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Posts Tagged ‘gold’
Press Release: Avino Reaches Operational Milestone
Avino Silver and Gold Mines Ltd is pleased to announce that it has entered into an agreement with MRI Trading AG for the sale of all the copper concentrates produced from stockpiled material that remains on-site from previous mining. This material is currently being used to commission the refurbished 250tpd mill circuit in preparation for the treatment of the 10,000 tonne bulk sample from the underground development at San Gonzalo slated for later this year.
The terms of the agreement are to deliver 400 to 600 tonnes of concentrate containing approximately 50 to 70 tonnes of copper, 20,000 to 30,000 ounces of silver and 150 to 200 ounces of gold. To date six truckloads weighing over 200 tonnes have been delivered to the TMC warehouse at the Port of Manzanillo.
The sale of this concentrate will add to Avino’s cash position and help offset a portion of the on-going monthly operational costs.
In the month of July, the process plant treated approximately 4600 tonnes of ore for the production of 18 tonnes of copper, 8005 ounces silver and about 50 ounces of gold. These are plant operating figures and are subject to reconciliation once the concentrate shipment weights and assays have been finalized.
Underground development in July at San Gonzalo consisted of a total of 108 metres in both the 2306 and 2260 levels with the removal of 980 tonnes of development ore for future testing.
Founded in 1968, Avino has established a long record of mining and exploration in Mexico. The Company’s focus is to bring the property to production. Avino remains well funded.
ON BEHALF OF THE BOARD
“David Wolfin”
______________________________
David Wolfin
President
Press Release: High-grade gold intercepts continue at Rubicon’s F2 Core Zone, Red Lake, Ontario
<<
- 0.54 oz/ton gold over 14.8 feet plus 22.0 oz/ton gold over 1.6 feet
at 4331 to 4580 feet below surface -
- drift to F2 Core Zone reaches halfway point - on schedule to reach
target in October 2010 -
>>VANCOUVER, Aug. 18 /CNW/ – Rubicon Minerals Corporation (RMX:TSX: / RBY:NYSE-AMEX) is pleased to provide an update of the latest diamond drill results at its 100% owned Phoenix Gold Project, located in the heart of the prolific Red Lake Gold District of Ontario. All new drill results are shown in Table 1 and Figures 1 and 2. Emerging gold zone outlines of the F2 Gold System are shown in Figure 3.
Deep drilling in target area 8 confirms gold mineralizing system continues to depth
Recent drilling of deep target area 8 from both underground and surface has returned positive gold results in the southwestern part of the F2 Gold System at depth (Figure 1 and 2). Underground drill hole 305-06 intersected 0.54 oz/ton gold over 14.8 feet (18.6 g/t gold over 4.5 metres), and is part of a wider intercept grading 0.32 oz/ton gold over 29.5 feet (10.9 g/t gold over 9.0 metres) at a vertical depth of 4580 feet (1396 metres) below surface. Surface holes F2-100A and F2-100A-W1, testing target areas 5 and 8 intersected multiple gold zones including a bonanza hit of 22.0 oz/ton gold over 1.6 feet (754.2 g/t gold over 0.5 metres) at a vertical depth of 4331 feet (1320 metres) below surface in drill hole F2-100A and 4.16 oz/t gold over 1.6 feet (142.6 g/t gold over 0.5m) within a broader zone grading 0.27 oz/t gold over 31.5 feet (9.2 g/t gold over 9.6 metres) at a vertical depth of 3563 feet (1086 metres) below surface in drill hole F2-100A-W1 (Table 1 and Figure 2).
These results begin to fill in the deep target areas and demonstrate that the robust F2 Gold System, as documented by over 492,000 feet (150,000 metres) of drilling to date, continues to depth.
Drilling in target area 5 expands the 122-10 Zone to depth
The F2 Gold System is comprised of several zones identified to date: the F2 Core Zone, the Crown Zone, the 102 Zone in the Northern Extension Area, the Hanging Wall Zone, the 122-40 Zone and the 122-10 Zone (Figure 3). Drill hole 122-67 was designed to test approximately 820 feet (250 metres) below the 122-10 Zone (named after the discovery hole announced September 14, 2009 that intersected 0.40 oz/ton gold over 147.3 feet (13.7 g/t gold over 44.9 metres) including a higher grade section of 0.83 oz/t gold over 59.0 feet (28.4 g/t gold over 18.0 metres)). Drill hole 122-67 intersected 0.48 oz/ton gold over 16.7 feet (16.3 g/t gold over 5.1 metres) including 1.16 oz/t gold over 3.3 feet (39.9 g/t gold over 1.0 metres) at a vertical depth of 3087 feet (941 metres) below surface (Table 1 and Figures 1 and 2) and further extends the 122-10 Zone to depth.
Underground drift on the 305 metre level at halfway point – on target to reach F2 Core Zone in October
The 305 metre level drift (1001 feet) is designed to provide access for both definition drilling and bulk sampling of the F2 Core Zone. As of July 31, the drift reached the halfway point and is on schedule to access the F2 Core Zone by October 2010. A new drill station was set-up at the halfway point and three drills are now turning on the 305 metre level. This latest drill station allows for more cost-efficient drilling due to its closer proximity to the gold bearing zones discovered to date in the central F2 Gold System. Upon completion of the drift in October, Rubicon plans to establish a cross drift and up to four drill stations to be used for the definition drilling of the F2 Core Zone.
Rubicon plans to commence in August, 2010 the excavation of a second egress (a second underground exit to surface) from the 305 metre level as this is a Provincial regulatory requirement to permit mining from underground. The Company has also secured an option to purchase a larger hoist than currently on site, to allow for the project’s potential mining capacity to be increased up to 2000 tonnes per day.
Rubicon Minerals Corporation is a well-funded exploration and development company, focused on exploring and developing its high-grade gold discovery at its Phoenix project in Red Lake, Ontario. Rubicon controls over 65,000 acres (100 square miles) of prime exploration ground in the prolific Red Lake gold district of Ontario which hosts Goldcorp’s high-grade, world class Red Lake Mine. Rob McEwen, President and CEO of McEwen Capital and former Chairman and CEO of Goldcorp, owns 21.4% of the issued shares of the Company.
RUBICON MINERALS CORPORATION
“David W. Adamson”
President & CEO
<<
Table 1: Assay Results
-------------------------------------------------------------------------
Hole Depth to Centre Gold Width Gold Width 9X
of Intercept (g/t) (m) (oz/t) (ft) Target
(m) Area
-------------------------------------------------------------------------
F2-100 Anomalous - Auto-wedged and hole continued as F2-100A
-------------------------------------------------------------------------
F2-100A 1085 7.3 1.8 0.21 5.9 5
-------------------------------------------------------------------------
F2-100A 1129 3.1 14.0 0.09 45.9 5
-------------------------------------------------------------------------
Incl. 1127 6.8 5.0 0.20 16.4 5
-------------------------------------------------------------------------
Incl. 1129 17.4 1.0 0.51 3.3 5
-------------------------------------------------------------------------
F2-100A 1174 4.9 2.5 0.14 8.2 8
-------------------------------------------------------------------------
F2-100A 1276 4.6 8.0 0.13 26.2 8
-------------------------------------------------------------------------
Incl. 1275 15.1 1.0 0.44 3.3 8
-------------------------------------------------------------------------
And Incl. 1279 16.6 1.0 0.48 3.3 8
-------------------------------------------------------------------------
F2-100A 1320 754.2 0.5 22.00 1.6 8
-------------------------------------------------------------------------
F2-100A 1453 13.3 1.4 0.39 4.6 8
-------------------------------------------------------------------------
F2-100A-W1 1082 9.2 9.6 0.27 31.5 5
-------------------------------------------------------------------------
Incl. 1086 142.6 0.5 4.16 1.6 5
-------------------------------------------------------------------------
F2-100A-W1 1327 6.4 3.0 0.19 9.8 8
-------------------------------------------------------------------------
F2-102 515 24.8 1.0 0.72 3.3 4
-------------------------------------------------------------------------
F2-102 552 3.2 8.0 0.09 26.2 6
-------------------------------------------------------------------------
Incl. 555 11.9 1.0 0.35 3.3 6
-------------------------------------------------------------------------
F2-103 69 373.8 0.5 10.90 1.6 4
-------------------------------------------------------------------------
F2-103A 376 12.4 1.5 0.36 4.8 4
-------------------------------------------------------------------------
F2-103A 395 3.5 5.0 0.10 16.4 4
-------------------------------------------------------------------------
F2-103A 407 27.4 0.5 0.80 1.6 4
-------------------------------------------------------------------------
F2-103A 414 6.2 2.5 0.18 8.2 4
-------------------------------------------------------------------------
F2-104 486 3.2 12.4 0.09 40.7 4
-------------------------------------------------------------------------
Incl. 481 9.9 2.0 0.29 6.6 4
-------------------------------------------------------------------------
F2-104 582 40.0 1.0 1.17 3.3 6
-------------------------------------------------------------------------
122-67 824 3.0 6.0 0.09 19.7 5
-------------------------------------------------------------------------
Incl. 825 11.0 1.0 0.32 3.3 5
-------------------------------------------------------------------------
122-67 941 16.3 5.1 0.48 16.7 5
-------------------------------------------------------------------------
Incl. 940 21.8 3.6 0.64 12.0 5
-------------------------------------------------------------------------
Incl. 940 39.9 1.0 1.16 3.3 5
-------------------------------------------------------------------------
122-69 430 23.7 1.0 0.69 3.3 1
-------------------------------------------------------------------------
122-70 167 170.9 1.0 4.98 3.3 3
-------------------------------------------------------------------------
122-70 817 34.3 1.0 1.00 3.3 5
-------------------------------------------------------------------------
122-70 847 3.3 4.0 0.10 13.1 5
-------------------------------------------------------------------------
305-05 310 5.2 3.4 0.15 11.2 1
-------------------------------------------------------------------------
Incl. 310 11.6 1.2 0.34 3.9 1
-------------------------------------------------------------------------
305-05 311 3.1 7.5 0.09 24.6 1
-------------------------------------------------------------------------
Incl. 311 24.2 0.5 0.71 1.6 1
-------------------------------------------------------------------------
305-05-W1 310 3.9 6.0 0.11 19.7 1
-------------------------------------------------------------------------
305-05-W1 363 3.5 7.0 0.10 23.0 1
-------------------------------------------------------------------------
Incl. 362 6.0 3.0 0.18 9.8 1
-------------------------------------------------------------------------
305-05-W1 370 3.4 8.0 0.10 26.2 1
-------------------------------------------------------------------------
305-06 1398 10.9 9.0 0.32 29.5 8
-------------------------------------------------------------------------
Incl. 1396 18.6 4.5 0.54 14.8 8
-------------------------------------------------------------------------
Incl. 1394 104.7 0.5 3.05 1.6 8
-------------------------------------------------------------------------
305-10 Anomalous
-------------------------------------------------------------------------
305-11 292 8.3 3.6 0.24 11.8 1
-------------------------------------------------------------------------
Incl. 292 25.7 1.1 0.75 3.6 1
-------------------------------------------------------------------------
Holes with the prefix '122' and '305' were drilled from underground.
Assays are uncut. Reported results satisfy the following criteria:
greater than 10.0 gram gold x metre product and greater than 3.0 g/t
gold. Anomalous holes satisfy the following criteria: greater than 2.5
gram gold x metre product and less than 10.0 gram gold x metre product
and greater than 2 g/t gold. A complete listing of results to date for
the F2 Zone is available at www.rubiconminerals.com.
>>To view Figure 1: F2 Gold System Plan Map, Figure 2: Composite Long Section Looking Northwest and 9X Target Outlines and Figure 3: F2 Gold System Plan Map with Emerging Outlines of Gold Zones, please visit: http://files.newswire.ca/617/rubiconfig123.pdf
Press Release: Great Panther Silver Reports Increased Revenue, Earnings From Mining Operations And Record Net Income In Second Quarter
GREAT PANTHER SILVER LIMITED (TSX: GPR; the “Company”) is pleased to announce the unaudited financial results for the Company’s quarter ending June 30, 2010. The full version of the financial statements and the management discussion and analysis can be viewed on the Company’s web site at www.greatpanther.com or on SEDAR at www.sedar.com.
“Great Panther enjoyed a strong second quarter, setting several new records, while continuing to focus on mine development and exploration drilling,” said Robert Archer, President & CEO. “With new equipment still arriving, modified mine plans being initiated, and almost 9,000 metres of diamond drilling completed in the quarter, we should see continued improvements in production, unit costs and financial performance through the balance of 2010.”
Second Quarter Highlights
- 15% increase in overall metal production to 574,740 silver equivalent ounces (”Ag eq oz”) in the second quarter 2010 from 499,845 Ag eq oz in the second quarter 2009.
- 23% increase in silver production from 333,358 oz Ag in the second quarter 2009 to a record 410,583 oz Ag in the second quarter 2010.
- 31% increase in silver production from Guanajuato to a record 288,825 oz from 220,742 oz in the second quarter 2009.
- 19% increase in metal production from Topia to 205,350 Ag eq oz compared to 172,550 Ag eq oz in the second quarter 2009.
- Record metallurgical silver and gold recoveries at Guanajuato and record metallurgical silver, lead and zinc recoveries at Topia.
- 39% increase in revenue for the three months ended June 30, 2010 to $9.3 million compared to $6.7 million for the three months ended June 30, 2009 due to higher metal prices and an increase in payable silver ounces.
- 43% increase in earnings from mining operations to $4.3 million in the second quarter 2010 from $3.0 million in the second quarter 2009.
- Record net income of $1.6 million for the three months ended June 30, 2010 compared to a net loss of $0.2 million for the same period in 2009.
- The Company invested $2.3 million in capital expenditures and $1.8 million in mineral property exploration expenditures during the quarter as it continued the implementation of its three-year growth strategy which commenced during the fourth quarter 2009. The Company plans to invest $13 million in capital expenditures and $6.3 million in mineral property exploration expenditures in 2010.
- The Company reported positive assay results from the expanded 7,800-metre (initially 6,000 metres) surface drill program at Topia. The program will provide for additional mineral resources to direct mine development and expansion decisions over the next several years and the Company anticipates mineral resource estimates for an additional four to five Topia area mines.
- Early results from the on-going underground drilling and development program in the Los Pozos and Santa Margarita zones in the Rayas area of the Guanajuato mine demonstrated the continuity of silver and gold mineralization. This will allow the Company to construct a new mineral resource estimate and provide greater definition for the mine plan in these areas.
Outlook
Great Panther has revised its overall production estimate for 2010 to 2.4 million silver equivalent ounces, a 9% increase over 2009 production, to reflect production shortfalls and reduced ore grades at Guanajuato, particularly during the first quarter of the year. Improvements have been evident in the second quarter and further improvements are expected throughout the balance of the year. In addition, underground development has advanced ahead of plan to provide for exploration drilling for Deep Rayas (drilling in progress), Guanajuatito and Valenciana (drilling to start in the third and fourth quarters respectively).
The long term forecast of achieving 3.8 million Ag eq oz by 2012 is unchanged. The impact of the new equipment is enabling increased development and production improvements throughout 2010 and positive exploration drill results are being used to estimate new resources in support of the 3-year growth strategy.
The Topia operation has made a very encouraging start to 2010 with record production and year to date unit costs of US$7.61 per oz of silver, net of by-product credits, and is well on its way to achieving its targets. At Guanajuato, year to date production is below plan mainly due to grades being lower than estimated in the first quarter. When combined with increased development costs during the first half of the year, this has resulted in Guanajuato’s year to date cash cost per silver ounce, at US$7.08, being higher than the guidance of US$4.50 to US$5.00. The mining plans have been revised, and should result in continuous improvement through the third and fourth quarters. New mineralized zones are being prepared for production on the Los Pozos and Santa Margarita veins while mining of the higher grade Alto veins of the Cata Clavo will commence in the fourth quarter.
The Company’s emphasis will be on maintaining profitability while developing and exploring to continually increase metal production. Great Panther’s production strategy is to increase silver production year-on-year at continually decreasing unit costs.
“The second quarter of this year saw the achievement of new all-time records in both silver production and corporate net profits, with record metallurgical recoveries at both mines”, said Kaare Foy, the Company’s Executive Chairman. “The on-going implementation of our three-year growth strategy will provide us with increased resource levels and increased production.”
Great Panther Silver Limited is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The Company owns a 100% interest in two operating mines in Mexico. The Company’s mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals in Mexico.
For further information, please visit the Company’s website at www.greatpanther.com, contact B&D Capital at telephone 604 685 6465, fax 604 899 4303 or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
“Robert A. Archer”
Robert A. Archer, President & CEO
“Kaare G. Foy”
Kaare G. Foy, Executive Chairman
- “Earnings from mining operations” is a non-GAAP measure and is defined as mineral sales less cost of sales (excluding amortization and depletion).
- “Adjusted EBITDA” is a non-GAAP measure in which standard EBITDA (earnings before interest expense, taxes, and depreciation and amortization) is adjusted for stock-based compensation expense and non-recurring items.
- The non-GAAP measure of cash cost per ounce of silver is used by the Company to manage and evaluate operating performance at each of the Company’s mines and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning.
- Silver equivalent ounces in 2010 were established using prices of US$1,000/oz Au, US$16/oz Ag, US$0.80/lb Pb and US$0.80/lb Zn.
Source: Company Website, you will find the full financial report here
Press Release: Minera Andes Reports Second Quarter 2010 Results
TORONTO, ONTARIO – August 13 2010 – Minera Andes Inc. (the “Corporation” or “Minera Andes”) (TSX: MAI and US OTC: MNEAF) is pleased to announce net income of $4.6 million ($0.02 per share basic and diluted) for the three month period ended June 30, 2010, compared to net income of $0.9 million ($0.00 per share basic and diluted) for the three months ended June 30, 2009. All amounts in this news release are in US dollars unless otherwise noted. Our financial statements and management’s discussion and analysis are available under the Corporation’s profile at www.sedar.com and www.sec.gov.
The increase in net income for the quarter was primarily due to an increase of $4.0 million in income on our investment in Minera Santa Cruz (”MSC”), which was partially offset by an increase of $0.3 million in total expenses for the quarter. This increase in expenses was a net result of a foreign currency exchange loss (due to a lower Canadian dollar) and an increase in legal expenses for the quarter, partially offset by a decrease in general and administrative costs.
Minera Andes has a 49% interest in the San José mine which is operated by MSC in the province of Santa Cruz, Argentina, an emerging gold/silver region home to many producing mines. Net proceeds realized by MSC from the sale of silver and gold for the quarter totaled $49.4 million as compared to $27.8 million for the first quarter of 2010, an increase of $21.6 million due to higher production and mill throughput as well as higher realized metal prices for both silver and gold. Net income at MSC for the second quarter was $11.3 million, an $8.9 million increase from the first quarter of this year. Silver and gold production came in at 1,220,794 ounces of silver and 19,707 ounces of gold, which were 48% and 20% higher respectively compared to the first quarter of this year. These figures are presented on a 100% basis.
The average weighted gross sale price for silver and gold sold for the quarter was $18.21 per ounce and $1,233 per ounce respectively, an increase of 8% and 12% respectively compared to the first quarter of this year. On a per ounce co-product basis the average production cash cost was $9.22 per ounce of silver and $602 per ounce of gold as compared to last quarter’s cash cost of $9.15 per ounce of silver and $599 per ounce of gold.
Minera Andes also has 100% ownership of the Los Azules copper deposit in San Juan, Argentina, and 100% ownership of a portfolio of exploration properties in the Deseado Massif region in Santa Cruz. Los Azules has inferred mineral resources of 900 million tonnes grading 0.52% copper, equivalent to 10.3 billion pounds of copper, as well as indicated resources of 137 million tonnes grading 0.73% copper, equivalent to 2.2 billion pounds of copper. The Deseado Massif is a highly prospective area host to major silver-gold deposits and producing mines.
As of June 30, 2010, Minera Andes had approximately $8 million in cash and cash equivalents, and continues to have no bank debt. Working capital at June 30, 2010 totaled $5.5 million.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, owner of the San José Mine, a large primary silver producer that produced 4,998,000 oz of silver and 77,070 oz gold in 2009; 100% ownership of the Los Azules copper deposit; and a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. The company has no bank debt.
This news release has been submitted by Perry Ing, Chief Financial Officer of the Corporation.
For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.
Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel: 647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Press Release: Drilling at Courageous Lake Yields Positive Results for Seabridge Gold
Toronto, Canada – The first 11 holes drilled this season by Seabridge Gold on the FAT deposit at its 100% owned Courageous Lake gold project have exceeded expectations, increasing confidence in the current resource and potentially expanding it. The Courageous Lake project is located in Canada’s Northwest Territories. Drilling continues with another 30 holes planned for this summer.
Seabridge President Rudi Fronk noted that the primary objective of this year’s Courageous Lake program is to enhance the value of the project by upgrading its existing resources so that they can qualify as reserves in a planned Preliminary Feasibility Study. “The results to date indicate that we are having success upgrading inferred resources to higher categories. Mineralization is where we expect it to be, demonstrating that our resource model is predictive. Furthermore, grades are somewhat better than predicted by the model and we are also finding new mineralized zones. Overall, the data suggests that resource ounces and perhaps grade could increase as a result of this program, in addition to upgrading resource categories.”
The FAT deposit is located geologically in the Slave Province. The deposit’s name is an acronym for its dominant rock type, Felsic Ash Tuff. This gold occurrence, hosted by Archean rocks, was formed in a rhyolite/dacite dome complex that measures about 2km along strike and about 800m of stratigraphic section in width. Although tuffaceous rocks are the most common in the deposit there are also clear intervals of clastic and chemical sedimentary rocks and a few late intrusives.
In constructing a geological model for resource estimation, unique stratigraphic intervals were defined and labeled as domains 1 though 9 and domain 14. Each domain contains specific and unique tuff and sedimentary units arranged in particular stratigraphic sequences. The defined geological domains are relics of the depositional environment in which they were formed. Consequently, within these domains the style of hydrothermal alteration, vein occurrences and sulfide mineralogy are consistent across the length and breadth of each specific domain. Distribution of gold within a domain and the surrounding rock is treated differently from other domains in resource modeling. Although ten separate geological domains have been recognized in the FAT deposit, domains 3, 4 and 5 contain about 80% of the gold in the deposit.
Results of the first 11 core drill holes from the current program are as follows:
Geologic descriptions of the 11 holes are as follows:
CL-081: Drilled at an azimuth of 98o and an inclination of minus 52o and designed to test the down-dip projection in domain 5 and fill a gap in domain 4. The only lithology encountered in the hole was felsic tuff. Alteration of the tuff varied significantly with the most common being sericite and carbonates. The geology encountered in domain 4 consisted of coarse tuff and intense sericite-silica alteration characteristic of this zone with better grades than expected in the resource model (4.0 g/t versus 2.5 g/t). Textures, alteration and sulfide minerals in domain 5 were indicative of gold mineralization but grades were lower than expected in the model.
CL-082: Drilled at an azimuth of 277o and an inclination of minus 60o and designed to in-fill gaps in domains 3 and 4. Due to ground conditions, the hole deviated immediately and did not fully test these targets. The entire hole was in felsic tuff with variable intensity of sericite and carbonate alteration. An unexpected mineralized zone was encountered in domain 2 beyond the limits of our resource model for this domain. The upper part of domain 3 was intersected in the drill hole yielding mineralization and geology consistent with the model.
CL-083: Drilled at an azimuth of 98o and an inclination of minus 47o and designed to upgrade near surface inferred resources in domains 5 and 4 and to test domain 3 to a depth of 200 meters. The grade encountered was significantly higher than predicted, with slightly narrower zones. Alteration and rock types were consistent with the model, including moderate to intense sericite alteration and intervals of intense silicic alteration, especially in domain 4. The bottom 33.0 meter interval grading 3.18 grams per tonne likely represents the eastern margin of domain 3, with grades better than expected.
CL-084: Drilled at an azimuth of 98o and an inclination of minus 55o and designed to upgrade shallow inferred blocks in domains 4 and 5 at relative elevations between 200 and 350 meters. Felsic tuff was the only lithology encountered in this drill hole with moderate to intense sericite and silica alteration. The upper 110 meters of the hole corresponded to rock types associated with domain 5 but with much less lithological variation, which may indicate the up-dip limits of this zone. In the deeper part of the drill hole, the felsic tuff is characteristic of domain 4 with well developed imbricated lapilli and distinctive primary quartz phenocrysts. Grade is distributed at the bottom and the top of zone 4 and in minor intervals through the center of the zone.
CL-085: Drilled to replace hole CL-082 at an azimuth of 274o with inclination of minus 65o. This hole also deviated from plan and did not fully test the target in domains 3 and 4. Geology of this hole was as predicted, felsic tuff with low to moderate intensity sericite alteration and few quartz veins with associated silicic alteration. The same unexpected mineralized zone found in hole CL-082 was encountered and is interpreted to be domain 2. Grade was also intercepted on the upper margin of domain 3 (14.4 meters at 2.19 gpt) which was not predicted in the resource model.
CL-086: Drilled at an azimuth of 277o and an inclination of minus 65o and designed to fill inferred gaps in domains 3 and 4 and test the down dip potential of domain 5. In domain 3, the tuffs were less intensely altered and sulfide content was low, indicating that this zone is weakening to the north. The eastern portion of domain 4 showed the strongest alteration and sulfides with the remainder of the domain being more erratic. Domain 5 was characterized by patchy alteration and sulfides in felsic tuffs, which may indicate the down-dip limits of this zone.
CL-087: Drilled at an azimuth of 95o and an inclination of minus 50o and designed to fill a potential gap of blocks in domain 5 (represented in the current model as waste) and an inferred gap in domain 4. The bottom of zone 5 was intercepted at the predicted depth and was characterized by fine-grained felsic tuff with a restricted size range of lapilli fragments. Moderate intensity sericite and silica alteration was accompanied by vein-controlled carbonate alteration. Results from this hole indicate that zone 5 is pinching up-dip. Below 200m the drill hole passed into domain 4 with the typical lapilli tuff units containing primary quartz eyes. Sericite and silica alteration is not intense, with the key mineralization in this part of domain 4 found near the base of the zone.
CL-088: Drilled at an azimuth of 277o and an inclination of minus 54o and designed to convert inferred blocks in domains 2, 3, 4 and 5. Typical FAT lithologies were intersected in this hole, primarily variably altered felsic tuff with minor intercalations of sedimentary rocks. Domain 2 was better than expected. Domain 3 showed continuing strong mineralization along its margins but the core was weaker than expected. Domain 4 alteration and mineralization were weaker than expected but still maintained a high-grade core. Domain 5 was consistent with expectations.
CL-089: Drilled at an azimuth of 98o and an inclination of minus 50o and designed to fill a gap of shallow inferred blocks in domains 5 and 4. Lithologies of domain 5 are as expected, with decreased sericite and silica alteration and increased chlorite-carbonate alteration. These results indicate that domain 5 has pinched out up-dip. Domain 4 was encountered where expected showing intense sericite and silica alteration. The alteration intensity decreases toward the top of domain 4.
CL-090: Drilled at an azimuth of 98o and an inclination of minus 54o and designed to upgrade blocks in domain 5 and 4. The lithologies of domain 5 were encountered from 263 to 300 meters, exactly as predicted. Grades were as expected. Domain 4 started a few meters earlier than expected at 314 meters and continued to the end of the hole. The unexpected start of domain 4 may link up with portions of domain 4 above and below that were too far apart to be interpolated previously. The other mineralized intercepts in domain 4 correspond well with the model.
CL-091: Drilled at an azimuth of 277o and an inclination of minus 57o and designed to upgrade inferred resources in domains 3, 4 and 5 at relative depths of 170 meters, 300 meters and 370 meters respectively. Domain 3 was intersected slightly deeper than expected at 161 meters, due to some intercalated sediments. Mineralization was expected to be spotty as this domain is weakening to the north. Domain 4 was intercepted where expected, with lithology and alteration indicative of domain 4. Overall results for this zone exceeded expectations, with wider intercepts and better grades. Domain 5 was much weaker than expected both in alteration and grades but a full cut of the zone was not achieved due to some deviation in the hole.
The above reported drill holes were designed to intersect the true width of the FAT deposit.
The Courageous Lake project consists of 27,263 hectares (67,366 acres) covering 53 kilometers (33 miles) of a greenstone belt in Canada’s Northwest Territories, including the two kilometer long FAT deposit which has estimated gold resources as set out below (see news release of February 28, 2007 for details):
In March 2008, Seabridge released the results of a Preliminary Assessment (see news release dated March 10, 2008) in which the independent consultants concluded that an open-pit mining operation, with on-site processing, is the most suitable development scenario for the Courageous Lake project. A base case scenario was developed proposing a 25,000 tonne per day operation (9.125 million tonne per year throughput) resulting in a projected 11.6 year operation with average estimated annual production of 500,500 ounces of gold at an estimated average cash operating cost of US$435 per ounce recovered. The base case scenario utilized measured, indicated and inferred resources in the mine plan. Initial capital costs for the project were estimated at US$848 million, including a contingency of US$111 million. The total cost of gold production (including cash operating costs and total capital costs over the life of the mine) was estimated at US$590 per ounce.
At a gold price of US$690 per ounce, the base case cumulative pre-tax net cash flow over the life of the project was estimated at US$500 million. At a gold price of US$800 per ounce, the cumulative pre-tax net cash flow over the life of the project was estimated at US$1.13 billion and at US$1,000 gold pre-tax cumulative net cash flow was estimated at US$2.27 billion.
Seabridge notes that the Courageous Lake Preliminary Assessment incorporated inferred mineral resources which are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Therefore, Seabridge advises that there can be no certainty that the estimates contained in the Preliminary Assessment will be realized.
National Instrument 43-101 Disclosure
The 2010 Courageous Lake exploration program is being conducted under the direction of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person under National Instrument 43-101. Mr. Threlkeld has reviewed and approved this news release.
An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2010 Courageous Lake drill program including blank and certified reference standards inserted by the Company in every batch of assays. Repeats and re-splits of the sample reject are analyzed at a rate of not less than one sample in every 25 for each type. Samples are being assayed at Acme Laboratories, Vancouver, B.C. using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements. Cross-check analyses are being conducted at a second external laboratory on at least 10% of the samples.
Seabridge holds a 100% interest in several North American gold projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of Seabridge’s mineral reserves and mineral resources by category please visit the Company’s website at http://www.seabridgegold.net/resources.php.
Press Release: Seabridge Drilling Confirms Iron Cap as Major New Gold-Copper Deposit
New fourth KSM zone could significantly improve project economics
Toronto, Canada – Results from the first eight holes drilled by Seabridge at the Iron Cap target have confirmed a new, large potentially bulk minable deposit at KSM which could substantially improve project economics. Results to date include wide intercepts of gold, copper and silver grades above the KSM average. Infill drilling will now proceed at Iron Cap with the aim of establishing new proven and probable reserves to be included in mine plans for the project.
Seabridge President Rudi Fronk commented that “results from our eight holes and five holes drilled by previous operators have identified a new deposit that is at least 900 meters in strike length, 400 meters wide and up to 350 meters thick, located immediately adjacent to the Mitchell zone [see attached maps]. What is most encouraging is that Iron Cap appears to have zones of higher grade copper which could be blended with ore from Mitchell to maintain our targeted 0.20% average copper grade to the mill. This average head grade is important because it generates a higher grade concentrate without sacrificing recoveries, which in turn commands better smelter returns and reduces shipping costs. The current mine plan calls for the early development of the more distant Kerr and Sulphurets zones to maintain copper head grades to the mill. Sequencing Iron Cap before Kerr and Sulphurets could have multiple potential benefits including lower operating and capital costs, deferring significant expenditures and extending mine life.” Results from Seabridge’s initial eight holes from Iron Cap are as follows:
Geologic descriptions of the eight holes are as follows:
IC-10-006: Eastern part of Iron Cap zone, drilled at azimuth 135º with an inclination of minus 70º. The drill pierced thermally and hydrothermally altered sedimentary rocks with narrow intrusive and breccia bodies. Silicic alteration with intense quartz veinlets indicative of shattering by fluid pressure characterizes the rocks in this drill hole. Sulfide minerals are abundant and concentrated in the quartz veinlets.
IC-10-007: North central part of Iron Cap, orientated at azimuth 135º and a minus 80º inclination. This hole collared in shattered and veined silicically altered and thermally metamorphosed sedimentary rocks. It passed into a shattered and veined intrusion with intense silica alteration. Numerous intervals of silica altered breccia with abundant sulfide minerals were recognized within the intrusion.
IC-10-008: Central part of Iron Cap, drilled at azimuth 135º and a minus 80º inclination. Extensive silica alteration of tuffaceous and sedimentary rocks was encountered in the upper part of the drill hole. Deeper sections of the hole contained quartz-sericite altered intrusion and silica altered breccia.
IC-10-009: North central part of Iron Cap, drilled at azimuth 135º and a minus 80º inclination. The hole encountered diorite to monzonite intrusion through most of its length. To about 174 meters, alteration intensity increases beginning with moderate-intensity chlorite alteration grading to intense silica and potassic alteration. Below 174 meters, intensity of silica alteration remains consistent to the end of the hole, with veining and sulfide abundance decreasing at depth.
IC-10-010: North central part of Iron Cap, drilled at azimuth 135º and a minus 80º inclination. The drill hole encountered breccia through most of its length. The breccia generally has intensely altered fragments in a matrix of silica and sulfide minerals, with occasional zones of intense veining superimposed on the brecciated rock.
IC-10-011: Northeast part of Iron Cap, orientated at azimuth 135º with an inclination of minus 70º. The drill hole collared in brecciated rock, passed into a section of silicically altered pyritic sedimentary rocks and then into a fine grained intrusion. The breccia and intrusive rocks are dominantly sericite altered. The highest grade gold zone straddles the contact between the intrusion and sedimentary rocks.
IC-10-012: Far northeast part of Iron Cap, drilled at azimuth 135º and a minus 70º inclination. The upper parts of this drill hole are alternating intervals of sedimentary and tuffaceous rocks with diorite intrusion. Alteration is principally silica with abundant stockwork veins. The lower third of the drill hole encountered silicic and pyritic sedimentary rocks and very fine grained felsic volcanic rocks.
IC-10-013: North central part of Iron Cap, orientated at azimuth 135º and minus 80º inclination. The entire drill hole displays low intensity alteration in a porphyritic intrusive rock. The upper third of the hole is dominated by silicic alteration with patchy potassic alteration. Below a distinct fault zone in the hole, the lower 2/3 is altered in alternating intervals to chlorite-rich and silica-rich alteration assemblages.
The above reported drill holes were designed to intersect the true width of the Iron Cap zone.
The 100% owned KSM project, located near Stewart, British Columbia, Canada, is one of the world’s largest undeveloped gold/copper projects. Proven and probable reserves for the KSM project (see news release dated March 31, 2010 for details) using a gold price of US$850 per ounce and a copper price of US$2.25 per pound are as follows:
Exploration activities at KSM are being conducted by Seabridge personnel under the supervision of William E. Threlkeld, Senior Vice President of Seabridge and a Qualified Person as defined by National Instrument 43-101. Mr. Threlkeld has reviewed and approved this news release. An ongoing and rigorous quality control/quality assurance protocol is being employed during the 2010 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples are being assayed at Eco Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold resource projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of Seabridge’s mineral resources by project and resource category please visit the Company’s website at http://www.seabridgegold.net/resources.php.
Press Release: Minera Andes Announces Production at the San José Mine for the Second Quarter 2010
TORONTO, ONTARIO – July 21, 2010 – Minera Andes Inc. (the “Corporation” or “Minera Andes”) (TSX: MAI and US OTC: MNEAF) announces the San José mine production results for the second quarter of 2010. During the second quarter, the San José mine produced 1,220,794 ounces of silver and 19,707 ounces of gold, of which 49% is attributable to Minera Andes.
| Production | Q2 2010 | Q1 2010 | Q2 2009 |
|---|---|---|---|
| Ore production (tonnes) | 116,259 | 96,484 | 119,184 |
| Average head grade silver (g/t) | 368 | 293 | 400 |
| Average head grade gold (g/t) | 5.81 | 5.92 | 5.65 |
| Silver produced (ounces) | 1,220,794 | 823,107 | 1,264,616 |
| Gold produced (ounces) | 19,707 | 16,430 | 18,078 |
| Silver equivalent production (ounces | 2,403,214 | 1,808,907 | 2,349,296 |
| Net silver sold (ounces) | 1,294,677 | 739,159 | 1,709,190 |
| Net gold sold (ounces) | 22,168 | 14,325 | 21,930 |
*49% of the San José mine production is attributable to Minera Andes Inc.
Compared to the first quarter of 2010, the 2010 second quarter silver production was 48% higher and gold production was 20% higher. The increase in silver and gold production was primarily the result of higher mine production and mill feed tonnage compared to the first quarter. Mill throughput in the second quarter of 2010 was 20% higher than the previous quarter. In the second quarter the silver head grade increased 26% compared to the first quarter, and the gold head grade was 2% lower than the first quarter. The improved silver grades are related to ongoing development of the Kospi vein. Compared to the second quarter of 2009, the second quarter 2010 silver production decreased 3% and gold increased 9%.
Average daily mill throughput during the second quarter of 2010 was approximately 1,280 tonnes per day, which is 15% below the mill capacity of 1,500 tonnes per day. According to Minera Santa Cruz, our operating joint venture entity managed by Hochschild Mining plc (”MSC”), the mill operated below capacity due to lower mine production. As previously reported, mine production has been adversely impacted by delays in underground mine development.
MSC has further advised us that the development delays also impacted production grades because access to certain higher grade stoping areas was delayed. Consequently, second quarter 2010 mill feed grades continue to be lower than the average 2009 head grades. However, MSC has advised Minera Andes that they expect the grades to improve during the second half of the year
Milling operations are performing satisfactorily with recoveries in line with budget expectations. A series of modifications were made to the mill during 2009 and the first half of 2010 that resulted in improved operating efficiencies. A small Merrill Crow circuit was also installed in the fourth quarter of 2009 that is resulting in the recovery of incremental silver ounces and slightly improved silver recoveries. Aside from normal sustaining capital, which includes mine development and exploration, the Corporation is not aware of any new capital projects at San José.
Second quarter production cost information will be provided jointly with second quarter financial results.
Sales of silver and gold were 75% and 55% higher, respectively, in second quarter of 2010 compared to the first quarter as a result of increased ore production and a decrease in products inventory. Compared to the same quarter last year, sales of silver in the second quarter of 2010 were 24% lower while gold sales were at about the same level. This was due to lower ore production in the second quarter of 2010, differences in head grades and inventory liquidations in the second quarter of 2009.
This news release is submitted by James K. Duff, Chief Operating Officer of Minera Andes Inc.
About Minera Andes
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: A 49% interest in Minera Santa Cruz SA, which owns the San José Mine, one of the world’s largest primary silver producers that produced 4,998,000 million oz silver and 77,080 oz gold in 2009; 100% ownership of the Los Azules porphyry copper deposit in San Juan province, Argentina; and, a portfolio of exploration properties in the highly prospective Deseado Massif region of Santa Cruz Province in southern Argentina. Minera Andes had approximately $15 Million USD in cash and no bank debt as at March 31, 2010.
For further information, please contact: Daniela Ozersky or visit our Web site: www.minandes.com.
Daniela Ozersky
Manager, Investor Relations
99 George St. 3rd Floor,
Toronto, Ontario, Canada. M5A 2N4
Toll-Free: 1-866-441-0690
Tel:647-258-0395
Fax: 647-258-0408
E-mail: info@minandes.com
Avino Press Release: Further Developments At San Gonzalo
Avino Silver and Gold Mines (”Avino”) is pleased to announce results of further underground development at its San Gonzalo project at the Avino property in Durango Mexico.
Avino’s mine contractor DMG have been driving two declines, the upper level 1 (2306 m) elevation and the lower level 2 (2260 m elevation). Both levels have intersected the San Gonzalo vein, Level 2 has intersected the San Gonzalo vein and a splay vein. These are known as San Gonzalo vein 1 and San Gonzalo. They are shown on a plan map on Avino’s website.
Avino’s previous news release June 4, 2010 gave results of channel sampling on lines 1 through 15 on the initial drifting (Level 2 2260m) along Veta San Gonzalo 1 (24.73 m length 2.15 m average width, 1.27 g/t gold, 341 g/t silver, 5274 ppm lead, 2273 ppm zinc, 442 ppm copper).
This heading was extended to a further 22 m to S.E. along the San Gonzalo 1 vein. Line 16 was not on the vein but Lines 17 through Line 21 gave assay results across the vein as follows:-
Line Width Au Ag Pb Zn Cu (m) (g/tonne) 17 1.50 1.874 886 5919 3827 1070 18 1.90 1.526 896 6272 6091 1057 19 1.70 1.621 32 21825 33562 1340 20 2.20 0.828 363 4907 4367 754 21 0.75 5.091 534 12000 10800 7160 Avg: 1.61 1.752 532 9651 11438 1605
Level 2 (2260 m) also explored San Gonzalo Vein (see plan map on Avino website). This vein is narrower but there are values in both footwall and hanging wall. Values have therefore been averaged across a minimum mining width of 1.2 metres as shown over a strike length of 28.45 metres.
Line Width Gold Silver Lead Zinc Copper (m) (g/tonne) 1 1.20 0.145 35 1302 5090 177 2 1.20 1.157 661 2862 3648 326 3 1.20 0.213 148 1845 15460 461 4 1.20 0.518 101 1143 4174 756 5 1.20 0.491 47 3366 13743 711 6 1.20 0.351 45 917 12538 1818 7 1.20 1.006 68 8741 43950 939 8 1.20 0.850 269 5275 18734 1336 9 1.20 0.439 115 1991 6155 7689 10 1.20 0.404 85 1864 7890 582 11 1.20 0.387 124 2975 11495 842 12 1.20 0.535 246 3230 10167 847 13 1.20 0.185 38 786 8879 408 14 1.20 0.446 64 765 9339 533 15 1.20 0.468 122 2887 12315 414 16 1.20 0.681 149 3317 15233 528 17 1.20 0.564 155 1498 8715 213 18 1.20 0.572 134 3220 12250 200 19 1.20 0.716 190 2140 7143 162 20 1.20 0.631 228 3545 10430 118 Avg: 1.20 0.538 151 2683 11867 703
The Upper Level 1 (2306 m) has been driven Northwest along the San Gonzalo Vein and has broken in to the old San Gonzalo workings.
The San Gonzalo vein in this location is narrow. Channel Samples L1 through L14 were collected across the vein along a strike length of 16.88 m. Over this length the vein averaged 0.73 m wide, 0.562 Gold, 108 Silver, 992 Lead, 2653 Zinc, 487 Copper (all values ppm).
The exploration drift on the Lower Level 2 (2260 m) along the San Gonzalo 1 vein is currently also being advanced to the northwest towards a possible intersection with the San Gonzalo vein.
All samples were assayed at SGS Labs Durango. The assay method for gold is FAA 313 which is gold by fire assay withAAS finish, For silver, the method is AAS 21E which is a 3 acid digestion followed by AAS finish. For silver assays greater than 300g/t, the FAG 313 is applied which is fire assay followed by a gravimetric finish. ICP 14B is used for lead, zinc and copper. This is an aqua regia digestion followed by ICP-AES finish. For assays greater than 10,000ppm, ICP 90Q is used which is the ore grade version using a sodium peroxide fusion followed by ICP-AES finish.
ON BEHALF OF THE BOARD
“David Wolfin”
______________________________
David Wolfin
President
Seabridge’s Advantage, interview with Rudi Fronk
If you still have doubts about one of our 2010 stock picks, please watch this video.
Interview with CEO and President of Seabridge Gold (SA) Rudi Fronk about the history and how this company makes money for shareholders.
Especially the fact that every single share is backed by 1.7 oz. of gold in the ground makes this a perfect stock pick for the value investor.
Press Release: Great Panther Reports Record Silver Production in Second Quarter
GREAT PANTHER SILVER LIMITED (TSX: GPR; the “Company”) is pleased to report record silver production from its two wholly-owned Mexican silver mining operations at Topia and Guanajuato.
The combined silver production totaled 410,583 ounces, a quarterly record. In addition, the mines produced 1,474 ounces of gold, 297 tonnes of lead, a record, and 357 tonnes of zinc. Expressed in terms of silver equivalent ounces (”Ag eq oz”), metal production was 574,740 Ag eq oz.
Records were set at both operations in the second quarter (”Q2″) of 2010 and highlights include:
- 15% increase in overall metal production compared to Q2 2009 to 574,740 Ag eq oz.
- 23% increase in combined silver production compared to Q2 2009 to a record 410,583 oz Ag.
- 19% increase in metal production from Topia compared to Q2 2009 to 205,350 Ag eq oz.
- 27% increase in lead production from Topia compared to Q2 2009 to a record 297 tonnes.
- 32% increase in zinc production from Topia compared to Q2 2009 to 357 tonnes.
- 31% increase in silver production from Guanajuato compared to Q2 2009 to a record 288,825 oz.
- Record metallurgical silver and gold recoveries at Guanajuato.
- Record metallurgical silver, lead and zinc recoveries at Topia.
- Successful start to implementation of the Company’s 2010 — 2012 growth strategy.
- Further mobile equipment deliveries at both operations continue to provide mining efficiencies. The new equipment delivered during the first half of the year is expected to lead to a significant increase in production during the second half of 2010.
- Positive exploration drilling results reported from Guanajuato and Topia during the second quarter of 2010. Updated resource estimates anticipated for both mines by the fourth quarter of 2010.
(2010 Silver equivalents are established using prices of US$1000/oz Au, US$16/oz Ag, US$0.80/lb Pb and Zn.)
Guanajuato Mine
The Guanajuato mine recorded a much improved quarter as the silver grade of ore mined and processed increased to 291g/t, up by 25% from the first quarter of 2010. Metals produced totaled a record 288,825 Ag oz plus 1,453 Au oz, or 369,390 Ag eq oz from processing 34,379 tonnes of ore with an average grade of 291g/t Ag and 1.35 g/t Au.
The gold grade of ore was lower due to low production from the Santa Margarita vein. Production stoping of the Santa Margarita vein is underway during the third quarter and gold grades and production are expected to improve sharply. A newly acquired 2-yard underground loader has been assigned to this important gold production area. Production from the Los Pozos area continued to increase.
Mining of the Cata Clavo continued on the 490 and 470 levels where stoping was initiated on the Veta Madre, and development of the higher grade Alto veins continued. Stoping continued from the 460 level towards the 438 level.
Mining at Guanajuatito focused on the North Zone where stoping continued from the 80 level. Production was hampered by inconsistent grades where some of the vein was uneconomic.
At Rayas, development focused on recent discoveries, the Los Pozos and Santa Margarita vein structures. Mining of Los Pozos continued with stoping initiated on the 298 and 310 levels and development on the 345 level. Production from this area continues to increase and will improve further in the third quarter.
The gold-rich Santa Margarita vein continued to be explored by ramp development below the 390 level. Stoping has been initiated on the 435 level and gold production is expected to increase substantially in the third quarter.
Initial results from diamond drilling to explore the Los Pozos structure between the 310 and 390 levels were reported on June 08, 2010 (see News Release of same date). Of six drill holes reported, four intersected ore grade mineralization including drill hole UG10-100, which intercepted mineralization over a true width of 10.48 metres, grading 1.41 g/t Au and 452 g/t Ag. Geological mapping and chip sampling of the Los Pozos structure at the 345 level indicates a strike length of 60 metres with true widths of 8 to 10 metres.
The same News Release reported the initial results from the diamond drill program to explore the deeper extensions of the Rayas structures including the Santa Margarita vein. Six of the seven drill holes reported intersected the Santa Margarita vein to depths of 80 metres below the current mining on 435 level with one of the intercepts being an average of 8.62g/t Au and 46g/t Ag over a true width of 4.53 metres.
The Guanajuato plant achieved record gold and silver recoveries of 86.6% and 89.9%, respectively. The Company’s senior metallurgical consultant visited the Guanajuato and Topia plants with both plant managers. This team reviewed each plant to indentify further opportunities to improve metallurgical performance. During the second quarter, a second cyclone system was initiated at Guanajuato, replacing an old screw classifier. Towards the end of the quarter, the bed of the crushing circuit screen was replaced such that the mill feed size has been reduced to facilitate improved grinding performance.
More underground mobile equipment was received during the second quarter including a second scissor-lift utility truck and a 2-yard underground loader. All equipment is being dismantled and lowered through the Rayas shaft and reassembled in the mine. Additional equipment, including a second drill jumbo and a 16-tonne capacity underground haulage truck, is scheduled for delivery in the third quarter. It is expected that the full impact of the new equipment will be experienced in the second half of 2010.
Topia Mine
Topia recorded another excellent quarter with metal production of 121,758 oz of silver, 185 oz of gold, 654,323 lbs of lead (a record), and 787,692 lbs of zinc, from milling 9,176 tonnes of ore. This equates to 205,350 Ag eq oz, 19% higher than the second quarter of 2009. Ore grades averaged 446g/t Ag, 0.76g/t Au, 3.39% Pb and 4.22% Zn.
Ore was mined from twelve separate small mines. Production from the San Gregorio and El Rosario veins contributed more than one third of the silver production and new exploratory development on the San Gregorio vein continues to be successful.
Additional new underground mobile equipment was acquired including two 2-yard loaders and a single-boom electric-hydraulic drill jumbo. The additional equipment will facilitate the deep development of the Argentina Mine and the opening of new production areas.
Plant performance was excellent and continued to show improvement with metal recoveries of 92.4% for Ag, 82.9% for Au, 95.4% for Pb and 92.2% for Zn. The recoveries for silver, lead and zinc were records for the Topia mine. In addition to processing the 9,176 tonnes from the Company’s mines, 2,513 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down.
The surface diamond drill programme to extend the mining potential of known veins and explore other veins continued and initial results were reported in the News Release of May 27, 2010. Highlights from drilling the gold-rich, Recompensa vein were reported. All four drill holes reported intersected the Recompensa vein, extending the known length of the mineralization to 500 metres and another 50 to 60 metres below existing workings. Drill hole ST10-101 intersected five separate veins including the main Recompensa vein which returned values of 9.12g/t Au, 601g/t Ag, 12.8 % Pb and 15.3 % Zn, over a true width of 0.27 metres. The Company is expected to release assay results from exploratory drilling of other veins in the near future.
Outlook
Great Panther Silver is successfully implementing its strategy to accelerate production with increases of 20% per year to 3.8 million Ag eq oz in 2012. New equipment is being delivered to the mines, and exploration drill programs are in progress. The impact of the new equipment is expected to enable continuous production improvements throughout 2010 and exploration drill results will be used to estimate new resources to support the 3-year growth strategy.
Robert F. Brown, P.Eng., Vice President of Exploration for the Company is the Qualified Person for both the Guanajuato Mine and the Topia Mine, under the meaning of NI 43-101. Aspects of both mines relating to mining and metallurgy are overseen by Charles Brown, Chief Operating Officer for Great Panther and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
For further information, please visit the Company’s website at www.greatpanther.com, contact B&D Capital at telephone 604 685 6465, fax 604 899 4303 or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
“Robert A. Archer”
Robert A. Archer, President & CEO
Source: Company website, click here to go to the Great Panther website