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Great Panther Drills 7.70 Metres Of 704g/t Silver
And 4.49g/t Gold In Second Hole At San Ignacio Mine Property, Guanajuato
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,
fax 604 899 4303 or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
"Robert A.
Archer"
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, 2009 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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