Great Panther Silver (TSE:GPR) (NYSE:MKT:GPL) said it has extended the continuity of high grade silver-gold mineralization for about 300 metres south of its current mining activities at its San Ignacio satellite mine, which is part of its Guanajuato complex in Mexico.
The company announced Tuesday the final results from its 2014, 3,728-metre drilling program, with highlights including a 13.82 metre interval of 4.99 grams per tonne (g/t) gold and 194 g/t silver.
"Our recent drilling at the San Ignacio mine has not only extended the mineralization to the south, but has started to delineate a very significant lens of thicker and higher grade mineralization," said president and chief executive officer, Robert Archer.
"With these encouraging results, we have modified the mine plan at San Ignacio and have turned our immediate focus to developing this new zone."
Great Panther earlier this month posted record 2014 production results, on the back of a strong final quarter when metal output increased 19 percent, due in large part to the new San Ignacio satellite mine, which started commercial production last June. The precious metals miner also predicted a 10 percent increase to production in 2015, to a range of 3.5 to 3.6 million silver equivalent ounces.
The company said the data from the surface drilling program at San Ignacio are being collected and interpreted, with a new mineral resource estimate expected to be announced this quarter.
The satellite mine is currently operating at about 300 tonnes per day, with ore being trucked 22 km to the company's Cata processing plant. The main production level has already reached the closest of the new exploration holes, according to Great Panther, and development will continue to the south with the latest results to be used as a guide this year.
Great Panther said the vein structures at San Ignacio are known to extend for roughly 4km along the length of the property, leaving almost 3km of untested strike potential.