Replies to post #1905 on Mexus Gold US (MXSG)

[TMLonggun]

I am betting Mexus has something of similar scale but higher grade and near surface since none of this has been open pit mined before. Is the Rancho the best "asset" in the trend? No, but I would say it is the number one exploration play in the area that I know of. If any property has something that will turn into one of the best assets on the trend it is ours. Again, I am not a geologist and I am not an expert I am just trying to make an educated bet, which is hopefully way better than a simple guess.

In general, according to brilliant, famed geologists like Brent Cook they say what I am doing is impossible and that you need to be an experienced professional to even have a tiny hope of deciphering the geological reports. I disagree with this and think are a few common sense things we can look at to at least get a general feel.

Say hypothetically you find an outcropping with a kilo of gold per tonne. it doesn't take a masters degree to determine that this is a good sign. If they drill out 200k oz in a small box, and then step out and the deposit is open in all or most directions and at depth then very rapidly the tonnages start to rise to huge totals, which will need to be further outlined and then infill drilled for clarification.

When I first read GoldSpring's Telesto? reports they showed a couple hundred k oz on a tiny percentage of their property open in all directions. I assumed that what lay undiscovered in the area was comparable to what they had already found with their drilling, so I multiplied it out to a small ~4-5% of their land and I got 3 million ounces of less than one gram gold, which turned out to be astonishing accurate and much more successful than my predictions for lode shareprice.

Lode, like Mexus, has special geology that makes it highly likely that both contain high grade gold deposits. Lode has it's infamous fissure vein and the deep workings and Mexus has the Mojave-Sonora Megashear trend running through their lands. I would feel just as comfortable investing in the Carlin Trend especially if the company had a compelling project relative to that of its neighbours.

My bet would be that Mexus will find 2-3 million ounces that substantially outgrade their peers and probably the same amount or more of lower grade (average) ore. This would probably take 3-5 years of drilling and exploration to outline and get a more accurate sense of what we have.

La Herradura for example is 0.79 g/t Gold 5.3 Moz Gold
La Choya was mined out around 2 grams in 1998 - status depleted.
While San Fransisco is .54 g/t with 1.6 Moz gold
Chanate has about 700k oz @ .74 g/t
Mulatos 4.5 Moz @ 1.11g/t ("Our Mulatos Mine is our foundation having been acquired for $10 million in 2003 and grown to become a consistent gold producer and significant cash flow generator. To date, Mulatos has generated more than $350 million in free cash flow [for Alamos]".

I would guess Mexus has at least 400k oz at 1.3 g/t and maybe 200k at 2g/t and an underground mine that will probably do at least one ounce per tonne - this is the low hanging fruit that could be placed into production with minimal drilling and cost. Many of these mines probably haven't even heard the expression "ounces per tonne" in decades.

Mexus Shear Zone estimate (p22): estimated 3.7 MMt, average width 2.2 meters of 2.52 g/t au 7.1 g/t ag estimated gold contained ~260,000 high grade ounces, even with allowances for dilution that is still ~3 years of heap production that exceeds everything in the area with grade and, theoretically, profitability. And this is literally scratching the surface. I don't know what the drills will uncover but I would be more surprised to see them come up empty than full of gold.

You honestly think we have an asset better than that?

We will eventually. I'd tell you how much gold I think is on the Mexus properties but I might get sent to the nut bin.


http://www.mineweb.com/archive/the-mojave-sonora-megashears-untapped-gold/

http://www.rst2.edu/ties/lead/university/resources/experts/mining_and_smelting/mining/lead%20mines%20in%20mexico.txt

http://www.mexusgoldus.com/files/doc_downloads/caborca_mine/MARTHA_ELENA-JULIO_REPORT_2015_2%5B1%5D.pdf

[8thaero]

Why is there nothing at Horseshoe (Herradura) since 1997 (35KM distant, that's Noche Buena ( Christmas Eve) , but gigantic heap leach open pit then? Extremely large low grade( below .8 gr/ton) is NOT a way to describe Martha Elena's 26 sq KMs. Nor is veining mentioned at Noche Buena rather small pit even closer. Mexus's some 6 by KMs long veins buried into the mountain side 1000 meters deep. Compact, well defined exposed at surface extremely rich is the Rancho appropriate term and good grades in between well suited for leaching any below .25 oz = 1.13 grams. BUT we have no control over Fresnillo and best offer was said to be insultingly low... BUT we control all of Martha Elena so them's their apples our oranges.. pretty silly to speak same breath. But last I heard Friday he's gotten what he asked for which would be around $5 milion and over 50% managing ownership which will be announced rather soon. Some silly fool thinks they could better? Haw ho haw! Belly busting laughter always makes my day a bet better still. The there's this.

"At this point what difference does it make?" 8