MX Gold Adds Another Gold Project

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

The holidays are behind us and resource investors can look forward to a cornucopia of news being released in January including a lot of nice drill results from a variety of companies. I will try to keep up with the news. Meanwhile. . .

MX Gold continues to move forward. I wrote about them back in August when the stock was pretty much fully priced and I said so. The shares have corrected with the rest of the resource market and today after a 55% correction the shares seem cheap.

In late June the company announced hiring Bert McPherson as President and COO. Formerly of Goldcorp, Mr. McPherson supervised 1400 employees at the Peñasquito Mine in Mexico. He is a mining engineer and perfectly suited to getting the Max Mill back into production.

The Max Moly Mine is fully permitted and shows an indicated resource of 140 million pounds of uneconomic moly. When Roca Mines poured $80 million into the construction of the mill in 2005, moly was economic. Today it’s not but who knows someday it might be.

MX Gold came along and snapped up the mine and mill for $5.7 million in late 2013. MX Gold has a gold project called the Willa Mine located some 135 km from the mill. The idea of management was to start the mill using gold material from Willa. This summer they announced a bulk sample of 10,000 tonnes from Willa. Results from the bulk sample have not yet been announced.

One of the signs I look for when I research a company is just how committed management is. I want to see management have skin in the game. When you look at a company and the CEO is making $600,000 a year and owns $25,000 worth of shares, you may safely assume he will do everything possible to keep drawing the big bucks and he doesn’t give a damn about the shareholders.

MX Gold CEO Dan Omeniuk owns or controls 26 million shares. That’s about 15% of the company. I don’t even care what his salary is. If he does well, so do the shareholders. He has major skin in the game.

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MX Gold is an advertiser and I am naturally biased. I own no shares. Please do your own due diligence.

321gold.com is not a registered advisory service and does ...

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