done at Rancho. I would assume from this PR some has been done.

"An initial group of 164 samples over a relatively small area of the Julio Property form the basis for the report. A tentative tonnage estimate of 3,676,400 grams gold with a cutoff of one gram was based on study of six veins visible on the surface and located in parallel running southeast toward the northwest. The values of the samples ranged from 0.92 grams to 7.26 grams. The Julio Vein extends more than 800 meters before it buries and is known for high bonanza grades which includes the underground mining site on the property and is estimated at 415,000 tons on the surface with a minimum of 5 grams per ton. The report states that the vein is expected to become a combination open pit and underground operation upon further geological study and exploration activities. There are also four shear zones recognized in the area. Shear Zone 1 is coincident with the Julio Vein and had a sample graded at 11.5 grams. Shear Zone 2 is 400 meters to the south east and parallel to the vein system 1 through 5. Shear Zone 3 contains a bonanza pocket which had sample results as high a19 grams was graded at an average of 5.5 grams from assayed sample results. Shear Zone 4 presently contains some pits, adits and shafts and graded 2 grams from eight samples. This area can be a mining area relative quickly with the construction of roads and drilling to delineate the ore body. The report states that the 6 major vein structures identified in the area south of the Julio shaft account for nearly 4,000,000 tons of ore with an average gold grade of 2.5 grams with three times as much in Silver. The report also suggests additional mapping, sampling, drilling of the vein structures and shear zones 3 and 4 and the Julio vein and EM to trace concealed shear zones.

Comments regarding the report: the cutoff for minable ore areas was 1 gram which is the normal cutoff for the major mines in the area. "

Remember La Herradura is on trend just a little over 12 miles away from Rancho (23 Klicks) At least 2x the size of Rancho but cranking out ~340,000 oz a year. I watched the Fresnillo CEO give a presentation at the Denver Gold show that was posted online. The call the Sonora District the La Herradura district and its their big gold area and the three mines were what they bought Newmont out of for $450 Million. La Herradura, Noche and Soledad. plus a development mine in addition to the two new projects at La Herradura. La Herradura is showing resource at .8 grams per ton. At this point we can't guess what we have at Rancho my guess is at least what Noche is showing and probably more. IMO Fresnilla is pretty close to the vest on what it has they talk and plan but are pretty tight with drilling and reserve info. Will look forward to their 2014 Reserve update to see how much more we can infer off there information at Noche.

Yes its just a hunch but seeing those production estimates at Noche (again that's an AVERAGE) indicate they are not worried about running out of gold there anytime soon. I saw a chart with additive production they built showing production is ramping and variable until around 2017 then they take the production up to maybe 200K oz a year at Noche.(guesstimate based on observation) As we have seen with their gold pits they never seem to push the mine life out much over 3-4 years but that has been going on at La Herradura now for 18 years with a current mine life at 4.1 years and if the underground there proves out another 10 years on that. That would take it over 30 years.....