Great Panther Commences Deep Underground Drill Program, Updates Santa Margarita and Los Pozos Development at Guanajuato
February 02 2010 - 12:41PM
Marketwired
GREAT PANTHER SILVER LIMITED (TSX: GPR) (the "Company") is pleased
to announce the commencement of a major deep drilling program and
to report on the successful development progress at the recently
discovered Santa Margarita and Los Pozos zones in the Rayas area of
the Guanajuato Mine Complex. New plans, sections and assay tables
for this work can be found on the Company website at
http://www.greatpanther.com/s/Guanajuato.asp.
The deep drilling marks the start of the 65,000 metre program
announced in September 2009 as part of Great Panther's new 3-year
growth strategy to increase production and resources at its two
producing mines in Mexico. This initial phase of approximately
12,000 metres of underground drilling in the Rayas area at
Guanajuato is part of an ongoing program of approximately 20,000
metres at Guanajuato and 8,000 metres at Topia, in 2010. The Deep
Rayas program will ultimately test a very prospective area directly
below the extensive Rayas workings over a strike length of 600
metres and at least 200 metres vertically below the 435 level.
Further to the discovery of the gold-rich Santa Margarita and
the silver-rich Los Pozos structures (GPR news release, October 01,
2009), development has advanced with very encouraging results from
channel sampling. Sampling on the lowest and most recent "leg" of
the Santa Margarita ramp has returned average grades of 8.07g/t
gold and 25g/t silver along a strike length of 86 metres and over a
ramp width of 3.41 metres (approximately 2.5 metres true width). In
addition, the 310 sublevel has been driven for 80 metres along the
strike length of the Los Pozos mineralization where four cross cuts
have exposed the complete width of the zone. Results of channel
sampling of the cross cuts include the 295N, which cut 16.45 metres
(11.5 metres true width) grading 546g/t silver and 2.50g/t gold and
the 335N, which intersected 13.0 metres (9.1 metres true width)
with a composite grade of 733g/t silver and 2.11g/t gold.
In preparation for the Deep Rayas program, drill stations have
been completed along a 250 metre long drift in the hanging wall on
the 390 level. During 2010, this drift will be extended along
strike by 150 metres to the northwest towards the Cata deep
development and by 200 metres to the southeast. Sporadic deep
drilling by the previous mine owner indicates that silver-gold
mineralization in the Veta Madre and a hanging wall zone continue
down dip to at least the 1550 metre elevation, or approximately 110
metres vertically below the last significant development on the 435
level. The deep Rayas drilling will test the continuity of
mineralization down to the 1450 metre elevation, or 645 metres
vertically from surface. One goal of this program is to provide a
sufficient amount of information such that a mineral resource
estimation for this area can commence later in the year.
Initial drilling on section 100S will intersect the known Santa
Margarita structure as well as the Veta Madre. The former is
located near the upper contact of a structure-parallel diorite
dyke, a contact that has seen little to no historical exploration
along more than 2 kilometres of strike length from Rayas to
Valenciana. The Veta Madre structure, the main focus of previous
mining efforts at Guanajuato, occurs along or near the lower
diorite contact. The Santa Margarita ramp development is currently
being extended to the 435 level (1665 metre elevation). Considering
that gold-dominant mineralization in the Santa Margarita vein only
begins at the 390 level (1710 metre elevation), the zone holds
significant promise at deeper levels.
On the Los Pozos structure, ramp access development has reached
the 310 level (1790 metre elevation) where sublevel development has
been driven in the mineralized zone, in preparation for mechanized
cut and fill production mining. The first of three new underground
drill jumbos has been installed in this area which will facilitate
faster ongoing development and increased production. In addition to
the aforementioned channel sampling results, several new
underground drill holes were completed on the Los Pozos zone, with
the deepest hole, UT09-092, intersecting 11.6 metres (7.8 metres
true width) grading 276g/t silver and 0.82g/t gold. Further core
drilling at Los Pozos is planned and, in the interim, ramping will
continue down to the 345 level (1755 metre elevation).
"We are very encouraged by the excellent grades and widths of
the Santa Margarita and Los Pozos zones, and particularly by their
potential downward extension," stated Great Panther's President
& CEO, Robert Archer. "These new discoveries underscore the
long-term potential of this world class orebody."
Robert F. Brown, P.Eng. and Vice President of Exploration for
the Company is the Qualified Person for both the Guanajuato Mine
and the Topia Mine, under the meaning of NI 43-101. Aspects of both
mines relating to mining and metallurgy are overseen by Charles
Brown, Chief Operating Officer for Great Panther and its Mexican
subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
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.
Standard & Poor's Listed
SEC 20-F Statement Filed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@greatpanther.com www.greatpanther.com
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