TGDR 20071102 - TGDR TOP-20 Update: MEXIVADA MINING CORP -  $0.80

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Mexivada Mining Corp. - MNV.V $0.80
Discovery in the making?

• High Grade La Republica Mine being drilled right now
  Historical encountered silver grades at 300 ft depth are 6000 g/t silver along 33.8 metres
• Moly Dome Nevada Molybdenum-Copper-Gold-Silver  Project being drilled right now
  Hand samples contained up to 0.359% MoS2 and IP geophysical data suggest the presence of a large plutonic intrusive body(ies) at a shallow depth below the surface at Moly Dome

Shares outstanding: 28 million
Market Cap: $22 million

Dear member,

Mexivada is currently drilling two of its promising projects  which (if successful) could surprise its shareholders to the up side big time.
The projects concerned are:

• High Grade La Republica Silver Mine in Mexico
• Moly Dome Molybdenum-Copper-Gold-Gold project Nevada

High Grade La Republica Silver Mine Mexico

On July 09 we informed you about Mexivada's acquisition of the La Republica High Grade Silver Mine in Mexico. The La Republica Silver Mine has never been drill tested below 300 ft. Encountered Silver grades at 300 ft depth are 6000 g/t silver over 33.8 metres.
The original report can be read HERE

On September 05, Mexivada announced a 2000m phase I core drilling program in order to test the system at depth and possible northern extensions to the high-grade Main Stope silver-gold zone. So far the company issued already two press releases in which they announced to have intercepted the La Republica vein north of the Main Stope indeed.  A third hole is currently being drilled and the next holes will go directly beneath the old high-grade silver stope.

Now whether or not the assays will return grades as good as the historical encountered grades remains to be seen but fact is that high grade silver is being found there all over the place. A 2m thick surface vein north of the Main Stope assayed 1.2 kg/t silver, with high zinc and lead values.

Although La Republica finds itself in a very early exploration stage the initial results are encouraging. The drill core of the first two holes is being assayed in the lab right now and results could be expected within weeks from now. Furthermore Mexivada is hoping to combine La Republica together with its nearby Yecora gold-silver property, located 12 km north of La Republica into a single unified gold-silver mine complex.

Moly Dome Molybdenum-Copper-Gold-Silver project Nevada

During an initial IP survey (see press release July 26, 2007) , the contractor's IP transmitter registered anomalous overvoltages in the central target area, interpreted to be due to a redox interaction of sulfides with surface waters. This may indicate the presence of a good size sulfidic mineralized rock body present beneath the thin (0 to 10 m) volcanic cover at Moly Dome.

On October 11 Mexivada published the results of a self potential survey that indicated an open ended +1600 metre long conductive anomaly.

From its press release October 11, 2007:

Mexivada's self potential ("SP") survey on the Moly Dome porphyry molybdenum-copper-gold-silver target area yielded an open ended +1600 metre long conductive anomaly that was interpreted by Durango Geophysical Operations to possibly be indicative of a significant zone of near-surface sulfide mineralization. END.

So we have high grade Molybdenum present at surface and high metal content values beneath the volcanic cover.

Although the surface samples and IP/SP survey results are encouraging, things still need to be proven up by drilling which takes time. Yes, an IP survey says there is metal content but it doesn't say anything about grades, so we simply have to wait for the assay results.

So when could we expect the initial results then?

Well, on October 21 Mexivada started its phase I core drilling program at Moly Dome and hopefully we will read about the initial results before year end.

Sure enough no guarantees can be given at this point in time but fact is that Mexivada's marketcap is so small ($20 million) that even the slightest bit of excitement could launch this stock to a $50 million company with ease. 

Investors considering buying the stock should be aware that Mexivada still finds itself in a short term down-trend. Technical oriented investors therefore could opt to wait for the down trend (B - Line) to be breached to the upside or wait for the initial drilling results from La Republica and/or Molydome. On the other hand the downside risk for this stock in current environment could be considered low!

Technical view:
 

Best regards,

Eric Hommelberg

The Gold Discovery Letter/
The Gold Drivers Report

www.golddrivers.com
 

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