Great Panther Drills 7.70 Metres Of 704g/t Silver And 4.49g/t Gold In Second Hole At San Ignacio Mine Property, Guanajuato Nov 15, 2010
GREAT PANTHER SILVER LIMITED (TSX: GPR; the "Company") is pleased to announce that the second surface diamond drill hole at the San Ignacio Mine property, Guanajuato has intersected five zones of silver-gold mineralization below those of the previously reported veins in hole ESI10-01 (see news release of October 28, 2010).
Drill hole ESI10-02 was collared at the same site as ESI10-01 but at a steeper angle of -60° in order to test the down-dip continuity of the veins intersected in the first hole. In hole ESI10-02, the Melladito vein returned 10.45 metres grading 1.13g/t gold and 98g/t silver, including 7.70 metres grading 1.36g/t gold and 117g/t silver. This correlates well with the 11.45 metres of 1.18g/t gold and 131g/t silver intersected in hole ESI10-01. Similarly, the Nombre de Dios vein returned 7.70 metres grading 4.49g/t gold and 704g/t silver in hole ESI10-02, compared to 3.15 metres of 2.15g/t gold and 157g/t silver in the first hole. The Nombre de Dios intersection in the second hole is at a vertical depth of approximately 330 metres below surface and 145 metres below the intercept in hole ESI10-01, and demonstrates good continuity while also indicating the potential for grades to increase with depth. It is currently unclear as to how the surface sample of 2.3 metres of 3.27g/t gold and 77g/t silver, previously interpreted as the Nombre de Dios vein, correlates with the drill hole intercepts or if it represents a separate vein that has yet to be intersected in drilling.
A deeper footwall stockwork zone in ESI10-02 assayed 1.49g/t gold and 382g/t silver over 3.40 metres. A narrower zone of mineralization in the hangingwall of the Melladito Vein and an intermediate zone between the Melladito and Nombre de Dios veins correlate well between the drill holes and could be of greater significance along strike or down-dip. The most westerly vein system, the Plateros vein, which hosted the former San Ignacio Mine operation, will be drilled later in the program. A plan map showing the location of Great Panther's San Ignacio drill holes, and an interpretative cross section, are posted on the Company web-site at www.greatpanther.com. Based upon the second hole, the veins are now interpreted to be steeply dipping.
"These are very significant results for the San Ignacio Mine property", stated Robert Archer, Great Panther's President & CEO. "The excellent continuity of the veins and the higher grades at depth will make it easier to define a new resource and develop a mine plan. With this early encouragement, we intend to fast-track the delineation and development of San Ignacio."
The initial 2,000 metre core drilling program at San Ignacio will comprise four sections across the three main structures. A substantial program of additional drilling for 2011 is already being prepared and applications for additional drill sites are being filed with the appropriate authorities. Power is being restored to the original San Ignacio Mine area and the shaft and old workings will be pumped out and rehabilitated while further exploration progresses. Underground mapping and drilling will augment the surface work and, once sufficient geological data has been assembled to facilitate a mine plan, development will commence in preparation for mine production.
Highlights of Drill Hole ESI10-02 Zone
Hole ID
FROM m
TO m
Width m
Au g/t
Ag g/t
Melladito hanging wall
ESI10-02
189.25
190.20
0.95
1.39
141
Melladito
ESI10-02
202.45
212.90
10.45
1.13
98
includes
203.60
211.30
7.70
1.36
117
Intermediate
ESI10-02
248.90
250.25
1.35
2.52
74
Nombre de Dios
ESI10-02
379.75
387.45
7.70
4.49
704
Footwall stockwork
ESI10-02
402.70
406.10
3.40
1.49
382
The San Ignacio Mine property covers approximately 4 kilometres of strike length on the La Luz vein system, which is parallel to, and 5 kilometres west of, the principal Veta Madre structure that hosts the main Guanajuato mines (see map on website at http://www.greatpanther.com/i/pdf/SanIgnacio-LocationMap-Sep10.pdf). The La Luz district marks the site of the first discovery of silver in the area, in the year 1548, which led to the discovery of the Veta Madre silver-gold deposits in 1550. It comprises a swarm of generally north-northwest striking, west dipping quartz veins and breccias with associated low sulphidation silver-gold mineralization, along an approximate 8 kilometre long trend.
Robert F. Brown, P. Eng. and Vice President of Exploration for the Company is the Qualified Person for the Guanajuato Mine, under the meaning of NI 43-101. A full QA/QC program is being followed including the regular insertion of splits, blanks, and standards into the core sampling sequence. Analysis of the drill core samples is being conducted at the Guanajuato Mine on-site laboratory, independently operated by SGS.
For further information, please visit the Company's website at www.greatpanther.com, contact B&D Capital at telephone 604 685 6465 begin_of_the_skype_highlighting 604 685 6465 end_of_the_skype_highlighting, fax 604 899 4303 or e-mail info@greatpanther.com.
Great Panther Silver (GPR) fiat$1.88 UP $0.18 +10.59% :-)
Volume: 1,640,344 @ 3:59:37 PM ET Strong Demand :-) Bid Ask Day's Range 1.86 1.88 1.78 - 1.88
Great Panther Silver (GPRLF) fiat$1.82 UP $0.15 +8.98% :-)
Volume: 316,762 @ 3:57:57 PM ET Strong Demand :-) Bid Ask Day's Range 1.81 1.85 1.74 - 1.8215 Full GPRLF Quote
Great Panther Drills 7.70 Metres Of 704g/t Silver And 4.49g/t Gold In Second Hole At San Ignacio Mine Property, Guanajuato Nov 15, 2010
GREAT PANTHER SILVER LIMITED (TSX: GPR; the "Company") is pleased to announce that the second surface diamond drill hole at the San Ignacio Mine property, Guanajuato has intersected five zones of silver-gold mineralization below those of the previously reported veins in hole ESI10-01 (see news release of October 28, 2010).
Sprott fund found it hard to get silver, Embry tells King World News - Submitted by cpowell on Wed, 2011-01-05 20:38. Section: Daily Dispatches 3:36p ET Wednesday, January 5, 2011
Dear Friend of GATA and Gold (and Silver):
Interviewed today by Eric King of King World News, Sprott Asset Management's chief investment strategist, John Embry, made eye-popping price predictions for gold and silver in 2011 but may have been more interesting for his remarks about the difficulty encountered by the Sprott Physical Silver Trust in getting hold of real metal. Excerpts from the interview are headlined "Gold Over $2,000, Silver Above $50 in 2011" and you can find it at the King World News Internet site here:
It's going to be hard to not want to sell when this thing hits 10 bucks but i'm going to hold long lol! Looks like we are up to 3.12 in after hours...nice! great buy a lot more Ag babies ;-)
Its only the start- we haven't seen anything yet/ the JET,lol :-)
history often repeat itself -
was in it before 1975 - make luv and care for the Au & Ag babies ;-)
Company On Rapid Growth Path to Becoming a Mid-Tier Silver Producer
3.8 Million Ounce Silver Production Target at Two Mexico Mines for 2012
Record 2010 production of silver and base metals by
Great Panther Silver Limited (TSX: GPR • NYSE Amex: GPL) -- www.greatpanther.com -- bodes well for the company to reach its production goal of 3.8 million ounces of silver by 2012 – an incredible 68% 24-month increase. “We have had five consecutive quarters of profitability, clearly demonstrating our ability to achieve our goals,” says Great Panther Silver’s President and CEO Robert Archer. “We are one of the fastest growing primary silver producers in Mexico and intend to continue growing while maintaining profitability.” For investors, the company, which operates two 100%-owned silver mines in mining-friendly Mexico, provides strong leverage to future increases in the price of silver. The fact that the company has gold as a production by-product, providing a comfortable hedge against falling silver prices, is a significant plus. Nor does it hurt that Great Panther Silver is run by a seasoned management team led by Mr. Archer who has previously worked for such major mining companies as Newmont, Placer Dome and Noranda – and is guided by an internationally-recognized board of directors drawn from three continents. During just the past year, Great Panther Silver invested $17 million from its cash flow to rehabilitate and expand its mines in Mexico, a major accomplishment in itself. The company acquired new equipment, developed new production faces, exceeded plant performance goals, increased resources, defined reserves, and discovered significant new high grade mineralization. The next two years promise to provide equal accomplishments as Great Panther Silver moves toward its production goals in Mexico and expands its search for advanced silver properties throughout Latin America.
Record Silver, Base Metals Production Posted for 2010
Great Panther Silver achieved record production of 2,255,802 silver equivalent ounces (Ag eq oz) in 2010, a 2% increase over 2009. New records were established as well for the output of individual metals – 1,534,957 ounces silver (up 5%), 7,216 ounces gold (up 1%), 1,092 tonnes lead (up 25%), and 1,358 tonnes zinc (up 29%). In the fourth quarter alone, the company produced 565,660 Ag eq oz. Production from Guanajuato is expected to increase steadily throughout 2011 to two million ounces of silver equivalent, largely from increased production as the Los Pozos and Santa Margarita areas reach full capacity, Cata production returns to previous levels, and new production develops from the Guanajuatito area.
Plant throughput for 2011 is estimated at 200,000 tonnes at grades of 240 g/t silver and 1.80 g/t gold for metal production of 1.38 million oz silver and 10,400 oz gold. Output from the Topia Mine is expected to increase as development on existing and new veins and increased plant capacity contribute to production totals. Topia’s 2011 estimated 40,000-tonne plant throughput is expected to produce 0.56 million oz silver, 800 oz gold, 1,170 tonnes lead, and 1,430 tonnes zinc – the equivalent to 0.87 million ounces of silver equivalent. The company has set a combined 2011 production target from Guanajuato and Topia at 2.87 million ounces of silver equivalent, (1.94 million oz silver, 11,200 oz gold, 1,170 tonnes lead and 1,430 tonnes zinc), based on prices of $1,200/oz Au, $20/oz Ag, $0.85/lb Pb and Zn. Considering the company’s low operating costs averaging $7 per ounce of silver (net of by-products) – an amount the company expects to soon lower to about $5 per ounce, increased silver production in 2011 and 2012 will significantly boost the company’s bottom line. “Silver is more than the poor man’s gold. It is the only commodity that has both industrial uses and monetary value,” says Archer. “With increasing demand from recovering economies, we have recently seen the price of silver rising at a significantly faster rate than gold. Because we are a primary silver producer, this gives Great Panther Silver tremendous leverage.”
Historic Silver-Gold Guanajuato Mine Complex on a World-Class Deposit
Great Panther Silver’s Guanajuato Mine Complex is located in Mexico’s second-largest producing silver district of the same name where more than one billion ounces of silver have been produced over the past 400 years.
The Company’s property on this world-class silver-gold deposit has a 4.2 kilometer strike length. The underground mine has 25 shafts, over 100 kilometers of underground tunnels, three ramps, and has produced more than 4.8 million ounces of silver equivalent since the Company restarted production in 2006. The plant has the capacity to double current production rates to about 1,200 tonnes per day. During the final quarter of 2010, the Guanajuato plant achieved record gold recovery and excellent silver recovery of 91.1% and 89.1% respectively. Improvements to plant operations and equipment will continue in 2011. Production from the Los Pozos area on the 310 and 345 meter levels accounted for more than 50% of the total silver production at the mine during the fourth quarter of 2010, while production at the Cata Clavo and Santa Margarita areas will be increased in 2011. Exploratory core drilling of the Guanajuatito North Zone indicates mineralization continues to depths below the 80 meter level. Most recently, the company discovered deeper mineralized silver-gold zones grading as high as 8.53 g/t gold and 1,300 g/t silver over more than a half meter in width at its Guanajuatito Mine at the northwest end of the Guanajuato Mine Complex. An access ramp will intersect the vein on the 120 meter level here to allow for more detailed exploration in preparation for an additional stoping area. Underground exploratory core drilling between the Valenciana and Cata mine areas is also underway. Deep drilling under the main Valenciana Mine will begin in the second quarter of 2011 to test structures in the Valenciana area below the 390 level and along a 600 meter strike length. The NI 43-101 compliant reserves for the historic Guanajuato Mine strongly indicate the project’s long-term viability and, more immediately, an anticipated improved output in 2011 and 2012. Guanajuato contains a measured and indicated mineral resource of 5,450,000 Ag eq oz, with inferred mineral resources estimated at 2,678,000 Ag eq oz. The measured and indicated mineral resources include 4,372,000 Ag eq oz of proven and probable mineral reserves, using a cut-off grade of 185 g/t silver equivalent.
High-Grade Topia Mine Producing Silver, Gold, Lead and Zinc
Great Panther Silver’s historic Topia silver-gold-lead-zinc mine property encompasses 6,500 hectares, dominating this mining district in the Sierra Madre Mountains of Durango State. Mining in the area dates back to 1538.
The deposit is characterized by high-grade, narrow veins. Although currently identified resources will support a 10-year mine life, a pending updated resource estimate is expected to significantly extend the length of economic production at the mine. The Topia Mine recorded strong production in Q4 2010 of 129,650 oz of silver, 108 oz of gold, 515,305 lbs of lead, and 669,216 lbs of zinc from milling 9,081 tonnes of ore. This equates to 195,598 Ag eq oz, 26% higher than in Q4 2009. Ore grades averaged 458 g/t silver, 0.46 g/t gold, 2.78% lead and 3.64% zinc. New flotation cells for the zinc and lead concentrate circuits will enable a 22% increase in plant throughput in 2011, from 180 to 220 tonnes per day. Q4 metal recoveries at the Topia plant were high: 91.5% for silver, 81.5% for gold, 92.7% for lead and 91.8% for zinc. Mine development at Topia continued to extend known areas and provide access to new mining areas. Mining of the San Gregorio and El Rosario veins contributed almost 40% of the silver production. Ramp development at Argentina is now fully mechanized, and access to the third level is expected in the Q2 2011. Great Panther Silver plans to increase production at Topia by 20% per year through 2012. Mineral resource/reserve estimates are pending.
Investment Considerations
Great Panther Silver is well capitalized with $13.5 million in its treasury, and a growing cash flow sufficient to fund production, expanded mine development and exploration. Currently, some 70% of the company’s revenues derive from silver.
Now in its second year of its ambitious three-year plan to reach an annual production rate of 3.8 million ounces of silver equivalent by 2012, Great Panther Silver also has its eye on potential future acquisitions. “Profitable growth is the key to maximizing long-term shareholder value,” says Archer. “We will grow production and earnings from mining operations, while maintaining a positive cash flow and actively pursuing promising exploration and development opportunities in Mexico and South America.” If Great Panther Silver’s track record during the past year is any indication, the company could well make good on its promises. For not only did the company set record production numbers in 2010, it conducted successful diamond drilling programs at the Guanajuato Mine, the nearby San Ignacio Project and the Topia Mine that delineated new resources and identified intriguing new mineralized areas. Exploration during the coming year promises more of the same: Great Panther Silver has more than doubled its 2011 drilling program to about 60,000 meters of further exploratory and infill drilling. For example, the company will spend $2.8 million on further exploration and development at San Ignacio where it is evaluating sites for a portal to an underground ramp. Ore extracted during the development phase will be trucked to the Guanajuato plant for processing. The cash flow generated will offset the cost of exploration and development. “Our strategy for growth beyond 2012 is to target undercapitalized projects that can be made profitable by introducing new equipment and mining methods,” says Archer. “This could add millions of ounces to our books and bring Great Panther Silver to mid-tier status.”
GREAT PANTHER SILVER LIMITED
TSX: GPR • NYSE Amex: GPL
Contact: Erick J. Bertsch, Vice President of Corporate Development
2100 - 1177 West Hastings Street Vancouver, BC V6E 2K3, Canada
Great Panther Silver Reports First Quarter Production; Silver Increases by 15%, Gold Up by 45% From Q1 2010 Apr. 14, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE Amex:GPL) (the "Company") is pleased to report first quarter ("Q1"), production at its two wholly-owned Mexican silver mining operations, Guanajuato and Topia.
The mines produced 410,640 ounces of silver, 2,310 ounces of gold, 241 tonnes of lead, and 345 tonnes of zinc. Compared to production results from Q1 2010, silver is up by 15%, gold is up by 45%, lead is down by 17% and zinc is unchanged. The combined metal production, at 607,225 silver equivalent ounces, ("Ag eq oz") is 7% higher than the last quarter and up 15% from Q1 2010. This is a very positive start to the year. Guanajuato metal production, at 406,419 Ag eq oz, is improved by 10% from the last quarter and is up 29% from a year ago while Topia silver production, at 137,219 Ag oz, is a quarterly record.
The following summarizes the main highlights for the first quarter of 2011:
*
Silver production of 410,640 Ag oz, up 15% from Q1 2010. *
Gold production of 2,310 Au oz, up 45% from Q1 2010. *
Combined metal production of 607,225 Ag eq oz, up by 15% from Q1 2010. *
Record metallurgical gold recovery at Guanajuato of 91.5%, up 6% from Q1 2010. *
Record silver production at Topia of 137,219 oz Ag, up 4% from Q1 2010. *
Milling capacity records set at both processing plants. *
Exploration drill results expand mineralisation at the San Ignacio property. *
Exploration drilling confirms orebody extending to depth at Guanajuatito. *
Increased NI 43-101 compliant Mineral Resources at the Topia Mine.
(Silver equivalents for 2011 are established using budget prices of US$1200/oz Au, US$20/oz Ag, US$0.90/lb Pb and Zn.)
Guanajuato Mine recorded a much improved quarter compared to both the previous quarter and Q1 2010. Under the overall guidance of the new General Manager for Guanajuato, several modifications are being made to enable the mines and plant to operate more effectively. Ore tonnes mined and processed increased to 42,980, up 10% from the last quarter and 23% from a year ago. Gold production increased to 2,217 oz, up 21% and 53%, while silver production, at 273,421 oz, was higher by 7% and 22% respectively. The average grades of 222g/t Ag and 1.75g/t Au were satisfactory and reflect the distribution of ore supply from the mines.
The Guanajuato plant achieved record gold recovery and excellent silver recovery of 91.5% and 89.2%, respectively. Many improvement modifications were made throughout the plant such that a new record milling rate, of 1,050 tonnes per day, was achieved while operating an average of 15 days per month. During the second quarter, five new 5.0 cubic metre flotation cells, supplied by Outotec, and a third set of cyclones, supplied by Krebs, will be installed. These modifications are expected to facilitate further improvements in metallurgical performance.
Production stoping of the Santa Margarita vein progressed well and gold grades and production improved sharply. Gold grades of the ore extracted from the Santa Margarita vein averaged 9.8g/t Au and contributed almost 50% of the gold production at Guanajuato. Overall gold production increased to 2,217 Au oz which was 21% higher than the previous quarter and up 53% compared to one year ago.
Production from the Los Pozos area on the 310, 345 and 380 metre levels continued to set new records and accounted for over 50% of the silver production. Exploratory diamond drilling from the 390 metre level has intercepted the orebody below this level and an access ramp is being driven to establish a fourth production level later this year.
The Cata Clavo production was 1,000 tonnes below plan towards the end of the quarter due to a mechanical failure of the ore hoisting winch in the internal shaft. The winch has since been repaired and production has returned to normal. The ramp haulage system is being upgraded and extended such that during the second half of the year the inclined hoisting shafts of both Rayas and Cata will be redundant which will eliminate current bottlenecks to production efficiency.
Mining of the Guanajuatito North Zone was restarted on the completion of an access ramp to the 120 metre level. Exploratory development on vein confirmed the indications from diamond drilling. A ventilation raise has been completed and stoping has commenced.
Underground diamond drilling totaled 3,066 metres; 1,833 metres drilled in the Valenciana area, 936 metres to test the depth extensions of Los Pozos, as well as various drilling targeted towards the new San Telesforo zones plus ore definition. During the second quarter, two additional drilling rigs will be added. Drilling will restart to test the deep extensions of both the Rayas Clavo and the Guanajuatito areas.
Results from the fourth quarter, 2010 drilling of the Guanajuatito area were successful in extending silver-gold mineralization below the current level of mining on the 80 metre level, down to the 245 metre level. The new mineralization has been defined over a strike length of approximately 100 metres and for an additional 150 metres vertically. Two mineralized zones are interpreted from the data - the Veta Madre zone, and a slightly deeper Footwall zone.
Typically, the mineralized portion of the zones pinches and swells with true widths varying from less than one metre to 4.6 metres. Typifying the above observations are Veta Madre intersections for UGG10-008 that intersected 8.52g/t gold and 1,300g/t silver over a true width of 0.61 metres, and UGG10-009 that intersected 0.87g/t gold and 241g/t silver over a true width of 3.59 metres. The best and deepest (245 level) Footwall zone intersection returned 2.77g/t gold and 839g/t silver over a true width of 1.72 metres in UGG10-021.
Ore development on the 120 level and a ventilation raise has been completed in preparation for stoping. Ramp development to subsequent stope levels for future production will re-commence. Given the good exploration results to date, further exploration potential along strike and the advancing ramp depth, additional capital has been committed in the form of a deeper electrical distribution network.
San Ignacio Property
Initial 2011 diamond drilling at the San Ignacio Mine property, Guanajuato has continued to intersect numerous zones of silver-gold mineralization including the Melladito and Nombre de Dios zones.
Hole ESI11-006 was drilled from a station 150 metres west of the first drill station to test the Plateros vein (the vein that hosted the former San Ignacio Mine operation) near surface and the Melladito vein at depth. The most westerly vein intercept, which is not interpreted to be the Plateros vein, but possibly a new zone, returned 175g/t silver and 1.67g/t gold over 1.35 metres, while three deeper zones of silver-gold mineralization appear to correlate with the Melladito vein and the new high grade hanging wall zone intersected in ESI11-005.
The third section of drill-holes, including ESI11-007 and 008, was drilled easterly from a site approximately 50 metres north of the setup for ESI10-003 and 004. Hole ESI11-007 intersected ten mineralized zones including the Melladito zone that returned 421g/t silver and 3.08g/t gold over 3.80 metres, the Nombre de Dios zone that assayed 854g/t silver and 4.20g/t gold over 1.45 metres, and a footwall stockwork zone with 824g/t silver and 2.10g/t gold over 0.75 metres. Hole ESI11-008, drilled under ESI11-007, intersected three mineralized zones, including the Melladito and the Nombre de Dios zones and a Melladito hanging wall zone that returned 662g/t silver and 1.75g/t gold over 0.50 metres. All appear to demonstrate good vertical continuity as they have on the other drill sections. Overall, the mineralization has now been traced by drill core intercepts over a vertical depth of more than 300 metres and a strike length of more than 150 metres.
To date, results from eight San Ignacio drill holes have been published. Drilling continues and, for the quarter, totals 3,726 metres with the twelfth drillhole in progress. A new NI 43-101 compliant resource is being prepared for the San Ignacio property for publication in the second quarter.
The Company has started the permit application process, including preparation of an Environmental Impact Assessment, in anticipation of a positive decision to establish a mine portal and drive a decline ramp from surface to access the veins for underground mining. During the course of development, any ore from the San Ignacio Mine property will be trucked to Great Panther Silver's Guanajuato plant for processing, where the capacity currently exists to double ore throughput.
The San Ignacio Mine property covers approximately four kilometres of strike length on the La Luz vein system, which is parallel to, and five kilometres west of, the principal Veta Madre structure that hosts Great Panther Silver's main Guanajuato mines.
Topia Mine
Topia recorded another excellent quarter with metal production of 137,219 oz of silver (a record), 92 oz of gold, 530,587 lbs of lead, and 760,308 lbs of zinc, from milling 11,013 tonnes of ore. This totals 200,806 Ag eq oz, 3% higher than the previous quarter and 5% higher than the first quarter of 2010. Ore grades averaged 420g/t Ag, 0.33g/t Au, 2.32% Pb and 3.42% Zn.
The plant was extensively modified between Christmas and the second week of January 2011. Four 2.8 cubic metre flotation cells were added to the flotation circuit and the grinding circuit was reconfigured to provide for additional capacity. The processing capacity was raised to 275 tonnes per day ("tpd") with metal recoveries of 92.3% for Ag, 79.0% for Au, 94.1% for Pb and 91.5% for Zn. In addition to processing the 11,013 tonnes from the Company's mines, 2,208 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down.
Mine development continued to extend known areas and provide access to new mining areas with a total of 2,093 metres advanced. Preparations are underway at the La Prieta mine for commencing exploratory development in the second quarter. This is a past producing mine with modest mineral resources and large exploration potential and is expected to add silver production by year end.
A total of 510 metres of underground diamond drilling was completed. Drilling was carried out to test for additional resources at the Argentina Mine between the second and third levels and at the San Miguel mine. Results from the drilling are being used to direct further exploratory development.
Roscoe Postle Associates Inc. ("RPA") of Vancouver, B.C. has delivered an update to the ongoing mineral resource development at Topia (see news release dated March 7th, 2011 (http://www.greatpanther.com/s/NewsReleases.asp?ReportID=446144&_Type=News-Releases&_Title=Great-Panther-Silver-Increases-Mineral-Resources-at-the-Topia-Mine)). The 2011 RPA mineral resource estimate comprises Measured & Indicated ("M & I") Mineral Resources of 171,000 tonnes at 864g/t silver, 1.56g/t gold, 7.53% lead and 4.37% zinc (7.44 million silver equivalent ounces), a 36.3% increase over the 2009 resource estimate. In addition, RPA estimates 285,000 tonnes of 868g/t silver, 1.5g/t gold, 6.5% lead and 3.7% zinc (11.91 million silver equivalent ounces) in the Inferred category, a 109.3% increase over the previous estimate.
The production rate from the Topia mines is increasing each year and is planned at 36,000 tonnes in 2011. Additionally, there are other mineralized veins that are not included in this resource estimate. By applying reasonable estimates of 50% mining dilution and 80% mining recovery, management expects the current resources to support a mine life of at least fifteen years. It is anticipated that, with additional drilling, the resource will continue to increase. 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.
Outlook
The strategy to accelerate production to 3.8 million Ag eq oz in 2012 remains unchanged. Topia production continues to excel and Guanajuato production is showing a very positive trend under new management.
New NI 43-101 compliant mineral resource/reserve estimates by RPA have been published for both operations. Resources for Topia support mining and mine expansions while the plant capacity has been increased to 275 tpd. Resource estimates for Guanajuato support the medium term production goals and plant capacity has already exceeded what is required to achieve these. The resources did not include estimates for the Guanajuatito area and the San Ignacio Property. The resource estimate for San Ignacio is being prepared for publication in the second quarter and is expected to add significantly to the total resources, thereby supporting longer term production goals at Guanajuato.
Robert F. Brown, P.Eng., 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 Silver and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
For further information, please visit the Company's website at www.greatpanther.com.
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, 2010 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.
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