VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 18, 2006) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that Wardrop Engineering (Wardrop) of Vancouver, B.C. has delivered a NI 43-101 compliant resource estimate for the Company's Km 66 Project in northeastern Durango State, Mexico. Using a 50 g/t silver equivalent cut-off grade, Wardrop estimates that the Palmitas and Gloria Zones together contain an Inferred Mineral Resource of 4,969,800 tonnes at a grade of 59 g/t Ag, 0.13 g/t Au, 0.81% Pb and 1.31% Zn. Wardrop calculated that these grades equate to a silver equivalent grade of 139 g/t using commodity prices (based upon 3 year averages) of US$7.70/oz for silver, US$471/oz for gold, US$0.41/lb for lead and US$0.69/lb for zinc and recoveries of 76%, 70%, 80% and 80%, respectively. This resource equates to a total of 22.3 million ounces of silver equivalent.
Great Panther commissioned Wardrop to complete the NI43-101 report on the KM66 property after signing a Letter of Intent to option the property earlier this year. The Company has now signed a formal Option Agreement for the right to earn a 100% interest in the 3,508 hectare property, subject to a 3% NSR. Terms of the agreement call for Great Panther to make staged cash payments and share issuances totaling US$3,000,000 and 500,000 shares, over a period of 4 years, to the property owners. If the option is exercised, the Company can purchase up to 2% of the NSR, for US$500,000 per 0.5%. The transaction is subject to acceptance by the TSX Venture Exchange.
The resource estimate was based upon a comprehensive exploration program completed on the property by Coeur d'Alene Mines during 1997 and 1998, wherein they drilled 81 reverse circulation holes (7,515 metres & 3,614 samples) and 22 diamond drill holes (2,983 metres & 900 samples). The geological database also includes 422 surface channel samples. Coeur d'Alene dropped the property in 1998.
The resource includes 2,643,600 tonnes of oxide material at a grade of 51 g/t Ag, 0.11 g/t Au, 0.73% Pb and 0.98% Zn for a silver equivalent grade of 113 g/t and 2,326,200 tonnes of sulphide mineralization at a grade of 68 g/t Ag, 0.16 g/t Au, 0.90% Pb and 1.69% Zn for a silver equivalent grade of 169 g/t. As the grade of sulphide mineralization is 50% higher than the 40-60 metre-thick oxide zone, the Company expects the overall grade of the resource to increase over time as the deposit is extended to depth.
Wardrop used the Inverse Distance Squared method of calculating the resource, with blocks of 5m X 5m X 4m being used for the 3 dimensional model. Metallurgical recoveries were based upon tests conducted by Silver Standard in 1999 as part of a property review. Wardrop also calculated a resource using a 30 g/t silver equivalent cut-off (and the same pricing and metallurgical parameters), which yielded a total of 5,713,000 tonnes at a silver equivalent grade of 126 g/t. The complete NI43-101 report on the Km 66 property will be posted on SEDAR and on the Great Panther web-site as soon as a final copy is received from Wardrop, estimated to be within one week.
KM 66 Inferred Resources at 50 g/t AgEQ cut-off, by Wardrop type tonnes Ag gpt Au gpt Pb% Zn% AgEQ gpt ------------------------------------------------------------------------ Gloria Oxide 1,861,500 50.26 0.112 0.61 1.01 111 Palmitas Oxide 782,100 53.04 0.090 1.00 0.90 118 All Oxide 2,643,600 51.08 0.105 0.73 0.98 113 Gloria Sulphide 1,053,300 47.50 0.140 0.34 2.44 172 Palmitas Sulphide 1,272,900 85.83 0.180 1.37 1.07 167 All Sulphide 2,326,200 68.47 0.16 0.90 1.69 169.26 Gloria(Oxide + Sulphide) 2,914,800 49.26 0.12 0.51 1.53 133.04 Palmitas (Oxide + Sulphide) 2,055,000 73.35 0.15 1.23 1.01 148.35 All Total 4,969,800 59.22 0.13 0.81 1.31 139.37 ------------------------------------------------------------------------ AgEq = ((Ag gpt/31.103 X 7.7 X 0.76) + (Au gpt/31.103 X 461 X 0.70) + (Pb% X 22.046 X 0.80 X 0.42) + (Zn% X 22.046 X 0.80 X $0.69))/7.70 X 31.103
The mineralization at Km 66 is associated with hydrothermal breccias and stockworks related to a cluster of rhyolite domes that intrude the Cretaceous Caracol Formation, and shows a strong similarity to the Real de Angeles District in Zacatecas State, Mexico. The upper, oxidized portion of the mineralization consists of jarosite and hematite, while the underlying sulphides consist of pyrite, silver sulfosalts, sphalerite and galena.
The breccias have a general orientation of N40E, and a steep northwest dip. The largest breccia to date has known dimensions of 250 by 45 meters but is open in all directions. So far 18 breccia bodies have been identified in 5 main sectors. The focus during the late 1990's was on the Carmen, La Gloria, and Palmitas sector breccias, with no drilling done on the others. The resource estimate prepared by Wardrop is contained in the Gloria and Palmitas zones only, as insufficient data was present for Carmen. Their report points out that other isolated drill holes contain good mineralization and deserve follow-up exploration. In addition, there are significant geochemical anomalies on the property that have not yet been explained.
The topography of the area is very subdued and the Palmitas Zone is largely buried under thin overburden. As such, it is feasible that other buried breccias may be present and the extensive property contains excellent potential for additional mineralization. Wardrop has recommended a two phase exploration program for the Km 66 property, totaling US$1,110,000, for geological and geophysical surveys and diamond drilling. Accordingly, Great Panther has commissioned an airborne magnetic and electromagnetic survey to be flown over the property in October-November in order to detect structures that may control the mineralization and, potentially, mineralized zones themselves. An Induced Polarization survey will then follow the airborne survey over prospective areas, with refined targets being subsequently tested by diamond drilling. In the interim, the Company plans to initiate geological mapping, rock and trench sampling and a diamond drilling program in order to extend the known zones of mineralization. The property is bisected by paved highway approximately 100 kilometres from Penoles' smelter at Torreon and so access is excellent.
The new NI43-101 resource at the Km 66 Project significantly enhances Great Panther's growing portfolio of silver projects. The Gloria and Palmitas Zones are only 2 of 18 known breccias on the property and, with a strong likelihood of finding new buried zones, management feels that there is excellent potential to increase the size of the resource. With the Company's 100% owned Topia and Guanajuato Mines already in production, Km 66 will be advanced quickly with the goal of defining a new resource amenable to open pit mining.
Robert F. Brown, P.Eng. and Vice-President of Exploration for Great Panther and its wholly owned subsidiary, Minera Mexicana El Rosario, S.A. de C.V., is designated as the Qualified Person for the Km 66 Project under the meaning of NI 43-101 and has reviewed this news release.
For further information please contact Brad Aelicks or Don Mosher at telephone 604 685 6465, fax 604 685 9744 or e-mail email@example.com.
ON BEHALF OF THE BOARD
"Robert A. Archer"
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 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 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)