VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that it has commenced a 1,400 metre surface diamond drilling program in Guanajuato, Mexico. The drilling is being conducted as part of the ongoing due diligence on the proposed acquisition, announced July 20, 2005, of a 100% interest in a group of producing silver-gold mines in the heart of the Guanajuato District.
The drilling will comprise six holes in the Guanajuatito Adit area to the northwest of, and along strike from, the Valenciana Mine and will follow up on a lone intersection (in hole 317 drilled in 1989) of 10.65 g/t gold and 165 g/t silver over 1.55 metres in the Veta Madre vein structure. This interval was part of a 5.35 metre wide zone grading 3.34 g/t Au and 81.5 g/t Ag. No reliable data exists on the few other holes that appear to have been drilled within several hundred metres of this hole. While one hole will be drilled close to the interpreted location of hole 317 in order to compare historical assays with current ones, five other holes will be drilled at roughly 50 metre centres around it, to test the continuity of grade in this part of the Veta Madre, to check for the presence or absence of parallel mineralized zones in this area, to obtain a better understanding of the geology and to determine ground stability for future work.
An extensive underground sampling program is also continuing as part of the due diligence at Guanajuato. To date, this work has focused primarily on the San Vicente North Ramp area, northwest of the Rayas Shaft, and will check the reliability of the previous operator's gold and silver analyses, characteristics of the mineralization and, in conjunction with a detailed survey control, will allow Great Panther to delineate un-mined areas for resource appraisal. More than 900 samples have been taken from this area so far between surface and the 190 level (approximately 200 metres below surface). A similar program is now commencing on the South Ramp area, to the southeast of the Rayas Shaft. Results are being compiled as they are received and will be released in due course.
In addition, initial surface rock sampling on the Promontorio claim, southeast of the Rayas Shaft, has identified a gold-rich zone of mineralization along more than 100m of the Veta Madre structure. Two channel samples across this zone returned 5.2 g/t Au over 3.2m and 7.6 g/t Au across 3.0m. A further 100m along strike to the southeast of the above, an exposure of silica breccia and a footwall shear were sampled over a 25 by 45 metre area, yielding anomalous to "ore-grade" (as defined by the current operators) gold and silver values. In the Promontorio area the Veta Madre and associated stockwork and shear zones form topographic dip slopes making for easy drill targets and are readily accessible for potential surface exploitation. Elsewhere in the mine complex, these mineralized stockworks can reach widths of 30 metres or more and locally exceed 100 metres in strike length and down-dip extent allowing for bulk tonnage underground mining methods to be used.
Initial evaluation of underground workings near the Promontorio Shaft, and approximately 150m vertically below these surface outcrops, indicates the presence of similar gold-dominated mineralization. Compilation of the underground data is ongoing, as will be the evaluation of the extent of former mining, and re-sampling of stopes and levels. There is more than 300 metres of strike length to the southeast of Promontorio that has apparently seen only limited exploration and underground development, such that the potential for previously unrecognized mineralization in this area is excellent. Overall, the property encompasses more than four kilometres of strike length on the Veta Madre structure, much of which has seen little to no exploration.
Both the drilling and sampling programs will give the Company a preliminary assessment of the amount of work required to establish a new, NI43-101 compliant, resource on the property. The current property owners have established a resource of 2,750,000 tonnes grading 1.56 g/t Au and 176 g/t Ag (approximately 24 million ounces of silver equivalent). This resource is not compliant with NI43-101 and is regarded as historical in nature and not to be relied upon. Great Panther considers the resource to be relevant information, however, and is using it as a guideline in conducting its own work to delineate a new resource. There is no guarantee that such a resource will be delineated or that a new resource will be economically viable.
The three principal mines in Great Panther's proposed acquisition, the Valenciana, Cata and Rayas, are situated on the main Veta Madre (Mother Lode) structure in the centre of the Guanajuato District, one of the most prolific and best known silver districts in the world. Estimates of historic production exceed one billion ounces of silver and 4 million ounces of gold with the mines having been in continuous production for approximately 400 years.
The acquisition is subject to the completion of satisfactory due diligence, the receipt of a positive NI 43-101 technical report (to be filed shortly), satisfactory financing, and acceptance for filing by the TSX Venture Exchange. Robert F. Brown, P.Eng. is the Qualified Person for the Guanajuato Project, under the meaning of NI43-101, and has reviewed these results.
Through this proposed acquisition, Great Panther Resources Limited will be continuing its aggressive growth strategy focused on the exploration and development of silver and gold projects in Mexico. The Company is placing the Topia Silver Mine, in Durango State, back into production and is exploring the Virimoa Gold Project in Durango and San Antonio Gold-Copper Project in Chihuahua.
ON BEHALF OF THE BOARD
Robert A. Archer, President and CEO
SEC 20-F Statement Filed
Standard & Poor's Listed
FOR FURTHER INFORMATION PLEASE CONTACT:
Great Panther Resources Limited
(604) 685-9744 (FAX)