Great Panther Silver (TSE:GPR, NYSEMKT:GPL) posted encouraging drill results, which show that strong gold and silver mineralization continues along strike from the current mine workings at the San Ignacio mine.
The surface drilling program at the Guanajuato mine complex began in October last year and consisted of 32 holes for 7,464 metres.
The drilling, which is continuing, initially targeted the southeasterly strike extension of the Melladito vein, in particular, where it is hit by the Plateros vein trend.
The result of this intersection is a thickening of the veins, highlighted by one hole, which returned a combined estimated true width of 19.24 metres averaging 6.36 grams per tonne (g/t) gold and 261 g/t silver.
Other highlights were 4.65 metres of 4.81 g/t gold and 275 g/t silver in the Melladito vein and 14.59 metres of 6.86 g/t gold and 257 g/t silver in the Plateros vein.
Drilling has now changed focus to the Purisima vein, approximately 650 metres to the west of the current mine workings.
"We are encouraged by the continuation of mineralization to the southeast of our mine workings, with the Plateros vein locally exhibiting very high grades, particularly in gold," said Robert Archer, Great Panther's president and chief executive.
"The results of our exploration drilling have given us sufficient confidence to commence drifting in that direction to further evaluate and delineate these zones from underground."
Shares eased around 3% in Toronto to $1.55.