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Resource investors have been watching the recent movements in the gold market with a mixture of trepidation and excitement as the precious metal continues to rise in value on a wave of political uncertainty and natural disasters where discussions of asset-buying problems and increasing interest rates indicated a reduction in their previously optimistic expectations.6 This meeting of fiscal minds contributed to the growing strength of the gold market, which has recently hit US$1335/oz.
This is an opportune time for junior mining companies to take advantage of the strong position gold prices have displayed over recent weeks. MX Gold Corp (TSX-V:MXL) (FSE:ODV) (OTCQX:MXLGF), is one of those companies that is moving into position to take greater advantage of this situation especially given recent news related to their Magistral Del Oro plant in Mexico that has until recently been in its own winter. Spring comes in some form to every business venture.
For MX Gold, good news appeared to have arrived in October of 2010 when their Magistral Del Oro plant reached completion and went into operation. Operating a Dynamic Cyanide Counter Current System, the plant was built with the intent of processing 500 tons per day, though the system was capable of working at higher rates. All seemed to be going well for the fledgling plant as it worked diligently through the end of the year and into the next.2 Then disaster struck in July of 2014 in the form of torrential rains that served to flood their excess pond. Flooding caused by the rains led to the pregnant waters from the excess pond flowing into a nearby creek. Thankfully the 4 PPM solution didn’t cause any harm to anyone, neither human nor animal.2
Under their canny leadership, this only served as a setback to their operations rather than disaster. Work at the plant was suspended to correct the circumstances that led to the overflow; while nothing could be done to prevent the rains themselves, the system could be retrofit to avoid a recurrence. Work at the plant ceased in 2014 for these updates, but finally the long winter has passed and the plant is ready to spring back into operation in the 4th Quarter of 2017, excellent timing considering the recent movements in the gold market.2
