MX Gold Corp. – Vertical Integration Pathway

Vertical integration is one of the most crucial strategies companies in the junior mining space can implement. With large CAPEX and OPEX inherent in the mining industry, achieving vertical integration can be imperative to develop highly specified minerals and adapt to the unique conditions that individual mines exhibit while reducing risk and maintaining stable production costs. Some of the most common advantages gained through vertical integration include increased control over value-added functions, the ability to invest and develop greatly specialized assets, and increase production flexibility (Strategy Train, 2009). In the fluctuating market that defines the junior mining sector, these advantages – particularly those related – to control are critical to a company’s long term success.

One company that has embodied the vertical integration strategy is MX Gold Corp. (TSX-V: MXL) (“MX” or “the Company”). MX Gold Corp. is a junior mining company focused on the mining, exploration and development of advanced projects located in the Kootenay region of British Columbia. The Company’s primary focus is its high-grade Willa gold and copper project located 12 kilometres south of Silverton, B.C. Having recently rebranded from Discovery Ventures Inc. to the current name of MX Gold Corp., the Company has experienced exciting new progressions which have correlated with a stock price increase. Junior Gold Report has extensively written about MX Gold Corp. under its previous name, and the reintroduction of MX Gold Corp. as a rising stock warrants further discussions about the competitive advantages the Company’s business model fosters along with the new developments that we believe will serve to benefit its current and future shareholders.

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