Mexican Gold (CVE:MEX, FRA:4QW1) – The High Grade Holes Keep On Coming
With core like this, it’s no surprise Mexican Gold released another barn-burner of an assay at the Eldorado/Juan Bran zone.
The much-anticipated LM-17-ED- 41 yielded 14 meters of 7.18 g/t Au Eq. . .
While not as eye catching as LM-17-ED-40’s 38 meters of 9.24 g/t AuEq, this hole is very important for a couple reasons. . .
1.) It was drilled very close to the surface. Odds are good that Eldorado/Juan Bran will be a high-grade, open pit mine.
2.) LM-17-ED-41 was drilled further northwest – along the Dike Contact Zone.
This confirms that the grade is higher along the Contact, which is still open for expansion.
We suspect this dike continues northwest, where the company confirmed another discovery at the Cinco Senores Zone.
At Cinco Senores, the Dike is concealed by overburden, but Mexican Gold has a large geophysical target pointing the way.
The first two holes drilled right through the Dike, but one hole had 2 meters of 1.17 g/t Au Eq.
This means MEX is really close to the mineralized zone outside of the Dike – there is a reason why artisanal workings litter the area.
And can you imagine if it’s the same Dike that connects the two zones? Then it’s just infilling and adding ounces.
Mexican Gold’s 3,000-meter drill program has now been completed. . .
The workers are all on Christmas break, and will return in January where MEX will commence another 3,000-meter program.
The company also wants to do some more exploration work at Santa Cruz and Changaro.
With ~$1 million in the treasury, we do not expect dilution in the near future.
The stock is down on the news. Which means investors were looking for juicier numbers and are weary of gold prices. But from a geological stand-point, this is the best thing that could have happened.
Moving forward, the resource will only get larger, and more importantly, will increase in grade.
We expect big things in the New Year – this dip is a buying opportunity for a world-class project.
Gold always does poor in December, but regardless of the gold price, MEX is putting out some of the best holes in the World.
Imagine your favorite clothing store is having a flash clearance sale. . .
It’s winter and you can buy summer clothes at steep discounts.
Same high quality and everything. Just simply out of season.
Wouldn’t you buy as much as you can before the weather changes and people come rushing in – pushing prices back up?
That’s what is happening with MEX. . .
Once gold recovers we expect it to trade much higher since MEX has accomplished so much more.
Palisade Global Investments Limited holds shares of Mexican Gold. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report is obtained from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.