VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that it has purchased, through its Mexican subsidiary, an additional 3.88 hectares of real estate adjacent to the plant at its Guanajuato Silver-Gold Mine Complex in Guanajuato, Mexico. Meanwhile, a shipment of concentrate resulting from the Guanajuato plant commissioning process has been sent to the Penoles smelter in Torreon.
The land was purchased from the Sociedad Cooperativa Minero Metalurgica Santa Fe de Guanajuato, the same Cooperative from which the mines were purchased last year, for a total of US$690,425. The decision to buy the extra land was taken in order to facilitate any future expansion of the plant facilities and to protect the plant site from any possible development nearby. Great Panther already owns the land occupied by the plant and administration facilities. A payment of US$201,825 was made at the time of the signing of the purchase agreement and the balance of US$488,600 will be made within 5 months. The Company has already received clear title to the property.
The concentrates shipped last week were the product of low grade stockpiles that were used in the process of commissioning the first of the three 400 tonne per day ball mills in the Guanajuato plant. A second shipment will follow within the next week. While the commissioning process is virtually complete, the official start of production is awaiting further development of the mine infrastructure. Two mining contractors have been hired to accelerate this process, including the preparation of stopes required to feed the plant on a continuous basis. In the few weeks that this is expected to take, the Company is continuing to refurbish and commission the other two ball mills, with the aim of starting them through the remainder of 2006 and having the plant at its full capacity of 1,200 tonnes per day by year end.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2004 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
TSX-V Tier 1; Trading Symbol: GPR
SEC 20-F Statement Filed
Standard & Poor's Listed
FOR FURTHER INFORMATION PLEASE CONTACT:
Great Panther Resources Limited
Great Panther Resources Limited
(604) 685-9744 (FAX)