The San Ignacio Project covers approximately four kilometres of strike length on the La Luz vein system, which is parallel to, and five kilometres west of the principal Veta Madre structure that hosts Great Panther Silver's Guanajuato Mine Complex. Great Panther holds a 100% interest in the Property through its wholly owned Mexican subsidiary, Minera Mexicana El Rosario, S.A.de C.V.
Great Panther Silver began actively exploring the San Ignacio Project in 2010 and initiated a diamond drilling program in October of that year, discovering new silver-gold zones with the first drill hole. The Company released an updated Mineral Resource estimate to March 31, 2012 for the San Ignacio Project on May 9, 2012 (refer to May 9, 2012 news release and the corresponding technical report filed on SEDAR dated June 26, 2012). This updated Mineral Resource estimate at San Ignacio supersedes the original estimate. The new Inferred Mineral Resource is estimated to contain 6,894,000 Ag Eq Oz in 826,000 tonnes averaging 121g/t Ag and 2.28g/t Au (using a 125g/t Ag Eq cut-off). This updated estimate both fills in and expands the strike length of the mineralized zones to 650 metres. This estimate increases the tonnage by 35%,
the silver content by 29%, the gold content by 51% and the Ag Eq Oz by 53% over the previous estimate. It should be noted that this estimate used only four of the seven previously identified zones, leaving three zones to be more thoroughly tested at a later date.
In August 2012, the Company signed a definitive agreement for the purchase of a 100% interest in certain surface rights at San Ignacio. A total of 19.4 hectares were purchased, allowing sufficient space for access to and construction of a portal for the development of a ramp, for waste dumps and for auxiliary infrastructure.
In October 2013, the Company received the Environmental Impact Assessment Permit for San Ignacio. The EIA permit allowed for the initiation of site preparation and underground development. Since then, the construction of a two-kilometre road has been completed and provides access to the new portal for ramp and mine development.
Production from San Ignacio, commencing at about 100 tonnes per day and increasing to about 250 by the end of 2014, will be trucked to and processed at the Company's Cata plant at the main Guanajuato Mine Complex, 22 kilometres away. The ability to increase throughput at Guanajuato with no further capital expenditures at the plant, will have an immediate and positive impact on cash costs.