VANCOUVER — Underground drilling by Great Panther Resources (GPR-T, GPRLF-O) at its Guanajuato silver mine in central Mexico has extended the depth of high-grade silver and gold mineralization to at least 600 metres depth — roughly 170 metres below the current deepest workings.
Speculation that the deep intercepts could translate into a significant resource boost at the deposit spurred a 20% rally in the company’s stock. On the results, the shares closed up 20 at $1.21 apiece on strong volume.
The core drill program tested the downdip continuity of the steeply southeast-plunging Cata Clavo high-grade oreshoot at Guanajuato, along with its northwestern limit. Seven sub-parallel zones of economic grade — the Hanging Wall 1, Contact, Madre 1 through 4, and Footwall 1 — were intersected in the program.
Hole EUG07-001 returned 3.3 metres (true width) grading 279 grams silver per tonne and 1 gram gold in the Contact zone, including 0.5 metre of 1,250 grams silver and 4.5 grams gold, plus a deeper 2.9-metre interval of 609 grams silver and 1.9 grams gold in the Madre 2 zone.
Hole EUG07-002 yielded 0.6 metre (true width) of 5,773 grams silver and 15.5 grams gold in the Hanging Wall 1 zone.
And hole EUG07-004 returned 2 metres (true width) grading 683 grams silver and 3.1 grams gold in the Contact zone; 0.7 metre of 1,168 grams silver and 5.1 grams gold in the Madre 1 zone; and an 8.4-metre composite interval averaging 329 grams silver and 0.9 gram gold. The composite interval consisted of 1.5 metres grading 1,033 grams silver and 2.9 grams gold across the Madre 2 vein, 1.7 metres grading 179 grams silver and 0.5 gram gold in the Madre 3 vein, and 1.2 metres at 622 grams silver and 1.5 grams gold in Madre 4).
The hangingwall rocks are intrusive diorite in contact with footwall argillites. The Contact zone is close to the diorite-argillite contact, while the Madre 1-4 and Footwall 1 zones are within the argillite. The zones all contain pyrite and argentite (silver sulphide), and are within a package of intense silicification, brecciation, and quartz-vein flooding up to 60 metres thick.
Great Panther operates three mines (Valenciana, Cata and Rayas) at its Guanajuato complex — all situated along the main Veta Madre (Mother Lode) structure that trends northwest-southeast through the district for roughly 25 km. Silver and gold mineralization also occurs in quartz veins that parallel Veta Madre, and in stockworks on both sides of the structure.
The company began commercial operations at Guanajuato in 2006 with the mine churning out 710,900 silver-equivalent oz. last year.
Silver was discovered in the Guanajuato mining district in the mid-1500s, with total production to date estimated at more than 1 billion oz. silver plus several million ounces of gold.
Great Panther also operates its Topia silver-lead-zinc mine, in Mexico’s Durango state, which produced nearly 625,730 silver-equivalent oz. last year.
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