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Weekly Hotline Message                             (Now in our 25th Year)                                      July 12, 2007


 

Company Review

Great Panther Resources Ltd.

 

Al Korelin and I recently interviewed President Bob Archer. We would urge you to watch this video for a detailed account of this new silver producer’s plans. Following are some of the points made by Mr. Archer in our discussion with him:

 

·                    The company put two Mexican silver mines into production in 2006. They were the only company, at least in Mexico, to do that. Those two mines were the Topia silver-lead-zinc mine and the Guanajuato Mines.

 

·                    At the Guanajuato Mine, a new silver-gold zone was found and gold values ranged up to 23.4 grams gold/tonne over 2.4 meters. These zones are sub parallel and occur within 70 meters of the main Veta Madre Zone. With several zones within close proximity, it is believed this will significantly lower their development costs. Access to this underground wealth should be possible via a ramp.

 

·                    Startup production has been small. From both mines a total of 318,000 ounces of silver were produced during the first quarter, at a cost of about $7 per ounce.  The cost of production should decline markedly in the quarters to come, as milling capacity and mining capacity are increasing. This should hold true from both of the company’s existing mines. We would expect this company to become profitable this year.

 

·                    Longer term, both of the existing two producers have very considerable exploration potential, so it isn’t possible at this juncture to say how large they may become. But longer term, a very exciting project is the Mapimi gold-silver-lead-zinc project. Here there are at least two and possibly three major mineralized structures with a strike length of 1½ kilometers. Geologically speaking, Bob Archer compared the Mapimi with the world-class Peñasquito Property, located in the mining state of Zacatecas, Mexico. At June 2007, proven and probable gold reserves are 13.0 million ounces, and the silver resource was 864 million ounces. Lead and zinc resources are 2.67 million tonnes and 5.81 million tones, respectively.  In addition, measured and indicated gold resources, inclusive of proven and probable reserves, stood at 17.8 million ounces. Measured and indicated silver resources stood at 1.3 billion ounces. This mine is scheduled to start up in late 2008. Bob Archer was quick to state he wasn’t predicting that the Mapimi will host anything like these spectacular numbers. But geologically speaking, he clearly is excited about the prospects for this still-tiny micro-cap company to come up with an elephant that could catapult Great Panther into a household name as well.

 

We are quite happy to have Great Panther remain on our list as an “A” progress company. It has production that should turn profitable this year. It has cash flow from that production, and it has enormous upside potential on various projects. Most importantly, it has an excellent management team that has both exploration expertise and production experience. We like the chances of this company’s pulling up the overall performance of our “A” progress group this year and perhaps several years into the future.

 

 


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Reg Advocaat

Manager Corporate Development

Great Panther Resources Ltd.

Suite 2100 - 1177 West Hastings Street

Vancouver BC V6E 2K3

Ph: 604-608-1766

Fax: 604-608-1744

E-mail: radvocaat@greatpanther.com

Website: www.greatpanther.com