Overview

A satellite operation to the main Guanajuato Mine Complex (“GMC”), the San Ignacio Mine started commercial production in June 2014. The property is located approximately 8km northwest of the city of Guanajuato, in Guanajuato State, Mexico.  Access to the property is provided via a 35-minute drive from the outskirts of the city of Guanajuato (approximately 22km), mostly by paved road through the towns of Santa Ana and Cristo del Rey.  The mineralization on the property consists of epithermal silver-gold veins.  Most of the supplies and labour are sourced from the cities of Guanajuato or Leon. 

Great Panther holds a 100% interest in the Property.

The mine is currently operating at between 500 - 600 tonnes per day.

Exploration Program & Resource Estimate

The San Ignacio Mine covers approximately four kilometres of strike length on the La Luz vein system, which is parallel to, and five kilometres west of the principal Veta Madre structure that hosts Great Panther Silver's Guanajuato Mine.

The primary economic components are silver and gold with approximately equal contributions from each. Economic mineralization consists of fine-grained disseminations of acanthite and pyrargyrite (silver minerals), electrum (gold-silver mineral), with accessory pyrite, and very minor sphalerite and chalcopyrite. Mineral textures in this zone are typically fracture filling, drusy, and colloform masses.

Resource Estimate

When Great Panther acquired the Guanajuato Mines in 2005, there were minimal resources (non-NI43-101 compliant) and the Company had to rehabilitate the mine in order to begin establishing a new resource base. Since then, six NI 43-101 technical reports have been completed and filed.

During 2017, exploration at the San Ignacio Mine consisted of both surface and underground drilling. This drilling resulted in the extension and continued delineation of the Melladito and Nombre de Dios zones and a significant increase in Measured and Indicated Mineral Resources.

At San Ignacio, plans for 2018 include 5,000 metres of surface exploration drilling designed to test the down dip extension of the main productive structures and along the Nombre de Dios structure, and 5,000 metres of underground delineation drilling to upgrade and expand resources in these areas.

At the Guanajuato Mine, underground exploration in 2017 was focused on the Cata, Los Pozos, Guanajuatito, San Cayetano, Santa Margarita and Valenciana mining areas. An underground drill program of approximately 14,000 metres is planned for 2018, which will continue to focus on increasing Mineral Resources in these same areas.

Summary Table of the Updated 2017 Mineral Resource Estimate for the San Ignacio Mine¹

MEASURED
Mine Tonnes Ag
(g/t)
Ag
(oz)
Au
(g/t)
Au
(oz)
Ag eq
(g/t)
Ag eq
(oz)
San Ignacio 801,468 142 3,655,447 3.09 79,724 360 9,283,955
Guanajuato 170,978 227 1,245,568 1.50 8,268 333 1,829,281
Total Measured 972,445 157 4,901,014 2.81 87,991 355 11,113,236
               
INDICATED
Mine Tonnes Ag
(g/t)
Ag
(oz)
Au
(g/t)
Au
(oz)
Ag eq
(g/t)
Ag eq
(oz)
San Ignacio 196,949 139 878,805 2.68 16,991 328 2,078,368
Guanajuato 43,929 215 383,530 1.25 2,088 303 428,190
Total Indicated 240,878 153 1,262,335 2.42 19,079 324 2,506,558
               
MEASURED & INDICATED
Mine Tonnes Ag
(g/t)
Ag
(oz)
Au
(g/t)
Au
(oz)
Ag eq
(g/t)
Ag eq
(oz)
San Ignacio 998,417 141 4,534,252 3.01 96,715 354 11,362,323
Guanajuato 214,907 224 1,629,098 1.45 10,356 327 2,257,472
Total M & I 1,213,324 156 6,163,350 2.74 107,070 349 13,619,794
               
INFERRED
Mine Tonnes Ag
(g/t)
Ag
(oz)
Au
(g/t)
Au
(oz)
Ag eq
(g/t)
Ag eq
(oz)
San Ignacio 574,431 130 2,395,220 2.44 44,911 302 5,565,972
Guanajuato 158,846 136 694,917 2.04 10,432 280 1,431,334
Total Inferred 732,277 131 3,090,137 2.35 55,343 297 6,997,306

1Mineral Resource Estimates use an effective date of August 31, 2016; and all used a metal price outlook of US$18.00/oz silver and US$1,300/oz gold.

Notes for San Ignacio Mine Mineral Resource Estimate:

  1. Cut-offs are based on the marginal operating costs per mining area being US$71/tonne.
  2. Block model grades converted to US$/t value using process plant recoveries of 84% Ag, 84% Au, and net smelter terms negotiated for pyrite concentrates.
  3. Rock Density for Intermediate 2.64t/m³, Melladito 2.63t/m³, Intermediate BO 2.65t/m³, Nombre de Dios 2.64t/m³, Nombre de Dios 1.5 2.63t/m³, Nombre de Dios 2S 2.62t/m³, Nombre de Dios II 2.62t/m³, and Veta 400 is 2.66t/m³.
  4. Totals may not agree due to rounding.
  5. Grades in metric units.
  6. Contained silver and gold in troy ounces.
  7. Minimum true width 1.0m.
  8. Ag:Au ratio of 70.6 was used for Ag eq (oz)

Notes for Guanajuato Mine Mineral Resource Estimate:

  1. Cut-offs are based on the marginal operating costs per mining area being US$76/tonne for Cata, US$70/tonne for Santa Margarita / San Cayetano, US$68/tonne for Los Pozos, US$93/tonne for Guanajuatito, US$80/tonne for Promontorio, and US$80/tonne for Valenciana.
  2. Block model grades converted to US$/t value using process plant recoveries of 87% Ag, 86.8% Au, and net smelter terms negotiated for pyrite concentrates.
  3. Rock Density for all veins is 2.68t/m³.
  4. Totals may not agree due to rounding.
  5. Grades in metric units.
  6. Contained silver and gold in troy ounces.
  7. Minimum true width 1.0m.
  8. Ag:Au ratio of 70.6 was used for Ag eq (oz)

The above estimates were classified per the CIM Definition Standards on Mineral Resources and Mineral Reserves and, as such, are consistent with the requirements of NI 43-101. The Mineral Resource Estimate was completed under the supervision of Matthew C. Wunder, P. Geo., the Company Qualified Person. The Mineral Resource Estimates were completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique for estimation of grade to each of the block model blocks. The stated Mineral Resources are a categorized compilation of blocks greater than the marginal operational costs of the various mining areas.

The Company's QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions. Sample assaying was completed at the independent SGS-GTO lab in Guanajuato, GTO, Mexico. Silver assaying was conducted with AAS12B technique, with over-limits (300g/t) completed by FAG323. Gold assaying was conducted with FAA313 technique, with over-limits (10g/t) completed by FAG323. Where necessary, lead, zinc, copper, arsenic and antimony assays were conducted using atomic absorption spectroscopy.

The technical information contained in the resource estimate above has been reviewed and approved by Matthew C. Wunder, P. Geo., who is the Qualified Person for the Guanajuato Mine Complex under the meaning of NI 43-101. Aspects relating to mining and metallurgy are overseen by Ali Soltani, Chief Operating Officer for Great Panther.

NI 43-101 Technical Report on the San Ignacio Mine

Guanajuato, Mexico   |   February 20, 2017
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