Great Panther Silver (TSE:GPR)(NYSE MKT:GPL) has received the highest grade results ever from its San Ignacio asset, which began commercial production in June as a satellite operation to the company's Guanajuato mine in Mexico.
The high grade gold and silver intercepts are from the first six holes of the current 3,500-metre surface diamond drill program at San Ignacio, which started in early October.
The results are highlighted by a 7.45 metre intersection of 1,133 grams per tonne (g/t) silver and 6.86 g/t gold, which contained a 0.5 metre section grading 11,951 g/t silver and 48.2 g/t gold, the highest assays ever received from the property.
The company also intercepted two high grade holes in the Intermediate vein that appear to represent the southern strike extension of mineralization discovered last year in hole ESI13-106, which returned 24.6 metres of 263 g/t silver and 7.27 g/t gold.
"This is an exceptional start to the drill program," said president and chief executive officer, Robert Archer, in a release.
"While we were confident of extending the mineralization to the south of the existing resource block, many of these intercepts are of grades and widths better than those within the mineral resource estimate for the Intermediate vein."
The drilling program is focused on the Intermediate and Melladito veins south of the current mineral resource block for 300 metres, and under historic workings dating back to the 19th century, Great Panther said.
The six holes drilled so far have extended the mineralization for 130 metres south of the existing resource block, according to the Vancouver, BC-based company's statement released earlier Thursday.
The precious metals producer believes the known strike extent of the veins on the property is approximately 4,000 metres, so there is still significant expansion potential beyond the current campaign.
The company said it has added a second drill to finish the program before the end of this year.
The San Ignacio mine is now operating at approximately 200 tonnes per day, with ore being trucked 22 kilometres to the company's Cata processing plant. The company said the closest of the new exploration holes to the main ramp is only about 45 metres south, and at the same elevation as the existing production level, meaning the newest results can be used for follow-up underground drilling and development next year.
Earlier this month, Great Panther posted record production, with total metal output in the third quarter rising 13 percent from the year earlier period and 24 percent from the second quarter, supported by the ramp up of production at San Ignacio.