Great Pather Silver discovers additional mineralization at Mexican mine
Wednesday, August 31, 2011 by Joyanta Acharjee
Great Panther Silver (TSE:GPR)(AMEX:GPL) Tuesday announced the discovery of additional high grade silver-gold mineralization in an extension of the Cata Mine in the core of the Guanajuato Mine Complex in Mexico.
The discovery was made during the course of a detailed deep drilling program being conducted at 12.5 to 25 metre intervals from several drill stations in the Cata Mine access ramp at the 510 metre level, the deepest mining development to date.
The latest findings have pleased investors. As at 3.02pm EDT, shares of Vancouver-headquartered Great Panther Silver shares were up 8%, or 23 cents, at $3.10.
Highlights of observations include Alto 2 zone intersections from UG11-135 that returned 29.44 grammes per tonne (g/t) gold and 6,447g/t silver over a width of 3.20 metres, and UG11-137 that returned 7.38g/t gold and 2,114g/t silver over a width of 5.40 metres.
The Alto 1a zone in UG11-137 returned 1.82g/t gold and 485g/t silver over a width of 4.80 metres, while the Veta Madre zone in UG11-133 returned 6.02g/t gold and 1,347g/t silver over a width of 2.25 metres.
In a press release, Great Panther's President & CEO Robert Archer said: "The discovery of new high grade mineralization at depth at Cata is very significant as it not only emphasizes the ongoing potential for new discoveries, but the excellent silver and gold grades will go a long way to boosting our overall grades from this part of the mine."
The silver producer said exploitation at the Cata Mine is being conducted above the 490 metre level, targeted at the Veta Madre mineralization. Production from this area is currently 180 tonnes per day at grades averaging 1.0g/t gold and 250g/t silver and supplies one third of the metal production from the company's Guanajuato operations. The drilling was focused on defining the Alto 1, Alto 1a and Alto 2 zones so that they can be sequenced into the mine plan in the latter part of 2011.
Great Pather Silver said that the latest drill results extend the mineralization of the Alto 1 and 2 zones and mining of these two zones will start in the fourth quarter as soon as further drilling, currently in progress, has been completed.
Plans are underway to extend development along the entire strike length of this area to continue exploratory and definition drilling, access to all of the zones, and provide access to drill further down dip. The drilling will be an integral part of updating the Cata Mine mineral resource/reserve estimate, anticipated for later this year.
