Geologix Explorations (GIX:TSX) released revised cash cost estimates for its Tepal Cu-Au project in Michoacan, Mexico in accordance with WGC Standards (total cash cost = mining costs + on-site G&A + treatment/refining charges + royalties + transportation + by-product credits). Due to the large Cu component, GIXs total cash costs are estimated at US$238/oz Au which leaves oodles of room for the price of gold to retract further. Don’t worry about the ‘un-funded developer’ plague on this story as these guys will be looking to sell the project.  At a $25 million market cap and 1.8moz Au + 809Mlbs Cu the company is trading at EV/Resource of $11/oz Au which, given the recent transactions for companies with cleaner assets such as Esperanza (friendly takeover bid by Alamos at ~$20/oz), doesn’t offer much upside potential in a takeover though.  The one caveat, the Board is stacked, with Randy Smallwood (Silver Wheaton CEO), George Brack (formerly with Placer Dome, Redback and Capstone) and run by a strong explorationist, Dunham Craig. Newsletter writer John Kaiser has also been a supporter of the company in the past, when GIX traded above .30 cents.

GIX 12 months