Mexus Gold US (MXSG)

[Captain Black Bob Blanco]

CABORCA SONORA STATE, Mexico, May 15, 2017 (GLOBE NEWSWIRE) -- Mexus Gold US (MXSG) (“Mexus” or the “Company”) gave an update on its Santa Elena project located near Caborca, Mexico. The project continues as expected with the usual growing pains for an expanding miner. Our joint venture and operating partner for the project, MarMar Holdings, has made consistent and steady progress at the mine site. To date, MarMar has constructed two holding ponds, a heap leach pad, performed an initial blast of a quartz vein, started a cyanide drip system on the heap leach pad, and started the Merrill Crowe recovery system. In addition, they also performed a test smelt and produced a small amount of dore using precipitate from the Merrill Crowe plant. These accomplishments are significant and show a determination to bring this project into full production.

Photos accompanying this announcement are available at

http://www.globenewswire.com/NewsRoom/AttachmentNg/fd797b83-9a08-4c0e-964d-a7bce157c113

http://www.globenewswire.com/NewsRoom/AttachmentNg/8deb9746-de7c-4f7c-a0a8-5d3966545da7

http://www.globenewswire.com/NewsRoom/AttachmentNg/6cc782b1-ff85-453b-8685-c02a0ea26653

MarMar has big plans for this project moving forward. There is currently 250 pounds of precipitate in secured storage ready to smelt. This material is the output from the initial leaching of pad 1. Smelting will begin when on site engineers are assured they have the proper flux mix to ensure no gold is being lost within the process. It is expected that smelting will begin in earnest the week of May 15th.

Leaching of pad 1 continues as does the placing of new mineralized material on pad 2. MarMar has let Mexus know that the large crusher located in Central Mexico has been loaded on trucks and is now being shipped to the project. (see photos) This 30” x 42” crusher includes a 43” x 16” vibrating feeder and discharge conveyor. It is expected that the equipment will arrive to the Santa Elena mine site during the week of May 15th. Mexus will make an announcement when this occurs as this is a pivotal step in getting the mine to a production rate of 10,000 tons per day and beyond. The arrival of a generator that is currently crossing the border will complete the necessary pieces to begin the use of this equipment. In addition, Mr. Marco Martinez, CEO of MarMar, states that he is delivering a Caterpillar 988G loader which will facilitate the increased production. MarMar is determined to bring the production at the Santa Elena project to 10,000 tons per day. In addition to the outstanding news noted above MarMar completed the acquisition of an Atomic Absorption machine. The machine is currently being calibrated by a qualified engineer and once certified will be placed into service. This is an important piece of machinery as it allows the mine manager to know how the heap is performing and when to transition to the next pad. MarMar is also awaiting the delivery of additional filter press cloths. This will enable the use of multiple presses and ultimately increase the flow through the Merrill Crowe plant.

The company also announced that it is in good standing as it relates to the contract for the Santa Elena property. Mexus has in the past and will continue to abide by the terms of the contract. Please be advised statements published or otherwise communicated regarding the Santa Elena property by a third party or parties are not correct in any respect. These comments and actions may result in legal action both in Mexico and the United States of America.

“Mexus and MarMar continue down the path towards full production at the Santa Elena project. Like our shareholders, I wish the accomplishments to date could have taken place at a faster pace. That being said, Mexus and MarMar are in a strong position to take the final step toward commercial production. Our shareholders need to understand you don’t turn a switch and begin producing 100 oz. a day. What is important to remember is the end goal which is reaching full and continuous production for years to come. I will update our shareholders as we move forward with important milestones. This will include initial dore sales, the start-up of the jaw crushing equipment, and any other important issues. I ask our shareholders to remain patient with these initial steps and be assured that myself and our partners at MarMar are doing everything in our power to get into full production.” added Mexus CEO Paul Thompson.

https://finance.yahoo.com/news/santa-elena-project-070000460.html?.tsrc=applewf