The silver/gold vein systems of the Veta Madre at Guanajuato were discovered as early as 1548. At their peak of production in the 18th century these systems were responsible for one third of the world’s silver output. Today the Guanajuato area and its prolific, high grade silver/gold vein systems are still one of the most prolific silver producing regions of the world.
According to a survey conducted by The Fraser Institute, Mexico is among the top 20 most attractive regions in the world for exploration and mining. A strong mining culture, excellent geology, political stability and favorable tax and permitting structures all combine to create major appeal for mining companies. Non-Mexican companies can maintain 100% ownership of their properties and reap the full benefits of successful exploration and project development for their shareholders.
Great Panther Silver (TSX – GPR) has two operating mines in Mexico and is on the prowl for further acquisitions. GPR is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The centerpiece of the Company's operations is the world class Guanajuato Silver-Gold Mine in the state of Guanajuato.
Great Panther also owns and operates the Topia Silver-Lead-Zinc Mine in Durango State. The Company has increased production to a new all time high and is growing the resource base through continued surface drilling and underground development.
Great Panther Silver Ltd. has released results of high-grade gold and silver intercepts from the first six holes in the current surface diamond drill program at its San Ignacio satellite mine. Results are highlighted by a 7.45 metre (5.26 metre true width) intersection of 1,133g/t silver and 6.86g/t gold in hole ESI14-120. This zone contained a 0.5 metre section of mineralization that assayed 11,951g/t silver and 48.2g/t gold, the highest assays ever received from the San Ignacio property.
The first hole in the program, ESI14-117, returned an intercept of 244g/t silver and 7.42g/t gold over 8.95 metres (7.75 metre true width), while hole ESI14-118 returned 130g/t silver and 4.94g/t gold over 7.70 metres (6.98 metre true width), both in the Intermediate vein. These holes appear to represent the southerly strike extension of the mineralization in 2013 hole ESI13-106 that returned 24.60 metres (15.81 metres true width) of 263g/t silver and 7.27g/t gold.
"This is an exceptional start to the drill program," stated Robert Archer, President and CEO. "While we were confident of extending the mineralization to the south of the existing resource block, many of these intercepts are of grades and widths better than those within the Mineral Resource Estimate for the Intermediate vein."
The current 3,500 metre surface drill program commenced early in October and is focused on the Intermediate and Melladito veins south of the present mineral resource block for 300 metres, and under historic workings dating back to the 19th century. The six holes drilled to date (see table below and updated longitudinal sections on the Company's website at www.greatpanther.com) have extended the mineralization for 130 metres south of the existing resource block. In addition, the southerly extension of the Nombre de Dios vein will be tested, and some fill-in of the Nombre de Dios II vein will be completed. The known strike extent of the veins on the property is approximately 4,000 metres so there is still significant expansion potential beyond this program. A second drill has been added in order to finish the program before year-end.
The San Ignacio Mine entered commercial production in June as a satellite operation to the main Guanajuato Mine. It is currently operating at approximately 200 tonnes per day, with ore being trucked 22 kilometres to the Company's Cata processing plant. As mineralization is close to surface, access and mine development is provided by a main ramp with auxiliary production levels. The closest of the new exploration holes, ESI14-117, is only about 45 metres south and at the same elevation as the existing production level. Consequently, these new results can be used for follow up underground drilling and development in 2015.
Robert F. Brown, P. Eng. and Vice President of Exploration for the Company, is the Qualified Person for the San Ignacio Mine and has reviewed these results. The Company's QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions.