CARSON CITY, Nev., Jan. 26, 2015 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB:MXSG) ("Mexus" or the "Company") gave an update on its flagship property and its plans for 2015. For the past several months, Mexus has been in discussions with multiple companies on the potential to joint venture the project. Unfortunately, the offers that were received fell short of what the company and shareholders would expect. These offers, if accepted, would have tied the property up for years while the partner company did exploratory drilling with an unknown timeline on production. In addition, the initial investment being asked by Mexus was not being met. Mexus will continue to be open to any joint venture possibilities that arise.
Mexus continues to work on the improved placer recovery operation. (See Website) When the updated placer plant is operational, Mexus expects to recover 5 to 6 ounces of gold per day costing approximately $950. The company hopes to have the placer in full production within 30 days. The revenue from the placer operation will put Mexus into a positive cash flow position which will enable the company to move forward with the high grade Julio underground hard rock operation.
The Julio mine is a shaft to 100' in depth with a drift of approximately 80' to the north. The quartz vein is from 3' to 13' in width. Sampling from the exposed areas have assayed from .5 oz to 6 oz per ton. Mine Superintendent, Diego Guillermo Baltazar Garcia, has worked the Julio shaft in the past and believes Mexus can average 2 oz of gold per ton. The initial daily goal will be to mine 25 tons at a daily cost of $1600. The company will commence hard rock mining once the blasting permit is received. The gravity recovery equipment for this operation has been tested and works great. In order to begin hard rock mining, the company must first obtain a blasting permit. Vice President Julio Baltazar is working with HANKA explosives in Hermosillo, Mexico towards this endeavor. In addition, the company has hired an environmental firm to help with the location of the powder magazine and other items related to the blasting permit. Receipt of these blasting permits takes, on average, 90 days. The company has been interviewing qualified underground miners and speaking to underground mining companies concerning a potential joint venture. If and when a JV occurs, Mexus would supply the recovery and mining equipment and retain 75% of the NSR.
Increased revenue from all areas will allow Mexus to expand its drilling program to a depth of 500'. The company intends to prove as much gold reserve as possible. With a proven gold reserve, the company will be able to finance its ultimate goal which is a full scale open pit/heap leach operation.
CEO Paul Thompson closed, "I hope our shareholders can clearly see what our steps to full production are. Every person employed by the company is focused on achieving this goal. In addition, I want to thank the shareholder base for your continued support. Your patience and perseverance during this time is appreciated. Getting a mine to production is not an easy task but success in our endeavor will bring great rewards for all involved."
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 2015. 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