Great Panther releases NI 43-101 Topia resource

2014-05-29 08:37 ET - News Release

Mr. Robert Archer reports

GREAT PANTHER SILVER UPDATES MINERAL RESOURCES AT TOPIA MINE

Great Panther Silver Ltd. is providing an update to the mineral resource at the company's 100-per-cent-owned Topia silver-gold-lead-zinc mine in Durango, Mexico. The November, 2013, measured and indicated (M&I) mineral resource estimate totals 198,000 tonnes at 844 grams per tonne silver, 1.71 g/t gold, 6.16 per cent lead and 4.82 per cent zinc (8.19 million silver-equivalent ounces). In addition, the inferred mineral resource estimate totals 209,500 t of 863 g/t silver, 1.68 g/t gold, 5.37 per cent lead and 4.54 per cent zinc (8.56 million AgEq ounces). The breakdown for the November, 2013, mineral resource estimate for Topia is given in the table.

The M&I portion of the November, 2013, mineral resource estimate reflects a 46-per-cent increase in AgEq ounces due to the successful conversion of inferred resources to M&I resources through in-vein development, improved smelter contract terms, the conversion of the mineral estimate from a 2-D (previous estimates) to 3-D system, and refinement of individual vein reconciliation and associated dilution. The inferred portion of the resource estimate decreased by 10 per cent mainly due to the conversion of inferred resources to M&I resources through underground development and sampling, and to a reduction in step-out drilling due to budgetary constraints in 2013.

"The successful conversion of resources from the inferred category to measured and indicated at Topia reflects a more robust model and a better understanding of the continuity of the mineralization," stated Robert Archer, president and chief executive officer. "By increasing our measured and indicated resources from 5.60 million to 8.19 million AgEq ounces, we have more than replaced what we mined since the last resource estimate. This speaks volumes about the longevity of the Topia mine."

                    TOPIA MINE MINERAL RESOURCE ESTIMATE
                        (Effective date Nov. 30, 2013)      

Category                     Tonnage        Ag        Au        Pb        Zn 
                                 (kt)     (g/t)     (g/t)       (%)       (%)

Total measured                  71.0       911      1.70      6.91      5.42
Total indicated                127.0       807      1.72      5.75      4.48
Total measured and indicated   198.0       844      1.71      6.16      4.82
Total inferred                 209.5       863      1.68      5.37      4.54

1. Canadian Institute of Mining, Metallurgy and Petroleum definitions were 
followed for mineral resources. 
2. Mineral resources are reported at a cut-off net-smelter return of $180 
(U.S.)/tonne. 
3. Area-specific bulk densities as follows: Argentina -- 3.06 tonnes/cubic 
metre; Don Benito -- 3.26 t/cubic m; Durangueno -- 3.12 t/cubic m; El 
Rosario -- three t/cubic m; Hormiguera -- 2.56 t/cubic m; La Prieta -- 2.85
t/cubic m; Recompensa -- 3.30 t/cubic m. 
4. A minimum mining width of 0.30 metre was used. 
5. Mineral resources are estimated using metal prices of: $1,260 
(U.S.)/ounce Au, $21.00 (U.S.)/ounce Ag, 95 U.S. cents/pound Pb and 95 U.S. 
cents/pound Zn. 
6. Totals may not agree due to rounding.

                        CONTAINED METAL (ALL VEINS)

Category           Tonnage        Ag        Au        Pb        Zn      AgEq  
                       (kt)     (Moz)     (koz)     (Mlb)     (Mlb)     (Moz)

M&I resource         198.0      5.37      10.9      26.9      21.0      8.19
Inferred                                                                    
resource             209.5      5.81      11.3      24.8      21.0      8.56

The November, 2013, mineral resource estimate was classified according to the Canadian Institute of Mining, Metallurgy and Petroleum definition standards on mineral resources and mineral reserves, and, as such, is consistent with the requirements of National Instrument 43-101. This resource estimate replaces the previous resource estimate completed by Roscoe Postle Associates Inc. (RPA) in 2012 for the Argentina and various other veins on the property.

The November, 2013, mineral resource estimate provides an update for the following 31 veins from nine mining areas: Argentina (west, central and east portions in the Argentina mine), Santa Cruz, Don Benito (north, south, intermediate, north splay, west and west splay veins in the 1522 mine), Recompensa, Intermediate and Oliva (Recompensa mine), Cantarranas (Hormiguera mine), San Jorge and San Miguel (San Miguel mine), San Gregorio (San Gregorio and Durangueno mines), El Rosario (El Rosario mine), Oxidada, Oxi, Higueras and San Pablo veins (Durangueno mine), and the La Prieta 1 to 5 veins (La Prieta mine).

The effective date for this resource estimate is Nov. 30, 2013. Reporting delays were caused by scheduling issues and challenges relating to the complexity of the multiple vein zones at Topia. The resource estimate was based on a minimum net-smelter-return value of $180 (U.S.)/tonne (corresponding to 2013 mining, processing, and general and administrative costs). The November, 2013, mineral resource estimates assumes: actual concentrate transport, and smelter treatment and refining charges in effect for 2014; metal prices as of fourth quarter 2013; typical plant recoveries for 2013; and a minimum true width of 0.3 metre. Capping was individually applied to each of the veins making up the summary in the table.

While most of the current resource base came from Great Panther's diamond drilling and underground development, the resource estimated in certain veins (such as Argentina) on the property came largely from the verification of Penoles's sampling, on levels that are planned for access in 2014 and later, and are still intact. The majority of Great Panther's mining to date has come from new mine development on veins reported in these estimates. There is minor production from other veins that is not included in this update but may be estimated in future resource updates. The new total contained metal for the mineral resource categories is shown in the table.

Due to the steep topography and the nature of the narrow veins at Topia, surface drilling is typically widely spaced and is used as a guide for underground development by locating and confirming structural continuity and grade, while development by drifting, sampling and some underground drilling along the vein defines the M&I mineral resource. Accordingly, surface drilling is used to determine inferred resources.

Areas of interest for the 2014 Topia mine underground drill program include the various veins located at the Recompensa, Argentina, El Rosario, Durangueno and 1522 mines.

Analysis of underground mine samples is completed on-site, with check assays and drill core sample assays performed by SGS Minerals Services in the company's Guanajuato, Mexico, laboratory. The company's quality assurance/quality control program includes the regular insertion of blanks and standards into the sample shipments. Robert Brown, PEng, vice-president of exploration for Great Panther Silver and its wholly owned Mexican subsidiary, Minera Mexicana El Rosario SA de CV, and Linda Sprigg, RPGeo AIG, resource geologist for Octree Consulting Pty. Ltd., are designated as the qualified persons for the Topia mine project under the meaning of NI 43-101 and have reviewed this news release.