VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 19, 2005) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) ("the Company") is pleased to announce that the Company has taken possession of the Guanajuato Mine in Guanajuato, Mexico and has received the title transfers for a 100% interest in the mining concessions and surface rights.
The transition of ownership was made in accordance with the terms of the Purchase Agreement signed on October 25, 2005, which also required the Company to make an installment payment of US$2,200,000 at the time of the reception of assets. Having made this payment, the total amount paid to date comes to US$3,650,000 out of the total purchase price of US$7,250,000. Four more installment payments must be made by November, 2006.
The vendors have now vacated the premises and Great Panther has established an interim management team, under the direction of Ing. Francisco Ramos, VP Operations for the Company. The engineering department is developing a new mine plan and is evaluating various areas of the mine for near-term production potential. Meanwhile, the geology department is working on establishing a new resource that will ultimately be compliant with NI43-101. The Company has also created a new IT department in order to capture the vast amount of data at the mine. This will be used for creating a new set of level plans and sections and eventually, a 3D model.
The plant is being cleaned in preparation for a full mechanical assessment. Repairs wil commence in the new year. Metallurgical tests will also be conducted on different types of mineralization in order to determine if the flotation system used in the past is really the best recovery process to be used. Modifications to the plant flowsheet will be made prior to undertaking major reparations of the existing circuit.
Historically, the Guanajuato District was one of the largest silver producers in Mexico, with past production estimated at 1.2 billion ounces of silver and 4.5 million ounces gold. Great Panther's Guanajuato Mine Complex encompasses more than 4 kilometres of strike length on the core of the Guanajuato silver-gold camp. The 1,200 tonne per day plant was only operating at about 20% capacity up until August due to a lack of working capital and Great Panther intends to place the mine back into production in 2006.
ON BEHALF OF THE BOARD
Robert A. Archer, P.Geo., President & CEO
SEC 20-F Statement Filed; Standard & Poor's Listed
FOR FURTHER INFORMATION PLEASE CONTACT:
Great Panther Resources Limited
(604) 685-9744 (FAX)