Mexican Gold Tops Junior Gold Stocks Friday
Mexican Gold (MEX:TSXV) broke out Friday, outperforming all other stocks in June’s Stock Challenge. The nearly 22% move in MG’s share price was enough to capture the Daily Stock Challenge Breakout award on this day. Mexican Gold popped 21.88% to close at $0.39 per share Friday.
Meanwhile, liquidity on the TSX Venture has all but dried up. Canada’s junior resource exchange has been averaging between 55 and 65 million total shares traded in recent sessions. These volume levels are desperately low when you consider the index is back below 800. We wrote about declining liquidity in 5 Factors Killing Liquidity in Canada’s Stock Market. Mining stocks continue to suffer under weak seasonal forces. The Venture declined for the sixth time in nine sessions Friday.
Mexican Gold’s Philosophy on Resource Development
Mexican Gold has a different philosophy than many juniors on the TSX Venture. The Las Minas project, which encompasses some historical mines, meets the company’s strict criteria. MG believes it has the potential to become an operating mine. In fact, Mexican Gold has experienced mine developers, operators and geologist, whose practice is to start at the end point – a mine. While, this seems obvious as it is the goal of most junior mining companies, few implore it. Mexican Gold explains on its website, “We focus on only those deposits that can meet the strict criteria and economics of an operating mine.”
Mexican Gold Provides Update on Pepe, Pepe Tres and San Jose concessions
On June 8th, Mexican Gold announced that its wholly-owned subsidiary had entered into a definitive purchase and sale agreement to acquire a 100% interest in the Pepe, Pepe Tres and San Jose concessions. Also,
“The Concessions form the core of the Las Minas property and encompass six highly mineralized zones, including the El Dorado/Juan Bran and Santa Cruz zones. An initial mineral resource estimate is currently underway for these two zones and is scheduled for completion in July, 2017.”
Brian Robertson, President and CEO stated,
“This agreement, which secures Mexican Gold’s right to acquire ownership of these key core concessions, marks a major milestone for Mexican Gold. I wish to thank the property owners for their kind co-operation and unwavering support for Mexican Gold. We now look forward to the initial mineral resource estimate for the El Dorado/Juan Bran and Santa Cruz zones and the continuing advancement and development of this highly mineralized property.”
Click here to read the entire press release from June 8th.
Despite exploring in Mexico at their Las Minas Project, Mexican Gold’s head office is in Thunder Bay, Ontario. The project hosts near-surface gold, silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits.
June Stock Challenge Update
Long-time Pinnacle member ‘leroy‘ selected Mexican Gold for June’s Stock Challenge. Despite MG’s massive move Friday, leroy’s return is just 4.87% on the month. Consequently, the move pushed leroy into 30th overall.
Member ‘Danish Girl‘ is leading the pack with a 19.20% return. He is followed closely by one of our oldest competing members ‘mountaineer78’ and his 18.78% return. Finally, despite the weak performance of the Venture the Top 15 members all have double digit returns.