Replies to post #2047 on Mexus Gold US (fka MXSG)

[TMLonggun]

The facts are:
All mining operations will be funded by Argonaut at no cost to Mexus.

Let me know if I need to use coloured font.

If it is on net profits then the 8k is wrong and Argonaut is not paying for mining operations. I personally believe the documents submitted to the SEC to be correct.

[KansasCrude]

I agree Mr, Bobo, We need the facts. Frankly with gold at $1148 as of today. I don't think there is any way in Sonora we would get 20% of revenue that's $229 per oz. Given the cost of production that would be around 50% of the profit of most efficient producer in the area. If its 20% of revenues Mr. PT did very well based on current prices. If POG hits $2000 or more then I get much more excited about 20% of PROFITS

I am not going to say what I did is the definitive answer I am just looking at the closest producer on our trend and that's the facts Jack. They operated last year with ~$100 oz. profit. The price this year is trending below last year. Once again I don't blame Mexus for the POG. That's the criminal actions of the TBTF Banksters and the FED.

Please recall that I did the numbers based on $1300 gold and NocheBuena's cost for 115K production and 2 years of start up costs at $1150/0z. That trend is positive to seeing $1050 per 0z. there in 2015.

Trust me I have a boatload of shares and nothing would make me happier than being WRONG (again based on prices below ~$2000K). If as 8 has long schooled us on the underground that is another big upside to Noche as that is pretty much to all Heap Leach at this time. If we can pull 30-50 oz a day from the underground it should be another nice upside.

My final comment until we get clarification. My experience with true streamers is they pay up for the production and then pay a fairly nominal cost credit per oz. for the actual production perhaps with an inflation adjustment over time and a maximum production threshold that can allow the producer to get "Market" prices for production above that. So we don't have a streaming situation here. We have payment set up on PROFIT or REVENUE. One seems to generous the other to niggardly at present economics. For this thing to get sexy we need much higher gold prices and or nice cheap and bountiful underground production. if its based on 20% of Profits.

I would hope our new partner has the Blasting Permits to get cranking on that soon....make that real soon.

[MX23]

Great post Bobo, guys are jumping around key parts of the agreement. What is our share, we need the facts?

[bobbyinredwood]

Just spoke with Paul Thompson and yes it's a gross revs deal as TML correctly stated.
I also asked about the project and what Argonauts plans ere moving forward and he stated they have been working there for some time now and are well into the mapping of the property. Plan is to do a massive heap leach and he said the potential is huge and they know that.
He talked about having more time to focus on the Scorpio project and how they've not only discovered a very nice copper deposit but a great gold deposit around the outside.

Very nice conversation and he sounded in a great mood.