Mexus Gold US (MXSG)

[TMLonggun]

Humans have mined obviously economic mineral deposits for ten thousand years without feasibility studies. The allure of Mexus isn't that you need a geology degree to sit and number crunch for a year to get a super small margin project that we have to nickel and dime to somehow scrape a living out of. This is an obviously economic project with huge nuggets and quartz veins loaded with visible gold. This is a bonanza property that could have been mined with or without modern technology and still earn its owners a large profit. With several months/years of outlined resources that are so high grade compared to all the nearby profitable mines it is pure common sense that if the neighbours go to the center of the earth for low grade and make a lot of cash doing it Mexus can scrape MUCH richer ore 1 cm off the surface and move it 1-5% of the distance to their circuit. If this doesn't lead to profits for Mexus relative to its peers I will eat my hat.

they can not claim the resource has proven reserves.

True but it also does not stop them from mining it at a profit. In some rare cases, if you have an obviously economic deposit, it makes far more sense to do minimal outlining and produce rather than wasting millions to prove what is obviously there and then producing. A great example of this is GORO - backed by many of the same investors as MXSG with a very similar development thesis. They caught a lot of flak for their decisions but they succeeded in developing a profitable mine for a small part of the usual cost. 110 million dollars in dividends paid - more than lifetime exploration spending.

One day Mexus will have proven and probable 43-101 compliant reserves but it is apparent that if you wait for the stock to become 100% proven and take no risk you will pay substantially more for you shares. The exploration risk for Mexus is quite low, probably the lowest of any junior I am aware of. Mexus has an absurd amount of economic gold on their property. Is it one million or ten million ounces? I don't know but one thing is certain: it is enough to keep them busy for a long time and more than enough to make us all rich.