Mexus Gold US completed the year with the successful start-up of producing operations at the placer gold recovery project in Sonora Mexico. The operations are beginning to settle into a daily routine thereby allowing Mexus to begin exploration activities by utilizing the Company’s diamond core drilling equipment to gather geologic information on the Julio quartz vein. There are indications the vein extends from the surface to 150’ in depth and from 1 foot to 6 feet in width on an approximate 45 degree angle downward toward the east. Mexus plans to drill an additional ten core holes spaced 100’ apart along the Julio quartz vein system. The first drill hole had indications of value at depth with the over burden also indicating value. The over burden is fractured and broken rock which can be ripped with large track type equipment down to the gold carrying quartz vein. The Julio quartz vein system could evolve into an open pit mine and processing facility.
The 2012 goal for the Caborca area is to stay focused on the producing placer gold recovery project and to initiate production operations on the Julio quartz vein system.
8 Brothers, Ures, Sonora State Mexico. Mexus has a potential of a high grade silver mine at the 8 Brothers. At this time, Mexus is still working towards an economical means of recovering the silver or identify a potential joint venture partner.
Scorpio, Ures, Sonora State Mexico. Mexus has shown copper values from ¾% to 3 ½% with small amounts of gold value. Mexus has done only a small amount of drilling at this time, but believes in the future Mexus will be finally able to pursue a drilling program on the Scorpio copper system.
Submarine Cable. Mexus intends to work offshore early 2012 verifying the location of a 4 ½ inch, 31 pound per foot cable. Our new survey vessel is being equipped with deep water electronic locating equipment to identify the length, depth, and size of the cable. Once the survey is completed, Mexus will apply its past experience and knowledge to launch an all-out recovery effort. This cable was represented to Mexus as weighing 31.5 pounds per foot with copper, lead, and ferrous manganese steel. Until Mexus can complete its survey and sampling work, Mexus cannot verify these figures.