Mexus Gold US (OTCMKTS:MXSG) has climbed to a new 52-week high and staging a massive rally. The stock has gained 33% today and has surged over 900% since February. Volume has been significant setting record shares trading over the last few weeks. The stock is currently trading at $0.024 well below its all-time high of over $0.60.
The rally in MXSG share price can be due to several reasons and developments. The first and probably leading cause is the rally in gold bullion prices which has lifted the entire gold mining sector to 52-week highs. As many central governments continue to lower rates (even negative interest rates) and currencies maintain high volatility, Gold is consider a safe haven asset.
MXSG has been looking at continuing to find a company to mind its Martha Elena/Julio property. In the first part of 2016, it has had several companies looking at where Argonaut left off. There is likely tremendous potential and value locked in the property. It needs a well-funded company to further the development of the project which has already had a significant amount of work completed on it. Recent developments show that a major mining company taking interest in the company and hope to complete a deal sooner than later. This property sits in an area where some of the largest mining companies in the world are mining their own claims.
MXSG has drill results which show a high grade, multi vein system throughout the property. The company also owns the rights to the Ocho Hermanos property. This property will be drilled to show a proven reserve once our flagship property is in full production. Preliminary drilling on this property has been extremely promising.
MXSG has been aware of the high grade silver and gold at another of their property for some time. The property has metal values which are hard to recover due to large amounts of sulfur. These minerals are plumbojarosite and argentojarosite which contain large amounts of silver, gold, lead, copper and zinc. This ore is first processed by crushing and grinding to reduce it to fine grain and then roasted between 1000-1500 degrees The president of the company has been working on a simple but efficient roaster for some time. The hope is to complete a test plant very soon.
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MXSG is currently trading at a $17.76 million market valuation. The share price has surged over the last few weeks rewarding investors and shareholders. The recent advancement in gold prices has miners returning to previously unprofitable mines like MXSG properties. Given the fact a large mining company is interested in the company is grounds to be excited about MXSG future. Stayed tuned for more developments.
We will be updating on MXSG when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with MXSG.
Disclosure: we hold no position in MXSG either long or short and we have not been compensated for this article.