GREAT PANTHER RESOURCES LIMITED (TSX: GPR) is pleased to announce
that Wardrop Engineering of Vancouver has delivered an update to
the ongoing mineral resource development at the Company's 100%
owned Topia Silver-Gold-Lead-Zinc Mine in Durango, Mexico. The 2009
mineral resource estimate comprises Measured & Indicated
Mineral Resources of 173,103 tonnes at 552g/t silver, 0.99g/t gold,
5.58% lead and 4.83% zinc (5,458,218 silver equivalent ounces) as
well as 174,562 tonnes of 633g/t silver, 1.03g/t gold, 5.10% lead
and 3.84% zinc (5,692,957 silver equivalent ounces) in the Inferred
category. At current production levels, management considers the
new resource to be sufficient for at least a 10 year mine life.
The 2009 mineral resource estimate provides an update for the
Argentina vein only, while the estimate delivered by Wardrop in
2006 for some of the other veins on the property came largely from
the verification of Penoles' resources, and are still intact, as
mining to date has come from new mine development on these veins
(Resources for the "other veins" were estimated by Wardrop using
metal prices as reported in the 2006 report). The breakdown for the
Argentina Vein and Other Veins on the property is given in Table 1
below. When combined with the 2009 Argentina resource, the new
total contained metal for each resource category is shown on Table
2.
The 2009 mineral resource estimate has increased over that
reported in 2008 (see GPR news release August 11, 2008 and Tables 2
and 3 below) mainly due to:
- a re-interpretation of the drill hole data,
- new vein channel sampling data from exploration development on
Level 2,
- a correction of the survey of old underground workings to
surface topography,
- improved ore grades at Topia (522g/t silver; 0.58g/t gold;
3.26% lead and 4.20% zinc for the year to end of June),
- updated and improved metallurgical recoveries, and
- improved concentrate sales terms,
These contributed to a greater understanding and confidence in
the interpretation of the Argentina vein.
Table 1. 2009 Resource Update:
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VEIN CATEGORY Tonnes Ag g/t Au g/t Pb% Zn%
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ARGENTINA MEASURED 40,015 669 0.704 6.85 4.78
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INDICATED 77,229 642 0.713 6.12 4.58
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INFERRED 152,189 690 0.972 5.36 3.67
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OTHER VEINS M & I 55,859 345 1.57 3.91 5.21
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INFERRED 22,373 243 1.39 3.31 4.97
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TOTALS M & I 173,103 552 0.99 5.58 4.83
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INFERRED 174,562 633 1.03 5.10 3.84
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Metal Prices (2009) Recoveries Capping Grades
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Au US$890/oz 85.0% Au g/t 6.0
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Ag US$12.50/oz 87.0% Ag g/t 2,000.0
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Pb US$0.625/lb 92.2% Pb% 20.0
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Zn US$0.625/lb 82.0% Zn% 20.0
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The 2009 Argentina mineral resource calculation was based on a
minimum NSR value of $US75/tonne (75% of total operating costs).
This is applicable at Topia since the general and administrative
("G&A") costs are $US25/tonne. Current operating costs for the
Argentina vein are $US100/tonne ore mined and processed, and any
additional resources to the mining plan would require no increase
in G&A costs and reduced unit mining costs. The 2009 Argentina
vein mineral resource value assumed:
(1) the June 1, 2009, concentrate sales contracts with Louis
Dreyfus Commodities, which are effective until December 31,
2010;
(2) average metal prices for April 2009, typical plant
recoveries, and grade capping all shown in Table 1; and
(3) 33% mine dilution.
Table 2. Contained Metal (all veins):
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Category Tonnes Ag ozs Au ozs Pb lbs Zn lbs Ag oz Eq
---------------------------------------------------------------------------
M & I
Resources 173,103 3,080,954 5,507 21,278,080 18,430,862 5,458,218
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Inferred
Resources 174,562 3,560,237 5,793 19,585,856 14,746,998 5,692,957
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The improved understanding of, and confidence in, the Argentina
mineralization has led directly to a modest improvement in the
measured and indicated mineral resource but a dramatic increase in
the inferred mineral resource as shown in Table 3. This is largely
due to the fact that more drill holes can now be incorporated into
the inferred category.
Table 3. Percentage Increase in Argentina Vein Resources 2009 over 2008:
---------------------------------------------------------------------------
Category Tonnes Ag ozs Au ozs Pb lbs Zn lbs Ag oz Eq
---------------------------------------------------------------------------
M & I
Resources 20% 32% 46% 23% 20% 29%
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Inferred
Resources 101% 160% 131% 193% 214% 168%
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At the current production rate of approximately 30,000 tonnes
per year, and considering that not all resources may be mined,
management expects the resources above to support a mine life at
Topia of at least 10 more years. Great Panther has already been
mining Topia for 3 1/2 years and the mine saw 47 years of
continuous production prior to that. The Company plans to continue
the systematic replacement of annual production with new resources.
This "rolling resource" is typical for underground mines as it is
often not cost-effective to define a large resource/reserve in
advance of mining.
Due to the steep topography and the nature of the narrow veins
at Topia, surface drilling is typically widely spaced and is used
as a guide for underground development by locating and confirming
structural continuity and grade, while development by drifting,
sampling and some underground drilling along the vein defines the
measured and indicated mineral resources. As such, the surface
drilling is used to determine inferred resources and additional
Exploration Potential for the veins. With the increased confidence
in the Argentina Vein data, some of the tonnes previously included
as Exploration Potential have been upgraded to the Inferred
category. Several other veins on the property have not yet been
drilled and are not included in any category.
Exploration Potential has been estimated in-house for only the
Don Benito and Argentina veins to demonstrate the potential mineral
resources in these areas prior to mine development. According to NI
43-101, Exploration Potential must be reported as ranges and these
are presented in the following table. The Exploration Potential is
conceptual in nature and based on wide spaced exploration drilling
at Argentina, and exploration drilling and two development levels
at Don Benito. There has been insufficient exploration to define a
mineral resource from these data to date and it is uncertain if
further exploration will result in the Exploration Potential being
delineated as a mineral resource.
Table 4. Exploration Potential:
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Vein Tonnes Ag Au Pb Zn
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Argentina 60,000-80,000 400-600g/t 1-2g/t 4-6% 2-4%
----------------------------------------------------------------
Don Benito 60,000-80,000 300-600g/t 1-4g/t 4-8% 3-6%
----------------------------------------------------------------
These tonnages include some of the drilling and development
completed during the spring of 2008 (see GPR news releases dated
February 19, June 2 and June 23, 2008), plus ongoing underground
drilling, and could represent another 4-5 years of mine life with
further definition. The Argentina vein remains open to expansion at
depth and for approximately 500 metres to the east below old mine
workings. As well, development and stoping on the Cantarranas
(Hormiguera and San Miguel Mines), El Rosario, San Gregorio, and
Recompensa veins will lead to future mineral resource estimates.
These estimates will be completed after the current surface core
drilling program is completed in September 2009, which is focused
on down dip continuity below the present development levels of the
same veins.
Analysis of mine samples is completed on site, with check assays
performed by SGS Minerals Services, in their Guanajuato, Mexico
facilities. The Company's QA/QC program includes the regular
insertion of blanks, splits and standards into the sample
shipments. Aspects of the Topia Mine relating to mining and
metallurgy are overseen by Charles Brown, Chief Operating Officer
for Great Panther and its wholly owned Mexican subsidiary, Minera
Mexicana El Rosario, S.A. de C.V. (MMR). Robert F. Brown, P. Eng.
and Vice-President of Exploration for Great Panther and MMR is
designated as the Qualified Person for the Topia Mine Project under
the meaning of NI 43-101, and has reviewed this news release.
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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