Mexus Gold US (OTCMKTS:MXSG) rallied 60% after announcing they have started to produce, in partnership with MarMar Holdings, gold in Dore form at the Santa Elena mine In Mexico. After the milestone achievement, focus now shifts to ensuring production at 10,000 tons a day by the end of the year.
One month MXSG stock price chart
The news helped push the stock up the charts after it broke through a key resistance level. However, the stock is still trading at the lower end of a strong down-trend waiting to see if it will break through the $0.09 mark to affirm a strong bullish momentum.
Prior to the gold production news, Mexus Gold US (OTCMKTS:MXSG) had underperformed the overall industry after dropping from highs of $0.15 to lows of $0.05 a share. The exploration stage mining company is focused on the evaluation, acquisition, exploration, and advancement of gold and silver projects in Mexico and the western United States.
In August, Mexus Gold US (OTCMKTS:MXSG) produced approximately 30,000 tons of ore. The two companies expect continuous leaching and Meril Crowe processing to turn the contained values into Dore. The ore currently being placed in heap leach is believed to contain 2 grams of gold per ton with a recovery rate of 76 percent.
“The current flow rate of 50gpm will be gradually increased to 200gpm to achieve maximum processing capacity and overall production. Additional primary filters will improve flow rates and recoveries from the solution. Parallel electrowinning is being installed to trap some of the high-grade pregnant solution spot,” said Mexus Geologist Cesar Lema
Mexus Gold US (OTCMKTS:MXSG) plans to release their finances in upcoming quarterly reports. According to the Chief Executive Officer, Paul Thompson, production of gold could not have started at a better time as gold prices have surged above the $1300 an ounce mark.
In addition to the Santa Elena Mine, Mexus Gold US (OTCMKTS:MXSG) owns in partnership with MarMar Holdings a 26,000-acre property at the San Felix in Northern Mexico. The property is believed to contain gold deposits. The company also owns 6,900 acres in the Ures property where gold and copper and deposits are believed to be present.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.
Original Article: http://stocknewsunion.com/tag/mexus-gold/