Mexus Gold US (MXSG)

[cpmill]

I don't think that you generally value companies at 1:1 to gold in the ground. In fact, for resources (which these can't even be considered yet), the market usually only gives $40-$100 per ounce of gold in the ground, plus maybe a kicker for speculative upside. When they are producing and reporting revenue, then the valuation model can change substantially.

Further, these are not results that comply with a normally accepted standard (IG 7 or 43-101), so the calculations of overall value of mineralized material are incredibly speculative.

What IS impressive are the grades here- especially if a good portion of this material can be recovered through surface mining techniques. Usually underground mining costs 3-4 times what surface mining costs, so the profit margins aren't as pretty. Plus, underground takes quite a bit of time and infrastructure for a relatively small tonnage, so you better be cherry-picking the really hot stuff, and not wasting your time on 2 grams per ton.

What I'd like to see from the company is a more comprehensive discussion of the layout of the property, maybe accompanied by a map, to explain the basic geology and exploration and development targets on the property. This will help investors and potential investors start to understand the actual potential of the mining property and the company.

They could then overlay the map with the sample results, to help people understand where the high grade deposits are, and their proximity to each other and to their processing facilities.

To me, this kind of an organized presentation of relevant data would carry a lot more weight than leaked rumors and details coming through shareholders, and would go far in further establishing the legitimacy of the company as a going concern with excellent prospects, and not just another junior mining shell with a property or two and an idea....