Great Panther launches production at Guanajuato

Vancouver – Great Panther Resources’ (GPR-V, GPRLF-O) Guanajuato silver-gold mine, in central-Mexico, has officially commenced production and will initially operate at a planned throughput of 400-tonnes-per-day.

Following refurbishment and commissioning of the processing circuit earlier this year, the company has been putting lower grade stockpiled material through the plant and has already shipped its first concentrates to Industrias Peoles’ (IPOAF-O) smelter in Torreon.

With the first ball mill now on-stream, Great Panther is moving ahead on getting the two other mills up and running enroute towards its goal of 1,200-tonnes-per-day throughput by the end of 2006.

Initial mining is underway on the San Vincent North and Guanajuato workings, which are accessed by a ramp from surface. Expansion to work portions of the Rayas and Cata mines is expected soon. The company cautions initial grades are anticipated to be variable as it ramps up operations from the multiple workings and blends the ore.

Plans eventually call for development of 14 stopes to reach the planned throughput. A US$2.5-miilion capital expenditure was recently approved for mining equipment and a new onsite assay lab that will process samples from Guanajuato and the Topia mine. Additionally, a 3,000-metre underground drill program is planned to define silver-gold mineralized zones ahead of production and to generate a resource estimate.

The Guanajuato complex consists of the processing plant plus the Valenciana, Cata and Rayas mines situated on the central portion of the 25-km long Veta Madre structure, first discovered in the mid-1500s. The district has historic production estimated at over one billion ozs. of silver and 4.5 million ozs. of gold. Great Panther acquired Guanajuato in late-2005 for a total purchase price of US$7.25 million, in staged payments through to the end of 2006, from Sociedad Cooperativa Minero Metalrgica Santa Fe de Guanajuato which was Mexico’s last mining cooperative. It had operated the mine for the previous 65 years.

In late-2005 the company entered the realm of silver producers when its Topia silver-lead-zinc mine in Durango State commenced operations.