Pan American Silver announces purchase option
25.04.2012/XNUMX/XNUMX Vancouver - The Canadian precious metal producer Pan American Silver seems to be less and less interested in Mexico. Because as recently became known, the company announced a purchase option for a project in the South American country.
The option agreement in question was already made in 2010 between the company and the Canadian resource explorer Canasil Resources. Specifically, it is the silver and gold project Carina in the Mexican state of Durango. As Canasil recently announced, Pan American Silver has now canceled the agreement. The agreement between the two companies provided that Pan American Silver should bring in exploration costs of 3,65 million dollars and cash payments of 365.000 dollars. The payments were agreed over a four-year period. Pan American would have received 55 percent participation this way.
Test holes have been disappointing
Reasons for the termination of the option agreement are found quite quickly: The Group had already spent a total of 357.806 dollars for six trial holes. And these were overly disappointing, with gold and silver ranging from just 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 than sobering. As it became known, further drilling in depth would be necessary. This would give the Canadians even more high investment costs with more than uncertain outcome.
It is quite understandable that Pan American Silver has now canceled the purchase option. Since it is highly questionable whether larger gold and silver levels will lie dormant at greater depths, the project may not prove profitable for Canadians. Therefore should apply: Better an end with terror than a terror without end.
(Www.emfis.com)
