Mexus Gold US subsidiary Mexus Gold Mining (MGM) has been granted a 30-year Mexican Environmental Mining Permit for the Julio/Santa Elena project.
The permit allows the company to mine and produce gold at its 100% owned Julio/Santa Elena mine site.
Following the grant, the company is planning to establish three operations on the project including shifting of the current placer operation, which will be moved to a short distance that would allow the company to increase the capacity by two times.
Mexus has tested the high-grade underground mining equipment required, including a hydraulic head-frame and a gravity recovery plant. It has also hired qualified miners to start work at the site.
The underground shaft is currently 100ft deep with 100ft of drift, while the past assays are claimed to show about six ounces of gold per tonne.
According to Mexus, the mine will have a production capacity of 20t per day with a crew of four underground and three at the mill.
The company will also start an open pit/heap leach operation with the 600 GPM Merrill Crowe recovery system and is expected to have a production capacity of around 2,500t per day with existing mining equipment and an estimated average of 1.5 grams per ton.
Mexus Gold chief executive officer Paul Thompson said the open pit will start with shallow mining of exposed quartz veins on the property.
"This material alone will keep us stacking for the first year," Thompson said. "In the meantime, we will continue with our core drilling and mapping so we have a game plan once this initial mining is complete.
"Obtaining these permits is truly a watershed moment for Mexus and sets us up to have a fantastic 2014. We have begun the march to full production at our Julio/Santa Elena property."
The company is planning to dig 50-60ft wide swaths to a depth of 30ft and aims to produce 6,000t per day.
Image: Mexus Gold will mine and produce gold on its wholly owned property. Photo: courtesy of freedigitalphotos.net/ thanawong.