VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that the ongoing westward development of veins at the Company's 100% owned Topia Silver-Lead-Zinc Mine in Durango, Mexico is not only continuing to demonstrate high grades of silver-lead-zinc but new underground sampling has shown that the deeper portions of the Madre, La Dura, and Animas veins are increasingly gold rich.
For example, systematic sampling on the deeper portions of the Animas vein returned the following results (mine levels are named according to their elevation above mean sea level; therefore level 1380 is 50 metres below level 1430):
Level 1430: 1.47g/t Au, 186g/t Ag, 2.02% Pb, 4.43% Zn over 25 metres strike length with an average width of 0.19m (average of 5 channel samples).
Level 1420: 3.03g/t Au, 878g/t Ag, 3.19% Pb, 2.74% Zn over 38 metres strike length with an average width of 0.32m (average of 13 channel samples).
Level 1400: 5.08g/t Au, 679g/t Ag, 7.07% Pb, 6.32% Zn over 45 metres strike length with an average width of 0.42m (average of 16 channel samples).
Level 1390: 6.84g/t Au, 279g/t Ag, 2.17% Pb, 0.19% Zn over 15 metres strike length with an average width of 0.5m (average of 4 channel samples).
Level 1380: 5.92g/t Au, 304g/t Ag, 4.35% Pb, 12.72% Zn over 10 metres strike length with an average width of 0.45m (average of 3 channel samples).
Although vein widths are narrow in this part of the district, the Company is continuing to use a resuing method of mining that significantly reduces dilution, such that the grades reported from sampling are very close to head grades reported at the plant. The increase in gold grades in some of these veins will obviously enhance the economics of their development, particularly as historical gold grades at Topia have averaged less than 1.0g/t.
In addition, many of the sampled sections reported above represent the complete length of the current exposure, so the potential to extend the development of these veins is wide open. The deeper levels of the Animas vein are virtually untouched over a strike length of 1,000m and will be drill tested over the next six months.
Elsewhere along the Animas vein, on Level 1550, underground channel sampling returned 1.62g/t Au, 338g/t Ag, 2.28% Pb, 1.53% Zn over 30 metres strike length, with an average width of 0.31m (average of 16 samples); and 1.4g/t Au, 429g/t Ag, 1.14% Pb, 6.23% Zn over 35 metres strike length, with an average width of 0.55m (average of 11 samples).
Along the La Dura vein, mine development on level 1495, returned 4.96g/t Au, 242g/t Ag, 8.32% Pb and 2.42% Zn over 38 metres strike length with an average width of 0.49m (average grade of 16 samples). Exploration potential exists above Level 1495 for approximately 150 metres vertical as this part of the La Dura vein was not previously developed.
The deepest access level on the Madre vein is the 1420 level where sampling returned average grades of 5.7g/t Au, 49g/t Ag, 0.17% Pb, 0.18% Zn over a horizontal length of 45 metres and an average width of 0.32m (average grade of 12 samples). Further sampling is being completed with the recent cleaning and safety inspection of this level.
Analysis of the aforementioned underground channel samples was performed by SGS Minerals Services, ISO 9001 Registered, in their Durango, Mexico facilities.
Immediately behind the plant, a decline ramp from the main access adit, Level 'A', has intersected the western edge of previous stoping on the Argentina vein. This is the top priority area for development and exploitation due to its proximity to the mill and the presence of multiple parallel, thick and high grade silver-lead-zinc veins. A cross-cut from the ramp intersected the main vein wherein 3 channel samples returned grades of 2,060 - 2,640 g/t Ag and 29 - 36% combined Pb-Zn over 1.0 metre. The vein in the end of the westernmost stope is still approximately 1.0 metre wide and consists of quartz-barite with bands of galena and sphalerite (sampling in progress). The distance from here to the closest surface drill hole (A04-02 from Great Panther's 2004 program that returned grades of 708g/t Ag, 4.0% Pb and 4.2% Zn over 1.8 metres) is approximately 300 metres, part of which contains former reserve blocks of Penoles (now classified as Historical Resources). This represents a large block of potential high grade resources and will be targeted by the underground drill program.
Production from the Argentina vein is anticipated to begin in Q1 2007 and will build as the veins are developed on multiple levels, allowing the Company to achieve its production targets next year.
With so many prospective areas under development, underground drilling has already commenced and a surface diamond drill is being mobilized to the property for a 6,000 metre (minimum) program. Both drilling rigs have been contracted from BDW Drilling of Guadalajara, Mexico.
More than a dozen sub-parallel veins are known to exist at Topia and some extend for more than 4 kilometres along strike. Great Panther is currently producing from 6 stopes in the western area of the district and development is underway in 20 additional areas throughout the vein complex. All are accessed via adits (tunnels) from the side of the hills and are collectively feeding approximately 120 tonnes per day to the plant. The Company has set a production target of 200 tonnes per day by the end of the year.
With the increased development at Topia, Wardrop Engineering of Vancouver, B.C. has been contracted to complete a preliminary independent resource calculation following NI43-101 regulations. The Wardrop team will be headed by Gilles Arseneau, former manager of geology for the TSX Venture Exchange.
Aspects of the Topia Mine relating to mining and metallurgy are overseen by Ing. Francisco Ramos Sanchez, Vice-President of Operations for Great Panther and its wholly owned Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V. (MMR). Robert F. Brown, P.Eng. and Vice-President of Exploration for Great Panther and MMR is designated as the Qualified Person for the Topia Mine Project under the meaning of NI 43-101, and has reviewed this news release.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parametres as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2004 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
TSX-V Tier 1; Trading Symbol: GPR
SEC 20-F Statement Filed
Standard & Poor's Listed
FOR FURTHER INFORMATION PLEASE CONTACT:
Great Panther Resources Limited
Great Panther Resources Limited
(604) 685-9744 (FAX)