Precious metals producer Great Panther Mining (TSE:GPR) (NYSEAmerican:GPL) has unveiled encouraging drill finds from its Tucano gold mine in Brazil - the first exploration the firm has done since acquiring the asset in March this year.
In a statement, the company said it has recovered high gold grades over notable widths below the existing AB3 open pit. Assays from ten of the first 12 holes returned intersections such as 15.35 grams per ton (g/t) gold over 13.55 metres, including 30.94 g/t gold over 5.35 metres in one hole.
READ THE DEEP DIVE: Growth at its Tucano mine in Brazil a key focus for Great Panther Mining this year
Another hosted 13 g/t of the yellow metal over 25.5 metres, including 63.40 g/t gold over five metres.
"These first results from the in-mine drilling are highly encouraging and are the first step in unlocking the potential that we see at Tucano," said Jim Bannantine, the president and chief executive at Great Panther.
Bannantine noted that the firm had already made significant improvements at Tucano and that gold production was increasing.
"Exploration of Tucano is a key focus for Great Panther with the objective of increasing the mine life and ultimately enhancing the economics and with the goal of returning significant value for our shareholders," he added.
The so-called 'in-mine' exploration program designed to convert inferred resources into higher confidence measured and indicated, covers around 7,450 metres in 36 holes. So far, a total of 12 holes for around 2,400 metres have been sunk.
Further regional program
A further regional program is being planned to focus on exploration of the extensive land package surrounding the Tucano mine.
Tucano belongs to the sub-category of greenstone-hosted gold deposits known as Iron Formation Hosted Gold Deposits, which includes notable mines such as the historic Homestake mine in South Dakota, where 44 million gold ounces were produced.
Last week, the firm reported a 165% increase in revenue in the second quarter due to production from the new Tucano mine, which was added to the portfolio with the closing of the Beadell Resources acquisition.
Shares in New York added 0.46% to US$0.83. In Canada, they were unchanged at C$1.09.
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