(MENAFN- ProactiveInvestors)
In the second half of 2015 (TSX: GPR) (NYSE MKT: GPL) expects to further define and expand zones of higher grade mineralization to establish new resource estimates by covering a total of 29700 meters in its diamond drilling program at the Guanajuato Mine Complex the Guadalupe de los Reyes ("GDLR") Project in Mexico and the Coricancha Mine Complex in Peru.
This is almost a third more than the program’s originally planned 19000 meters. Great Panther aims to advance both GDLR and Coricancha towards a production decision by 2017.
In 2015 Great Panther has already completed the acquisition of Cangold and signed a two-year option agreement with Belgium’s Nyrstar to acquire the Coricancha mine located just 90km from Lima in the Andes’ prolific Central Polymetallic Belt containing some 22 million silver equivalent ounces (Ag.eq.oz) in Measured and Indicated Resources and 124.6 million Ag.eq.oz in Inferred Resources.
Beyond the drilling campaign “the plans for GDLR include a revised Preliminary Economic Assessment in 2016 and at Coricancha we will evaluate plans for future mine development and start-up. The GDLR and Coricancha work programs are forecasted to cost approximately $4 million. While these are easily fundable from our existing cash position our reported results to date for 2015 showed good cash generation from our operations and ultimately it is our goal to fund these projects from cash flow and not use our current working capital or the recently announced credit facility" said ’s president and CEO Robert Archer.
The company expects to complete 8900 metres of drilling by the end the year to refine resources at depth on the Cata Los Pozos San Cayetano Guanajuatito and Valenciana zones at the Guanajuato Mine and on the Intermediate and Melladito zones at the San Ignacio satellite mine.
At San Ignacio Great Panther has also filed an application for a permit to launch a 2200 metre 16-hole surface drilling program to upgrade the classification of the resource estimate and test the strike extension of high grade silver-gold mineralization discovered in the fourth quarter of 2014.
Great Panther holds the GDLR gold-silver project in Sinaloa State under an option from through Great Panther's recent acquisition of Cangold.
The company intends to revise the geological model and resource estimate in line with a combined underground/open pit mining scenario in order to reach higher grade veins starting with portions of the Guadalupe and San Miguel veins which appear to have the best potential for underground mining.
The company said it would start cleaning of old underground workings for mapping and sampling in August having already filed a permit application has been filed for a 5200 metre 37-hole surface drill program for this year. This is part of an overall 11200 meter program comprising of approximately 8800 metres in 53 holes and ten holes comprising 2400 metres to be drilled from surface pending permitting.
Provided that permits are received in a timely fashion the resource estimate should be complete the end of 2015.
At the Coricancha Mine Complex the gold-silver-lead-zinc-copper mineralization (of which some 80% gold and silver) occurs as massive sulphide veins and miner has chosen to perform most of the drilling from the existing underground workings given the steep topography starting with higher grade areas. This will allow for an assessment of these areas’ ability to support a renewed mining effort at prevailing metal prices.
Coricancha has been on care and maintenance since August 2013 but Great Panther can easily restart its fully permitted and operational 600 tonne per day flotation and BIOX bio-leach plants after generating the new resource model and mine plan as well as completing pre-production mine development.
Geological mapping and sampling will be conducted coincidently with the drilling with the combined program continuing into the first quarter of 2016.
Meanwhile Guanajuato and San Ignacio continue to advance toward production at the Guanajuato Mine Complex even as significant exploration potential remains on the property.
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