Mr. Robert Archer reports
GREAT PANTHER SILVER INCREASES INDICATED RESOURCES BY 31% AND INFERRED RESOURCES BY 162% AT THE SAN IGNACIO MINE
Great Panther Silver Ltd. has released an updated mineral resource estimate at the San Ignacio mine, part of the company's wholly owned Guanajuato mine complex (GMC) in Guanajuato, Mexico. This updated mineral resource estimate includes the most recent drill results at San Ignacio and the discovery of high-grade silver-gold mineralization to the south of the 2014 mining area (see news releases dated Oct. 30, 2014, and Jan. 27, 2015).
- Indicated mineral resources at the San Ignacio mine are estimated to
comprise 180,300 tonnes at a grade of 159 grams per tonne silver and 3.49 g/t
gold, containing 2,351,000 silver-equivalent ounces, an increase of 31 per cent from the July 31, 2014, resource estimate. Inferred
resources comprise 787,800 tonnes at 160 g/t Ag and 3.26 g/t Au,
containing 9,897,000 AgEq ounces, an increase of 162 per cent.
- Updated measured and indicated (M&I) mineral resources at the
producing operations of the GMC (Guanajuato and San Ignacio mines)
comprise 400,800 tonnes at a grade of 244 g/t Ag and 3.26 g/t Au,
containing 6,108,800 AgEq ounces, an increase of 10 per cent from the July 31, 2014,
resource estimate. Various silver-equivalent cut-offs were
used in the different mineralized zones.
- Inferred mineral resources at the producing operations of the GMC are
estimated to comprise 951,400 tonnes at a grade of 150 g/t Ag and 3.28 g/t
Au, containing 11,679,200 AgEq ounces. Different cut-off grades were used
for the mineralized zones as indicated in the tables. Including
the non-producing El Horcon project, inferred resources comprise
1,100,600 tonnes at 140 g/t Ag and 3.31 g/t Au, containing 13,760,400 AgEq ounces, an increase of 80 per cent from the July 31, 2014, resource estimate.
"The substantial increase in resources at our San Ignacio mine reflects the discovery of wider zones of higher-grade silver-gold in late 2014," commented Robert Archer, president and chief executive officer. "We have already started developing and mining this new southern extension, and we expect this area to play an increasingly important role in the future of the GMC. San Ignacio has significant potential for further expansion and we anticipate continued success in our 2015 drilling."
The updated 2014 San Ignacio mine mineral resource estimate contains 2,351,000 AgEq ounces in the indicated category, in the Intermediate and Melladito veins. Inferred mineral resources are estimated at 9,897,000 AgEq ounces, and are contained in the Intermediate, Melladito, Melladito 2, Melladito 3, Nombre de Dios and Nombre de Dios II veins. Recent surface drilling at San Ignacio has discovered that the Intermediate and Melladito veins merge, just south of the previous resource block, into a thicker, higher-grade lens of silver-gold mineralization. The Melladito 2 and Melladito 3 structures are splays along the west side of Melladito vein. The old mining areas along the Melladito vein have been completely extracted from the mineral resource estimation.
Mining at San Ignacio in 2014 was focused on the Intermediate vein and, to a lesser degree, the Melladito vein. As the two merge to the south, the single vein will retain the Melladito name. Underground drilling in 2015 will be focused on improving the classification of the resource adjacent to exploitation along Melladito and Intermediate, while surface drilling will test the depth and strike continuity of all veins.
SAN IGNACIO MINE: MINERAL RESOURCE ESTIMATIONS
Vein Tonnes Ag Ag Au Au AgEq AgEq
(g/t) (oz) (g/t) (oz) (g/t) (oz)
Indicated
Intermediate 84,228 173 468,005 3.03 8,192 386 1,046,349
Melladito 96,061 148 456,108 3.89 12,025 423 1,305,086
Total
indicated 180,289 159 924,113 3.49 20,217 406 2,351,435
Indicated
rounded 180,300 159 924,100 3.49 20,220 406 2,351,000
Inferred
Intermediate 91,632 250 736,214 2.79 8,221 447 1,316,614
Melladito 270,008 157 1,365,463 3.48 30,248 403 3,500,938
Melladito 2 106,906 134 460,521 3.98 13,689 415 1,426,947
Melladito 3 54,656 84 147,013 3.25 5,713 313 550,345
Nombre de
Dios 175,265 145 818,312 2.71 15,269 337 1,896,288
Nombre de
Dios II 89,332 185 532,602 3.32 9,541 420 1,206,168
Total
inferred 787,799 160 4,060,125 3.26 82,680 391 9,897,300
Inferred
rounded 787,800 160 4,060,000 3.26 82,680 391 9,897,000
1. All San Ignacio mineral resource estimates used an effective date of Dec.
15, 2014, and all used a metal price outlook of $17 (U.S.)/ounce silver and
$1,200 (U.S.)/ounce gold.
2. Net-smelter-returns royalty cut-off of $100 (U.S.) (approximately 246 g/t
AgEq).
3. Mill recoveries 84 per cent silver and 86 per cent gold.
4. Silver-equivalent was calculated using a 70.6-to-1 ratio of silver to
gold value.
5. Rock density for Intermediate and Melladito is 2.63 tonnes/cubic metre,
for Melladito 2, Melladito 3, Nombre de Dios and Nombre de Dios II is 2.62
t/cubic m.
6. Totals may not agree due to rounding.
7. Grades in metric units.
8. Contained silver and gold in troy ounces.
9. Minimum true width of one metre.
The 2014 Guanajuato mine mineral resource estimate (see details reported in news release dated Jan. 29, 2015) contains measured and indicated mineral resources of 3,757,800 AgEq ounces, including 3,190,300 AgEq ounces in the measured category and 567,500 AgEq ounces in the indicated category. Inferred mineral resources are estimated at 1,782,200 AgEq ounces. These are all contained within the Cata Clavo (seven zones), Los Pozos (two zones), Santa Margarita, San Cayetano, Promontorio, Valenciana (five zones) and Guanajuatito (five zones) areas. The Guanajuatito (GTTO) area has been expanded with the addition of the Intermediate zone located in the footwall to the GTTO hangingwall zone. Resources in the Santa Margarita and Cata areas have also been increased.
The 2014 mineral resource estimate for the El Horcon project (see details reported in news release dated Jan. 29, 2015) includes only the inferred classification of 149,200 tonnes containing 375,300 ounces silver, 16,830 ounces gold, 9,275,000 pounds lead and 13,024,500 pounds zinc. There has been no additional drilling since 2013 and the resource update reflects only updated metal pricing, which resulted in a 7-per-cent decrease compared with the previously reported mineral resource. The El Horcon project is not in production and the company has no specific plans to advance the project in 2015 except by completing various environmental permitting that is already under way.
Over all, from the last mineral resource estimate for the GMC (effective date July 31, 2014), the measured and indicated classification increased by 10 per cent (plus-550,800 AgEq ounces), while the inferred mineral resource increased by 80 per cent (plus-6,122,700 AgEq ounces). The increases are due to the successful drill program at San Ignacio in late 2014 that has added substantial indicated and inferred resources at that mine. The potential to further increase the resources at San Ignacio is highlighted by the three kilometres of mostly untested strike length and by the fact that the veins are still locally open to depth.
UPDATED 2014 MINERAL RESOURCE ESTIMATE FOR THE GUANAJUATO MINE COMPLEX
Mine Tonnes Ag Ag Au Au AgEq AgEq
(g/t) (oz) (g/t) (oz) (g/t) (oz)
Measured
Guanajuato 184,500 309 1,832,500 3.24 19,780 538 3,190,300
Total
measured 184,500 309 1,832,500 3.24 19,780 538 3,190,300
Indicated
San
Ignacio 180,300 159 924,100 3.49 20,220 406 2,351,000
Guanajuato 36,000 335 387,900 2.20 2,540 490 567,500
Total
indicated 216,300 188 1,312,000 3.28 22,760 420 2,918,500
Measured and indicated
San
Ignacio 180,300 159 924,100 3.49 20,220 406 2,351,000
Guanajuato 220,500 313 2,220,300 3.07 22,300 530 3,757,800
Total M&I 400,800 244 3,144,400 3.26 42,520 474 6,108,800
Inferred
San
Ignacio 787,800 160 4,060,000 3.26 82,680 391 9,897,000
Guanajuato 163,600 101 532,600 3.37 17,710 339 1,782,200
SI and GTO
inferred 951,400 150 4,592,600 3.28 100,390 382 11,679,200
El
Horcon 149,200 78 375,300 3.51 16,830 434 2,081,200
Total
inferred 1,100,600 140 4,967,900 3.31 117,220 389 13,760,400
Mineral resource estimates for Guanajuato and El Horcon use an effective
date of July 31, 2014, while San Ignacio uses an effective date of Dec. 15,
2014, and all used a metal price outlook of $17 (U.S.)/ounce silver and
$1,200 (U.S.)/ounce gold.
Silver-equivalent calculations for El Horcon include lead content but not
zinc as the zinc would not be recovered in the Guanajuato plant. Recoveries
and smelter terms are also factored into the calculation.
The estimates were classified according to the Canadian Institute of Mining, Metallurgy and Petroleum definition standards on mineral resources and mineral reserves, and, as such, are consistent with the requirements of National Instrument 43-101. The mineral resource estimate was completed by Robert Brown, PEng, and company qualified person.
The company's quality assurance/quality control program includes the regular insertion of blanks, duplicates and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions. Sample assaying was completed at the independent SGS-GTO lab in Guanajuato, GTO, Mexico. Silver assaying was completed with AAS12B technique, with overlimits (300 g/t) completed by FAG323. Gold assaying was completed with FAA313 technique, with overlimits (10 g/t) completed by FAG323. Where necessary lead, zinc, copper, arsenic and antimony assays were completed using atomic absorption spectroscopy.
The technical information contained in this news release has been reviewed and approved by Robert F. Brown, PEng, vice-president of exploration for the company, who is the qualified person for the Guanajuato mine complex and the mineral resource estimates under the meaning of NI 43-101. Aspects relating to mining and metallurgy are overseen by Ali Soltani, chief operating officer for Great Panther and its Mexican subsidiary, Minera Mexicana El Rosario SA de CV.
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