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Great Panther Updates Mineral Resource/Reserve
Estimates At The Guanajuato Mine
GREAT PANTHER SILVER LIMITED (TSX: GPR) is pleased to report that
Scott Wilson Roscoe Postle Associates ("Scott
Wilson RPA"), of Vancouver, B.C., has completed a NI 43-101 compliant
mineral resource/reserve estimate on the Cata Clavo, Los Pozos, and Santa Margarita
zones at the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico.
The new Measured and Indicated mineral resource contains 5,450,000 ounces
silver equivalent. Inferred mineral resources are estimated at 2,678,000
ounces silver equivalent ("Ag eq oz").
The Measured and Indicated mineral resources include 4,372,000 Ag eq oz categorized as Proven and Probable mineral
reserves, using a cut-off grade of 185 g/t silver equivalent. This is the
first time that NI 43-101 compliant reserves have been estimated for the
Guanajuato Mine and is a positive step in confirming the long-term viability
of this historic operation.
The new resource base represents a 53% increase over the previous resource
estimate (for just the Cata Clavo;
see news release June 30, 2009), even after deducting the production from
that zone over the last year and a half. This demonstrates the Company's
ability to not only replace what is being mined, but to increase the resource
base and extend the mine life with additional drilling. There were no
compliant resources at Guanajuato when Great Panther purchased the property
in 2005 and most of the more than 4,500,000 Ag eq
oz that the Company has mined from Guanajuato since 2006 has come from
non-compliant resources.
Mining of the three zones, Cata, Los Pozos, and Santa Margarita currently accounts for most of
the Guanajuato metal production. Resource drilling is ongoing to delineate
new resources and reserves on the upper and depth extensions of Los Pozos and the southeast strike extension of Santa
Margarita but also includes Guanajuatito, Valenciana, San Telesforo, and
the depth extensions of the Rayas Clavo, none of which are included in this resource
estimation but which will be included in the 2011 update. In addition,
drilling of the very promising San Ignacio project will continue through 2011
and will make a significant contribution to future resources for the
Guanajuato Mine. As such, the resource base will continue to build at
Guanajuato and it is the Company's stated objective to delineate
approximately 25-30 million Ag eq oz here by 2012.
For the year 2010, production from Guanajuato is estimated to be 1.02 million
Ag oz and 6,720 Au oz (1.44 million Ag eq oz). The
resource and reserve estimates, together with the significant potential of
the ongoing drilling programs, positively support the achievement of the
growth strategy objectives for Guanajuato.
Silver equivalent values were applied to computer generated block models in
order to define the mineral resource. The mineral reserve cut-off value of
185g/t (6.0 oz/t) silver equivalent is the metal content contained in one tonne of ore for which the net revenue (net of smelter
and refining costs) is equal to the average full operating costs to mine and
process one tonne of ore. Scott Wilson RPA used
medium term projected metal prices of US$17.67/oz Ag and US$1150/oz Au
(relative price ratio of 65 gold to 1 silver), 2010 concentrate sales
contract terms, and typical plant performance metal recoveries and
concentrate grades to calculate the net value. Total operating costs at
Guanajuato, including mining, milling, and general and administration costs,
are currently US$85/tonne. Experience gained from
mining the veins by the cut-and-fill mining method and the upward trend in metal
prices, determined that the appropriate cut-off value for defining mineral
resources at Guanajuato be set at 136g/t (4.3oz/t) silver equivalent. The use
of a lower cut-off for resources reflects the less stringent guidelines for
resources versus reserves.
Based upon these parameters, the Measured and Indicated mineral resource
contains 5,450,000 Ag eq oz including 2,495,000 Ag eq oz in the Measured category and 2,956,000 Ag eq oz in the Indicated category. Inferred resources are
estimated at 2,678,000 Ag eq oz. Of the Measured
and Indicated mineral resource, 4,372,000 Ag eq oz
is classified as Proven and Probable mineral reserve, using a cut-off of
185g/t silver equivalent. The Proven mineral reserve is estimated at
1,935,000 Ag eq oz, while the Probable mineral
reserve is estimated at 2,438,000 Ag eq oz.
Breakdowns for silver and gold can be found in the tables below.
The mineral resource estimate for Guanajuato was prepared using block models
constrained by 3D wireframes of the principal mineralized zones. Separate
block models, comprising arrays of 2.5 by 2.5 by 2.5 meter blocks, were
constructed for each of the Cata, Los Pozos, and Santa Margarita zones. Grades for gold and
silver were interpolated into the blocks using Inverse Distance Cubed (ID3) weighting.
Block model graphics, maps, sections and previous news releases can be viewed
on the Company's website at www.greatpanther.com. The samples consisted of diamond drill and production chip samples.
Scott Wilson RPA capped high gold and silver grades at a range of levels
depending on the zone and the type of sample (drill hole or chip). The
estimates were classified according to the CIM Definition Standards on
Mineral Resources and Mineral Reserves, and as such, are consistent with the
requirements of NI 43-101. The estimate was prepared using GEMS software (Gemcom), which is a commercially available package,
commonly used in the industry.
The Cata Clavo is
separated into four zones, namely, the Veta Madre,
Alto 1, Alto 1a and Alto 2. The upper limit of the
main Veta Madre zone is set at the floor of the 460
metre level as it has been extensively mined out
above this level. Mining of the three higher grade Alto zones is underway
using a modified mining plan. The mineralized zones used in the resource
represent an approximate 100 metre vertical height
and a strike length of approximately 150 metres.
The Los Pozos zone is a downward tapering zone of
30-90 metres strike length and widths to 12 metres. The mineral resource estimate is from the 390
level up to the bottom of the 270 level sill pillar.
The Santa Margarita is separated into four zones, namely the HW stockwork, Breccia, FW A, and
FW B. The mineral resource estimate was calculated from below the floor of
the 390 level to the 600 level along a strike length of more than 200 metres.
The Veta Madre (at Cata
and Los Pozos areas) and the Cata
Alto 1 zone are complex quartz dominated stockwork
and breccia zones of pyrite and argentite
mineralization with argillic and propylitic alteration in the footwall shale. Footwall to
the Veta Madre is a barren silica breccia with large angular shale fragments. The Alto 1a,
and Alto 2 zones are silica rich brecciated zones
within a hanging-wall diorite dyke. The Santa Margarita zones in the Rayas area are silica rich brecciated
hanging wall conglomerates, andesite and La Sirena quartz porphyry intrusive. All zones strike
generally NW-SE and dip 45 degrees southwest.
Measured, Indicated and Inferred mineral resources in the three areas were
estimated by Dave Rennie, P.Eng,
a Principal Geologist for Scott Wilson RPA, and the
Proven and Probable mineral reserves were estimated by R. Dennis Bergen, P.
Eng, Associate Principal Mining Engineer for Scott Wilson RPA. Both are
independent of Great Panther as per the criteria set out in NI43-101. The
Mineral Reserves and Mineral Resources estimates are tabulated below:
October 31 2010 Proven Mineral Reserves
|
|
Tonnage
|
AU
|
AU
|
AG
|
AG
|
AgEq
|
Zone
|
Kt
|
g/t
|
oz
|
g/t
|
oz
|
oz
|
Cata
- Madre
|
44.0
|
1.28
|
1,800
|
344
|
486,000
|
603,000
|
Cata
- Alto 1
|
30.5
|
2.21
|
2,170
|
296
|
290,000
|
431,000
|
Pozos
|
65.4
|
1.29
|
2,720
|
309
|
650,000
|
827,000
|
Santa
Margarita BX
|
7.3
|
4.47
|
1,050
|
21
|
5,000
|
73,000
|
Total
Proven
|
147.0
|
1.64
|
7,740
|
303
|
1,431,000
|
1,935,000
|
|
|
|
|
|
|
|
October 31 2010 Probable Mineral Reserves
|
Zone
|
Tonnage
|
AU
|
AU
|
AG
|
AG
|
AgEq
|
|
Kt
|
g/t
|
oz
|
g/t
|
oz
|
oz
|
Cata
- Madre
|
2.1
|
0.91
|
60
|
187
|
13,000
|
17,000
|
Cata
- Alto 1
|
21.6
|
1.02
|
710
|
225
|
156,000
|
202,000
|
Cata
- Alto 1a
|
21.6
|
2.49
|
1,730
|
605
|
420,000
|
533,000
|
Cata
- Alto 2
|
12.3
|
2.33
|
920
|
721
|
285,000
|
345,000
|
Pozos
|
68.6
|
1.03
|
2,280
|
262
|
577,000
|
725,000
|
Santa
Margarita BX
|
30.4
|
6.69
|
6,540
|
15
|
15,000
|
441,000
|
Santa
Margarita FWSTK
|
16.6
|
4.80
|
2,560
|
19
|
10,000
|
177,000
|
Total
Probable
|
173.2
|
2.66
|
14,790
|
265
|
1,475,000
|
2,438,000
|
|
|
|
|
|
|
|
Total
Proven & Probable
|
320.2
|
2.19
|
22,530
|
282
|
2,906,000
|
4,372,000
|
October 31 2010 Proven & Probable Mineral
Reserves
|
Zone
|
Tonnage
|
AU
|
AU
|
AG
|
AG
|
AgEq
|
|
Kt
|
g/t
|
oz
|
g/t
|
oz
|
oz
|
Cata
- Madre
|
46.1
|
1.25
|
1,860
|
337
|
499,000
|
620,000
|
Cata
- Alto 1
|
52.1
|
1.72
|
2,880
|
266
|
446,000
|
633,000
|
Cata
- Alto 1a
|
21.6
|
2.49
|
1,730
|
605
|
420,000
|
533,000
|
Cata
- Alto 2
|
12.3
|
2.33
|
920
|
721
|
285,000
|
345,000
|
Pozos
|
134.0
|
1.16
|
5,000
|
285
|
1,227,000
|
1,552,000
|
Santa
Margarita BX
|
37.7
|
6.26
|
7,590
|
17
|
20,000
|
514,000
|
Santa
Margarita FWSTK
|
16.6
|
4.80
|
2,560
|
19
|
10,000
|
177,000
|
Total
Proven & Probable
|
320.2
|
2.19
|
22,530
|
282
|
2,906,000
|
4,372,000
|
Notes
- CIM definitions were followed for Mineral
Reserves.
- Mineral Reserves are estimated at a cut-off
grade of 185 g/t AgEQ.
- Mineral Reserves are estimated using an average
gold price of US$1150 per ounce and an average silver price of US$17.67
per ounce.
- The minimum mining width is 1.5 metres.
- Bulk density is 2.65 t/m3.
- Numbers may not add due to rounding.
|
|
Au g/t
|
Ag g/t
|
Cata/Alto dilution
|
20%
|
0.30
|
80
|
Cata extraction
|
80%
|
|
|
Alto extraction
|
85%
|
|
|
Pozos dilution
|
15%
|
0.30
|
80
|
Pozos extraction
|
85%
|
|
|
Santa Margarita dilution
|
20%
|
1.00
|
10
|
Santa Margarita
extraction
|
90%
|
|
|
October 31, 2010 Measured Mineral Resource
|
Zone
|
Volume
|
Density
|
Tonnage
|
Au
|
Au
|
Ag
|
Ag
|
Ag Eq
|
|
(K m3)
|
(t/m3)
|
(Kt)
|
(g/t)
|
(oz)
|
(g/t)
|
(oz)
|
(oz)
|
|
|
|
|
|
|
|
|
|
Cata
|
34.7
|
2.65
|
91.9
|
1.71
|
5,050
|
338
|
999,000
|
1,330,000
|
Los
Pozos
|
32.7
|
2.65
|
86.7
|
1.27
|
3,540
|
303
|
844,000
|
1,070,000
|
Santa
Margarita
|
3.47
|
2.65
|
9.20
|
4.43
|
1,310
|
22.0
|
6,520
|
92,000
|
Total
|
70.8
|
2.65
|
188
|
1.64
|
9,910
|
306
|
1,850,000
|
2,495,000
|
|
|
|
|
|
|
|
|
|
|
October 31, 2010 Indicated Mineral Resource
|
Zone
|
Volume
|
Density
|
Tonnage
|
Au
|
Au
|
Ag
|
Ag
|
Ag Eq
|
|
(K m3)
|
(t/m3)
|
(Kt)
|
(g/t)
|
(oz)
|
(g/t)
|
(oz)
|
(oz)
|
|
|
|
|
|
|
|
|
|
Cata
|
26.3
|
2.65
|
211
|
2.55
|
4,150
|
474
|
1,060,000
|
1,330,000
|
Los
Pozos
|
34.7
|
2.65
|
91.8
|
0.98
|
2,900
|
252
|
743,000
|
932,000
|
Santa
Margarita
|
18.8
|
2.65
|
49.8
|
6.42
|
10,300
|
18.9
|
30,300
|
701,000
|
Total
|
79.7
|
2.65
|
211
|
2.55
|
17,300
|
270
|
1,830,000
|
2,956,000
|
|
|
|
|
|
|
|
|
|
|
October 31, 2010 Measured and
Indicated Mineral Resource
|
Zone
|
Volume
|
Density
|
Tonnage
|
Au
|
Au
|
Ag
|
Ag
|
Ag Eq
|
|
(K m3)
|
(t/m3)
|
(Kt)
|
(g/t)
|
(oz)
|
(g/t)
|
(oz)
|
(oz)
|
|
|
|
|
|
|
|
|
|
Cata
|
60.9
|
2.65
|
161
|
1.77
|
9,210
|
397
|
2,060,000
|
2,660,000
|
Los Pozos
|
67.4
|
2.65
|
178
|
1.12
|
6,440
|
277
|
1,590,000
|
2,010,000
|
Santa Margarita
|
22.2
|
2.65
|
59.0
|
6.11
|
11,600
|
19.4
|
36,800
|
792,000
|
Total
|
150.5
|
2.65
|
399
|
2.12
|
27,200
|
287
|
3,680,000
|
5,450,000
|
|
|
|
|
|
|
|
|
|
|
October 31, 2010 Inferred
Mineral Resource
|
Zone
|
Volume
|
Density
|
Tonnage
|
Au
|
Au
|
Ag
|
Ag
|
Ag Eq
|
|
(K m3)
|
(t/m3)
|
(Kt)
|
(g/t)
|
(oz)
|
(g/t)
|
(oz)
|
(oz)
|
|
|
|
|
|
|
|
|
|
Cata
|
|
|
|
|
|
|
|
|
Los Pozos
|
2.53
|
2.65
|
6.70
|
0.53
|
113
|
149
|
32,200
|
40,000
|
Santa Margarita
|
77.6
|
2.65
|
206
|
4.52
|
29,900
|
105
|
694,000
|
2,640,000
|
Total
|
80.1
|
2.65
|
212
|
4.39
|
30,000
|
106
|
726,000
|
2,678,000
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Both drill core and underground chip samples were assayed independently by
SGS at the Company's Guanajuato Mine site laboratory. Aspects 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. Robert F. Brown, P. Eng and Vice President
of Exploration for the Company, is the Qualified Person for the Guanajuato
Mine Project, under the meaning of NI43-101, and has reviewed these results.
The Company's QA/QC program includes the regular insertion of blanks,
duplicates, and standards into the sample shipments.
Great Panther owns a 100% interest in the Guanajuato Mine Complex.
Historically, the Guanajuato Mine was one of the largest silver producers in
Mexico and encompasses the core of the Guanajuato District, which has
produced 1.2 billion ounces of silver and 4.5 million ounces gold.
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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