Just like with Claude Mexus has qualities that are too compelling to ignore. Claude makes so much money that I can say with near certainty that the stock will go higher over the long term. It is obviously undervalued, and baring some massive, unforeseen catastrophe they will succeed. I can make a similar claim about Mexus. It is quite elementary that if all the big mines can profitably mine 0.4 grams in deep open pit mines in the same trend as Mex then Mexus' huge 5-10 gram at surface zone is economic as well as their massive 1-2 gram zone suitable for many years of heap production. The main Julio vein system is at least a kilometer deep with historic assays of multi kilograms of gold per tonne pulled from outcroppings. This isn't even 7 meters down, just mining 100oz/t at or above surface. This is the kind of stuff that would have been cherry picked hundreds of years ago but because of the history of the property (family control) it was never commercially mined or explored. Mexus is literally many standard deviations away in grade compared to their peers, even using the lowest numbers. For Mexus, like Claude, grade is armour that protects the company and makes it more likely to succeed. Metanor hit 26m of 10g/t @ 7 m depth, a very impressive assay but as geo points out it is probably a fluke unless they confirm and expand it. You certainly do not drill a 700m hole if you are expecting to outline near surface mineralization. Mexus assays are not flukes, they have shown that nearly the entire 26km square property is mineralized in some fashion. If there isn't 3-5 million ounces of high grade gold on this property then I will eat my hat.
The Julio UG shaft is narrow and about ~35m deep. The sides are loaded with visible gold gleaming in the hanging wall from surface down. Mexus has assayed this at 1-6 oz/t for over a 2 oz/t average. About a decade ago a small operator was mining 20+/oz/t from the same zone and made a few million before leaving. Everyone in the neighbourhood is mining grams. Mexus is ounces. It is too logical to ignore which was why Argonaut and Fresnillo and the other vultures have been circling for years, eager to lock up the property.
IMO Mexus is much more compelling than Met as an explorer, since they already have a large, proven, high grade property with a massive discovery outlined. Argonaut will develop and explore the property at 100% their own cost and their own pace (based on results). Mexus is now worth less than it was before they made a historic deal easily worth 10s of millions of dollars right this moment. Explorers should in general be worth less than profitable producers like Claude but the valuations of many companies makes little sense in this market. When everything is undervalued, you then gravitate towards the best value. The best explorer bang for your buck in the sector is Mexus or a company like it.
The grades are so high around the Julio that even a tiny leach operation will produce six figure gold or at least 20,000 oz off the top to Mexus - that is far more profitable (in general) than mining 50,000 oz and paying 100% of costs.
How's MXSG working out for ya TML?
Fine. Value up, price down, Longgun is in town.
I've done pretty well this year. Claude has done well and my scandium play is on fire, if it goes any higher I will take profits and roll them into Mexus (or vice-versa). When Argonaut finally announces drill results later this year it will be obvious from a glance whether they will develop it or not, and some indication of pace could be derived. I've heard rumours they are not even planning to drill the known high grade zones, which may colour the initial assays to the downside. Anything over 1.5 grams/t for a decent length should be looked on very favourably by AR. The chance of this happening is basically a complete certainty in my mind. You'd think shooting fish in a barrel would get old - but it never does.
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