Name: Guanajuato mine.

Location: The Guanajuato mine property is situated underneath the city of Guanajuato, which is located 380 km north-west of Mexico City, in the central plateau mountains.

Controlling Company: Great Panther Silver.

Brief History: The Guanajuato mine consists of several deposits along a strike length of 4.2 km. Silver-bearing mineralisation was first discovered in 1548 and, over the last four centuries, more than one-billion ounces of silver has been mined in the Guanajuato district. Great Panther bought the property in 2005 and owns a 100% interest through Minera Mexicana El Rosario. The company restarted underground operations and milling in 2006; it has carried out exploration and continues to explore the property.

Brief Description: Guanajuato comprises two operating shafts and three ramps in the second-largest producing silver district in Mexico. Mining is predominately from four locations, Guanajuatito, Pozos, Santa Margarita and Cata, with minor production from Promontorio and pillar recovery from the Rayas area. Ore is milled from the mining facilities at the centrally located 1 200-t/d-capacity Cata plant.

Geology/Mineralisation: The Guanajuato mining district is underlain by Mesozoic marine sediments and predominantly mafic submarine lava flows of the Luz and Esperanza formations, which are weakly metamorphosed and intensely deformed. This basal sequence is cut by a variety of intrusive bodies ranging in composition from pyroxenite to granite, with tonalitic and dioritic intrusive rocks being the most volumetrically significant.

Cenozoic volcanic and volcanogenic sediments unconformably overlie the Mesozoic basement rocks. In the area, the oldest Cenozoic unit is the Paleocene Comanja granite, which was followed by the Eocene extrusion of andesite that was sporadically deposited simultaneously with the deposition of the Guanajuato conglomerate in localised grabens. The Guanajuato conglomerate underlies an unconformity beneath a sequence of felsic to mafic volcanic rocks that comprise Oligocene ignimbrites, lava flows and domes.

The country rocks are transected by numerous faults that host precious metal-bearing veins, stock-works and breccias. The deposits are Oligocene in age and are therefore contemporaneous with the eruption of felsic to intermediate volcanics. The primary strike direction of the faults that host the veins is north-west; less significant are the north-south, east-west, and north-east orientations. Significant fault systems in the Guanajuato camp are the La Luz, Sierra and Veta Madre.

Guanajuato’s mineralisation occurs within fault zones as discontinuous shoots and tabular bodies. The mineralising event is thought to have occurred during the Oligocene, a period of intense felsic volcanic activity in the area, and comprised three stages – pre-ore, ore, and post-ore. Pre-ore mineralisation consists of trace silver and gold, with accessory quartz and adularia. Ore mineralisation comprises an early silver-rich phase associated with adularia and a later low-silver variant, which is typified by calcite and quartz. The post-ore mineralisation is also precious-metal poor, with accessory calcite, dolomite and fluorite.

Resources: Total measured and indicated reserves as at July 13, 2013, were 504 700 t grading 1.65 g/t of gold and 174 g/t of silver. Total inferred resources were 434 000 t grading 2.32 g/t of gold and 140 g/t of silver.

Products: Silver and gold.

Mining Method: Cut and fill.

Major Infrastructure and Equipment: The Guanajuato comprises extensive underground workings from surface to about 600 m below surface, including multiple shafts and adits from surface, as well as internal shafts and ramps.

It further includes:
• two main shafts, the Rayas, for men and materials, and the Cata shaft, for rock hoisting;
• a nominal 1 200 t/d flotation concentrator with surface bins, crushing facilities, grinding mills, flotation cells and a concentrate dewatering circuit;
• a tailings storage facility;
• connection to the national grid for the supply of electric power;
• conventional and mechanised underground mining equipment;
• mine, geology, processing and administrative offices in several locations; and
• a shaft and ramp from surface, as well as internal ramps and drives linking to adjacent mines.

Prospects: The mining of four zones – Cata, Los Pozos, Santa Margarita and Guanajuatito – currently accounts for most of the Guanajuato metal production. The updated mineral resource of July 2013 will guide development and improve grades at the mines. Underground drilling will resume in 2014, with three drill rigs to delineate new resources on the upper extensions of Los Pozos SE (Veta Madre) and Santa Margarita, and the down-dip extensions of the Cata Clavo zones.

Contact Person: Investor relations, Rhonda Bennetto.

Contact Details:
Great Panther Silver,
tel +1 604 638 8955,
email rbennetto@greatpanther.com, and
website http://www.greatpanther.com

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