Ready to Advance Cable Project: Mexus Gold

Mexus Gold
(OTCQB: MXSG)
Paul Thompson, CEO and President

Corporate Profile:
Mexus Gold U.S. is a gold, silver, and copper exploration company focused on projects in the Western United States and Northern Mexico.

TRANSCRIPT:

WSR: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Reporter, and joining us today is Paul Thompson, Chief Executive Officer for Mexus Gold. The company trades on the OTCQB, and their ticker symbol is MXSG. Thanks for joining us today Paul.

Paul Thompson: Yes, thanks for having me, Juan. I’ll do my best to answer the questions and bring you up-to-date on the information of Mexus and the cable operation, and where we’re at today.

WSR: Starting off, bring us up to speed on some of the gold contracts and the cable project.

Paul Thompson: Our contract is for approximately 600 million pounds of cable with a large copper content, and we’re going to start in the state of Alaska. We recently purchased, as you’ve probably seen, a 94-foot tug and a 230-foot barge, capable of hauling a payload in excess of four million pounds of our product. We have our marketing system lined up for it through our company at this point where the specially designed pulling equipment has been test ran. It’s in our shop in Walnut Grove, just south of Sacramento, California. And that equipment is expected to go to state of Washington to the shipyard to be placed on the barge, probably late next week, and we should be done in about ten days and headed to Alaska. We expect to start pulling cable there and the capacity of our pulling equipment is approximately ten miles per day. It’s a continuous pulling hydraulic drive system with an automatic on-the-fly shearing, all computerized controlled, should allow us to pull somewhere around a 100 ton of cable per day. There will be, of course, bad days and the winter will shut us down pretty much during the three or four winter months. But that’s kind of where the cable is and that’s expected to be quite profitable. Mexus, as part of that thing should be in excess of — just the cable in Alaska should be $250 million type proposition.

WSR: So you have the 33′ Pro Line offshore boat to work on some of the scanning and right now, you’re working on, of course, as the name says, gold, and also salvaging and exploring for silver and other in copper projects. So, talk a little bit more about what you guys are looking to do with that and some of the trends right now in the sector, and how well positioned you believe Mexus Gold is to capitalize on them?

Paul Thompson: Our belief, at this point, is in our submarine cable. For instance, the value today of copper is $3.36, I believe, this morning and we’re hoping to see $4.00 copper, and I truly believe it will go up, that’s why we are in the metals market and the salvage business. But we’re also a mining company and we have extensive properties, some 18,000 acres now in Mexico. We have several properties within that 18,000, one of them is a report we’re going to finish this week on our porphyry. It’s mainly copper, and it’s high-grade copper. We’ve drilled this thing down to 80 feet, which is not very deep. But at 80 feet, we were still in high-grade copper, and it looks like it’s going to be a huge find, and we’re talking to a couple of different companies right now about a joint venture on that particular property. We do have some other projects in Mexico. We have a silver mine, which we’ve had assays back recently on the high-grade from 130, or 140 ounces of silver to 633 ounces of silver per ton. Some of it carrying as much as an ounce of gold, extremely high-grade, but it’s a complex ore, it’s a sulphide ore, and we’re having it broke down at this time, and we hope to be in production on that within about 90 to 120 days. That would be a limited production, we’re talking of small tonnage per day; 25, 30 tons a day, but still be quite profitable.

WSR: So talk about the other trend, which as I didn’t mean to cut you off, so if you aren’t done please continue, kind of add a little bit about how the company is committed to being eco-friendly with some of these projects?

Paul Thompson: Our equipment we’re building, for instance, for the cable salvage, everything is done with food grade oils, hydraulic equipment. The oils that powers it, you can actually cook with it if you wanted to, it’s completely biodegradable. Everything we use is pointing towards it and everything that comes on the barge will be contained and maintained in a contained state until it’s taken off the barge, and then we’re contracted with a company, which is one of the oldest companies in the United States to handle our cable after it’s brought up and sell it. They’re permitted; they’ve been around since, I believe, 1890. And we have taken every step and everything all of our, many engines have clutch bands. We’re hiring local natives in Alaska, one of them is going to be a diver, pretty key position. We’re doing everything with help from the natives, and the fishermen as far as being friendly to the environment. We’ve been talking to the Alaska Fish and Game Endangered Species. They’ve given us guidelines as to what they want to see happen as far as working around some of the sea lion rookeries and etcetera. And we appreciate their help and we’re going to do everything in our power to help clean this stuff up as well as make it profitable for ourselves. Everything is done for profitability, but yet it’s done with the environment in mind. So, that’s our schedule.

WSR: So what would you say are some of the factors that make Mexus Gold US unique from some of the players in the sector?

Paul Thompson: Everybody connected to Mexus is, like myself, we’re doers, we’re not talkers. We get the job done, we do it with a low overhead. We have some great properties in Mexico. We have a property in Nevada, that’s a gold property that looks really good. And our copper thing, our submarine salvage that’s huge. At today’s prices, the materials, if it was completely recovered is $1.2 billion worth of product. Our operating cost per day is a fraction of this total picture where we’ve purchased our own equipment, our own barge, our own tug, our survey vessel, we’re all in-house, no excess fat nowhere.

WSR: So, perhaps you could walk us through your background and experience, Paul, and talk a little bit about the strength of the management team over at MXSG.

Paul Thompson: Mine has been a hands-on experience. I got married at a young age of 16. I’m 69 and I’m still married, which speaks for itself, I believe. My education has been from hands-on doing things. I manufactured water trucks, my own brand of water pumps, valves, equipment, machine shop, welding fabricating shop for 40 years, well known brand of the equipment, fire trucks, fuel/lube trucks, dump trucks etcetera; truck bodies that is not the trucks themselves. The manufacturing, I’ve done a lot of manufacturing of specialized mining equipment over the years. I’ve operated several mining companies, small ones and the Mother Load of California around Placerville, Georgetown. And the President and CEO of those, they were non-public. I’ve been in the constructions trade, I’ve built a large Mobile Home Park in the Placerville area, a subdivision in Nevada. I currently designed and produced specialized pulling equipment for the cable project. That’s about it.

WSR: What are some of the goals, milestones, and objectives that you’re hoping to accomplish here over the course of the next year?

Paul Thompson: In the next year, we’re going to be a major player in the metals in Mexico and hopefully Nevada, we’re pursuing it strong. We are going to joint venture one of our projects, the porphyry, which is a huge project in itself in Mexico, and we hope to find a person, we’ve done some preliminary drilling with great results. We’re looking for the people now to do a drilling program and prove it up, and joint venture it. And that’s going to be a large operation, that’s going to be huge. The other operations won’t be near as big and we will be operating them ourselves. We’ve built a lot of the equipments already in place, the crushing equipment, that’s all portable build, that’s ready to go to Mexico for those smaller operations. And we’re on the move.

WSR: When it comes to investors and the financial community, Paul, do you believe that the Mexus Gold US story, your message, and the company’s upside potential are completely understood and appreciated?

Paul Thompson: I don’t know that we’re completely understood. I’m, like I told you, a hands-on doer type person, and I believe that our stock as we produce a product and show success, our stock will take care of itself, I truly believe that. And I don’t believe in trying to promote money and stock. I believe in the public company, public means, I think, is great, but I think that it needs to be you produce something then you talk about it, you get the job done then you get rewarded. And we’re not looking for any rewards in advance, we’re looking to get the job accomplished with the budget we have. Our budget for the cable in Alaska line of credits a million dollars, which we’re way under that when we’re ready to pull cable within the next couple of weeks. So, we’re looking real good financially.

WSR: Joining us today is Paul Thompson, the Chief Executive Officer for Mexus Gold US, which trades on the OTCQB, ticker symbol is MXSG. Before we conclude, Paul, just to recap on some of your key points here, why do you believe that investors should consider Mexus Gold US, MXSG, as a good long-term investment opportunity?

Paul Thompson: We’re growing, we’re wide open, we’re open to suggestions. We’ve got some great properties, some great projects and we are doers, we get the job done and like I say, we’re looking at our reward at the end of the job, not upfront, and I think, people should appreciate that.

WSR: We certainly look forward to continuing to track the company’s growth as well as report on your upcoming progress. I’d like to thank you for taking the time to join us today and to update our investors on Mexus Gold.

Paul Thompson: Yes, thank you Juan. I appreciate the opportunity to get the word out.

WSR: Thank you.

Paul Thompson: Thank you.

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