Great Panther claws more silver in Mexico

Great Panther Resources (GPR-T) continues to define mineralization at its Gunajuato mine in Mexico.

Underground development and diamond drilling has extended high grade gold and silver mineralization at the 430 metre level — 13 metres below older workings.

Channel sampling driven parallel to the strike of the lower zone returned 0.63 grams gold per tonne and 202 grams silver over an average width of 3.63 metres and strike length of 38.3 metres.

A small cross-cut, driven perpendicular to the strike of the lower zone in the footwall direction, hit continuous mineralization over of 10.30 metres averaging 8.16 grams gold and 2,017 grams silver. The company says it is re-assaying those results because of the high grades. Results are pending.

The mineralized zone is broken into an upper and lower zone. The upper zone moves along the lower contact of a diorite intrusion and host sediments, while the lower zone is hosted entirely within the sediments.

The zones consist of silicification, brecciation, and quartz vein flooding.

The upper zone returned 3.63 metres of 1.01 grams gold and 279 grams silver, while the lower zone returned 3.24 metres of 1.91 grams gold and 609 grams silver, including 1.25 metres of 2.97 grams gold and 1,010 grams silver.

The company says deep drilling will keep testing the area between the 400 and 650 metre levels along a strike length of 1,000 metres between and below two of its shafts.

Drilling is currently being done with just one rig, but another is expected to arrive after Christmas. When the drill program is done in the third quarter of next year, Great Panther expects to have drilled 68 holes for 16,000 metres.

In Toronto on Nov. 29, Great Panther’s shares were up 8% or 9 to $1.20 on 317,000 shares traded.

Gunajuato went into production in 2006 and in the first half of this year the mine turned out 326,000 equivalent silver oz. Total direct cash costs came in at US$6.42 for the same period.