The San Ignacio Mine 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 Mine 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 April 2014 for the San Ignacio Mine on July 2, 2014 (refer to July 2 news release). This updated Mineral Resource Estimate at San Ignacio supersedes any previous estimates. The new Indicated Resource is estimated to contain 1,245,000 Ag Eq Oz in 103,000 tonnes averaging 165g/t Ag and 3.54g/t Au (using a 125g/t Aq Eq Cut-off). The Inferred Mineral Resource is estimated to contain 5,645,000 Ag Eq Oz in 737,000 tonnes averaging 115g/t Ag and 2.04g/t Au (using a 125g/t Ag Eq cut-off). The Company completed 13 infill drill holes into the vein development (see news release dated December 16, 2013) and collected 112 chip samples from 200 metres of underground mine development. Overall Mineral Resources at San Ignacio considered 91 drill holes completed between sections 450N and 1100N (up to hole ESI13-116), as well as 112 underground chip samples.
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.
The San Ignacio mine started commercial production in June. The mine is currently operating at a run rate of approximately 200 tonnes per day and increasing to about 250 by the end of 2014 as new stopes are brought into production. The ore will is 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.