News

August 29, 2008

San Agustin, Mexico: A Win-Win For Geologix And Silver Standard

By Christian Gradley

Lately, in the market, there has been a lot of confusion surrounding Geologix Explorations’ option payment to Silver Standard Resources. So much so in fact that last week Geologix’s chief executive Dunham Craig hosted an open conference call to deal with any and all questions on the central issue: what’s happening at the San Agustin property. Minews, being curious, joined in, and has resolved to clear up the confusion.

Most of the questions that Dunham Craig has to field, he says, go something like this: “why is Geologix still drilling when the resource estimate and the resulting payment to Silver Standard has yet to be finalized?” When one takes a quick look at the explanation of the option agreement on the San Agustin page on Geologix’s website, it is easy to see why the market may be confused.  Geologix’s payment due to Silver Standard for each ounce of gold and silver is not calculated based on “the...