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Great Panther announces further drill results from San Ignacio ahead of updated estimate

Great Panther Silver (TSE:GPR)(AMEX:GPL) announced Monday a further 12 surface diamond drill holes from its ongoing program at the company's wholly-owned San Ignacio project in Guanajuato, Mexico.

Drill-holes ESI11-039 to ESI11-050 confirmed vein continuity with mineralized vein widths of up to nine metres, and in-filled the Intermediate zone extension to the south, as well as defined the Nombre de Dios zone, the company said. The infill drilling is being done in preparation for an upgraded mineral resource update, which is expected later in the second quarter of 2012.

Currently, the initial inferred mineral resource estimate comprises 611,000 tonnes grading 127 grams per tonne (g/t) silver and 2.05 g/t gold for 4.49 million silver equivalent ounces. The resource is based on just the first 24 diamond drill holes, over a strike length of only 300 metres.

The mineralized zones at the property remain open along strike to the north and south along the entire four kilometre long property, Great Panther said.

As drilling productivity has recently doubled, the addition of a second drill to the program has been re-scheduled for the first quarter of 2012, the company added. The second drill will expand drilling south, northwards and to test a 600-metre strike portion of the southern San Antonio claim.

Highlights from the latest drilling at the Intermediate zone include 213 g/t silver and 5.12 g/t gold over a true width of 3.26 metres, and 201 g/t silver and 6.34g/t gold over a true width of 4.96 metres in hole ESI11-039.

"These two intersections are separated by a void with a true width of approximately 0.7 metres that is possibly an old mine working from the 1800's, implying a vein width of almost nine metres from which only a very narrow portion has been previously mined," said the company in a statement.

In addition, drill-hole ESI11-048 intersected 296 g/t silver and 1.28g/t gold over a true width of 3.86 metres in the Intermediate zone, presently the intersection at the highest elevation.

Meanwhile, the Nombre de Dios vein drilling returned 106 g/t silver and 2.11 g/t gold over a true width of 5.15 metres in  hole ESI11-044.

Detailed geological mapping, structural geological studies, outcrop sampling, and re-sampling of old underground workings are ongoing at the property to highlight additional priority targets along the four kilometres of prospective structures.

The San Ignacio project is located in the La Luz vein system of the Guanajuato silver-gold district, in central Mexico, 20 kilometres by vehicle from the company's Guanajuato Mine milling facility.