Replies to post #11594 on Mexus Gold US (MXSG)

[goldbuggy]

Well that was interesting for a Monday.
Clearly expectations were disappointed.

[Amadeus4153]

"For one, it's been compared to GORO. Perhaps there could be some similarities, but MXSG has no proven reserves, and has done little to prove what is possible, at least compared to what GORO had done long ago."

You are wrong on this. GORO went into production with no proven & probable reserves. Like MXSG they knew they had an economically viable business plan and chose to skip that whole process of proving up reserves. It worked out very well for them.

"MSXG, lacking funding or enough competent mining people, is stuck with needing a JV partner,"

The mining industry is filled with all varieties of JV partnerships which turned out very well in the end.

"Any lode mining, however, would definitely need to have much higher grades, as costs aren't what they were in bygone days."

The CEO has stated they expect a $400 cost of production.

"Further, if they do actually start producing, I believe the terms call for MarMar to receive all the revenues until their expenses are met,"

Not a big deal. MarMar's expenses will likely be paid in full with the first pour and then all revenue from there on out is split 50/50.

[KansasCrude]

You raise some reasonable points but we have been down this road before. GORO was not long on reserves when they went forward. We are in the best modern AU. trend in Mexico. Not that it can't be surpassed maybe even by GORO's 55K trend. But that's not shown yet. My understanding is we still have members of the Argo mgmt. team as shareholders. Argo was going thru a rough phase change in mgmt. during the option period while gold was making an ugly bottom.

Latest estimates are the first pour will pretty much erase the debt. Perhaps it will take 2. Right now and I think its pretty much confirmed by the sector low energy costs are lowering production costs significantly especially for grades a gram or better. We appear to have well connected and deserving LOCAL equity partners. Would not have had them with Argo. Sure its a crapshoot up to a point. Love HATE the banksters for carrying the FEDS PM suppression water but bottom line is this is still a Hi Po stock with low costs and LOW OVERHEAD. Good grades with high grade feeder veins. Cost estimates of ~$400/oz. puts Mexus in pretty rare company.

Great looking portfolio with some very high potential poly metallic properties in the portfolio. When not if we get the PM upside breakout this is truly a monster in he making.

On trend with La Herradura (the most prolific gold mine in modern Mexico) has been producing since the mid 90's and is now going underground at the bottom of a 3/4 mile depth pit with at least 2 big fatty mother veins. Forecasts of up to and well over 1/2 million oz. AU annual production We are still unfolding the resource but pit size most likely will be 2x3 kilometers at a min with grades at least comparable with La Herradura. Most likely par or better. Oh BTW we have the contractor Mar Mar that excavated the pit for most of those years as our JV partner. Again nothings a slam dunk but like our chances. Would guess at least 2 of the other 6 claims/mines have super/star poly metallic porphyry potential.

I admit I have been critical of over exuberant expectations by mgmt.. There have been delays to the original schedule. I just have to repeat....supersize me please. The original plans have exploded at Santa Elena for pit, heap, and production expectations. Cost estimates are perhaps optimistic but targeted as mentioned at ~400/oz.. based on 15k TPD min or more. Original were for 5k or less. Must be a reason to supersize as mentioned our partner was the excavator at La Herradura. This time its their skin in the game and they say GO! Viva Mexus

Oh btw todays news was updated to reflect the increasing expectations for TPD and thus the required upgrades to the processing required. With the gentle realignment of lead time comes the positioning and hints of new expectations on the asset front... So one must wonder what comes next? Stay Tuned