Great Panther Silver (TSE:GPR) (AMEX:GPL) said Monday that it has acquired four mining concessions northeast of Guanajuato, Mexico, totaling more than 1,500 hectares, from a private Mexican company for US$1.5 million.
The new silver-gold claims are located on the northwest extension of multiple northwest-southeastern trending parallel structures, which could be a part of the La Sierra vein system, the most east of the three structural systems in the district.
Currently, Great Panther is mining on the main Veta Madre system at its Guanajuato Mine, and exploring on the westerly La Luz system at the San Ignacio project.
Along the La Sierra system, there are numerous past-producing mines, including AuRico Gold's El Cubo mine, with 620,000 gold equivalent ounces in reserves.
The company said that several old mines are evident on the newly-acquired concessions, collectively named 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", said president and CEO, Robert Archer.
"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, where multiple veins have been identified, with erratic silver and gold values.
Having now signed the formal agreement, the company will immediately begin 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, with 50% of the $1.5 million consideration payable on signing of the purchase agreement, and 50% on the registration of the contract with the local government.
A royalty of 1.3% is payable from ore produced from the four claims only, Great Panther said.
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