Great Panther Silver Purchases New Silver-Gold Project in Guanajuato Jul. 18, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED - (TSX:GPR)(NYSE Amex:GPL) (the "Company") is pleased to announce the acquisition of four mining concessions, totaling 1,514 hectares, approximately 10-15 kilometres northeast of Guanajuato, Mexico (see maps on Great Panther Silver's website). The claims are located on the north-west extension of a system of multiple northwest-southeastern trending parallel structures that could be part of the "La Sierra" vein system. The La Sierra system is the most easterly of the three structural systems in the prolific Guanajuato district along with the main Veta Madre and the La Luz trends. Presently the Company is mining on the Veta Madre system at its Guanajuato Mine and exploring on the westerly La Luz system at the San Ignacio project.
There are numerous past producing mines along the La Sierra system, including AuRico Gold's currently operating El Cubo mine, with 620,000 gold equivalent ounces in reserves (AuRico Gold Inc. website). Several old mines, some with multiple levels, are evident on the newly-acquired concessions, collectively called the Santa Rosa Project, but no production records exist.
"This is a strategic acquisition for Great Panther Silver, as the concessions have excellent exploration potential and are within trucking distance to the Company's Cata plant in Guanajuato," stated Robert Archer, Great Panther's President & CEO. "We know from our success at San Ignacio that new discoveries are still possible in this historic district and we are excited about the prospects for the Santa Rosa Project."
Through the course of due diligence, Great Panther has already completed considerable ground work on the Santa Rosa claims. Multiple veins have been identified, with argillic alteration and erratic silver and gold values. Having now signed the formal agreement, the Company will be immediately re-commencing geological mapping and rock sampling, while potential drill sites are being investigated to test the various structures.
The four claims were purchased from Minera Blanca Alicia, S.A. de C.V., a private Mexican company, for USD$1,500,000 with 50% payable on signing of the purchase agreement and 50% on the registration of the contract with the Direccion General de Minas (Mexico). A royalty of 1.3% is payable from ore produced from the four claims only.
Robert F. Brown, P. Eng. and Vice President of Exploration for the Company is the Qualified Person for the Santa Rosa project, under the meaning of NI 43-101, and has overseen all of the aforementioned work. A full QA/QC program is being followed including the regular insertion of splits, blanks, and standards into the sampling sequence. Analysis of the rock samples is being conducted at the Guanajuato Mine on-site laboratory, independently operated by SGS.
This news release contains forward-looking statements within the meaning of ---- Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
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