silver standard holds an equity position in silvermex, and has optioned the san marcial property to smr. there is already an inferred resource of 14 million oz of silver there, and the goal is to increase it to 50 million. the mineralization is still open at depth and along strike in both directions, so the potential is very good.

the drilling will also be aimed at moving the ounces from inferred to m+i, not just expanding the resource, and it should be completed by the end of july. smr currently trades at only 75 cents, but it has some cash, and more importantly a big backer willing to take shares in payment, so they shouldn't have any problems dealing with the credit market. further discoveries and proving up the continuity of a deposit at san marcial would also help the share price, but the drill results will tell us about that in the fall.

http://biz.yahoo.com/iw/080529/04017...