CARSON CITY, Nev. , Oct. 20, 2010 (GLOBE NEWSWIRE) — Mexus Gold U.S . (OTCBB:MXSG), a mining company engaged in the evaluation, acquisition, exploration, salvage and recovery of gold, silver and copper projects, is pleased to announce that Phase I Drilling Program budgets are being finalized for its Esmeralda County, Nevada mine project which consists of 150 acres of patented claims, 14 unpatented claims and 2 mill sites. Mexus has also filed an additional 12 mining claims adjacent to the existing lands situated in the Lida Mining District .
Previous Mine Engineering reports state there are drill indicated reserves and address both underground and surface open pit mining potential on the original 50 acre patented claims. A 1977 report by Andrew J. Zinkl , Mining Engineer, on the property reports 52,946 tons proven, 99,500 tons probable and 278,000 tons possible mineral bearing ore with grades averaging at 20 ounces per ton Silver and .05 ounces per ton Gold. A report dated in 1981 by E. R. Kruchowski , Mining Engineer, expanded the tonnage to 136,089 tons proven and 272,178 tons probable at average grades of 7.63 ounces Silver per ton and .05 ounces Gold per ton. Both of these previous Engineering reports covered only a portion of the 150 acre patented claims. The Company has conducted its own geological surface analysis which indicates a strike length of 4,000 feet of mineralized ground which has not been previously explored through drilling operations. The Phase I Drilling Program will incorporate this mineralized ground to further define the geological characteristics of the area and identify potential reserves on this particular area. The Company draws attention to the fact that these two reports were prepared prior to the current standards in place today for identifying and reporting mineral reserves. In the Company’s opinion the reports are unto themselves a viable indication of the existence of significant mineral resources wreathe of further geological exploration and evaluation, therefore, reference was included herein.
On June 4, 2010 Mexus Gold U.S. executed a one year extension of the Option to Purchase Mine Agreement with the owner of the Esmeralda County, Nevada mine project lands which will allow the Company ample time to complete its due diligence program.