Mexus confirms status at Santa Elena project
3:01 am ET May 1, 2017 (Globe Newswire) Print
Mexus Gold US (OTCQB:MXSG)("Mexus" or the "Company") has noted through communications from a few of its shareholders that it appears there are numerous misleading and undocumented statements which have been made in various forms of media. The Company realizes in today's environment statements such as these are easily published without sufficient supporting documentation and data and may be made with the intent to influence our shareholders in a negative manner. It is important to note our goal has been to maintain the conduct of our business in high standards and ethically communicate those actions to our shareholders. The following is a summary of the Santa Elena project in Mexico:
-- Our JV partner at the Santa Elena project has been producing gold since early April and performed its first smelting of dore April 22 which represents the first of many more to come.
-- Pad 1 is still producing gold back to the pregnant pond and it is expected that this will continue for about two more weeks. Mineralized material is being placed on Pad 2 and will be ready to leach once the initial soak of Pad 1 is complete. Both ponds at the Santa Elena project were calculated to hold approximately 793,000 gallons with the gold laden pregnant pond being 30% full and the makeup pond being 75% full.
-- The Merrill Crowe plant is currently running at 35% and is increasing weekly. Mine manager Regino Vargas feels it's better to increase slowly so money and material are not wasted.
-- Mexus' contract with the land owners at the Santa Elena project allows for usage rights to the water well. Mexus was informed that the permit is for agricultural use only. In addition, the permit as it stands now does not provide for enough water. Marco Martinez, President of MarMar Holdings and Mexus' partner at the Santa Elena project, states that the solution is to buy water rights from other well owners. If necessary, the water will be trucked in using the company owned 4500 gallon water truck which will solve any water concerns in the short term. This is a minor issue as it is expected that the project will use approximately 10,000 gallons a week at full evaporation. Mr. Martinez goes on to state that he is attending to the current water well use permit and will seek a reclassification.
-- Mr. Martinez will hold those liable for damages caused by these misleading statements.
