Mexus Gold US (MXSG): Mexus Gold Info for New Investors Thi...

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Saturday, 09/08/2012 3:32:30 PM

Saturday, September 08, 2012 3:32:30 PM

Mexus Gold Info for New Investors

This is a summary and should be followed up with your own DD.

The owner of the company is Paul Thompson. He has experience in the mining field and is a nose to the grindstone type of guy that can build just about anything. He has put together a low cost mining operation down in Caborca Mexico. The land that they are mining belonged to a family for over a century. They used to mine the area for gold by hand so much of it had not been explored.
Paul has become friends with the family and has worked out a deal with them to mine the land with the family helping out for a 25% cut of mill production up to $2 million dollars.

The company is NOW as of July 24 mining gold from the property. They are going through test phases with the waste product that the family had produced over the years.
The waste product is about 30,000 tons with an avg. of .25oz/ton of gold. Calculating this out we have

7500 ounces of gold in just the waste rock
(7500x 1700 price of gold per ounce) = $12,750,000
$12,750,000 / 189,000,000 (number of outstanding shares) = .0674 cent/share
A very conservative price to earnings is 10 so
10 x .0674 = .67cents price per share. Currently the stock is only trading at .44 cents. so it's priced 50% under just what it has in waste product.

Where the stock starts to get fun and exciting.
The main gold quartz vein that is on the property is the Julio Vein. This has gold in in the area as high as 5.5 ounces per ton !!!!
The ball mill set up for crushing and sifting for the gold can do up to 120 tons per day.

This is a quote from one of the early investors that has visited the site 3x and has put up over a million dollars financing the equipment.

"Original cost estimate was an oz running entire placer and mill for the day. Just stick with a shift running 60 tons and 2 oz/ton to produce 120 oz plus a placer 4 oz with family taking out 1 oz for 25%. Now is 123 oz for $1700 (original was $1550) cost or $200+K revenue. A 2 week shift is $2,200,000. 25 shifts, $55 million. Even at, say, 200 million issue full diluted comes to .275 earned and PE 20 is $5.50. Now can see what 120 tons, or 4 oz or both does to that. $11 and $22".

The property contains a possible 3 sources of gold at the moment. The Julio Vein, The quartz vein, and a 3rd area that is being investigated by a geologist.

With current economic monetary collapse I think gold will go higher. So these numbers should inflate more. Here are links to videos and pictures of the mine.

The Mine in Operation making Gold