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GREAT PANTHER SILVER LIMITED (TSX:GPR - News) (the
"Company") is pleased to announce the discovery of deeper
mineralized silver-gold zones at the Guanajuatito Mine at the northwest end
of the Guanajuato Mine Complex. The deep drilling program is being conducted
at 25-50 metre intervals from several drill stations on the Guanajuatito Mine
cross-cut, located on the 100 metre level. The drilling program has been
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. Highlights from 21 drill
holes completed in 2010 plus several earlier drill holes in the deeper (below
the 80 metre level) portions of Guanajuatito are listed below. A more
complete listing of results and a longitudinal section showing the drill
holes have been added to the Company website (http://www.greatpanther.com/s/Guanajuato_Mine.asp?ReportID=411949&_Type=Guanajuato-Mine-Complex&_Title=Plan-and-Sections).
Using information from mining the upper
levels and the new drilling, 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.
Drilling is being conducted from drill
stations in a hanging wall cross-cut on the 100 metre level. Modeling of the
structures is presently being completed and ramp access has intersected the
Veta Madre on the 120 metre level. Future plans call for a hanging wall
exploration drive sublevel to be driven both northwest and southeast to
accommodate additional drill stations at 50 metre intervals to test the
mineralized zones in the Guanajuatito Mine area from the 100 metre level down
to the 390 metre level (approximately 400 metres down dip), and along 500
metres of strike.
Andrew Sharp, Guanajuato Mine Manager
stated, "Ore development on the 120 level is underway and the provision
of ventilation for the first ore level is a priority. Once this commences,
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."
The Guanajuatito Mine was the first area
at Guanajuato to be drilled by Great Panther in 2005 and one of the first to
commence mining. While the upper levels (from the +20 metre level down to the
80 metre level) were drilled from surface, and subsequently mined out (76,668
tonnes at 254g/t Ag and 1.69g/t Au, for 876,000 Ag eq oz using a 60:1
silver:gold ratio), this zone was never included in any NI 43-101 compliant
resource. The new drilling on the deeper levels will, however, be brought
into the Company's next resource update later this year.
Highlights of Deep Guanajuatito Drill Holes
-----------------------------------------------------------------------
True
To Width
Hole Number From (m) (m) Width (m) (m) Au (g/t) Ag (g/t) Zone
-----------------------------------------------------------------------
UG09-084P 1.8 7.9 5.8 4.1 2.36 429 VM
-----------------------------------------------------------------------
UG09-080 29.0 31.7 2.7 1.74 1.01 175 VM
-----------------------------------------------------------------------
SG08-070 247.5 249.24 1.74 1.22 0.46 100 VM
-----------------------------------------------------------------------
UGG10-001 28.5 30.4 1.9 1.8 1.28 115 VM
-----------------------------------------------------------------------
UGG10-002 32.5 35.05 2.55 2.4 1.87 455 FW
-----------------------------------------------------------------------
UGG10-003 45.25 49.6 4.35 2.8 0.46 307 FW
-----------------------------------------------------------------------
UGG10-005 109.15 111.65 2.5 2.17 1.22 194 FW
-----------------------------------------------------------------------
UGG10-006 88 90.5 2.5 2.49 0.44 140 FW
-----------------------------------------------------------------------
UGG10-008 102.95 103.65 0.7 0.61 8.52 1300 VM
-----------------------------------------------------------------------
UGG10-009 147.95 151.55 3.6 3.59 0.87 241 VM
-----------------------------------------------------------------------
UGG10-009 154.3 156.15 1.85 1.84 1.72 377 FW
-----------------------------------------------------------------------
UGG10-012 41.5 42.05 0.55 0.55 2.51 558 VM
-----------------------------------------------------------------------
UGG10-017 87.8 91.4 3.6 3.58 1.03 194 VM
-----------------------------------------------------------------------
UGG10-019 146.7 151.3 4.6 4.44 1.17 274 VM
-----------------------------------------------------------------------
UGG10-021 168.2 170.1 1.9 1.72 2.27 839 FW
-----------------------------------------------------------------------
VM: Veta Madre zone; FW: Footwall zone.
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
will be conducted at the Guanajuato Mine on-site laboratory, independently
operated by SGS.
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, 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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