El Horcon Project
The El Horcon Silver-Gold Project in Jalisco State is comprised of 17 contiguous mining concessions, covering 7,908 hectares and is located 60km northwest of the Guanajuato Mine Complex. As such, it is within trucking distance to the Company's Cata Processing Plant. Great Panther Silver owns 100% interest in the project.
El Horcon is a historic mining operation but the extent of past production is unknown. The property is located on the northwest trend of the prolific Guanajuato mining camp and hosts similar silver-gold mineralized epithermal veins to those observed at Great Panther's existing operations. El Horcon hosts nine known veins, with the Diamantillo vein traceable on surface for more than four kilometres. Several underground workings exist, the most extensive of which is the Diamantillo Tunnel.
Great Panther's sampling to date is consistent with these historic results. Preliminary metallurgical testing at the Company's facilities in Guanajuato shows the El Horcon mineralization to be compatible with the existing mill feed. While further testing is required, it is anticipated that recoveries from El Horcon should be approximately 92% for gold and 80% for silver.
Exploration activities during the first quarter of 2013 included the detailed geological mapping of historical underground workings, surface geological mapping, and surface sampling of all veins and mineralized structures. In total 1,415 samples were submitted for assay and 16 underground workings have been geologically mapped and sampled. The majority of the sampling corresponds to surface exposures of veins and mineralized structures. Geological mapping has outlined multiple vein zones along a northwest trend of five kilometers.
Baseline studies for the Ministry of Environment and Natural Resources, SEMARNAT ("Secretaría de Medio Ambiente y Recursos Naturales") were completed in the first quarter of 2013 and the permit to drill at El Horcon was received on April 9, 2013.
A surface drill program commenced in April 2013 that includes plans for 30 drill holes for a total of 3,000 metres. The program is laid out along an 800-metre length of the Diamantillo vein and will test the Diamantillo vein as well as various splays and nearby parallel structures and veins.