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XMFSinchiruna (27.60)

Do You Know What Electrum Is?

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September 07, 2010 – Comments (25)

Electrum is a naturally occuring alloy of gold and silver composed of essentially equal parts of the two metals. It's rather rare ... in fact of all the thousands of drill results I've reviewed over the past several years I don't think I've seen it referenced more than a couple of times. What's so exciting about electrum? It's indicative of an extremely high-grade gold desposit with a monster silver kicker. 

And Great Panther Silver, the one junior explorer I've been bringing to the attention of this community for several years running, has found it.

This is a huge development. For all of you who have remained patient with Great Panther because you believed in the quality of their management and the incomparable quality of their ore bodies, your prospects for being rewarded for your patience have just grown substantially stronger. For those who have not yet discovered the stock, it remains priced well below my 2005 cost basis for no good fundamental reason at all.

http://www.greatpanther.com/s/NewsReleases.asp?ReportID=417440

The drilling is being conducted at 50 metre centres from the 390 metre level of the mine and has so far extended the known strike length of the Santa Margarita vein to more than 175 metres and the depth extent to at least 125 metres below the current mining on the 415 metre level. The shallower holes are providing information for imminent mine development and production, while all holes will provide valuable data for mine planning and resource estimation.

Highlights of the recent drilling include 20.42g/t Au and 24g/t Ag over 1.85 metres in hole EUG10-060, and two intercepts of 24.37g/t Au and 24g/t Ag over 1.5 metres and 20.13g/t Au and 23g/t Ag over 2.55 metres, in hole EUG10-061. The latter intercept is contained within a wider interval grading 7.08g/t Au and 9g/t Ag over 8.20 metres, only 6 metres from the first vein. It is not yet clear if this separate zone in hole EUG10-061 represents a new structure or a branch of the Santa Margarita structure. The 1:1 ratio of gold to silver indicates that the mineralization is present as electrum, a naturally-occurring gold-silver alloy with equal amounts of the two metals.

Drilling on section 250S, the southernmost section drilled to date and 200 metres south of holes EUG10-060 and EUG10-061, returned deep intersections on both the Santa Margarita and Veta Madre structures. Vertical drill hole EUG10-057 intersected the Santa Margarita structure and returned 2.15 metres grading 576g/t silver and 1.33g/t gold at a depth equivalent to the 590 metre level, making this the deepest silver-gold intersection to date in this part of the mine.

The Veta Madre structure, parallel to Santa Margarita, is often not as well mineralized when the latter is well mineralized. As such, drill hole EUG10-054, on section 250S, did not return any significant values in the Santa Margarita structure, but intersected 5.1 metres grading 287g/t silver and 1.23g/t gold in the Veta Madre at a depth equivalent to the 548 metre level. This represents the deepest mineralization on the Veta Madre to date. Together with several historic holes drilled close to section 220S to the north, this portion of the Veta Madre structure appears to host a sub-horizontal lens of economic mineralization that is still open to the south.

Development and partial exploitation by the former mine owners in this part of the mine only extended to the 475 level along some parts of the Veta Madre from 300S to 500S. As such, this level will provide future access to the deeper portions of the Santa Margarita and Veta Madre structures.

The recent drilling results are significant in that several new epithermal systems appear to be developing in the deepest parts of the multi-phase epithermal system known to exist at Guanajuato. The Santa Margarita structure varies from a quartz-dominant breccia with <1% pyrite to intensely altered, breccia/stockwork in a volcanic/intrusive host rock with 2-3% blotchy pyrite. The upper parts of the system are gold rich with electrum (for example EUG10-060 and 061) while deeper intersections are silver rich (for example EUG10-057).

While the two types of mineralization appear to correlate structurally, the geological characteristics of the deeper intercept are different than those of the Santa Margarita vein higher in the mine. In several holes on section 250S, a quartz porphyry is becoming more prevalent and, in the hole 057 intercept, clasts of the porphyry are caught up in the vein material. Quartz porphyries are common in many vein-type deposits world-wide and are generally considered by geologists to be a positive sign for gold and/or silver mineralization. This porphyry is known to be associated with silver-gold mineralization in the past-producing Sirena Mine to the south (owned by Fresnillo Plc.), and there is still approximately 250 metres of as-yet untested ground to the property boundary.

As such, the intercept in hole EUG10-057 may represent a separate mineralized pulse, and is open to the south and to depth but, until more information becomes available, it is still being considered as part of the Santa Margarita system.

"These recent results from the deep drilling program at Rayas are confirming our long-standing belief that the mineralizing system at Guanajuato has a lot of life left in it", stated Robert Archer, President & CEO. "The expansion of the gold-rich Santa Margarita vein will not only increase our resource base but should provide for consistent and higher gold production for the foreseeable future. The discovery of a new silver-gold zone near the 600 metre level is very exciting as it, in itself, opens up a whole new area of the mine. We have only tested 250 metres of strike length in the deep Rayas area to date, of a planned 600 metres. The Guanajuato Mine property covers 4,200 metres of strike length, and next year, we will be testing the depth extent of the historically rich Valenciana Mine."

The 12,000 metres of underground drilling in the Rayas area began in February 2010. Initial drilling on sections 100S and 150S also intersected the Santa Margarita structure at the 450 level down to the 540 level (see news release of June 6, 2010). Highlights from the recent drilling are listed in the table below, and longitudinal and cross section maps can be found on the Company's website at www.greatpanther.com.

[See press release for table of drill results, and look beck over results spanning the past several years. It's quite a track record.]


Development of new drill stations is ongoing along a hanging wall drift on the 390 level from 250S to 450S. While this work is being completed, the drill has been moved from the drill station at 250S to a station at 000S, where sections 050S and 000S are being drilled.

 

25 Comments – Post Your Own

#1) On September 07, 2010 at 7:52 PM, 100ozRound (29.44) wrote:

Don't have time to read this so I'll be back.

Thanks for the heads-up

There was a lot of movement in GPRLF today

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#2) On September 07, 2010 at 8:31 PM, kdakota630 (29.78) wrote:

Definitely keeping my eye on this one now.

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#3) On September 07, 2010 at 9:12 PM, clipper5903 (< 20) wrote:

What are your best silver recommendations besides Silver Wheaton? Any up and comers like your legendary SLW call? (I'm enjoying your posts by the way. Really learning a lot about this sector.)

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#4) On September 07, 2010 at 9:15 PM, mhy729 (29.97) wrote:

Yes, I know EPs (electrum pieces) from my days as a nerd D&D player.  :p  They were halfway between gold and silver in value IIRC.  I did not know that it was a naturally-occurring alloy of equal parts gold and silver though.

Thanks for this, it sounds like a very positive development!  I have a small position in GPRLF, and I am very appreciative of your having brought this junior miner to our attention here.  I was happy to hear that Endeavor CEO Bradford Cooke admired the work done by Great Panther in your recent interview (that was a very good interview btw, many thanks!).  If only I had the knowledge to interpret these drill results...do you know of any good primers I might read up on to get some of the basics down?

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#5) On September 07, 2010 at 9:20 PM, XMFSinchiruna (27.60) wrote:

clipper5903

Too many to mention. :)

Great Panther is my third largest equity holding after SLW and CEF.

EXK (Endeavour Silver) is certainly a rising star.

 

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#6) On September 07, 2010 at 11:34 PM, kstarich (31.09) wrote:

Sinch

Thanks for the heads up on this one....I will watch for sure

What the heck is the above comment....do we have spam comments now?

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#7) On September 07, 2010 at 11:38 PM, 100ozRound (29.44) wrote:

Sinch, you don't have access to foreign markets through your broker do you?  You hold GPRLF and not GPR.TO correct?  I've always been a bit skittish about picking shares up on the pinks.  I had Silvercorp as a pink until they listed on NYSE but I was always a bit anxious about it.  And then all the talk about Primero/Mala Noche a while back.

Anyways, I'm rambling.....I want to pick up some shares but I would be more confident if they were listed on an American exchange.

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#8) On September 07, 2010 at 11:56 PM, 100ozRound (29.44) wrote:

kstarich

LOL -  Spam comments have been around for a few months now.  Some of them have even figured out how to write blogs. :(

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#9) On September 08, 2010 at 12:31 AM, XMFSinchiruna (27.60) wrote:

100ozRound

Yup ... it's on the pinks ... but this was one company I could not pass up despite the imperfect vehicle. This one will be at least a ten bagger if it's not gobbled up first.

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#10) On September 08, 2010 at 11:04 AM, clipper5903 (< 20) wrote:

Why do you think Great Panther has been trading under $1 for so long?

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#11) On September 08, 2010 at 11:15 AM, chk999 (99.97) wrote:

Interesting. Is Great Panther a part of GDXJ?

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#12) On September 08, 2010 at 2:16 PM, workfor (< 20) wrote:

I know Great Panther is part of SIL, but I don't know about GDXJ.

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#13) On September 08, 2010 at 3:46 PM, silverminer (30.70) wrote:

clipper5903

Heavy short interest, and a small enough market cap that many institutional investors are barred from coming in to bust those shorts. Aside from that, just a general complete lack of understanding by most investors about how to value a mining company.

 

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#14) On September 08, 2010 at 4:05 PM, 100ozRound (29.44) wrote:

I think I shall pick some up.  Thanks Sinch!

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#15) On September 08, 2010 at 5:28 PM, Speed03 (< 20) wrote:

I am not sure where to post this but some of you may find it interesting...

http://goldsilver.com/newsletters/newsID/9050/ref/1

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#16) On September 08, 2010 at 6:39 PM, TMFCHarris (99.61) wrote:

I just added GPRLF.PK to CAPS, so you can start rating. It may take an hour or two after open for it to start getting data, but it should be working tomorrow afternoon.

http://caps.fool.com/Ticker/GPRLF.PK.aspx

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#17) On September 08, 2010 at 6:44 PM, 100ozRound (29.44) wrote:

 GPRLF.PK

1st!

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#18) On September 08, 2010 at 6:45 PM, 100ozRound (29.44) wrote:

maybe

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#19) On September 12, 2010 at 10:53 PM, goldenoldee (< 20) wrote:

Fully diluted 131 million shares. Seems like it would take a huge amount of Ag production to move the needle. Same goes for increase in reserves.

Not negative, just questioning if this would be a great investment.

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#20) On September 18, 2010 at 4:30 PM, silverincite (38.76) wrote:

Hey Sinch,

Can you have Golden Minerals AMEX:AUMN added?

Not sure if you've looked into this one, but they have a very sweet project in Argentina with the latest drill result coming in at 146 meters of 317 grams per tonne silver... and they already have a resource of 60M oz at an avg grade of ~350 g/t silver. Another 3km north of the Yaxtche deposit they drilled 1,289 g/t silver over 28 meters. Think you'll like their other prospects in Mexico as well.

Cheers

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#21) On September 18, 2010 at 4:38 PM, silverincite (38.76) wrote:

Oops just noticed that it was TMFCHarris that added GPRLF.PK

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#22) On October 07, 2010 at 10:57 AM, kdakota630 (29.78) wrote:

I wish I'd got in on this a little while ago now that I'm using my 20/20 hindsight.

However, I'm hopeful that with the way gold has been running this week that we'll see a sharp correction which should provide a better entry point.

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#23) On October 26, 2010 at 3:30 AM, raambo (< 20) wrote:

Hey just had a look at there Q3 results posted on there website and there seems to have been a drop in production from Q2? Considering the projected growth rates and the estimated production in 3 years time, I found this alarming, although I have heard conflicting ideas as to why this occurred. What are your thoughts on this going forward? Love your write ups so far and hope you keep posting.

Thanks 

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#24) On December 06, 2011 at 6:20 PM, morgansmom94 (< 20) wrote:

I just signed up today, i have never done stocks options before.  I have no idea what I am doing, but I was searching penny stocks and came across this one.  I am hoping Great Panther will be a great starting/learning tool for me, I can really use the money being a single mom pretty much.  How long do you wait in general to see how much this will gain?  I am only doing 50 shares at first since I don't know what I am doing yet.  Any suggestions??  I am very nervous but excited about this prospect, but I have no clue what I am getting into.  I am trusting the picks!

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#25) On December 06, 2011 at 6:30 PM, morgansmom94 (< 20) wrote:

I just signed up today, i have never done stocks options before.  I have no idea what I am doing, but I was searching penny stocks and came across this one.  I am hoping Great Panther will be a great starting/learning tool for me, I can really use the money being a single mom pretty much.  How long do you wait in general to see how much this will gain?  I am only doing 50 shares at first since I don't know what I am doing yet.  Any suggestions??  I am very nervous but excited about this prospect, but I have no clue what I am getting into.  I am trusting the picks!

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