Great Panther expects 33% higher production in 2012 as it expands Guanajuatito property

Great Panther Silver (TSE:GRP) (AMEX:GPL) said Wednesday that drill results have confirmed the continuity of the Santa Margarita gold-silver vein, and have extended the Guanajuatito silver-gold mineralization to nearly 400 metres down dip.
Each of these areas is located on the company's wholly-owned flagship Guanajuato property, located in the city of the same name, in Mexico.
Drill work on the Santa Margarita vein encountered two footwall zones on the structure. The first zone, labeled SMBo1, is located either adjacent to or within four to eight metres below the Santa Margarita structure, while the second zone, labeled SMBo2, is located about 20 metres below the structure.
Drill hole UGSM11-005 intersected 1.14 metres grading 44.76 grams per tonne (g/t) gold and 46.0 g/t silver on Santa Margarita. Meanwhile, in the same hole, 5.1 metres at 5.56 g/t gold and 11.0 g/t silver was found in the SMBo1 zone, and SMBo2 intersected 1.04 metres at 0.94 g/t gold and 3.0 g/t silver.
UGSM11-003 intersected 1.66 metres at 27.04 g/t gold and 112 g/t silver, and on the SMBo1 zone, 3.28 metres at 17.15 g/t gold and 36.0 g/t silver was returned.
Meanwhile, UGSM11-007 returned 1.33 metres grading 16.3 g/t gold and 50.0 g/t silver on the Santa Margarita vein. From the same hole, the SMBo1 zone assayed 1.91 metres at 0.76 g/t gold and 20.0 g/t silver, while SMBo2 hit 1.74 metres grading 6.04 g/t gold and 7.0 g/t silver.
Great Panther also said it defined the Guanajuatito mineralization over a strike length of about 100 metres, and about 300 metres vertically. From the data it collected, the company said it interpreted two mineralized zones: the Veta Madre zone, and a slightly deeper Footwall zone.
Drill hole UGG11-045 on Guanajuatito hit the Veta Madre zone, intersecting 3.36 metres at 0.91 g/t gold and 268.0 g/t silver. The same hole hit the Footwall zone, intersecting 2.08 metres at 0.81 g/t gold and 224.0 g/t silver.
Also from the Footwall zone, UGG11-027 returned 5.38 metres at 13.28 g/t gold and 1,493.0 g/t silver, while UGG11-047 found 2.92 g/t gold and 866.0 g/t silver over 1.14 metres.
Great Panther said it will start production stoping from the new areas on the Santa Margarita structure in the first quarter of 2012. Meanwhile, production from the Guanajuatito zones is expected to rise to 25,000 ounces of silver equivalent by the end of 2012.
Overall, Great Panther said it expects the Guanajuato property to increase production for 2012 by about 33 percent for the whole year, to an average of 200 ounces per month.
In Toronto, Great Panther shares rose 2.68 percent to $2.30, as of 12:56 pm ET.