Great Panther receives resource estimate for KM66

Vancouver – A newly released resource estimate of 22.3 million silver-equivalent oz. has prompted Great Panther Resources (GPR-V) to formalize a previously inked option agreement for the Km 66 project in northeastern Durango State, Mexico.

Great Panther commissioned Wardrop Engineering to prepare a National Instrument 43-101 technical report shortly after signing a letter-of-intent agreement to option the property earlier this year. The formal option allows the company to earn 100% of the project, subject to a 3% net smelter royalty, in exchange for staged payments totaling US$3 million and issuing 500,000 shares over four years.

Based on a 50 gram silver-equivalent cutoff grade, Wardrop estimates that the Palmitas and Gloria zones together host an inferred mineral resource of 4.9 million tonnes grading 59 grams silver and 0.13 gram gold per tonne, plus 0.81% lead and 1.31% zinc.

This estimate was based on exploration conducted by a previous operator during 1997 and 1998, including 82 reverse-circulation drill holes totaling 7,515 metres, 22 diamond drill holes totaling 2,983 metres, and 422 surface channel samples.

The resource estimate includes 2.64 million tonnes of oxide material grading 51 grams silver, 0.11 gram gold, 0.73% lead and 0.98% zinc, for a silver-equivalent grade of 113 grams, and 2.3 million tonnes of sulphide mineralization at 68 grams silver, 0.16 gram gold, 0.9% lead and 1.69% zinc, or 169 grams silver-equivalent.

Mineralization is associated with hydrothermal breccias and stockworks related to a cluster of rhyolite domes that intrude the Cretaceous Caracol Formation, similar to the Real de Angeles district in Zacatecas State. The upper oxides consist of jarosite and hematite, while the underlying sulphides consist of pyrite, silver sulphosalts, sphalerite and galena.

Exploration to date has identified 18 breccia bodies, most of which are relatively unexplored. Drilling has focused on the advanced Palmitas and Gloria zones, and to a lesser extent on Carmen, which requires further drilling to allow for a resource calculation. The new technical report indicated that other targets on the property warrant follow-up or new exploration.

Great Panther has several other projects in Mexico, including its wholly owned Topia and Guanajuato polymetallic (silver-lead-zinc-gold) mines in Durango and Guanajuato states, respectively.