Mexus Gold US (MXSG)

[8thaero]

Forgetting again so quickly exactly it can be done TEST MINING EXCEPTION? Drill out proven AFTER Commercial Production?


"You forgot some;

What is a mineral exploration drilling program?

How to correctly interpret drilling results.

Why drilling programs are essential to developing a mine.

How likely is it a JV offer is extended when a complete drilling program hasn't been completed."


"Commercial Production

No Proven or Probable Reserves

We have not yet demonstrated the existence of proven or probable reserves at our El Aguila Project in Oaxaca, Mexico or any of our properties. Reserves cannot be considered proven and probable until they are supported by a feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are economically and legally extractable at the time of the reserve determination as defined in Guide 7 of the SEC Industry Guides.

We have not completed a feasibility study with regard to all or a portion of any of our properties to date. Any mineralized material discovered or produced by us should not be considered proven or probable reserves. As of December 31, 2010, none of our mineralized material met the definition of proven or probable reserves.


Commercial Production

During our initial two quarters of commercial production, which occurred in the second half of 2010, we produced 10,493 ounces of gold at an approximate average cash operating cost of $217 per ounce, net of by-product credits. See, “Non GAAP Measures in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation” for more information.

The production rate through the mill averaged 640 tonnes/day in the third quarter and with continued optimization, we increased throughput to an average of 851 tonnes/day in the fourth quarter. For the six months of commercial production in 2010, the daily mill throughput averaged 755 tonnes/day; mill head grade averaged 4.8 grams/tonne in the third quarter and 2.9 grams/tonne in the fourth quarter resulting in average head grade for the year of 3.7 grams/tonne. Extensive and unusually heavy rains during the third quarter and first half of the fourth quarter of 2010 complicated production as lower grade stockpiles with less clay material were better suited to run during this time. Mill recoveries were 81% in the third quarter and 74% in the fourth quarter, primarily because of the lower head grade run during the fourth quarter. Mill recoveries were 77% for the year ended December 31, 2010.

As mentioned above, in November 2010, we commenced underground mining and stockpiling of the La Arista mineralization at our El Aguila Project and continue to develop multiple working faces in preparation for processing the underground ore. We began transitioning from processing the open pit ore to the underground ore at our mill facilities in March 2011.

Exploration

Exploration during 2010 was focused primarily on the El Aguila Project. Surface exploration programs on portions of the Las Margaritas property and Alta Gracia property were undertaken which developed additional drill targets to be tested in the future. The drill programs on the El Aguila Project consisted of drilling 36 core holes for a total of 13,678 meters. Many of the areas drilled during 2010 require follow up drilling, which we intend to pursue in 2011 and beyond. We also carried out a geophysical survey, called Titan 24, over a large part of the Project area which resulted in several very distinct and interesting anomalies which are planned to be tested by drilling in 2011. However, we have not established proven or probable reserves as defined by regulation of the SEC on our El Aguila Project or any of our other properties.


http://irdirect.net/filings/viewer/index/1160791/000107997311000188/