Great Panther Silver (TSE:GPR)(NYSE MKT:GPL) has bolstered the mineral resource estimate at its new San Ignacio satellite mine in Guanajuato, Mexico, increasing indicated resources by more than 30 percent and over doubling the inferred resources.
The newest resource report includes the most recent drill results at San Ignacio, and the discovery of new high grade, silver-gold mineralization to the south of the 2014 mining area, according to the Vancouver, B.C.-based company's statement.
Indicated resources at the mine are now estimated at 180,300 tonnes at a grade of 159 grams per tonne (g/t) silver and 3.49 g/t gold, containing some 2.35 million silver equivalent ounces, up 31 percent from the July 2014 report.
Inferred resources now comprise of 787,800 tonnes at 160 g/t silver and 3.26 g/t gold, containing 9.9 million silver equivalent ounces, an increase of 162 percent from the prior estimate, Great Panther said.
The San Ignacio mine, which started operations last year, is part of Great Panther's Guanajuato mine complex (Pending:GMC), which also includes the Guanajuato mine. San Ignacio's ore is trucked 22 km to the company's Cata processing plant at the complex.
"The substantial increase in resources at our San Ignacio Mine reflects the discovery of wider zones of higher grade silver-gold in late 2014," said president and chief executive officer Robert Archer.
"We have already started developing and mining this new southern extension and we expect this area to play an increasingly important role in the future of the GMC.
"San Ignacio has significant potential for further expansion and we anticipate continued success in our 2015 drilling," he added.
Indeed, 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. Recent surface drilling at the site uncovered that the Intermediate and Melladito veins merge just south of the previous resource block, into a thicker, higher grade lens of mineralization.
With the latest update at San Ignacio, the new measured and indicated resource at the producing operations of the Guanajuato is estimated at 6.1 million contained silver equivalent ounces, 10 percent higher than last year's report.
Underground drilling this year will focus on improving the classification of the resource adjacent to the Melladito and Intermediate veins, while surface drilling will test the depth and strike continuity of all veins, the company said.