Mexus Gold US (fka MXSG)

[KansasCrude]

Jeeze while back I thought I had deleted the Mexus board and was now linked to LODE, then the NBA, and now the Nevada Tourist Commission Casino tour. Anyone talk MEXUS anymore? Seriously 8 congrats on the hold up$ of whatever casino that was. If I see those end of days buys creeping up in size might guess Mexus is getting a bit more of your love.

Ok many of you might guess my own particular fetish is La Herradura 13-15 miles northwest of our Rancho claim. Its sister Noche about half that. I haven't been able to verify the present depth but last I could find was 765 meters in like 2013. Now 3 years later would think a half mile down is a fair guesstimate. As mentioned in the linked article from 2014 with a decent pic of the pit production estimates going forward.

"Fresnillo expects Herradura to produce an average of 350,000 oz/y of gold and Noche Buena to produce an average of 165,000 oz/y of gold from 2014 to 2019. Herradura has been in production since 1997 and has total gold reserves of 2.7 million oz; Noche Buena has been in production since 2012 and has total gold reserves of 1.1 million oz.

Fresnillo has produced a preliminary assessment for the Mega Centauro and Centauro Deep projects, both of which are expected to enter development in 2015, ahead of first production in 2016 and 2017, respectively. The Mega Centauro project is expected to produce an average of 200,000 oz/y of gold over a mine life of 12 years, while the Centauro Deep project is expected to produce an average 225,000 oz/y of gold over a mine life of 10 years.

Capital investments for the Mega Centauro and Centauro Deep projects are estimated at $150 million and $365 million, respectively, resulting in the potential to generate a combined IRR for both projects in the low- to mid-teens at current gold prices. However, further analysis and exploration work are required before a feasibility study can be presented to the Fresnillo board for final approval." My edit that IRR calculation is based on Au at prices pretty close to current market.....What do they look like at $2000 gold? $4000?


To top that off if you look at Fresnillo's other key development projects you will see Soledad-Diapolis. It started up in 2014 and was shut down due to "Ownership Issues". In its brief run it produced 27,000 oz of Au in less than a year. Hmmm wanna guess where it is? How about eyeshot of La Herradura. Back towards Mexus and Noche Buena. One more validation of many that we are in a target rich environment.

As 8 has reminded us Noche does not seem to have anywhere near the surface veins we have. Veins which we SHOULD have a strong confidence go over a half and perhaps a mile in depth and perhaps as we see at La Herradura turn in to a big fattie the deeper they go. Take one more look at those production estimates for their projects at La Herradura which again started production in 1997 Now they are saying 425,000 oz. a year beginning real soon. Not including other production from the mine.

FYI the reserves for both La Herradura and Noche have been upped "Significantly"in the last Annual Report.

http://www.e-mj.com/news/latin-america/4605-fresnillo-buys-penmont-interest-from-newmont-for-450-million.html#.Vzc1-CDmqM9

One final comment these are just Fresnillo mines. As we know others are producing and evaluating production in our backyard. This is from Agnico.

"Pitaya The Pitaya project is in the Caborca District in Sonora State, northern Mexico, northwest of Hermosillo. The property is along strike from the low-grade, low-cost La Herradura Penmont, Soledad Dipolos, Nochebuena, and Chanate gold-silver deposits (>10 million ounces of gold), and adjacent to Fresnillo’s new Tajitos discovery (400,000 ounces gold) where exploration is in progress. The 7,300-hectare Pitaya project is a joint venture (59% AEM / 41% Colibri Resources at year-end 2015). From 2011 through 2015, the partners spent $2.5 million at Pitaya on mapping, drilling 24 holes (6,543 metres) and taking 1,373 surface samples. So far, nine drill targets have been defined at Pitaya and four have been drill-tested. - See more at: http://www.agnicoeagle.com/en/Exploration/Southern-Exploration/Pages/Latin-America.aspx#sthash.Hont0ygd.dpuf "

FYI the Colibri claims are virtually adjacent to Rancho.

Looking forward to the update on progress at Rancho. Now BACK to the Nevada Casino Commission and its update on the REMODELING TOUR...with the bonus Culinary comments from "Ate with 8"
Me heading out to muck in the garden. Cheers!