VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 23, 2006) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that surface diamond drilling has provided further definition of a new zone of silver-gold mineralization at the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico. This portion of the 2006 drill program comprised 1,374 metres in eight holes and was focused on testing a gap in historical production, known as the Animas area, between the Cata Mine and San Vicente North Ramp. It represents a section of the Veta Madre vein structure approximately 175 metres in strike length by 150 metres vertical, immediately below surface and accessible by ramp. As such, the newly defined mineralization presents an immediate target for stope development and mining.
While all eight holes in the Animas drilling intersected silver-gold mineralization, the most significant results include 1.5 metres averaging 505 g/t silver and 1.98 g/t gold within 4.5 metres averaging 219 g/t silver and 0.86 g/t gold in GTT-06-020, and 2.1 metres of 658 g/t silver and 1.7 g/t gold in hole GTT-06-023. Mineralization in these holes, as well as that of hole GTT-06-21, is hosted within a portion of the Veta Madre structure that extends into the footwall shale. Approximately 125 metres further south from GTT-06-20 and 21, GTT-06-022 intersected 230 g/t silver and 1.28 g/t gold over 3.0 metres in a hanging wall stockwork. Fifty and seventy metres, respectively, deeper than hole 22, GTT-06-026 intersected 121 g/t silver and 1.05 g/t gold over 7.8 metres, and GTT-06-024 intersected 89 g/t silver and 0.33 g/t gold over 9.0 metres. Both the intersections in GTT-06-024 and 026 as well as the narrower intersections in GTT-06-025 and 027 are within stockwork zones in hangingwall rocks. The latter two were the deepest of the eight holes and may represent a pinching of the zone at this point.
Highlights of Diamond Drilling: True Width Width Hole No. From (m) To (m) (m) (m) Ag (g/t) Au (g/t) GTT-06-020 33.0 37.5 4.5 4.5 219 0.86 including 36.0 37.5 1.5 1.5 505 1.98 GTT-06-021 37.1 44.5 7.4 5.2 37 0.18 GTT-06-022 56.5 59.5 3.0 3.0 230 1.28 GTT-06-023 102.9 105.0 2.1 2.1 658 1.7 GTT-06-024 124.35 143.5 9.15 9.0 89 0.33 GTT-06-025 197.0 198.0 1.0 0.7 163 0.3 GTT-06-026 115.3 124.0 8.7 7.8 121 1.05 GTT-06-027 172.5 173.5 1.0 0.7 19 0.98
Drill hole locations are shown on longitudinal sections posted on the Company's web-site (http://www.greatpanther.com/i/pdf/GTOLongSection_Central_Block.pdf and http://www.greatpanther.com/i/pdf/GTOLongSection_Composite.pdf). As there still remains a portion of the Animas area that is inaccessible for surface drilling, additional holes to test this gap are being completed by the underground drill.
The styles of mineralization at Animas are somewhat different from the quartz breccia at Guanajuatito (see news release of Aug 14, 2006) in the northwest end of the property. At Animas, gold-silver mineralization is hosted in quartz-carbonate stockwork zones in hanging wall conglomerate; in the Veta Madre silica breccia located along the contact between the hangingwall conglomerate and footwall shales; and in silica flooded (stockwork and breccia) footwall shale. These styles of mineralization are well displayed in the surface drilling and in underground workings in the various shallow levels of San Vicente North.
Presently, mining is being conducted in the San Vicente North Ramp area, on levels 55, 75 and 100 adjacent to the southeast side of Animas, and access to the area is readily available by cross cutting and extending drifts northward from the ramp development. As such, this area is expected to play a significant role in the near term production plans of the Company. Furthermore, the fact that the Animas mineralization is located virtually from surface down to about the 170 metre level underscores the fact that the upper levels of the Guanajuato Mine Complex have not been mined out.
Samples were assayed at SGS in Durango and diamond drilling was contracted to BDW Drilling Mexico, of Guadalajara. Robert F. Brown, P.Eng and Vice President of Exploration for the Company is the Qualified Person for the Guanajuato Mine Project, under the meaning of NI43-101, and has reviewed these results. The Company's QA/QC program includes the regular insertion of blanks, duplicates and standards into the sample shipments. Aspects of the Guanajuato Mine relating to mining and metallurgy are overseen by Ing. Francisco Ramos Sanchez, Vice-President of Operations for Great Panther and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
Great Panther owns a 100% interest in the Guanajuato Mine Complex. Historically, the Guanajuato Mine was one of the largest silver producers in Mexico and encompasses the core of the Guanajuato District, which has produced 1.2 billion ounces of silver and 4.5 million ounces gold.
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 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, 2005 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.
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)