Admittedly the story is kind of confusing. This is because of the company changing its plans numerous times in response to negotiations and what they believed to be the most prudent course at a given time. IMO this is both a good and a bad thing. Rigid projects that never change or adapt tend to fail but on the other side publicly changing your plans and never seeming to complete them is not a good thing and undermines shareholder confidence in management. The PRs they issue do not even make it to the Mexus website or mailing list, so their visibility, even to current shareholders, is low. And then even if they did reach us, most people will either not read them anyway or not fully comprehend the information contained therein, even though they are often short and are written in plain English. The blame is split between the company and the investors. If you missed even one of these ghost PRs or follow some of the message boards closely chances are pretty good that you will not know what is going on. When everything is clear and obvious Mexus will be priced to match.
When investing in these types of companies you must read the filings and keep up to date but I would guess that far less than 5% of junior speculators actually do this.
This is my best understanding of some of the recent PRs and communications from the company:
Is the placer being moved, prepared, or in operation? No.
August 25th: "The company also announced that the placer move has been suspended while partnership negotiations are ongoing. Mr. Thompson noted, “We are speaking to numerous potential partners and it is best that we see wait to see how this plays out before restarting the placer operation. We will evaluate the economics of the placer when an agreement with another firm is reached.”
Do we have a blasting permit?(which we need)? No.
Sept 30th: "The company hopes to submit for this permit in the next week."
How long is the process? I don't know, but I mentioned some info in a previous post that makes it appear as a 2-6 month permit. If we have a partner with a permit we do not need one ourselves, which appears to be the hope of management. Forming a JV would make this need redundant.
Did they submit the paperwork for it? I don't know.
Are we currently drilling? Yes, I believe so. It was set to restart on the 20th, and we have sent at least 800 feet of core for assay.
Sept 30th: "Mexus’ diamond drilling project, which was scheduled to start on September 15,, 2014 is now scheduled to start October 20, 2014. The contracted driller, Matt Westervelt, had medical issues which caused this delay. Mexus has already drilled four diamond NH drill holes to 200 feet. On September 25th, the first 108 feet were delivered to a Reno, NV assay company. The results of this assay will be released when received. These first four holes were drilled in a shear zone identified by our geologist, Cesar Lemas."
What are the mystery people/ potential partners doing at our property? They are testing the property for obviously economic gold. If they brought a metal detector they will probably kick some over.
Oct 17th: President Paul Thompson added, "Recently, Julio Baltazar (VP), Guillermo Baltazar (Mine Superintendent) and I have presented our information and knowledge of the project to a group of geologists representing a major mining company. We have agreed to resume our discussions in four weeks during which they will complete their internal surveying, mapping and sampling of the property. We have a high degree of confidence that this group of very professional miners will conclude that the valuation and future potential of the project does indeed exist and provide them with a basis to continue our discussions. I'm encouraged that the company is investing such a significant effort through the sheer size and manpower to conduct their due diligence in a relatively short time period."
Negotiations are set to resume in a month. There is a good chance we complete a deal before the end of the year. If our partners wait any longer we will use our $4 M note and do it ourselves.
Why are we here?
July 23rd: “We believe that our property has a 1 million ounce gold potential. Given that, we are being very careful when considering our options. I appreciate the continued support of our shareholder base and ask for patience during this time. I’m optimistic that we will work something out. We have the property, there is gold, and we have our permits which makes us an attractive partner. That being said, I won’t give away the property.” -Paul Thompson
