GREAT PANTHER RESOURCES LIMITED (TSX: GPR) is pleased to report
that Wardrop, a Tetra Tech Company, of Vancouver, B.C., has
completed the first NI 43-101 compliant mineral resource estimate
on the zone known as the 'Cata Clavo' at the Company's wholly-owned
Guanajuato Mine in Guanajuato, Mexico. The new resource estimate of
5,032,000 silver equivalent ounces (Ag eq oz) represents only a
very small part of the 4.2 kilometre strike length of the
Guanajuato deposit owned by the Company. Other zones, namely
Guanajuatito and Rayas, are currently being mined and do not yet
have a compliant resource. Further exploratory and delineation
drilling are planned for these zones in order to establish
additional resources in the future.
The Cata Clavo was the target of Great Panther's deep drilling
program in 2008 and is separated into three zones, namely, the Veta
Madre, Alto 1, and Alto 2. The upper limit of the Veta Madre zone
is set at the floor of the 430 metre level as it has been
extensively mined out above this level, and all zones extend at
least 100 metres vertically below the 430 metre level. The
mineralized zones used in the resource represent only this 100
metre vertical height and a strike length of approximately 150
metres.
Using a cut-off net smelter return value of US$37.50/tonne, the
capped indicated mineral resource contains 5,032,000 ounces silver
equivalent, while the uncapped indicated mineral resource contains
6,491,000 ounces silver equivalent. Capped inferred resources are
estimated at 285,000 ounces silver equivalent.
In order to define the mineral resource, an estimated net
smelter return ("NSR") was calculated for each resource block. The
NSR assumed metal prices of US$12.50/oz Ag and US$890/oz Au,
relevant 2009 concentrate sales contract terms, typical plant
performance metal recoveries and concentrate grades, and mining
dilution of 15%. Total operating costs for the mining of the Cata
Clavo orebody, including mining, milling, and general and
administration costs, are currently US$52/tonne. Experience gained
from mining the Cata Clavo by the cut-and-fill mining method
determined that the appropriate cut-off value for defining the
resource be set at $US37.50/tonne NSR. For reference, Wardrop also
estimated the resources using a $50.00/tonne NSR cut-off and both
are presented in the table below.
The mineral resource estimation utilized geology and assay data
from both exploration diamond drill-holes (37 holes at
approximately 50-metre centers) and 50 production diamond
drill-holes (detailed infill). Capping was applied separately to
the exploration and production drill-holes. Assays from the
exploration drill-holes were capped at 1,300g/t silver and 7.5g/t
gold. Assays from the production drill-holes were capped at
4,000g/t silver and 15.5g/t gold. The impact of capping is
negligible on the resource estimates for the Veta Madre and Alto 2
zones, but reduces the grade estimates by more than 45% for the
higher grade Alto 1 zone. Since there has been little underground
exposure and mining of the Alto 1 vein to date, there is no
experience to justify raising the capping values at this time and
hence it is considered that there is much upside potential for this
vein.
Indicated capped mineral resources at a cut-off NSR value of
US$37.50/tonne are estimated to be 351,000 tonnes at grades of
359g/t silver and 1.19g/t gold, while uncapped grades are 462g/t Ag
and 1.55g/t Au. The capped estimate contains 4,071,000 oz silver
and 13,000 oz gold, or 5,032,000 silver equivalent ounces (Ag eq
oz). The uncapped estimate contains 5,239,000 oz silver and 17,000
oz gold, or 6,491,000 Ag eq oz. In addition, capped inferred
resources of 24,000 tonnes grading 296g/t silver and 0.98g/t gold
are estimated, containing 231,000 oz silver and 765 oz gold, or
285,000 Ag eq oz.
Since early 2008, mine development and stoping, using mechanized
cut-and-fill mining, has been carried out in the Veta Madre zone of
the Cata Clavo between the 430 and 417 levels (immediately above
the mineral resource area). During the 7-month period to the end of
April 2009 (effective date of the mineral resource), a total of
19,894 tonnes of ore has been mined from this area at average
mill-head grades of 308g/t silver and 1.44g/t gold. In the same
period, an additional 16,551 tonnes, with an average grade of
354g/t silver and 1.58g/t gold has been processed from the mining
of the Veta Madre zone above the 460 level of the Cata Clavo
(within the indicated mineral resource). The ongoing mine
development on the three zones generally confirms the Cata Clavo
mineral resources and the resultant grades from mining and
processing compare favorably to the Wardrop indicated mineral
resource grades of 339g/t silver and 0.99g/t gold for the Veta
Madre (see table below).
Indicated and inferred mineral resources at the Cata Clavo as
estimated by Greg Mosher, P.Geo, qualified person, and reviewed by
Gilles Arseneau, PhD, at Wardrop are tabulated below:
--------------------------------------------------------------------------
CUT-OFF Ag Ag CAP Au Au CAP
INDICATED (US$) TONNES (g/t) (g/t) (g/t) (g/t)
--------------------------------------------------------------------------
ALTO 2 50.00 34,000 396 349 1.46 1.43
--------------------------------------------------------------------------
ALTO 2 37.50 39,000 359 318 1.36 1.33
--------------------------------------------------------------------------
--------------------------------------------------------------------------
ALTO 1 50.00 82,000 883 467 3.26 1.75
--------------------------------------------------------------------------
ALTO 1 37.50 96,000 776 419 2.85 1.55
--------------------------------------------------------------------------
--------------------------------------------------------------------------
MADRE 50.00 182,000 377 377 1.09 1.09
--------------------------------------------------------------------------
MADRE 37.50 215,000 339 339 0.99 0.99
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL INDICATED @ $50 NSR 298,000 518 398 1.73 1.31
--------------------------------------------------------------------------
TOTAL INDICATED @ $37.50 NSR 351,000 462 359 1.55 1.19
--------------------------------------------------------------------------
--------------------------------------------------------------------------
CUT-OFF Ag Ag CAP Au Au CAP
INFERRED (US$) TONNES (g/t) (g/t) (g/t) (g/t)
--------------------------------------------------------------------------
ALTO 2 50.00 3,000 518 370 1.58 1.43
--------------------------------------------------------------------------
ALTO 2 37.50 4,000 473 340 1.48 1.35
--------------------------------------------------------------------------
--------------------------------------------------------------------------
ALTO 1 50.00 6,000 233 233 0.69 0.69
--------------------------------------------------------------------------
ALTO 1 37.50 8,000 209 209 0.62 0.62
--------------------------------------------------------------------------
--------------------------------------------------------------------------
MADRE 50.00 9,000 389 389 1.25 1.25
--------------------------------------------------------------------------
MADRE 37.50 11,000 340 340 1.10 1.10
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL INFERRED @ $50 NSR 19,000 366 337 1.14 1.11
--------------------------------------------------------------------------
TOTAL INFERRED @ $37.50 NSR 24,000 319 296 1.01 0.98
--------------------------------------------------------------------------
The Cata Clavo mineral resource was estimated by two methods,
Inverse Distance Squared (ID2) and Nearest Neighbour (ID5). The ID2
estimate is considered to be the more representative of the two and
the Nearest Neighbour estimate was carried out as a check of
reasonableness of the ID2 estimate results. The interpretation of
the Veta Madre, Alto 1 and Alto 2, along with the construction of
the wireframe solids for mineral resource estimation, were
completed by staff of the Company and duly checked by Wardrop.
Mining of the Cata Clavo represents one of three main areas
being mined at the Guanajuato silver - gold mine and accounts for
more than 50% of the total Guanajuato metal production. It will
continue to be a major source of production as the Alto 1 zone is
expected to be richer below the 460 level. An access decline is
being driven beyond the 460 metre level and development and ore
definition drilling of the Veta Madre, Alto 1, and Alto 2 zones of
the Cata Clavo orebody is ongoing.
For the year, 2009, production from Guanajuato is estimated to
be 1.07 million Ag oz and 5,250 Au oz (1.48 million Ag eq oz). The
resource estimate positively supports the potential for further
increases in production from Guanajuato. The study by Wardrop
points to potential areas, both laterally and at depth, where it is
expected the resources of the Cata Clavo may be increased through
additional exploration. Furthermore, Wardrop recommends a
substantial underground exploration programme for the area between
the Cata Clavo and the depth extension of the Rayas Clavo,
approximately one kilometre along strike to the southeast. Maps,
sections and previous news releases can be viewed on the Company's
website at www.greatpanther.com.
The Veta Madre and Alto 1 zones are complex zones of pyrite and
argentite mineralization within argillic and propylitic alteration
in brecciated shale. Footwall to the Veta Madre is a barren silica
breccia with large angular shale fragments. The Alto 2 zone is a
mix of shale and diorite fragment breccia at the shale contact with
a hanging-wall diorite dyke. All zones strike generally NW-SE and
dip 45 degrees southwest.
Samples were assayed by SGS at the Company's Guanajuato Mine
site laboratory. Robert F. Brown, P. Eng and Vice President of
Exploration for the Company, is the Qualified Person for the
Guanajuato Mine Project, under the meaning of NI43-101, and has
reviewed these results. The Company's QA/QC program includes the
regular insertion of blanks and standards into the sample
shipments.
Great Panther owns a 100% interest in the Guanajuato Mine
Complex. Historically, the Guanajuato Mine was one of the largest
silver producers in Mexico and encompasses the core of the
Guanajuato District, which has produced 1.2 billion ounces of
silver and 4.5 million ounces gold.
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 may 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, 2008 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.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@greatpanther.com www.greatpanther.com
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