Mexus Gold US (MXSG)

[TMLonggun]

Precious metals are measured in troy ounces not avoirdupois.

1 Troy Ounce = 31.1034768 grams

1 Avoirdupois Ounce = 28.3495 grams

http://www.govmint.com/pages/troy-ounces-vs-avoirdupois-ounces


The other properties ARE partially developed, just in various stages. The San Felix, San Marco, Ures/El Scorpion, and Ures/Ocho Hermanos are all high grade, interesting strikes. All four of these prospects are likely to contain an economic mine of unknown size, which sounds completely insane since the chance of that being true is one in several hundred thousand. But it appears to be true. People doubted Elena as well but repeated third party assays and pictures do not lie. Mexus has five exploration areas each one of which is on average many times more impressive than a regular junior's main development property. This is why people are here and have been for a long time - the same Mexus thesis applies to ALL of their properties. If nearby miners mine X with a smile on their face and make lots of cash. Having 5X, 10X, 100X etc what the good guys have is very compelling for a JV and development case.

All the information is in the quote you already posted:
"The Ocho Hermano concession had test runs on three kilos of sulfite ores showing 27 kilos of silver per ton. The company is looking for an economical way to extract the silver."

So to translate: On one very small, (highly cherry picked) isolated sample they discovered bonanza grades of silver. Great. This does not prove or imply a deposit of any size, but is a VERY VERY encouraging sign and any mining company on earth that could afford it would drill this exploration target and do more exploration. Mexus needs thousands of these tests and a lot more drilling to be able to get even a partial picture of how these early prospects will develop. But that is not to say that they are not highly encouraging.

Say I took a spade and in one shovel full found a one ounce nugget. If I applied this grade to a mineable block it would imply a grade of over 100 oz/t. Great! But that is not indicative of what would be mined. There is a reason that even mines like Rubicon that hit some strikes of 1000 oz/t au + are still uneconomic and have an average grade of 10-15 grams and lots of problems. A high grade hit is not indicative of the average production from a bulk deposit.

The second part of that quote is key. The ores are sulfites and because of this are much more difficult to process and recover. Mexus does not have a way to recover this, but the grades are high enough that even if they lose a lot in recovery, it will probably still work out. High grade makes up for lots of mistakes. A 27 kilo bonanza hit might work out to 10 oz/t silver deposit average around that vein with perhaps 50% recovery or a MUCH more expensive plant and equipment for 60-75% rec. This is all just ballpark/ a guess, I have no idea what these prospects will yield except for the common sense notion that if you have a bonanza at surface it is highly likely that economic minerals will be nearby.

1000 ounce/t silver strikes are very rare - but they do exist, although most of the easy ones like those found at the Comstock Lode have already been mined.