Mexus Gold US (MXSG)

[rbtree]

Except this company has very weak fundamentals.

Yes, they don't have a lot of debt, but are cash poor. They have a minesite that is proving to not be worth bulk mining. They have a JV partner that may or may not be well enough funded or have enough equipment to get the job done. They also have no known experience at running a gold mine. Being one of hundreds of contractors at the nearby big mine doesn't qualify them to be competent. Plus, word is, they were let go from that position.


As far as the Elena goes, some surface sampling and eyes on the ground don't cut the mustard or in any way indicate that it is a bulk minable prospect.

The Argonaut drill results only confirm this possibility. When a mere 120 metres (Ok, lets say 10% or 199 metres) of 1990 drilled are above the appx 0.12 gpt cut off grade, what does that say about the entire project? Even allowing for overburden and other waste, which still has to be moved, and perhaps a small amount of higher grade tonnage, the best one can imagine would be a grade of under 0.1 ppm or grams per ton.

Sorry, but that is pathetic! Now what was that about fundamentals, again?

Yikes! I'm not one for predictions, but if they don't start producing some good results, and soon, shotgun may yet again prove to be on the right track.