Claude Resources, Inc. (fka CLGRF)

[TMLonggun]

Am I missing anything?

Yes, pretty much everything. Most of the entire sector is on the verge of bankruptcy but Mexus will not go bankrupt, that is impossible at this point since they have capital from Argonaut Gold to survive and sustain themselves. Even if they didn't (as the past couple years) they would just dilute, but that is now unnecessary. They have a property that is anywhere from 3-465x the grade that all the majors in the same trend are happily mining. If they are profitable at .4g/t with deep mines then I speculate that Mexus will be more profitable with its 1.5-3-186 g/t+ shallow resources. The deal with Argo allows Mexus to receive 20% of gross revenues from what Argo develops, at no cost and no risk to Mexus. That Mexus made such a deal in this environment is very impressive. Within two years there will be a six figure heap operation out there almost guaranteed unless gold is under $500/oz for sustained periods. Because the grades are so high on Mexus' properties it increases their margins and helps rapidly scale up production with a lot less dirt moved. A 20,000 oz minimum at zero production cost is far more profitable than even Claude ATM. Mexus has by far the best property in Sonora that I am aware of. The Sonora Mojave Mega-shear will eventually become the next Carlin Trend, another very logical prediction IMO.

Mexus is about six years old. The company is not anywhere close to 25 years old, I don't think the shell they took over to get listed years ago (in 09) is even close to that age. Mexus has been developing their high grade property since 2010-11, and so based on where they sit in the mine cycle they are well ahead of their peers and the 10-15 year mine development timetable. Aside from the bear market they are in relatively good shape. The chance that this property evolves into a profitable mine is 100%. Somethings are just too good to ignore and mining companies are methodical, logical beasts for the most part.

I don't personally care what you do with your money but if you are interested in gold stocks do more than a superficial pass of DD before you write off this easy 10 bagger. Mexus is worth at least an afternoon of research. Feel free to join us on the Mexus board if you want or if you have any questions.

I recently updated my Mexus Speculative theory here if you are interested some more of my rationale.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=115382399

Argonaut conference call is on Friday and it is likely a drill program will be announced in the next couple months.