Results demonstrate continuity of mineralization at depth and
provide further confidence of geological model used for mineral
reserve and resource estimation
TSX: GPR | NYSE American:
GPL
VANCOUVER, BC, April 7, 2021 /PRNewswire/ - Great Panther
Mining Limited (TSX: GPR) (NYSE American: GPL) ("Great Panther" or
the "Company") announces drill results from the resource
replacement and expansion drilling program at the Company's wholly
owned Tucano Gold Mine ("Tucano") in Brazil. Tucano is mining a 7-kilometre-long
trend of gold deposits hosted within a large tenement package
controlled by Great Panther covering approximately 90 km (2,000
km2) of the Vila Nova Greenstone Belt.
The first phase drill program focused on the TAP C pit, situated
between the Taperaba pits ("TAP AB") and the Urucum pits that are
the current focus of production at Tucano. TAP C is a series
of three pits over a 1,500 m trend of
which the C1 pit is the largest with a depth of 50 m and a strike length of approximately
700 m. The pit was mined by the
previous operator down to the base of the oxide zone. The Tucano
plant now has the capability to process both oxide and sulphide
ore.
Exploration Highlights:
- Drilling indicates continuity of mineralization of the TAP C1
deposit to approximately 50 m –
70 m below the current pit floor.
- Results include intercepts of 17.7 g/t Au over 1.75 m from 130 m
in 21TACDD001 and 6.3 g/t Au over 3.9
m in 21TACDD002 (note widths are drillhole intercept
widths).
- Initial results of re-modelling of the TAP C1 deposit define
the structural framework that has affected the mineralization. The
updated model explains mineralization discontinuities while
providing better controls on areas of pinch and swell of the
mineralized zones.
"The interpretation of the controls on the mineralization at TAP
C1 is a key step forward," commented Rob
Henderson, Great Panther's President and CEO. "The new
geological model will now be used to plan ongoing drilling at TAP
C1 and be extended to the adjoining areas in TAP C. With this
additional work, we are confident that we will be able to include
TAP C in the next open pit mineral resource statement for
Tucano."
The first phase drilling program at TAP C1 followed Roscoe
Postle Associate Inc.'s ("RPA") 2019 recommendation to evaluate the
down-dip projections of the banded iron formation and carbonate
units in the TAP C sector for their potential for hosting gold
mineralization. Results from the drill program demonstrate
mineralization continuity along strike and downdip.
In the current diamond drilling program, seven holes were
drilled for a total of 1,212 m along
a strike length of 670 m of the TAP
C1 deposit, aimed at intersecting mineralization at approximately
50 to 70 m below the current pit.
Results demonstrate the continuity of mineralization with depth
below the pit and justify shallower infill drilling to target
definition of an Inferred and Indicated mineral resource.
In parallel with the first phase drilling program, the existing
geologic model is being modified taking into account structural
controls that affect the gold mineralization. This new model will
guide and be tested by the second phase drilling program currently
underway and will be extended to the other deposits in TAP C.
The Mineral Resource and Reserve Update for the Tucano Gold Mine
completed in 2018 by AMC Mining Consultants (Canada) Ltd. estimated for TAP C a Measured
Resource of 1.05 Mt @ 1.10 g/t Au containing 37,000 oz of gold, an
Indicated Resource of 2.29 Mt @ 1.18 g/t Au containing 87,000 oz of
gold and an Inferred Resource of 1.1 Mt @ 1.3 g/t Au containing
47,000 oz of gold, calculated at a gold price of $1,500/oz. This historical resource estimate was
excluded from the 2019 Mineral Reserves and Mineral Resources
("MRMR") statement prepared by RPA due to lack of confidence in the
existing model and was not included in the current 2020 MRMR
announced in the Company's December 15,
2020, news release for similar reasoning. RPA suggested
further drilling was required below the TAP C oxide pits, thus this
reinterpretation of the structural controls along with the
additional drilling is an important advance in the extension of the
open pit resources at Tucano. While further work and confirmation
drilling are required to define a current Mineral Resource, it is
believed that this new model and ongoing drilling will allow
inclusion of TAP C in the next MRMR statement for Tucano. Mineral
Resources that are not Mineral Reserves have no demonstrated
economic viability.
Table 1: Significant
gold assay results for 2021 TAP C drilling campaign
|
Drill
hole
|
Interval
(m)
|
From
(m)
|
To
(m)
|
Est. true
width
(m)
|
Grade
(g/t
Au)
|
21TACDD001
|
4.65
|
84.65
|
89.30
|
2.53
|
0.98
|
21TACDD001
|
6.85
|
98.95
|
105.80
|
3.73
|
0.99
|
21TACDD001
|
1.75
|
130.00
|
131.75
|
0.95
|
17.67
|
21TACDD002
|
4.00
|
80.00
|
84.00
|
2.29
|
0.75
|
21TACDD002
|
6.90
|
129.60
|
136.50
|
4.30
|
1.20
|
including
|
3.95
|
130.65
|
134.60
|
2.27
|
1.74
|
21TACDD002
|
3.85
|
148.15
|
152.00
|
2.21
|
6.34
|
including
|
1.00
|
150.00
|
151.00
|
0.57
|
19.21
|
21TACDD003
|
11.95
|
104.25
|
116.20
|
7.36
|
1.39
|
including
|
3.00
|
110.00
|
113.00
|
1.86
|
3.54
|
21TACDD004
|
5.55
|
199.45
|
205.00
|
3.42
|
0.92
|
21TACDD005
|
No significant
intersection
|
21TACDD006
|
6.00
|
18.00
|
24.00
|
3.69
|
0.73
|
21TACDD006
|
5.00
|
101.00
|
106.00
|
3.08
|
1.18
|
including
|
1.00
|
104.00
|
105.00
|
0.62
|
4.29
|
21TACDD006
|
4.00
|
168.00
|
172.00
|
2.46
|
0.64
|
21TACDD007
|
8.00
|
75.00
|
83.00
|
4.70
|
0.96
|
Notes:
|
- DD = diamond
drilling;
- Grades over
0.4g/t cut-off, max 2m internal dilution
- True widths are
estimates based on current geologic knowledge but may vary after
resource modelling. Drill
hole inclinations vary between 57° and 60° and mineralization is
sub-vertical. Intersections are necessarily oblique to the
mineralized zones as a result of access constraints due to
topography and pit development.
- Assay data are
from the Tucano Laboratory unless otherwise indicated and intercept
widths are drill intercepts. Drill holes are generally inclined at
60 degrees and mineralization is variable but close to
sub-vertical.
|
Drilling is ongoing with a focus on increasing the drill density
in the southern area between holes 21TACDD005 and 21TACDD006. This
zone was inaccessible due to unusually heavy rains combined with
inappropriate heavy machinery to prepare the platforms. New
machinery is now on site and drilling continues. A second Reverse
Circulation ("RC") drill is due on site in the second half of May
and will carry out shallow, infill resource drilling. In parallel,
modelling will be done of the northern pits at TAP C and those to
the south as well as the area between TAP C1 and TAP AB to define
additional drill targets.
The full table of drill results can be found at
https://www.greatpanther.com/_resources/pdf/20210407-GPR-TAP-C-Drill-Results.pdf.
Technical Disclosure and Qualified Persons
On behalf of Great Panther, Nicholas
Winer, Fellow AusIMM and Vice President of Exploration
supervised the preparation of data for inclusion in this news
release and approved this news release. Mr. Winer is a
non-independent Qualified Person as defined by National Instrument
43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
The Qualified Person reviewed the Tucano QA/QC program. The
QA/QC program for drill core includes the regular insertion of
blanks, standards, and duplicates into sample batches, diligent
monitoring of assay results, and necessary remedial actions.
Resource drilling samples are first assayed at the Tucano onsite
laboratory. All intervals with anomalous gold are submitted and
re-analyzed by the Certified SGS Geosol laboratory in Belo Horizonte by 50 g fire-assay. All SGS
Geosol assays, after diligent monitoring of QA/QC and necessary
remedial actions, supersede the Tucano assay results in the
database for MRMR grade estimation. QA/QC monitoring of the SGS
laboratory also includes inter-laboratory checks on five percent of
samples with the Certified, ALS laboratory in Belo Horizonte. In addition to the data
verification methodology described above, personal inspections of
the Tucano property have also been completed.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of assets in
Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring large land
packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing portfolio.
Great Panther trades on the Toronto Stock Exchange trading under
the symbol GPR, and on the NYSE American under the symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not limited
to, statements regarding: (i) continuity of mineralization of the
TAP C1 deposit to approximately 50 m - 70 m below the
current pit floor; (ii) initial results of the re-modelling of the
TAP C1 deposit which define the structural framework that has
affected the mineralization and explain mineralization
discontinuities; (iii) plans to complete infill drilling of TAP C1
to target definition of an Inferred and Indicated Mineral Resource;
(iv) belief that the interpretation of results of the phase 1 and
phase 2 drilling programs at TAP C1 are indicative and may be
extended over all of the TAP C deposits; (v) confidence in and
belief that the Company will be able to include TAP C in the
next MRMR statement for Tucano providing additional
confidence in the geometry of the ore body is determined; and (vi)
the Company's plans to pursue acquisition opportunities to
complement its existing portfolio.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include:
continued operations and exploration work, including plans to
complete infill drilling at Tucano, in 2021 occur without
significant interruption due to COVID-19 or any other reason; the
accuracy of the Company's geological modeling at Tucano and the
assumptions upon which they are based, including initial results of
the re-modelling of the TAP C1 deposit which define the structural
framework that has affected the mineralization and explain
mineralization discontinuities; the results of the phase 1 and
phase 2 drilling programs at TAP C1 are indicative and may be
extended over all of the TAP C deposits; planned infill drilling
will provide confidence sufficient to define Mineral Resource
estimates for the TAP C deposits; geometry of the orebody; ore
grades and recoveries; prices for gold, silver, and base metals
remaining as estimated; currency exchange rates remaining as
estimated; prices for energy inputs, labour, materials, supplies
and services (including transportation); all necessary permits,
licenses and regulatory approvals for the Company's operations and
exploration work are received in a timely manner on favourable
terms, Tucano will be able to continue to use cyanide in its
operations; the Company will not be required to further impair
Tucano as the current open pit mineral reserves are depleted
through mining; the ability to procure equipment and operating
supplies without interruption and that there are no material
unanticipated variations in the cost of energy or supplies;
operations not being disrupted by issues such as pit-wall failures
or instability, mechanical failures, labour disturbances and
workforce shortages, illegal occupations or mining, seismic events,
and adverse weather conditions; and the Company's ability to comply
with environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that 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: the
impact of COVID-19 on the Company's ability to operate and conduct
exploration work, including drilling plans, as anticipated, and the
risk of an unplanned partial or full shutdown of the Company's
mines and processing plants, whether voluntary or imposed, which
would adversely impact the Company's revenues, financial condition
and ability to meet its production and cost guidance and fund its
capital programs and repay its indebtedness; the inherent risk that
estimates of Mineral Reserves and Resources may not be accurate and
accordingly that mine production will not be as estimated or
predicted; planned exploration activities, including plans for
further infill drilling at TAP C1, may not result in the discovery
of new Mineral Resources/definition of Mineral Resources and
readers are cautioned that Mineral Resources that are not Mineral
Reserves have no defined economic viability; there is no certainty
that the Company will be able to define a mineral resource for the
TAP C deposits and the Company is not treating the AMC historical
estimate as a current mineral resource estimate; open pit mining
operations at Tucano have a limited established mine life and the
Company may not be able to extend the mine life for Tucano open pit
operations beyond 2023 as anticipated; gold, silver and base metal
prices may decline or may be less than forecasted; fluctuations in
currency exchange rates (including the U.S. dollar to Brazilian
real exchange rate) may increase costs of operations; operational
and physical risks inherent in mining operations (including pit
wall collapses, tailings storage facility failures, environmental
accidents and hazards, industrial accidents, equipment breakdown,
unusual or unexpected geological or structural formations,
cave-ins, flooding and severe weather) may result in unforeseen
costs, shut downs, delays in production and drilling and exposure
to liability; potential political and social risks involving Great
Panther's operations in a foreign jurisdiction; the potential for
unexpected costs and expenses or overruns; shortages in the ability
to procure equipment and operating supplies without interruption;
employee and contractor relations; relationships with, and claims
by, local communities; the Company's ability to obtain all
necessary permits, licenses and regulatory approvals in a timely
manner on favourable terms; changes in laws, regulations and
government practices in the jurisdictions in which the Company
operates; legal restrictions related to mining; diminishing
quantities or grades of mineral reserves as properties are mined
operating or technical difficulties in mineral exploration, changes
in project parameters as plans continue to be refined; the
Company's inability to meet its production forecasts or to generate
the anticipated cash flows from operations could result in the
Company's inability to meet its scheduled debt payments when due or
to meet financial covenants to which the Company is subject or to
fund its exploration programs as planned; ability to maintain and
renew agreements with local communities to support continued
operations; there is no assurance that the Company will be able to
identify or complete acquisition opportunities of, if completed,
that such acquisitions will be accretive to the Company; and other
risks and uncertainties, including those described in respect of
Great Panther, in its most recent annual information form and
material change reports filed with the Canadian Securities
Administrators available at www.sedar.com and reports on Form 40-F
and Form 6-K filed with the Securities and Exchange Commission and
available at www.sec.gov.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
CAUTIONARY NOTE TO UNITED
STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED
AND INFERRED RESOURCES
The Company prepares its disclosure in accordance with the
requirements of securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Terms relating to mineral resources in this
news release are defined in accordance with NI 43-101 under the
guidelines set out in the Canadian Institute of Mining, Metallurgy,
and Petroleum Definition Standards for Mineral Resources and
Mineral Reserves 2014 ("CIM Definition Standards").
The United States Securities and Exchange Commission (the "SEC")
has adopted amendments effective February
25, 2019 (the "SEC Modernization Rules") to its disclosure
rules to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the
United States Securities Exchange Act of 1934. The SEC
Modernization Rules have replaced SEC Industry Guide 7, which have
been rescinded.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "Measured mineral resources",
"Indicated Mineral Resources" and "Inferred Mineral Resources",
which are defined in substantially similar terms to the
corresponding CIM Definition Standards. In addition, the SEC has
amended its definitions of "Proven Mineral Reserves" and "Probable
Mineral Reserves" to be substantially similar to the corresponding
CIM Definition Standards.
United States investors are
cautioned that while the foregoing terms are "substantially
similar" to corresponding definitions under the CIM Definition
Standards, there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any Mineral Resources that the Company may
report as "Measured Mineral Resources", "Indicated Mineral
Resources" and "Inferred Mineral Resources" under NI 43-101 would
be the same had the Company prepared the resource estimates under
the standards adopted under the SEC Modernization Rules.
United States investors are
also cautioned that while the SEC will now recognize "Measured
Mineral Resources", "Indicated Mineral Resources" and "Inferred
Mineral Resources", investors should not assume that any part or
all of the mineral deposits in these categories would ever be
converted into a higher category of Mineral Resources or into
Mineral Reserves. Mineralization described by these terms has a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility.
Accordingly, investors are cautioned not to assume that any
"Measured Mineral Resources", "Indicated Mineral Resources", or
"Inferred Mineral Resources" that the Company reports are or will
be economically or legally mineable.
Further, "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. Therefore, United States investors are also cautioned not
to assume that all or any part of the Inferred resources exist. In
accordance with Canadian securities laws, estimates of "Inferred
Mineral Resources" cannot form the basis of feasibility or other
economic studies, except in limited circumstances where permitted
under NI 43-101.
In addition, disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC has
historically only permitted issuers to report mineralization as in
place tonnage and grade without reference to unit measures.
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SOURCE Great Panther Mining Limited