By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
Paul Thompson, President and CEO of Mexus Gold US (OTCQB: MXSG): In Gold in Production Shortly with JV Partner MarMar Holdings of Mexico
Mexus Gold US (OTCQB: MXSG) is an American based exploration company with assets in Mexico, where they have a joint venture partner called MarMar Holdings of Mexico. The company's flagship property is wholly owned Santa Elena mine located 54km NW of Caborca, Mexico. We learned from Paul Thompson, President and CEO of Mexus Gold US that they will be in production shortly with minimal debt. The company is also advancing another joint venture project in Northern Mexico, called the San Felix mine. Mr. Thompson believes they are in good position for 2017, they will be mining at an extremely low cost of approximately $450 an ounce and are looking for $25 to $30 million year of revenue at 10,000 tons per day.
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Paul Thompson, President and CEO of Mexus Gold US. Could you tell me what differentiates Mexus Gold US from others?
Mr. Paul Thompson: Mexus Gold US’ main property is Mexus Goldmining, SABECV in Mexico, and the difference in our approach is that we're trying to accomplish our goals without going into debt for millions of dollars as a lot of companies do. We have some great properties. We will be in production shortly at .7 grade mining 10,000 tons a day. We believe we can ramp it up by the end of this season to probably twenty thousand tons a day. We know we have better grades out there. We just don't know what the average will be for sure. But we're safe with the .7.
Dr. Allen Alper: Sounds great! Could you elaborate a little bit more on your plans going forward this year, what you expect to accomplish?
Mr. Paul Thompson: Yes. We're going to have the Santa Elena into production and by the end of the year and will be producing 10,000 ton a day. We're hoping to surpass that. There is no reason we can't. The other property we have, the San Felix, is a huge property. We have had the San Felix since 2013/14. We had some problems with the people with whom we were previously joint ventured. Fortunately, Mr. Marco Martinez of MarMar Holdings is going to be doing the San Felix under the same conditions he's doing the Santa Elena. He will be the operator, he will hire the employees, he will have the responsibility for management, taxes, et cetera, at the San Felix. The cost will come out of production to repay himself. We'll get 5% until such time he gets his money back from the original startup, and then we'll be 50/50.
We're in a good position for 2017. We have a lot of upside and the cost is very low for Mexus. Our cost is somewhere around $35,000. That's nothing for a company like ours. We're feeling really good about it.
Dr. Allen Alper: That sounds excellent. Could you tell me a little bit more about your background, Paul, and also your team?
Mr. Paul Thompson: My background is manufacturing. I've done quite a bit of construction, moving dirt. I've built a mobile home park. I've built sub-divisions. I've moved dirt in Nevada. I have manufacturing experience building lots of different types of mining equipment for big and small companies. I've manufactured tanks. Up until 10 years ago that was one of my primary things. We were running crews of 29 to 30 people in shifts. I was quite involved with the manufacturing, but at the same time, I was doing mining. I've been involved in mining, actually, most of my adult life in one way or another. My father always enjoyed mining and got me interested in it. You might say I'm a true mine. I sure have the gold fever!
Dr. Allen Alper: Sounds great! Excellent! Could you tell us a bit more about your board and the other members of your team?
Mr. Paul Thompson: At this time, that's how we're keeping the cost down. I'm acting as the board of directors, the CEO and President of Mexus. If you look at our website, I have advisors such as Paul Dent, Robert Williams, Scott Jolcover, Mitch Wiley, and some other people of various backgrounds, in mining, business, accounting, that help me all the time. I rely on them just about daily to forward some information. I'm open-minded. I'm not the smartest person, but I sure take advantage of the knowledge of a lot of people around me. The legal team has helped me. Unbelievable how they've helped me!
Dr. Allen Alper: Well done! That sounds excellent. Could you tell me a bit more about your share structure?
Mr. Paul Thompson: We've put out considerable stock to do what we've done, right through private placement at different times. We have a lot of happy people. Since last spring, our stock went up 4,600%.
Dr. Allen Alper: Congratulation! That's really fantastic. It pays to be your shareholder. That's really great. Not many people could say that.
Mr. Paul Thompson: Yeah. We have a lot of true Mexus supporters. A lot of people have been with us from the beginning, and they understand and appreciate what we're doing by not going out and borrowing millions of dollars, as some companies do. We've been offered all kinds of wild financing options. It's just not the right thing for Mexus to do, and we don't need it. Quite truthfully, with MarMar out front and quickly putting San Elena into production, our cost is $35,000 a month. It's nothing. The costs of producing an ounce of gold at the San Elena will be $450 an ounce.
Dr. Allen Alper: Excellent!
Mr. Paul Thompson: Mexus is going to $25 to $30 million a year at 10,000 ton, without much of an expense for ourselves.
Dr. Allen Alper: That is really a great position to be in, excellent. That's very low cost, very good.
Mr. Paul Thompson: Yeah. I think we're very fortunate in what we're doing. MarMar, Marco Martinez, is a very, very savvy Mexican businessman. He understands the ins and outs and how things get done in Mexico. He's doing it, keeping people happy, without stepping on toes.
Dr. Allen Alper: Excellent! What are the primary reasons our high-net-worth readers/investors should consider investing in your company?
Mr. Paul Thompson: Well, I can sum that up in four words actually: our low cost production. The best property we own, the Santa Elena, 70,000 acres, with good property. We can mine there for 25 years. We have the San Felix, 26,000 acres, with seven properties there that have open pits at this time. It's been opened up and ready to mine. It has seven million tons sitting there ready to add more material to the existing heap leach pads. The roads are in. It's quite an opportunity for us. I believe, on top of that, we have the newest property, which is the El Scorpio, which is copper. We've had it for a number of years, and we're waiting for copper to get to the right price, which I think it will. We're finding a driller at this time.
Dr. Allen Alper: That sounds very good. Is there anything else you would like to add, Paul?
Mr. Paul Thompson: I believe we're doing everything we can for the smallest investor to the largest investor. We're trying to take care of everybody. We're trying to, for sure, keep the costs down. We will put it into production I believe, by the end of the year, which should make everyone quite happy.
Dr. Allen Alper: That sounds really excellent!
1805 N. Carson St. #150
Carson City NV, 89701
Paul Thompson Sr.