MX Gold Corp (MXLGF)

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VANCOUVER, British Columbia, Sept. 08, 2017 (GLOBE NEWSWIRE) -- MX Gold Corp. (MXL.V) (FSE:ODV) (MXLGF) (the “Company” or “MX Gold”), in its joint venture partnership with GracePoint Mining Corp (OTC PINK:FRMA), is pleased to report that Componentes Mineros SA DE CV, has confirmed being on track for plant expansion build out completion, that will increase throughput capacity to 1,000 tonnes per day.

Dan Omeniuk, MX Gold Corp. Chairman & CEO said: “Our team is passionate about the Magistral project! We are pleased to see the project advancing on schedule, with the plant operational, by this November. We are also glad to see the continual growth in the price of Gold since the acquisition of the project.”

While all project objectives and estimates have been done on a non-43-101 complaint basis, for project planning purposes and based on the increased production capacity, the company is using the following updated targeted yields:
Magistral Project
Estimated Tonnage 1,200,000 Metric Tonnes
Gold Price $1,275
Estimated Gold / Tonne 2.06 grams
Estimated Silver / Tonne 3.9 grams
Recovery Rate Gold 76%
Recovery Rate Silver 45%
Commercial Production (CP) 30,000 Tonnes per month
Free Cash Flow – Pretax / Quarter (CP) $3,014,500 USD
Life of Project (assumes no additional ore feed) 3.5 years
Total Free Cash Flow Generated (Pre-tax) $42,203,000

* The CM report does not comply with National Instrument 43-101, Standards of Disclosure For Mineral Projects, a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or reserve and the Company is not treating the historical estimate as a current mineral resource or reserve.

**Based on work done in January 2012 by Corporación Ambiental de México, S.A de C.V. A historical estimate was completed by Corporation Ambiental de Mexico SA de CV on Jan. 20, 2012, titled “Perforacion y Muestreo en Presa de Jaleas Estimation Volumetrica, Tonelaje y Ley Promedio.” The CM report estimated a probable reserve of 1.25 million tonnes averaging 2.06 grams per tonne gold. The assumptions for this estimate were based on 58 auger samples, 2.45 metres to three metres in length from 24 drill holes.

***Based on work done in March 2012 by Kappes Cassiday Associates, and, with the oversight of Wayne M. Ash P.Eng., in November 2016 by Met-Solve Lab S.A. de C.V., and in January 2017 by Metallurgy equipment S.A. de C.V.

**** Under the direction of Benitzel Avila Sanchez, and with the help of Componentes Mineros, based on work done in January 2017 by Metallurgy equipment S.A. de C.V.

*****Lorne Warner, P.Geo., is a director of the Company and a qualified person as defined by National Instrument 43-101. Mr. Warner has not verified any of the data disclosed in this news release.