Great Panther Silver extends strike length in Guanajuato

Great Panther Silver (TSE:GPR)(AMEX:GPL) announced Wednesday that it has extended the strike length at its wholly owned San Ignacio property in Guanajuato, Mexico by about 50 percent, or 150 metres.

The extension comes following the results from an additional 14 holes at the property. The holes tested three significant mineralized zones: the Intermediate zone, the Nombre de Dios zone, and an undefined structure between the two former.

Notable results from the Intermediate zone include 5.2 metres grading 1.81 grams per tonne (g/t) gold and 213 g/t silver in hole ESI11-026. Hole ESI11-031 returned 10.65 metres grading 2.61 g/t gold and 119 g/t silver, while hole ESI11-036 found 3.15 g/t gold and 171 g/t silver over 4.5 metres.

On the Nombre de Dios zone, hole ESI11-025 intersected 9.37 g/t gold and 139 g/t silver over 0.89 metres. In hole ESI11-029, assays returned 3.9 g/t gold and 99 g/t silver over 1.08 metres, while hole ESI11-034 found 5.58 g/t gold and 17 g/t silver over 0.5 metres.

Hole ESI11-028, drilled on the undefined zone, found 16.9 g/t gold and 1,110 g/t silver over 0.55 metres.
Meanwhile, hole ESI11-032, also drilled on the undefined zone, returned 5.28 g/t gold and 476 g/t silver over 5.55 metres, and hole ESI11-035 intersected 0.5 metres at 2.79 g/t gold and 90 g/t silver.

These three zones remain open along strike to the north and south.

Great Panther said the active drill rig on site will complete fill-in holes through to December, with the intent of upgrading the mineral resource estimate classification. A second rig will be added to the project in the first quarter of 2012.

The initial resource estimate for the San Ignacio property comprises 611,000 tonnes grading 127 g/t silver and 2.05 g/t gold, for 4.94 million ounces of silver equivalent in the inferred category.

Last week, the mid-tier silver producer said that ore processed in the three months ending September 30 was up 16% year-on-year.

The Vancouver-headquartered company also estimated that fourth-quarter production from its mines is expected to improve to 550,000 equivalent ounces silver, making a year-end total of approximately 2.2 million equivalent ounces silver.

Great Panther owns two operating mines in Mexico - the flagship Guanajuato mine complex and the Topia silver-lead-zinc mine - and employs over 900 people.

Like the rest of the metals and mining sector today, the company's shares in Toronto shed 3.6% to $2.14 as of 12:02 pm EDT.