Pan American Silver Announces Purchase Option

Pan American Silver Announces Purchase Option

25.04.2012 Vancouver – Mexico appears to the Canadian precious metals producer Pan American Silver to have less and less interest. For, as was recently announced, the Company announced a call option with respect to a project in the South American country.

The relevant option agreement was already in 2010 entered into between the Company and the Canadian Commodity Explorer Canasil Resources. Specifically, it is the silver- Carina and gold project in Durango State, Mexico. As recently announced Canasil, Pan American Silver has now terminated the agreement. The agreement between the two companies stipulated, that Pan American Silver exploration costs in the amount of 3,65 Million and cash payments of 365.000 Should bring in U.S. dollars. The payments were agreed for a period of four years. Pan American had a stake in the way of 55 Percent receive.

Test holes have been disappointing

Reasons for the dissolution of the option agreement are found fairly quickly: The group had been for six sample holes in total expenditures of 357.806 U.S. dollars made. And they fell out over disappointing, for gold- and silver concentrations of only 0,1 Grams to 0,43 Grams of gold per ton of rock and 1,0 Grams to 6,0 Grams of silver per ton, the results were more sobering than. As it became known, are more holes in the depth necessary. This would come to the Canadians yet another high investment cost of more than uncertain outcome.

It is quite understand, that Pan American Silver has terminated the call option now. Since it is extremely doubtful, whether higher gold at greater depths- and silver contents slumber, The project is expected to Canadians not prove profitable. Therefore should be: Better an end with terror than terror without end.

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