Mexus Ball Mill Operational; Heap Leach Findings Expected to Provide Substantial Gold Production

Rhea-AI Summary

Mexus Gold US (OTCQB: MXSG) announced the operational status of its ball mill gravity gold recovery system at the Santa Elena mine in Caborca, Mexico. The company has also discovered that salt on the heap leach pad is limiting gold recovery. Assays indicate that the bottom 2 meters of the pad contain high gold values, which will be processed through the new recovery system. Mexus aims to improve gold production in Q4 2020 but has not provided specific guidance due to recent findings. The company anticipates further updates on its recovery operations.

Positive

• Ball mill gravity gold recovery system is now operational.
• High-grade material from the bottom of the heap leach pad is set to be processed, potentially increasing gold recovery by 95%.
• Continuous gold production expected in Q4 2020.

Negative

• Salt contamination on the heap leach pad has previously limited gold recovery.
• Uncertainty in providing Q4 production guidance due to recent discoveries.

CABORCA, Mexico, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB: MXSG) (“Mexus” or the “Company) announced that its ball mill gravity gold recovery system is now operational. This system will allow the company to run high grade material from the Julio quartz vein at its Santa Elena mine located in Caborca, MX.

In addition, the company announced an important discovery concerning gold recovery from its heap leach pad at the mine site. Mexus has been and continues to recover gold from the mineralized material placed on the heap leach pad. The resulting gold production from this work has been variable leading to an analysis of the heap leach pad. It has been found that the salt placed on the pad by the prior operator continues to limit gold recovery. Assays of the cyanide solution returning to the pregnant pond are not representative of the material being placed on the pad. The company decided to remove the material from the top of the heap leach pad down to 2 meters from the bottom and have it assayed. These assays showed that salt is causing issues with gold recovery. The silver in this material, when coming into contact with salt, turns to silver chloride. Cyanide solution with gold reacts with silver chloride and turns the gold to a metallic state inhibiting recovery. The silver chloride found in the bottom 2 meters was assayed and showed an extremely high level of gold value (ounces to the ton). Mexus CEO, Paul Thompson, along with Chief Geologist, Cesar Lemas, determined that the bottom 2 meters of the heap leach pad needs to be removed and run through the ball mill gravity system. Tests have shown that 95% of the gold in the silver chloride material can be recovered using the company’s gravity ball mill circuit. This work has already begun. These efforts accomplish two things for the company. First, this allows for gold recovery of highly assayed material at the bottom of the heap leach pad. Secondly, it fixes the heap leach pad allowing for normal and consistent recovery of gold going forward.

Mexus will continue to produce gold in the last quarter of 2020. The company was looking to give guidance for the 4^th quarter of 2020 but determined that the recent findings have made it difficult to give an estimate. In the near future, shareholders of Mexus can expect an update on both the heap leach and ball mill gravity gold recovery circuits. Mexus CEO, Paul Thompson added, “I’m excited for gold production in the coming weeks. We believe that a substantial amount of gold trapped on the pad is now going to be recovered.”

About Mexus Gold US

Mexus Gold US is an American based mining company with holdings in Mexico. The fully owned Santa Elena mine is located 54km NW of Caborca, Mexico.  Mexus also owns rights to the Ures property located 80km N of Hermosillo, Mexico. This property contains 6900 acres and has both gold and copper on the property.   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. 

Mexus Gold US (775) 721-9960

Cautionary Statement

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.

FAQ

What new developments has Mexus Gold US announced regarding gold recovery at its Santa Elena mine?

Mexus Gold US has operationalized its ball mill gravity gold recovery system and discovered issues with gold recovery due to salt contamination on the heap leach pad.

How does the ball mill gravity gold recovery system impact gold recovery for Mexus Gold US?

The new recovery system is expected to enhance gold recovery from high-grade material by up to 95%.

What challenges has Mexus Gold US faced regarding the heap leach pad?

Prior salt contamination has limited gold recovery from the heap leach pad, necessitating further remediation work.

What is the expected gold production timeline for Mexus Gold US in 2020?

Mexus plans to continue gold production into Q4 2020 but has not provided specific guidance due to recent findings.

What is the stock symbol for Mexus Gold US?

The stock symbol for Mexus Gold US is MXSG.