CARSON CITY, Nev., Sept. 30, 2014 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB:MXSG) ("Mexus" or the "Company") confirmed today that the plan for the Santa Elena/Julio property is to move forward with a placer and underground mine operation. The placer move has already been approved but in order to proceed with underground mining the company must obtain a blasting permit. On September 20, 2014 CEO Paul Thompson and VP Julio Baltazar met with representatives from Hanka, an industrial provider of explosives. Hanka will provide knowledge and support as the company pursues this permit. The company hopes to submit for this permit in the next week.
The company currently has a 30 year mining permit and the necessary land use permit to operate the placer and underground. Mexus plans to seek an expansion of its land use permit to include a small heap leach gold and silver recovery plant. The company owns a 600 GPM Merrill Crowe recovery plant and the mining and crushing equipment to do approximately 1,000 ton a day. CEO Paul Thompson commented, "We believe we can get 1.2 grams per ton which would produce approximately 38 ounces of gold equivalent per day. Our plan would be to increase the production to 5,000 ton a day as efficiencies are gained."
Mexus' diamond drilling project, which was scheduled to start on September 15, 2014 is now scheduled to start October 20, 2014. The contracted driller, Matt Westervelt, had medical issues which caused this delay. Mexus has already drilled four diamond NH drill holes to 200 feet. On September 25th, the first 108 feet were delivered to a Reno, NV assay company. The results of this assay will be released when received. These first four holes were drilled in a shear zone identified by our geologist, Cesar Lemas. (see report)
The company will pay for this expansion with the support of our shareholder base, using our expected EVA tax returns, and the $4,000,000 receivable which is due early next year. In addition, the company will use revenues from sales to help build out the project as it proceeds.
Mexus continues to negotiate with several companies concerning a joint venture. CEO Thompson concluded, "We have numerous companies contacting us and doing their due diligence on the property. That being said, we are in a position to move forward alone if necessary. If a company makes us a fair offer, that is a win for the shareholders, then we will partner with another company. We believe the advantage of partnering with a company at this point would be the ability to increase production at a faster rate. Again, this has to be a win for our shareholders. Our end goal is to bring the Santa Elena/Julio property to full production in the shortest time possible."
About Mexus Gold US
MEXUS GOLD US is an American-based exploration company with holdings in Mexico. Mexus' fully owned Julio/Santa Elena property is located 54km NW of Caborca, Mexico. This property sits in an area which is currently being mined by some of the largest mining companies in the world. Mexus has drill results which show a high grade, multi vein system throughout the property. The company looks to have this property in full production by the end of 2014. Mexus also owns the rights to the Ocho Hermanos property, which is located 80km NE of Hermosillo, Mexico. This property will be drilled to show a proven reserve once our flagship property is in full production. Preliminary drilling on this property has been extremely promising. Founded in 2009, Mexus Gold US is committed to protecting the environment, mine safety and employing members of the communities in which it operates.
For more information on Mexus Gold US, visit www.mexusgoldus.com.
Forward looking Statement: Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
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Source:Mexus Gold US