Guanajuato Mine Complex Resource Estimates

Summary Table of the Updated 2017 Mineral Resource Estimate for the Guanajuato Mine Complex¹

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 240,278 153 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 573,431 130 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
Subtotal 732,277 131 3,090,137 2.35 54,343 297 6,997,306
El Horcón 162,140 76 398,094 3.44 17,942 401 2,092,913
Total Inferred 954,785 115 3,530,141 2.36 72,587 296 9,082,917

1Mineral Resource Estimates use an effective date of August 31, 2017; and all used a metal price outlook of US$17.00/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)

Notes for El Horcón Project Mineral Resource Estimate:

  1. US$110 per tonne Cut-off, considering plant recoveries of %Ag, %Au, %Pb, and net smelter terms typical for Pb concentrates.
  2. Rock Density for all veins for Diamantillo is 2.77t/m³, San Guillermo 2.78t/m³, Diamantillo HW is 2.62t/m³, Natividad 2.57t/m³.
  3. Totals may not agree due to rounding.
  4. Grades in metric units.
  5. Contained silver and gold in troy ounces.
  6. Minimum true width 1.5m
  7. Metal Prices US$18.00/oz silver, US$1,300/oz gold, and US$0.80/lb lead.
  8. Silver equivalent calculations for El Horcón include gold and lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant.

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.

 

Topia Resource Estimates

Summary Table of the Updated 2015 Mineral Resource Estimate for the Topia Mine

MEASURED
Mine Tonnes Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(oz)
Au
(oz)
Ag Eq Oz
Topia 180,400 606 1.44 4.26 4.52 3,515,800 8,332 6,000,200
               
INDICATED
Mine Tonnes Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(oz)
Au
(oz)
Ag Eq Oz
Topia 165,800 644 1.17 4.75 3.82 3,437,712 6,243 5,570,000
               
MEASURED & INDICATED
Mine Tonnes Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(oz)
Au
(oz)
Ag Eq Oz
Topia 346,200 624 1.31   4.50 4.19 6,950,000 14,560 11,580,000
               
INFERRED
Mine Tonnes Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag
(oz)
Au
(oz)
Ag Eq Oz
Topia 357,400 592 1.31 3.44 3.96 6,806,791 15,060 11,050,000

Notes:

  1. CIM Definitions were followed for Mineral Resources.
  2. Mineral Resources are reported using different Net Smelter Return (NSR) cut-off values for the different mines as follows: US$167/t for the 1522 Mine, US$197/t for Argentina, US$153/t for Durangueno, US$189/t for Hormiguera, US$196/t for Recompensa, US$173/t for El Rosario, and US$204/t for La Prieta.
  3. Area-specific bulk densities are as follows: Argentina - 3.06t/m3; 1522 - 3.26t/m3; Durangueno - 3.12t/m3; El Rosario - 3.00t/m3; Hormiguera - 2.56t/m3; La Prieta - 2.85t/m3; Recompensa - 3.30t/m3.
  4. A minimum mining width of 0.30 metres was used.
  5. Mineral Resources are estimated using metal prices of: US$1,200/oz Au, US$17.00/oz Ag, US$0.90/lb Pb, and US$0.95/lb Zn. Silver equivalent calculations used the same metal pricing and 2014 recoveries of 89.9% for Ag, 56.4% for Au, 94.0% for Pb and 92.3% for Zn.
  6. Totals may not agree due to rounding

The updated MRE was classified according to the CIM Definition Standards on Mineral Resources and Mineral Reserves and, as such, is consistent with the requirements of NI 43-101.  It has an effective date of November 30, 2014 and replaces the previous estimate completed by Great Panther Silver Limited (Brown, R.F. and Sprigg, L.) in 2013.  Reporting delays were caused by challenges relating to the complexity of the multiple vein zones at Topia.  

This MRE provides an update for 40 veins from nine mining areas.  It is based on an approximate average Net Smelter Return ("NSR") cut-off value of US$180/tonne, corresponding to 2014 mining, processing, concentrate shipment and treatment, and general and administrative costs for each mining area.  Capping of grades and a minimum true width of 0.30 metres were individually applied to each of the veins making up the summary in the table above.

While most of the current resource base came from Great Panther's diamond drilling and underground development, the resource estimated for certain veins on the property (e.g. Argentina) came largely from the verification of Peñoles' sampling on levels that are planned for access in 2015 and later, and are still intact.  The majority of Great Panther's mining to date has come from new mine development on veins reported in these estimates.  The new total contained metal for the mineral resource categories is shown in Table 2 above.

Due to the steep topography and the nature of the narrow veins at Topia, surface drilling is typically widely spaced and is used as a guide for underground development by locating and confirming structural continuity and grade, while development by drifting, sampling, and some underground drilling along the veins defines the M&I mineral resource.  Accordingly, surface drilling is used to determine Inferred resources.

The 40 veins or vein segments from which this MRE was derived, were wire-framed using Leapfrog software.  A minimum 0.30 metre width was set to the wire-frames.  Geological interpretation of the veins was based on detailed level mapping along the veins, surface and underground drilling, and the insights of the site mine geologist.  The block modelling was conducted using MicroMine software and the Inverse Distance Cubed grade estimation method.  The grade of samples less than 0.30 metres in length/width was diluted to the minimum true width of 0.30 metres.  The NSR calculation was then completed on diluted and capped block model assays.

Analysis of underground mine samples is completed on site, with check assays and drill-core sample assays performed by the independent SGS Minerals Services laboratory at the Company's Guanajuato Mine Complex, Mexico.  The Company's QA/QC program includes the regular insertion of blanks and standards into the sample shipments, diligent monitoring of assay results, and necessary remedial actions.  Silver was completed with AAS12B technique, with over-limits (300g/t) completed by FAG323.  Gold was completed with FAA313 technique, with over-limits (10g/t) completed by FAG323.  Lead, zinc, copper, arsenic and antimony assays were completed using atomic absorption spectroscopy.  At the Topia Mine laboratory, silver, gold, lead, zinc, and iron assays are completed using atomic absorption spectroscopy.  Silver (300g/t) and gold (10g/t) over-limits are completed by fire-assay.  Robert F. Brown, P. Eng., C.V., is designated as the Qualified Person for the Topia Mine under the meaning of NI 43-101.

 

Coricancha Resource Estimates

Updated 2017 Mineral Resource Estimate for the Coricancha Mine, Peru

MEASURED
Mine Tonnes Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag eq gpt Ag eq oz
(M)
Constancia 270,336 6.2 219 2.36 3.44 0.43 1,064 9.24
Wellington 92,328 6.1 184 1.69 3.95 0.51 1,028 3.05
Escondida 15,362 0.9 279 0.28 1.35 3.20 832 0.41
Constancia East 16,315 6.0 143 1.97 2.16 0.11 836 0.44
San Jose 6,922 5.8 212 4.49 2.94 0.30 1,078 0.24
Colquipallana 2,944 3.4 220 3.67 5.26 0.21 995 0.09
Total Measured 404,205 5.9 210 2.16 3.43 0.54 1,037 13.49
               
INDICATED
Mine Tonnes Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag eq gpt Ag eq oz
(M)
Constancia 218,545 6.0 188 2.09 3.08 0.34 968 6.80
Wellington 77,080 6.0 186 1.68 3.66 0.52 1,004 2.49
Escondida 21,406 1.0 238 0.24 1.08 2.84 733 0.50
Constancia East 18,636 5.8 137 1.93 1.95 0.11 798 0.48
San Jose 7,673 5.7 217 4.76 2.93 0.30 1,084 0.27
Colquipallana 5,215 3.4 207 3.31 5.14 0.19 953 0.16
Total Indicated 348,554 5.6 189 1.95 3.05 0.52 955 10.71
               
MEASURED & INDICATED
Mine Tonnes Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag eq gpt Ag eq oz
(M)
Constancia 488,881 6.1 205 2.24 3.28 0.39 1,021 16.05
Wellington 169,408 6.0 185 1.69 3.82 0.51 1,017 5.54
Escondida 36,767 1.0 255 0.26 1.19 2.99 775 0.92
Constancia East 34,950 5.9 139 1.95 2.05 0.11 816 0.92
San Jose 14,594 5.7 215 4.63 2.93 0.30 1,081 0.51
Colquipallana 8,159 3.4 212 3.44 5.18 0.20 968 0.25
Total M & I 752,759 5.8 200 2.06 3.26 0.53 999 24.20
               
INFERRED
Mine Tonnes Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag eq gpt Ag eq oz
(M)
Constancia 532,422 5.3 215 1.71 3.29 0.40 950 16.25
Wellington 238,811 5.4 219 1.06 3.95 0.78 1,014 7.78
Escondida 96,926 2.2 208 0.26 2.24 1.90 751 2.34
Constancia East 49,234 5.7 125 1.66 1.57 0.21 760 1.20
San Jose 14,174 5.7 213 4.34 2.78 0.28 1,049 0.48
Colquipallana 11,592 3.7 117 2.98 3.15 0.15 743 0.28
Total Inferred 943,160 5.0 209 1.45 3.25 0.64 934 28.36

Notes for Mineral Resource Estimates:

  1. Cut-offs are based on an estimated $140 Net Smelter Return (NSR)/tonne.
  2. Metal prices used to calculate NSR: $1,300 per ounce (oz) Au, $17/oz Ag, $1.15 per pound (lb) Pb, $1.50/lb Zn, $3.00/lb Cu
  3. Block model grades converted to United States Dollar (US$) value using plant recoveries of 92.1% Ag, 80.2% Au, 77.3% Pb, 82.6% Zn, 52.7% Cu.
  4. Rock Density for Constancia: 3.3 tonnes per cubic meter (t/m³), Wellington, Constancia East, Escondida, San Jose: 3.2 t/m Colquipallana: 2.9 t/m³.
  5. Totals may not agree due to rounding.
  6. Grades in metric units.
  7. All currencies US dollars.
  8. Ag equivalent ounces (eq oz) million (M) is calculated from gpt data
  9.   AgEq g/t = Ag g/t + (Pb grade x ((Pb price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x  10000 g per %)) +(Zn grade x ((Zn price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Cu grade x ((Cu price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Au grade x (Au price per oz/Ag price per oz)).

The above updated resource estimates included in this news release 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 constructed under supervision of Ronald Turner, P.Geo. of Golder Associates S.A., the Qualified Person. The Mineral Resource Estimate was completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models.

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-Lima lab in Lima, Peru. The gold was analyzed by fusion with 30 g fire assay and atomic absorption spectroscopy (AAS) finish, with the resulting values reported in parts per million (code FAA313). The remaining 52 elements were analyzed by mass spectrometry of inductively coupled plasma (ICPMS) and the resulting values were reported in parts per million (code IMC12B). Any gold results that exceeded the limit of detection were re-analyzed by fire assay with a gravimetric finish (code FAG303). Any silver results that exceeded the limit of detection (>10g/t) were re-analyzed by fire assay with a gravimetric finish (code FAG313). Any other metals that exceeded the limit of detection were re-analyzed by ICP-AAS (code AAS11B).

The technical information contained in this news release has been reviewed and approved by Matthew Wunder, P. Geo., Vice-President Exploration for the Company and the Qualified Person (QP) for the Coricancha 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.

Latest News

View more news

Investor Kit

View Investor Overview