Great Panther Resources Limited

Great Panther Resources Limited

July 09, 2007 15:57 ET

Great Panther Discovers New Silver-Gold Zones at Guanajuato

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2007) - GREAT PANTHER RESOURCES LIMITED (TSX:GPR) is pleased to announce that surface diamond drilling has intersected four new silver-gold zones and provided further definition on the three previously known zones of silver-gold mineralization in the Promontorio area of the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico. All zones are sub-parallel and occur within 70 metres of the main Veta Madre. Having several zones within close proximity like this will significantly lower their development costs and plans are already in preparation for the exploitation of this area. The new mineralization lies between 70 and 150 metres below surface and is accessible by ramp.

This portion of the 2007 drill program comprised 2,135.8 metres in eleven holes (SG07-035 to SG07-045) and was focused on defining mineralization in the Promontorio / Garrapata area - the southern most area of exploitation in the Guanajuato Mine Complex. Previous results from this part of the mine were announced on Dec. 12, 2006. Mineralization in this area is now known to comprise at least seven parallel zones: the main Veta Madre, a hangingwall zone ('HW' - above the Veta Madre) and five footwall zones ('FW' - below the Veta Madre). The Veta Madre quartz breccia occurs at the fault contact between hangingwall conglomerates and a footwall mix of metasediments, metavolcanics, and intrusions. The hangingwall zones occur as quartz stockworks in the conglomerates. The footwall zones have been divided into the FW #1a, #1b, #1c, #2, and #3 zones and are associated with quartz stockworks and breccias. The FW #1 and #2 zones are hosted within diorite and quartz-feldspar porphyry intrusions, while the #3 zone occurs at the lower contact between the intrusions and footwall metasediments.

The HW zone was cut by drill holes SG07-035 to 037, and 040 to 045 and displays a higher gold:silver ratio than other zones. Examples of this include 21.2g/t gold and 52g/t silver over 0.88 metres in SG07-035; 11.1g/t gold and 13g/t silver over 1.15 metres in SG07-036; 9.95g/t gold and 477g/t silver over 1.05 metres in SG07-037; and 23.45g/t gold and 45g/t silver over 2.45 metres in SG07-043. The HW zone has been traced for more than 150 metres along strike and up to 100 metres down dip.

The Veta Madre itself was intersected in all holes except SG07-041, which was lost in an old stope. Signs of former mining along the Veta Madre were noted in seven of the eleven holes in this program, however no signs of previous mining were observed in the FW zones. Parts of the Veta Madre have been left in place as evidenced by several mineralized intersections, including 1.98g/t gold and 77g/t silver over 2.59 metres in SG07-038 and 2.39g/t gold and 202g/t silver over 3.55 metres in SG07-043. As such, an in situ and well mineralized portion of the Veta Madre zone has been traced for more than 150 metres along strike and up to 150 metres down dip.

The FW #1a zone was described in the last Promontorio news release (Dec 12, 2006) as the footwall #1 zone in drill holes SG06-033 and 034. The 2007 drilling has added to this with intersections in holes SG07-036 through 040, 042, 044, and 045. FW #1a is located 5-10 metres below the Veta Madre. Noteable intersections include 18.28g/t gold and 104g/t silver over 2.16 metres in SG07-036; 4.58g/t gold and 312g/t silver over 3.09 metres in SG07-037; and 2.02g/t gold and 265g/t silver over 3.60 metres in SG07-040. The FW #1a zone has been traced for more than 100 metres along strike and up to 100 metre down dip.

The FW #1b zone is located only 5 metres below the FW #1a zone, and was intersected in holes SG07-035, 036, 039, 040, and 042 to 045. Highlights from this zone include 0.93g/t gold and 181g/t silver over 2.47 metres in SG07-039 and 2.35g/t gold and 430g/t silver over 2.42 metres in SG07-040. To date, the FW #1b zone has been traced for more than 50 metres along strike and up to 75 metres down dip.

The FW #1c zone is located 5-10 metres below the FW #1b zone, and was intersected in SG07-036, 039, 040, and 045. Noteable intersections include 0.78g/t gold and 266g/t silver over 5.61 metres in SG07-036 and 1.26g/t gold and 292g/t silver over 3.10 metres in SG07-040. This zone has been traced for 50 metres along strike and up to 75 metres down dip.

A new footwall zone (designated FW zone #2) has been discovered approximately 50 metres below the Veta Madre and was intersected in holes SG07-035, 038, 039, 040, 042, and 045. This zone appears to be significantly thicker than some of the others with intercepts such as 6.15 metres of 1.20g/t gold and 206g/t silver in hole SG07-042 and 5.60 metres of 0.71g/t gold and 115g/t silver in SG07-045. The FW zone #2 has been outlined for more than 50 metres along strike and up to 50 metres down dip.

A second new discovery (designated FW zone #3) lies approximately 70 metres below the Veta Madre and was intersected by holes SG07-042 and 043a, approximately 25 metres apart. These holes returned 2.97g/t gold and 175g/t silver over 1.10 metres and 1.55g/t gold and 194g/t silver over 2.31 metres, respectively. Longitudinal sections showing all of the Promontorio drilling can be found in the Guanajuato Mine section of the Great Panther website at

There is no indication from drilling or a review of underground survey maps that the footwall zones have been previously mined. Drill hole spacing in this program was approximately 30 metres on average. At this spacing, the mineralized zones are observed to vary in thickness, and grades are also quite variable. Detailed drilling to further delineate and extend the zones will be required and will be carried out from existing underground workings that are now being re-habilitated.

To date 6,385 metres of surface drilling have been completed in 2007 at Guanajuato and the program is still underway, detailing and expanding the various zones associated with the prolific Veta Madre structure. This includes the aforementioned holes SG07-035 to 045 at Promontorio, holes SG07-046 to 052 at Tepeyac shaft (south of Valenciana Mine shaft), SG07-053 to 058 at Remedios shaft (north of Cata Mine shaft), and SG07-059 to SG07-065 at two other Promontorio area drill sites. Results from all areas will be released as they become available.

The discovery of these new zones at Promontorio is significant, not only because of the near term potential for development but also because they imply that much of the footwall and hangingwall to the Veta Madre has been largely unexplored and, therefore, undeveloped. With more than 4 kilometres of strike length existing on the mine property, the potential for additional zones to be found is excellent.

Highlights of Diamond Drilling:
From To Length Width Au Ag
DDH # (m) (m) (m) (m) g/t g/t Zone

SG07-035 77.17 79.50 2.33 1.49 1.44 27 HW
83.30 84.18 0.88 0.56 21.20 52 HW
152.20 156.20 4.00 2.56 1.40 83 FW #2

SG07-036 102.25 103.40 1.15 0.58 11.10 13 HW
118.08 120.24 2.16 1.08 18.28 104 FW #1a
124.57 126.37 1.80 0.90 0.58 161 FW #1b
134.40 140.01 5.61 2.81 0.78 266 FW #1c

SG07-037 58.85 59.90 1.05 0.96 9.95 477 HW
65.10 69.90 4.80 4.37 0.56 114 Veta Madre
76.86 79.95 3.09 2.81 4.58 312 FW #1a

SG07-038 68.11 70.70 2.59 2.51 1.98 77 Veta Madre
71.75 72.91 1.16 1.13 1.91 16 FW #1a

SG07-039 91.80 93.48 1.68 0.96 0.55 197 FW #1a
97.20 99.67 2.47 1.41 0.93 181 FW #1b
110.00 111.10 1.10 0.63 1.04 112 FW #1c
139.75 144.91 5.16 2.94 1.84 62 FW #2

SG07-040 55.15 57.20 6.33 3.61 1.61 57 HW
76.95 77.90 0.95 0.78 3.29 37 Veta Madre
83.40 87.00 3.60 2.95 2.02 265 FW #1a
89.03 91.45 2.42 1.98 2.35 430 FW #1b
93.75 96.85 3.10 2.54 1.26 292 FW #1c

SG07-042 112.40 114.65 2.25 0.95 0.74 162 Veta Madre
122.72 125.10 2.38 1.00 0.41 157 FW #1a
130.50 133.00 2.50 1.05 0.33 154 FW #1b
158.80 164.95 6.15 2.58 1.20 206 FW #2
182.60 183.70 1.10 0.46 2.97 175 FW #3

SG07-043 86.55 89.00 2.45 1.23 23.45 45 HW
93.60 95.85 2.25 1.13 2.02 21 HW
107.30 108.23 0.93 0.47 3.50 60 Veta Madre
112.55 116.10 3.55 1.78 2.39 202 Veta Madre
136.80 139.00 2.20 1.10 1.40 14 FW #1b

SG07-043a 189.30 191.61 2.31 1.16 1.55 194 FW #3

SG07-044 126.00 127.60 1.60 1.13 0.64 189 FW #1a
131.73 134.56 2.83 2.00 1.21 235 FW #1b

SG07-045 106.61 108.96 2.35 2.26 0.87 193 FW #1b
132.15 137.75 5.60 5.38 0.71 115 FW #2

Core samples were assayed at SGS Labs in Durango and diamond drilling was contracted to Canrock Drilling, of San Luis de Potosi. 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 NI 43-101, 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 an estimated 1.2 billion ounces of silver and 4.5 million ounces gold.


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 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 and Material Change Reports filed with the Canadian Securities Administrators and available at

SEC 20-F Statement Filed; Standard & Poor's Listed

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