Great Panther Resources Limited

Great Panther Resources Limited

July 26, 2005 13:08 ET

Great Panther Identifies New Camp-Scale Gold-Copper System at San Antonio Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - GREAT PANTHER RESOURCES LIMITED (TSX VENTURE:GPR) is pleased to announce that its exploration of the 12,275 hectare San Antonio property in the Guadalupe y Calvo Mining District of southwest Chihuahua State, Mexico has outlined the presence of a gold-copper system more than 14 square kilometres in size. This is believed to be the first time anyone has recognized the significance and extent of mineralization in this area, as previous work has consisted of only the high-grading of individual veins by 'small miners', and the region has seen no prior exploration by modern methods.

While government maps show the area as being underlain by intrusive rocks, Great Panther's mapping has demonstrated the presence of a 'window' of the Tertiary age Lower Volcanic Sequence extending more than 17 kilometres by 6 kilometres. The majority of gold deposits in the Sierra Madre are hosted within this sequence of rocks. The extensive San Antonio property is centered on a valley that provides an 800m vertical section through these rocks and has allowed Great Panther to systematically map and sample this prospective area, and follow up with a Phase I diamond drilling program.

Mineralization and alteration at San Antonio is focused within a northwest-southeast trending area measuring approximately 5 by 2 kilometres. Multiple targets have been identified, with a variety of geological settings, including gold-copper veins, gold-copper breccias, silver-lead-zinc veins and gold-copper stockworks. A total of 20 separate mineralized structures have been identified to date.

As the vein/breccia systems in the Arroyo San Antonio provide the best exposures and the highest grades known at present, the spring 2005 drill program was focused on testing the three principal vein systems in an attempt to better understand the continuity and grade distribution in the area. Sixteen NQ diameter holes were drilled, for a total of 1,936 metres and significant intersections are given in the table below.

As expected, the most significant results were intersected along the Santo Nino Zone, where underground sampling in 2004 returned an average grade of 7.75g/t gold over an average width of 3.03 metres along a 25 metre strike length. Ten diamond drill holes were completed on this structure, testing approximately 150m of strike extent and to a depth of 130m.

The drilling indicated the presence of a vein breccia with widths up to 21.4m (core length) - much greater than observed in the underground workings. These breccia zones contain narrower veins containing higher grades of gold and copper. Overall the vein zones show excellent continuity along strike and down dip but higher gold grades appear to be confined to structurally controlled 'shoots'.

The best intersection was returned from drill-hole 05-SN05, wherein the Santo Nino Zone is split in two by a felsic dyke. The upper portion of the zone correlates well with the underground sampling, returning 3.0m of 9.4g/t Au and 0.27% Cu within 6.3m of 4.87g/t Au and 0.20% Cu, while the lower section returned 2.8m of 2.42g/t Au and 0.06% copper. The most northwesterly hole on the Santo Nino Zone (05-SN15) intersected 2.5m of 4.52g/t Au and 0.14% Cu within 11.8m of 2.36g/t Au and 0.53% copper while drill hole 05-SN06 intersected a greater width of 21.4m but with lower grades of 0.13g/t Au and 0.15% Cu. The Santo Nino Zone is known to extend for more than 1,000 metres along strike with a vertical extent of more than 300 metres and remains open in all directions.

The El Cordon Zone is sub-parallel to Santo Nino, approximately 75m to the northeast and, on surface, exhibits intense fracturing, silicification, disseminated sulphides and sheeted quartz veins and veinlets carrying gold-copper mineralization over an area of at least 100 metres by 40 metres. Initially, four holes were planned to test the Mina Arroyo 1 & 2 and Las Trojas areas of El Cordon, as surface sampling at Mina Arroyo 1 returned 6.3g/t gold over 2.5m, Mina Arroyo 2 returned 7.81g/t gold over 1.6m, and Las Trojas returned 9.1g/t gold over 1.0m. Unfortunately, due to difficult ground conditions, several key holes here could not be not completed. One hole, 05-SN11, drilled on the northwest strike extension of El Cordon, returned 0.5m grading 0.748g/t Au and 0.53% Cu. As such, the El Cordon Zone remains highly prospective and is open in all directions.

At Piedras Verde, approximately 800m south of Santo Nino, mapping and sampling shows that there are a number of fault structures with associated breccia and stockwork mineralization that are continuous along strike for at least 330m and over a vertical extent of 200m. Intermittent exposures on surface returned grades ranging from 0.083 to 25.3g/t gold and 0.02 to 3.26% copper in 30 samples. Underground at Piedras Verde, channel samples along a 25 metre exposure of the vein returned weighted average grades of 2.81g/t gold and 0.11% copper over an average width of 1.5 meters. In the 2005 drill program four holes were completed in this area and indicated a similar setting to Santo Nino with narrow veins encased in wider breccia zones, such as hole 05-PV02 which returned 1.0m of 2.96g/t Au and 1.3% Cu within 11.0m of 0.47g/t Au and 0.49% Cu.

Two holes were drilled on the Sari Vein, roughly two kilometres south of Santo Nino, where the mineralized structure has been traced on surface for more than 300m of strike length and 200m of vertical relief. The Sari Vein comprises a mineralized and brecciated fault zone up to 8m wide and characterized by a variable intensity of goethitic fault gouge and irregular discontinuous quartz-chalcopyrite veinlets. Previous sampling by Great Panther indicated that gold mineralization is restricted to about half of this width, however, and the highest grade zones, while returning some of the best gold grades on the property, are typically less than one metre wide. Surface samples across the vein returned true widths and grades of 0.9m @ 25.1 gpt Au and 4.1% Cu; 0.4m @ 86.1 gpt Au and 2.0% Cu; 0.9m @ 9.7 gpt Au and 6.0% Cu; and 1.7m @ 12.1 gpt Au and 0.6% Cu. Both drill holes completed on the Sari structure (05-SA13 and 14) intersected the vein but assays were not significant.

Vein orientations in all of the aforementioned zones are generally WNW-ESE to NW-SE trending with steep southerly dips, although cross structures oriented NE-SW with steep south-easterly dips were also noted. The veins all have similar alteration and mineralogy. Typically, early stage silicification is associated with fracturing, brecciation and pyrite, followed by late stage quartz veins with irregular chalcopyrite mineralization. Gold values are closely associated with the late stage chalcopyrite. Mapping has demonstrated a vertical zonation from quartz-pyrite-chalcopyrite (gold-silver-copper) at depth to quartz-pyrite-sphalerite-galena (silver-zinc-lead) at higher elevations. Alteration associated with these structures comprises silica, chlorite, and low temperature clays (pyrophyllite).


HOLE # AREA (m) (m) (m) (g/t) (%)
05-PV1 Piedras Verde 85.54 86.04 0.5 2.60 1.40
05-PV2 Piedras Verde 2.15 2.80 0.65 6.08 0.70
100.54 111.54 11.0 0.47 0.49
including 104.54 105.54 1.0 2.96 1.30
05-PV3 Piedras Verde 76.0 77.0 1.0 3.02 4.51
79.7 80.1 0.4 0.90 2.14
104.0 104.15 0.15 1.78 3.01
05-SN5 Santo Nino 46.0 52.3 6.3 4.87 0.20
including 46.0 49.0 3.0 9.40 0.27
60.0 62.8 2.8 2.42 0.06
including 61.0 62.0 1.0 5.98 0.17
05-SN6 Santo Nino 56.7 78.1 21.4 0.13 0.15
05-SN7 Santo Nino 63.8 65.8 2.0 3.55 0.41
05-SN9 Santo Nino 74.0 90.9 16.9 0.31 0.08
including 75.0 76.0 1.0 3.55 0.23
05-SN10 Santo Nino 66.8 68.0 1.2 2.10 0.78
85.1 96.6 10.5 0.38 0.37
05-EC11 Santo Nino/
El Cordon 62.5 63.0 0.5 0.75 0.53
05-SN15 Santo Nino 68.7 80.5 11.8 2.36 0.53
including 68.7 71.2 2.5 4.52 0.14
& including 76.5 78.5 2.0 5.77 1.42

Note: true widths are estimated to be approximately 80-90% of the
core widths above.

In addition to the aforementioned vein zones drilled in 2005, several other targets exist on the San Antonio Property. Approximately one kilometre along strike to the northwest of, and 300m higher in elevation than, Santo Nino, lies the Casitas Zone, discovered in early 2005. Surface mapping of outcrops and old trenches in this area uncovered semi-massive galena-sphalerite-pyrite in a 50cm wide vein enclosed in brecciated, oxidized andesite. The best assay obtained was from a channel sample across 2.1m of oxidized silica rich vein material which returned 360g/t silver, 11.8% lead and 8.54% zinc. Thirty-five metres to the NNW, a well mineralized portion of the Casitas vein returned 12.8g/t silver, 6.74% lead and 3.46% zinc across a 60cm width. The flanking breccia was geochemically anomalous. The Casitas vein/structure is covered by Upper Volcanic avalanche debris further to the northwest.

The San Cayetano Zone is located approximately 7km northwest of the Arroyo San Antonio and is believed to have been historically mined on a small scale. It consists of a silica-barite-galena epithermal vein with widths to 1.5m, exposed over a strike length of 70m, but lies within a 500m by 500m zone of argillic alteration suggesting that it has a much greater extent. Two samples across the San Cayetano vein returned 538g/t Ag and 0.24% Pb over 1.0m and 420g/t Ag and 0.65% Pb over 0.5 metres.

The Gossan Zone encompasses six knolls of silicified, oxidized, silica veined and brecciated quartz eye rhyolite approximately one kilometer northwest of the Arroyo San Antonio. It extends for 1,000m NW-SE with widths in excess of 100m and a vertical extent of approximately 350m as exposed in bluffs. PIMA analysis from the Gossan zone showed high temperature clays such as dickite and alunite associated with the breccias, surrounded by lower temperature argillic alteration (kaolinite). Surface rock sampling during the spring of 2005 returned anomalous levels of gold (up to 0.595ppm), arsenic and antimony in a fractured to brecciated, silicified rhyolite with iron oxides and vuggy silica. This signature is interpreted to be indicative of a high sulphidation epithermal environment and the areal extent suggests the potential for significant mineralization.

The recognition that the San Antonio Property contains such an extensive zone of previously unrecognized alteration and mineralization bodes well for the discovery of a significant deposit. As the Lower Series Volcanics are the most common host to the plethora of epithermal deposits in the Sierra Madre Occidental, such as El Sauzal to the NW and Guadalupe y Calvo to the SSE, this work has effectively opened up a brand new area for exploration. Great Panther's work to date has enhanced the understanding of the geological setting and outlined several targets worthy of follow-up exploration. The Company is currently reviewing all data with its consultants and formulating plans for the next phase of exploration.

Fieldwork at San Antonio was carried out under the supervision of consulting geologist Matthew D. Gray, Ph.D., C.P.G. of Resource Geosciences de Mexico, S.A. de C.V. and Robert F. Brown, P.Eng, V.P. Exploration for Great Panther Resources Limited. Mr. Brown is the Qualified Person for the project under the meaning of National Instrument 43-101. Diamond drilling was conducted by BDW Drilling of Guadalajara, Mexico and all samples were assayed by ALS Chemex Labs.


Robert A. Archer, P.Geo., President & CEO

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