Last week, MX Gold Corp. (TSX-V: MXL) announced an agreement with Gracepoint Mining Corp (see news release below). This is an instrumental deal that the brass at MX Gold negotiated which will result in near term cash flow that will continue for many years thus rewarding shareholders. Their investment will be paid within a few short months reaping profits thereafter.
The recent downturn in the gold and junior mining market was a prime opportunity to load up on stellar stocks such as MX Gold Corp.. Their Willa deposit will be in production soon, coupled with this recent acquisition, MX Gold is primed for a greater stock value.
President of MX Gold, Bert McPherson orchestrated this outstanding deal - his former accomplishments include:
-Mine Manager of Goldcorp’s Peñasquito Mine (2nd largest mine
in Mexico)
-Former VP/GM of Kinross’ Tasiast Mine in Mauritania
-Mine Manager of Barrick Gold’s Alto Chicama Project in Peru
???????
With great properties and management, MX Gold is once again ready for ascension.
Happy Investing!
Kal Kotecha PhD
MX Gold Corp. Acquires Near Term Gold Production in Mexico
October 25, 2016
FOR IMMEDIATE RELEASE
MX Gold Corp. Acquires Near Term Gold Production in Mexico
Vancouver, B.C. - MX Gold Corp. (TSX-V: MXL) (FSE: ODV) (OTCQX: MXLGF) (the "Company" or "MX Gold") is pleased to announce a binding agreement with Gracepoint Mining Corp., a subsidiary of Firma Holdings Corp. (OTC: FRMA) to acquire a 50% interest in the Magistral, Del Oro tailings project, which is located within the "Golden Triangle" in Santa Maria Del Oro, Durango, Mexico.
The project includes a fully permitted, 500 tonne/day Dynamic Cyanide counter current system plant constructed in 2013 at a cost of approximately $4.5 million, which appears to be in excellent condition. The plant is unencumbered and it is estimated that the plant can be fully operational within 4 to 6 months. Additionally, the Magistral project includes the exclusive rights to process the mineralized mill tailings.
About Magistral Project Mineralized Tailings Project:
A historical estimate was completed by Corporation Ambiental de Mexico, S.A. de C.V. ("CM") on January 20, 2012 titled "Perforacion y Muestreo en Presa de Jaleas Estimation Volumetrica, Tonelaje y Ley Promedio". The CM report estimated a probable reserve of 1.25 million tonnes averaging 2.06 grams/tonne gold. The assumptions for this estimate were based on 58 auger samples, 2.45 to 3.0 metres in length from 24 drill holes. There has been no additional work on the tailings project since January 20, 2012 to upgrade or verify the historical estimate.
The CM report does not comply with National Instrument 43-101 and MX Gold Corp. believes that a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or reserve and is not treating the historical estimate as a current mineral resource or reserve. The company is planning a data verification program and additional geochemical studies by trenching and or drilling of the tailings project.
The agreement calls for an initial cash payment of US$250,000 to Gracepoint and an investment of $2,225,000 over 90 days to meet current obligations and make various modifications and additional enhancements to the plant, and for start-up capital. A comprehensive report, including a metallurgical assessment of the mineralized tailings, was completed by Kappes Cassiday and Associates, an independent mining engineering firm, which confirmed recovery rates of approximately 82%. During Firma's pre-purchase due diligence, a volume and grade value report was commissioned and provided, which validated expected grade and tonnage. Additionally, to confirm previous metallurgical results, a report was commissioned and completed by two different Mexican based Metallurgical Engineering companies, with both company's reports confirming previous grade, process, and recovery results.
Mr. Francis Biscan Jr., President of Firma Holdings Corp., stated, "We feel very fortunate to have obtained MX Gold as our partner. In addition to the funding being provided, they bring a team of professionals with significant experience, who intend to be on site and work in concert with our team to ensure an efficient operation. In addition, we will work together to grow the project beyond its initial vision and capacity. Cash flow will enable us to organically advance our other projects. In addition, it can position us to capitalize on some of the great opportunities that have been presented to us over the last several months."
Mr. Dan Omeniuk, CEO and Chairman of MX Gold stated, "It is rare to find both people and projects that are such a perfect fit for our vision at MX Gold. Gracepoint Mining's focus on building a portfolio of projects that are near term producers with upside potential is very attractive to us. Our focus will be to drive cash flow to empower a non-dilutive approach to building MX Gold's value.
Mining Industry Leadership will be provided by MX Gold's Chief Operating Officer Bert McPherson. Bert is a senior mining engineer and has 37 years of experience in managing projects for major mining companies. He has successfully added value to mine management teams worldwide, focusing on the implementation of industry-leading mine management standards, safety awareness, team building, assembly, mentoring and the development of functional mine management operations.
Mr. McPherson has led operations employing in excess of 2,200 employees on several occasions and providing operational leadership for operations producing in excess of 1,000,000 ounces of gold annually. He has previous experience with Major producers and junior producers internationally, including Mexico.
The technical information in this news release has been reviewed and approved by Lorne Warner, P.Geo, and a qualified person as defined by National Instrument 43-101.
AboutMX Gold
MX Gold Corp. is a junior mining company focused on the exploration, development and mining of advanced projects located in British Columbia and Mexico.
The Company's primary focus in British Columbia is its high-grade Willa gold and copper project located 12 kilometers south of Silverton, B.C. In 2015, MX Gold Corp. completed the accretive acquisition of the Willa project and the Max Molybdenum Mine and Mill Complex. This acquisition removed major costs and shortened timelines typically associated with mine project development with planned ore shipment from Willa to the Max Mill. The Willa mine is located 135 kilometers south of the Max Mill. MX Gold Corp. can also elect to reopen the Max Molybdenum mining operation once world Moly prices improve.
Located in Mexico, MX Gold's new Magistral Del Oro Project is located 392 kilometres south-west of Chihuahua City, in route to Parral 220 km, from there due South on Durango Hi-way for 120 km to Santa Maria Del Oro interception, turn West to Santa Maria Del Oro for 48km, continue East for 3.5 km, then turn South for .5 km to the Magistral Del Oro Project. All paved road except for the last 0.5 kilometer.
On behalf of the Board ofDirectors,
"Lorne Warner"
Lorne Warner, Director, MX Gold Corp.
For further information, please contact:
Skanderbeg Capital Advisors
604-687-7130
Ext 104 or Ext105
Dan Omeniuk, CEO
Phone: 778-789-4653
Email: dano@mxgoldcorp.com
Ron Birch
Phone: 250-545-0383
Toll Free: 1-800-910-7711
Fax: 604-926-4232
Or by email to:
info@mxgoldcorp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)accepts responsibilityfortheadequacyoraccuracyofthisrelease.
Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include MX Gold's estimation that the Magistral plant can be fully operational within 4 to 6 months, its plans for a data verification program and additional geochemical studies, its belief in the near term and upside potential of the project and Firma Holdings Corp.'s expectation that the parties can work together to grow the project beyond its initial vision and capacity. All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, business integration risks; uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral reserves and resource estimates, MX Gold's ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral properties and the availability of capital to fund the Company's projects, as well as other risks and uncertainties identified under the heading "Risk Factors" in the Company's continuous disclosure documents filed on SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. MX Gold cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and MX Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
Copyright © *2016* *MX GOLD CORP.*, All rights reserved.
Contact us:
Address:900-570 Granville Street
Vancouver, B.C., V6C 3P1
Phone: 250-545-0383
Toll Free: 1-800-910-7711
Email: info@mxgoldcorp.com
Disclaimer
© 2010 Junior Gold Report
Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR has been paid by MX Gold Corp for write-ups and video via distribution. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.
Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "has potential to", or "intends' or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company's business model; future operations, products and services; the impact of regulatory initiatives on the Company's operations; the size of and opportunities related to the market for the Company's products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.