Silver Standard drops La Choya

Despite a successful exploration program, Silver Standard Resources (VSE) recently dropped its option to purchase the La Choya gold property near Sonora, Mexico. A recent drilling program on the property outlined an open pit minable reserve of 3.2 million tons grading 0.042 oz. gold per ton. The reserve is within a larger preliminary reserve of about six million tons grading 0.034 oz. gold. Silver Standard said the deposit is not economic under the current terms of the purchase agreement. The company added that it was unable to negotiate more favorable terms and was therefore forced to terminate its option. The option gave the company the right to purchase a 100% interest in the property for US$2 million in cash plus 800,000 shares.