Great Panther Silver updates mineral resource estimate at the Guanajuato Mine Complex

TSX: GPR
NYSE MKT: GPL

VANCOUVER, Feb. 22, 2016 /CNW/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE MKT: GPL) ("Great Panther", the "Company") announces an updated Mineral Resource Estimate for the Company's Guanajuato Mine Complex ("GMC") in Guanajuato, Mexico.

"In 2015, we successfully replaced what we mined at the GMC and upgraded much of the San Ignacio Resource to higher categories", stated Robert Archer, President & CEO.  "Going forward, we will continue our efforts to expand and further define the resource at the San Ignacio Mine, while conducting more definition and exploratory drilling within the main Guanajuato Mine itself."

  • The GMC contains estimated Measured and Indicated ("M&I") Mineral Resources of 510,068 tonnes above a US$74/tonne cut-off, at an average grade of 181g/t silver and 2.70g/t gold, for a total of 6,109,217 silver equivalent ounces ("Ag eq oz").  This is unchanged from the previous Mineral Resource (news release of February 23, 2015).
  • The GMC contains estimated Measured Mineral Resources of 340,175 tonnes above a US$74/tonne cut-off, at an average grade of 187g/t silver and 2.97g/t gold, for a total of 4,330,941 Ag eq oz.  This is a 36% increase from the previous Mineral Resource due to San Ignacio Mine Mineral Resources being categorized as Measured for the first time, and a decrease in the Guanajuato Mine Measured Resource.
  • The GMC contains estimated Indicated Mineral Resources of 169,894 tonnes above a US$74/tonne cut-off, at an average grade of 172g/t silver and 2.18g/t gold, for a total of 1,778,275 Ag eq oz.  This is a 39% decrease from the previous Mineral Resource due to San Ignacio Mine Indicated Mineral Resources being re-categorized to Measured Mineral Resources, and a slight increase at the Guanajuato Mine.
  • The GMC, excluding the El Horcon Project, contains estimated Inferred Mineral Resources of 906,521 tonnes above a US$74/tonne cut-off, at an average grade of 140g/t silver and 2.69g/t gold, for a total of 9,629,557 Ag eq oz.  This is an 18% decrease from the previous Resource due to the San Ignacio Mine Inferred Resource being re-categorized to an M&I Mineral Resource, and a slight decrease at the Guanajuato Mine, as some Mineral Resource was reclassified as Geological Potential.  Including the El Horcon Project, the GMC contains estimated Inferred Mineral Resources of 1,035,253 tonnes at an average grade of 133g/t silver and 2.81g/t gold, for a total of 11,535,680 Ag eq oz.  This is a 16% decrease from the previous Resource.  The El Horcon Project Inferred Mineral Resource decreased due to lower metal prices only, as no further work was completed in 2015.
  • At the Guanajuato Mine, the Mineral Resource classified as Geological Potential was estimated within ranges for areas that contain historic workings with limited topographic control.  Geological Potential is stated as ranges and includes 199,700 to 288,500 tonnes grading between 123 - 144g/t silver and 1.87 - 2.20g/t gold.  This includes areas drilled and evaluated underground including Promontorio, parts of Los Pozos, and parts of Valenciana. 

During 2015, exploration at the San Ignacio Mine consisted of underground drilling to better define the Mineral Resource in the Intermediate and Melladito zones, and a surface drill program to define Mineral Resource in the Melladito, Melladito Splay, Melladito 2 and Melladito 3 zones.  Development in 2015 was conducted along the Melladito, Melladito Splay, Melladito 2, and Intermediate zones.  At the Guanajuato Mine, exploration was focused in the Valenciana, San Cayetano, and Los Pozos areas to increase the Mineral Resource.

At San Ignacio, plans for 2016 include the continuation of surface exploration south from the present mineral resource to the historic mining area of San Pedro.  Underground drilling will focus on converting Inferred Mineral Resources to the Measured and Indicated categories.  At the Guanajuato Mine, the focus of exploration in 2016 will be at the Los Pozos, Guanajuatito, and Valenciana zones.  A compilation of the historical workings is being undertaken with a focus on parallel and sigmoidal veins with mineralization of economic significance.  This will include the Rayas, upper Cata, Los Pozos, Valenciana and Guanajuatito zones.

The San Ignacio Mine contains estimated M&I Mineral Resources of 360,352 tonnes above a US$74/tonne cut-off, at an average grade of 145g/t silver and 3.20g/t gold, for a total of 4,301,214 Ag eq oz.  This includes Measured Mineral Resources of 249,810 tonnes at an average grade of 151g/t silver and 3.39g/t gold, for a total of 3,130,365 Ag eq oz and Indicated Mineral Resources of 110,542 tonnes at an average grade of 133g/t silver and 2.79g/t gold, for a total of 1,170,848 Ag eq oz.  In addition, estimated Inferred Mineral Resources are 770,950 tonnes at an average grade of 138g/t silver and 2.76g/t gold, for 8,266,229 Ag eq oz.  The effective date of the San Ignacio Mine Mineral Resource is December 31, 2015 (details tabulated and noted below).

The Guanajuato Mine contains estimated M&I Mineral Resources of 149,716 tonnes above a US$74/tonne cut-off, at an average grade of 269g/t silver and 1.50g/t gold, for a total of 1,808,003 Ag eq oz.  This includes Measured Mineral Resources of 90,365 tonnes at an average grade of 285g/t silver and 1.81g/t gold, for a total of 1,200,576 Ag eq oz, and Indicated Mineral Resources of 59,352 tonnes at an average grade of 245g/t silver and 1.04g/t gold, for a total of 607,427 Ag eq oz.  In addition, estimated Inferred Mineral Resources are 135,571 tonnes at an average grade of 151g/t silver and 2.30g/t gold, for 1,363,328 Ag eq oz.  The Mineral Resource classified as Geological Potential was estimated within ranges for areas that contain historic stopes with limited topographic control.  This includes areas drilled and evaluated underground including Promontorio, parts of Los Pozos, and parts of Valenciana.  The effective date of the Guanajuato Mine Mineral Resource is July 31, 2015 (details tabulated and noted below).

The El Horcon Project contains an Inferred Mineral Resource estimated at 128,732 tonnes above a US$110/tonne cut off grading 3.64g/t Au, 82g/t Ag, 2.97% Pb, and 4.11% zinc for the Diamantillo, Diamantillo HW, Natividad, and San Guillermo veins.  The effective date of the El Horcon Project Mineral Resource is July 31, 2015 (details tabulated and noted below).

Summary Table of the Updated 2015 Mineral Resource Estimate for the Guanajuato Mine Complex¹









MEASURED








Mine

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

San Ignacio1

249,810

151

1,210,144

3.39

27,199

390

3,130,365

Guanajuato1

90,365

285

828,971

1.81

5,264

413

1,200,576

Total Measured

340,175

187

2,039,115

2.97

32,463

396

4,330,941









INDICATED








Mine

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

San Ignacio1

110,542

133

471,862

2.79

9,901

329

1,170,848

Guanajuato1

59,352

245

467,740

1.04

1,979

318

607,427

Total Indicated

169,894

172

939,602

2.18

11,880

325

1,778,275









MEASURED & INDICATED







Mine

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

San Ignacio1

360,352

145

1,682,007

3.20

37,099

371

4,301,214

Guanajuato1

149,716

269

1,296,710

1.50

7,242

376

1,808,003

Total M & I

510,068

181

2,978,717

2.70

44,341

372

6,109,217









INFERRED








Mine

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

San Ignacio1

770,950

138

3,428,532

2.76

68,523

333

8,266,229

Guanajuato1

135,571

151

656,429

2.30

10,013

313

1,363,328

Subtotal

906,521

140

4,084,961

2.69

78,536

330

9,629,557

El Horcon1,2

128,732

82

339,373

3.64

15,034

461

1,906,123

Total Inferred

1,035,253

133

4,424,334

2.81

93,570

346

11,535,680









GEOLOGICAL POTENTIAL







Mine

Range Tonnes

Range Grade Ag (g/t)

Range Grade Au (g/t)


Low

High

Low

High

Low

High


Guanajuato

199,700

288,500

123

144

1.87

2.20












¹ Mineral Resource Estimates for Guanajuato and El Horcon use an effective date of July 31, 2015 while San Ignacio uses an effective date of December 31, 2015; and all used a metal price outlook of US$15.00/oz silver and US$1,100/oz gold.

² Silver equivalent calculations for El Horcon include lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant. 

The estimates were classified according to the CIM Definition Standards on Mineral Resources and Mineral Reserves and, as such, are consistent with the requirements of NI 43-101.  The Mineral Resource Estimate was completed by Robert Brown, P. Eng. and Company, Q.P.  The Mineral Resource Estimates were completed using MicroMine 3D geological software, and the inverse distance squared estimation technique for estimation of grade to each of the block model blocks.  A Company-proprietary Net Smelter Return ("NSR") calculator, considering mill recoveries, smelter terms, and designated metal prices converted block grades into NSR (US$) values.  The stated Mineral Resources are a categorized compilation of blocks greater than the marginal operational costs of US$74/tonne.

The Company's QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions.  Sample assaying was completed at the independent SGS-GTO lab in Guanajuato, GTO, Mexico.  Silver assaying was completed with AAS12B technique, with over-limits (300g/t) completed by FAG323.  Gold assaying was completed with FAA313 technique, with over-limits (10g/t) completed by FAG323.  Where necessary, lead, zinc, copper, arsenic and antimony assays were completed using atomic absorption spectroscopy.

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, P. Eng. and Vice President of Exploration for the Company, who is the Qualified Person (QP) for the Guanajuato Mine Complex and the Topia Mine under the meaning of NI 43-101.  Aspects relating to mining and metallurgy are overseen by Ali Soltani, Chief Operating Officer for Great Panther.

Table of the Updated 2015 Mineral Resource Estimate for the Guanajuato Mine


San Ignacio Mine (Measured)







Vein

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Intermediate

42,912

154

212,600

2.89

3,989

358

494,221

Intermediate 2

-

-

-

-

-

-

-

Melladito

152,343

142

694,751

3.25

15,909

371

1,817,921

Melladito 2

15,858

158

80,598

3.98

2,031

439

224,018

Melladito 3

-

-

-

-

-

-

-

Melladito Splay

38,698

179

222,195

4.24

5,269

478

594,205

Nombre De Dios

-

-

-

-

-

-

-

Nombre De Dios 2

-

-

-

-

-

-

-

Total Measured

249,810

151

1,210,144

3.39

27,199

390

3,130,365









San Ignacio Mine (Indicated)







Vein

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Intermediate

22,007

156

110,289

2.61

1,843

340

240,409

Intermediate 2

-

-

-

-

-

-

-

Melladito

78,980

125

316,408

2.75

6,980

319

809,186

Melladito 2

6,197

136

27,140

3.55

706

387

77,002

Melladito 3

-

-

-

-

-

-

-

Melladito Splay

3,358

167

18,025

3.44

371

410

44,252

Nombre De Dios

-

-

-

-

-

-

-

Nombre De Dios 2

-

-

-

-

-

-

-

Total Indicated

110,542

133

471,862

2.79

9,901

329

1,170,848









San Ignacio Mine (Measured & Indicated)






Vein

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Total Measured

249,810

151

1,210,144

3.39

27,199

390

3,130,365

Total Indicated

110,542

133

471,862

2.79

9,901

329

1,170,848

Total M&I

360,352

145

1,682,007

3.20

37,099

371

4,301,214









San Ignacio Mine (Inferred)







Vein

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Intermediate

52,259

219

367,082

2.75

4,624

413

693,508

Intermediate 2

54,765

192

337,870

3.72

6,555

455

800,680

Melladito

132,837

98

417,197

2.60

11,104

281

1,201,161

Melladito 2

68,470

100

219,678

3.26

7,165

330

725,531

Melladito 3

74,578

78

187,142

2.95

7,085

287

687,327

Melladito Splay

35,532

80

91,516

2.94

3,360

288

328,701

Nombre De Dios

254,838

152

1,243,028

2.28

18,717

313

2,564,439

Nombre De Dios 2

97,670

180

565,019

3.16

9,913

403

1,264,882

Total Inferred

770,950

138

3,428,532

2.76

68,523

333

8,266,229









Notes:








1.      US$74 per tonne Cut-off







2.      Silver equivalent was calculated using a 70.6 to 1 ratio of silver to gold value



3.      Rock density for Intermediate 2, Melladito, Melladito 2, and Melladito 3 is 2.62t/m³, for Nombre de Dios is   

2.63t/m³, for Intermediate and Melladito Splay are 2.64t/m³, and for Nombre de Dios 2 is 2.65t/m³

4.      Totals may not agree due to rounding






5.      Grades in metric units  







6.      Contained silver and gold in troy ounces





7.      Minimum true width 1.5m







8.      Metal Prices US$15.00/oz silver, and US$1,100/oz gold








Table of the Updated 2015 Mineral Resource Estimate for the Guanajuato Mine


Guanajuato Mine (Measured)







Vein

Tonnes

Ag (g/t)

Ag(oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Measured Cata

31,832

386

395,364

1.86

1,905

518

529,835

Measured Pozos

12,672

298

121,396

1.36

553

394

160,466

Measured Guanajuatito

31,922

257

263,410

1.22

1,248

342

351,493

Measured Santa Margarita

5,528

169

29,988

3.66

651

427

75,941

Measured San Cayetano

8,410

70

18,814

3.35

907

306

82,842

Total Measured

90,365

285

828,971

1.81

5,264

413

1,200,576









Guanajuato Mine (Indicated)







Vein

Tonnes

Ag (g/t)

Ag(oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Indicated Cata

5,715

393

72,223

1.58

291

505

92,732

Indicated Pozos

8,699

339

94,933

1.31

366

432

120,776

Indicated Guanajuatito

40,873

212

278,513

0.80

1,046

268

352,373

Indicated Santa Margarita

1,797

282

16,284

1.76

102

406

23,479

Indicated San Cayetano

2,268

79

5,786

2.39

174

248

18,066

Total Indicated

59,352

245

467,740

1.04

1,979

318

607,427









Guanajuato Mine (Measured & Indicated)






Vein

Tonnes

Ag (g/t)

Ag(oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Measured Cata

31,832

386

395,364

1.86

1,905

518

529,835

Indicated Cata

5,715

393

72,223

1.58

291

505

92,732

Measured Pozos

12,672

298

121,396

1.36

553

394

160,466

Indicated Pozos

8,699

339

94,933

1.31

366

432

120,776

Measured Guanajuatito

31,922

257

263,410

1.22

1,248

342

351,493

Indicated Guanajuatito

40,873

212

278,513

0.80

1,046

268

352,373

Measured Santa Margarita

5,528

169

29,988

3.66

651

427

75,941

Indicated Santa Margarita

1,797

282

16,284

1.76

102

406

23,479

Measured San Cayetano

8,410

70

18,814

3.35

907

306

82,842

Indicated San Cayetano

2,268

79

5,786

2.39

174

248

18,066

Total M&I GTO Mine

149,716

269

1,296,710

1.50

7,242

376

1,808,003









Guanajuato Mine (Inferred)







Vein

Tonnes

Ag (g/t)

Ag(oz)

Au (g/t)

Au (oz)

Ag eq (g/t)

Ag eq (oz)

Inferred Cata

1,665

243

12,996

0.92

49

308

16,481

Inferred Pozos

11,668

293

109,768

1.02

382

365

136,749

Inferred Guanajuatito

6,978

186

41,689

0.99

223

256

57,419

Inferred Santa Margarita

14,458

371

172,252

2.12

984

520

241,694

Inferred Valenciana

88,802

103

294,430

2.52

7,193

281

802,283

Inferred San Cayetano

12,001

66

25,295

3.06

1,181

282

108,703

Total Inferred

135,571

151

656,429

2.30

10,013

313

1,363,328









Guanajuato Mine (Geological Potential)


Vein

Range Tonnes

Range Grade Ag (g/t)

Range Grade Au (g/t)


Low

High

Low

High

Low

High


Promontorio (Veta Madre HW)

88,400

132,600

59

69

2.43

2.85


Pozos SE (Veta Madre above 310 level)

44,100

66,200

214

252

1.14

1.35


Valenciana








Val1

39,100

52,200

156

184

1.31

1.54


Sugey

2,500

3,300

119

140

1.43

1.69


Sugey2

2,200

2,900

134

157

1.03

1.21


Sugey3

4,900

6,500

116

136

1.07

1.25


BO

7,800

10,500

187

220

2.00

2.36


Omar

400

500

140

165

1.13

1.33


Val2

10,300

13,800

107

125

3.00

3.52










Notes:








1.      Cut-off US$74 NSR for all zones







2.      Silver equivalent was calculated using a 70.6 to 1 ratio of silver to gold value



3.      Rock density for all veins is 2.68t/m3






4.      Totals may not agree due to rounding






5.      Grades in metric units  








6.      Contained silver and gold in troy ounces






7.      Minimum true width 1.5m







8.      Metal Prices $15.00US/oz silver, and $1,100US/oz gold










Table of the Updated 2015 Mineral Resource Estimate for the El Horcon Project


El Horcon Project (Inferred)

Vein

Tonnes

Ag (g/t)

Ag (oz)

Au (g/t)

Au (oz)

Pb (%)

Zn (%)

Ag eq (g/t)

Ag eq (oz)

Diamantillo

88,929

96

273,632

3.14

8,990

3.42

5.02

458

1,310,295

Diamantillo HW

4,580

55

7,878

4.73

675

2.72

0.48

486

71,525

Natividad

4,272

151

20,726

3.30

454

2.10

0.12

471

64,644

San Guillermo

30,951

37

37,137

4.94

4,915

1.85

2.60

462

459,659

Total Inferred

128,732

82

339,373

3.64

15,034

2.97

4.11

461

1,906,123

Notes:


1.      US$110/tonne NSR Cut-off


2.      Silver equivalent was calculated using a 70.6 to 1 ratio of silver to gold value.


3.      Rock Density for all veins for Diamantillo is 2.77t/m³, San Guillermo 2.78t/m³, Diamantillo HW is 2.62t/m³, Natividad 2.57t/m³.


4.      Totals may not agree due to rounding.


5.      Grades in metric units  


6.      Contained silver and gold in troy ounces


7.      Minimum true width 1.5m


8.      Metal Prices US$15.00/oz silver, US$1,100/oz gold and US$0.90/lb lead.


9.      Ag eq (g/t) and Ag eq (oz) use only Au, Ag, and Pb values and not zinc, as zinc would not be recovered in the Guanajuato plant.















ABOUT GREAT PANTHER

Great Panther Silver Limited is a primary silver mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE MKT trading under the symbol GPL.  Great Panther's current activities are focused on the mining of precious metals from its two wholly-owned mining operations in Mexico: the Guanajuato Mine Complex, which includes the San Ignacio Mine, and the Topia Mine in Durango.  The Company holds an option agreement to acquire a 100% interest in the Coricancha Mine Complex in the central Andes of Peru and holds an option to acquire a 100% interest in the advanced-stage Guadalupe de Los Reyes Project in Sinaloa, Mexico.

Robert Archer
President & CEO

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

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 Canadian securities laws (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 parameters 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 Information Form for the year ended December 31, 2014 and Material Change Reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov

SOURCE Great Panther Silver Limited

Image with caption: "Great Panther Silver Logo (CNW Group/Great Panther Silver Limited)". Image available at: http://photos.newswire.ca/images/download/20160222_C5678_PHOTO_EN_625454.jpg

For further information: Spiros Cacos, Director Investor Relations, Toll free: 1 888 355 1766, Tel: +1 604 638 8955, scacos@greatpanther.com, www.greatpanther.com

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