TSX: GPR
NYSE MKT: GPL
VANCOUVER, Jan. 11, 2017 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE MKT: GPL) ("Great Panther"; the "Company")
announces its fourth quarter ("Q4") and annual 2016 production
results from its two wholly-owned Mexican silver mining operations:
the Guanajuato Mine Complex ("GMC"), which includes the San Ignacio
Mine, and the Topia Mine in Durango.
2016 Production Highlights (Compared to Full Year
2015)
- Consolidated metal production decreased 7% to 3,884,960 silver
equivalent ounces ("Ag eq oz")
- Silver production decreased 14% to 2,047,260 silver ounces ("Ag
oz")
- Gold production increased 2% to 22,238 gold ounces ("Au oz"),
an annual record
- Ore processed was steady at 376,739 tonnes
Fourth Quarter 2016 Production Highlights (Compared to Fourth
Quarter 2015)
- Consolidated metal production decreased 12% to 883,772 Ag eq
oz
- Silver production decreased 17% to 460,571 Ag oz
- Gold production decreased 8% to 5,206 Au oz
- Ore processed decreased 2%, with 92,869 tonnes milled
"Metal production was down for the fourth quarter and 2016 due
to lower grades at San Ignacio and
to shutdowns at Topia, with the
most recent to accommodate tailings expansion and plant
improvements," stated Robert Archer,
President & CEO. "The increased output from San Ignacio did result in a second consecutive
annual record for gold production, and recent preliminary drill
results from San Ignacio indicate
that grades are likely to improve as we continue to the
southeast. In addition, with the upgrades at Topia and the recently signed agreement to
purchase the Coricancha Mine in Peru, we expect 2017 to be a very exciting
time for Great Panther Silver as we position ourselves for
production growth in future years."
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Consolidated
Operations Summary
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Q4
2016
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Q4
2015
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Change
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FY
2016
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FY
2015
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Change
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Ore processed (tonnes
milled)
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92,869
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94,874
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-2%
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376,739
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375,332
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0%
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Silver equivalent
ounce production1, 2
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883,772
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1,002,584
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-12%
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3,884,960
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4,159,121
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-7%
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Silver ounce
production
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460,571
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553,189
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-17%
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2,047,260
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2,386,028
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-14%
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Gold ounce
production
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5,206
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5,637
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-8%
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22,238
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21,740
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2%
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Lead production
(tonnes)
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213
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278
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-23%
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1,034
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1,198
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-14%
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Zinc production
(tonnes)
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315
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425
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-26%
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1,496
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1,850
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-19%
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(1)
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Silver equivalent
ounces for 2016 were calculated using a 70:1 Ag:Au ratio, and
ratios of 1:0.0504 and 1:0.0504 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
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(2)
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Silver equivalent
ounces for 2015 were calculated using a 65:1 Ag:Au ratio, and
ratios of 1:0.050 and 1:0.056 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
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Guanajuato Mine Complex
Total metal production for the GMC during the fourth quarter of
2016 decreased by 7%, to 702,351 Ag eq oz, compared to Q4 2015, and
decreased by 3% to 2,987,074 Ag eq oz for 2016, compared to the
prior year. The decreases in both periods were primarily
attributed to lower silver grades at San Ignacio. Ore
processed in 2016 increased by 4%, which partly offset the lower
silver grades. San Ignacio
accounted for 58% of the total ore processed at the GMC in 2016,
compared to 48% in 2015.
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GMC Operations
Summary
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Q4
2016
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Q4
2015
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Change
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FY
2016
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FY
2015
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Change
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Ore processed (tonnes
milled)
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81,518
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79,651
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2%
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320,903
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309,944
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4%
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Silver equivalent
ounce production 1, 2
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702,351
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751,927
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-7%
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2,987,074
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3,081,258
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-3%
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Silver ounce
production
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347,415
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394,655
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-12%
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1,473,229
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1,708,061
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-14%
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Gold ounce
production
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5,071
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5,496
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-8%
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21,626
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21,126
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2%
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Ag grade
(g/t)
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149
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175
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-15%
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163
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192
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-15%
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Au grade
(g/t)
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2.25
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2.39
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-6%
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2.43
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2.35
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3%
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Ag recovery
(%)
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88.7%
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87.9%
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1%
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87.9%
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89.2%
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-2%
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Au recovery
(%)
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85.9%
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89.7%
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-4%
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86.4%
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90.2%
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-4%
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(1)
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Silver equivalent
ounces for 2016 were calculated using a 70:1 Ag:Au
ratio.
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(2)
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Silver equivalent
ounces for 2015 were calculated using a 65:1 Ag:Au
ratio.
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Underground drilling to improve the resource definition at
San Ignacio continued through the
fourth quarter of 2016, and is scheduled to extend into 2017.
In addition, recent surface drilling at San Ignacio was successful in extending the
strike extent of silver-gold mineralization for several hundred
metres to the southeast of current workings. Seventeen holes,
for a total of 3,766 metres, were drilled in the fourth quarter and
many holes intersected silver-gold mineralization with higher
grades than currently being mined. These results are being
compiled and will be released in due course. Surface drilling
has resumed to follow up on these encouraging results.
Topia Mine
Total metal production in the fourth quarter of 2016 at
Topia was 181,421 Ag eq oz, a
decrease of 28% compared to the fourth quarter of 2015. When
compared to the previous full year, total metal production in 2016
decreased by 17% to 897,886 Ag eq oz. The decrease was mainly
attributed to the lower tonnes milled, reflecting the two temporary
plant shutdowns during Q3 2016 and a planned three-month processing
suspension commencing in December
2016 to facilitate mill upgrades and the transition to a new
tailings storage facility.
Mining has continued through the plant shut down and ore is
being stockpiled at the site. This material will be processed
once the plant starts up again such that production at Topia for 2017 should comprise 13 months of
mined ore. Updates on the plant status will be provided as
work progresses, with the expected restart in the first quarter of
2017.
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Topia Operations
Summary
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Q4
2016
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Q4
2015
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Change
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FY
2016
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FY
2015
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Change
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Ore processed (tonnes
milled)
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11,351
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15,223
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-25%
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55,836
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65,387
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-15%
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Silver equivalent
ounce production 1, 2
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181,421
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250,657
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-28%
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897,886
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1,077,863
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-17%
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Silver ounce
production
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113,156
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158,534
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-29%
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574,031
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677,967
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-15%
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Gold ounce
production
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136
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140
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-3%
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612
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614
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0%
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Lead production
(tonnes)
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213
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278
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-23%
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1,034
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1,198
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-14%
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Zinc production
(tonnes)
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315
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425
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-26%
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1,496
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1,850
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-19%
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Ag grade
(g/t)
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349
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357
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-2%
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354
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356
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0%
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Au grade
(g/t)
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0.63
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0.48
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32%
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0.56
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0.48
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17%
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Ag recovery
(%)
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88.8%
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90.6%
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-2%
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90.4%
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90.7%
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0%
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Au recovery
(%)
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59.4%
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60.4%
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-2%
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60.6%
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60.6%
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0%
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(1)
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Silver equivalent
ounces for 2016 were calculated using a 70:1 Ag:Au ratio, and
ratios of 1:0.0504 and 1:0.0504 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
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(2)
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Silver equivalent
ounces for 2015 were calculated using a 65:1 Ag:Au ratio, and
ratios of 1:0.050 and 1:0.056 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
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OUTLOOK
For 2017, the Company expects a production level of 4.0 to 4.1
million Ag eq oz (at a 70:1 ratio) from its Mexico operations. An updated NI 43-101
resource estimate for the GMC will be released later this month,
however, due to necessary cut-off dates, recent high grade drill
results will not be included in this estimate. Commissioning
of the new tailings storage facility at Topia and resumption of milling is expected in
the first quarter, with the gradual processing of ore stockpiled
during the shutdown to be conducted through the balance of the
year.
Completion of the recently announced acquisition of the
Coricancha Mine in Peru is
anticipated to take place before the end of the first
quarter. Initial activities will include evaluations of
current mine and processing infrastructure, underground drilling,
and initiation of a Preliminary Economic Assessment.
Depending on the outcome of the latter, development in support of
operations is expected to commence in early- to mid-2018. A
resource update is also scheduled for the second quarter 2017.
For the reported periods of 2016, the Company delivered
reductions in cash cost and All-In Sustaining Costs ("AISC") of 60%
and 31% respectively. For 2017, the Company expects cash cost
to increase due to increases in site costs and increased
expenditures on definition drilling aimed at reducing grade
variability and improving mine planning. AISC is also
expected to increase due to the increase in cash cost and greater
investment in drilling, development and capital projects. In
particular, AISC will reflect the non-recurring capital
expenditures in the new tailings facility at Topia which will primarily be incurred in the
first quarter of 2017. Based on current plans and
projections, the Company's cash cost and AISC guidance for 2017 is
US$5.00 – 6.00 and US$14.00 – 16.00, respectively.
The technical information contained in this news release has
been reviewed and approved by Robert F.
Brown, P. Eng., who is the Qualified Person (QP) for the
Guanajuato Mine Complex and the Topia Mine under the meaning of NI
43-101. Aspects relating to mining and metallurgy are
overseen by Ali Soltani, Chief
Operating Officer for Great Panther.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver mining and
exploration company listed on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE MKT trading under the symbol
GPL. Great Panther's current activities are focused on the
mining of precious metals from its two wholly-owned operating mines
in Mexico: the Guanajuato Mine
Complex, which includes the San Ignacio Mine, and the Topia Mine in
Durango. In addition, the Company has recently signed an
agreement to acquire a 100% interest in the Coricancha Mine Complex
in the central Andes of Peru.
Robert Archer
President & CEO
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking
statements"). Such forward-looking statements may include,
but are not limited to, the Company's plans for production at its
Guanajuato Mine Complex and Topia Mine in Mexico, expectations of cash cost and AISC,
the completion of the acquisition of the Coricancha Mine in
Peru and initial activities post
acquisition, the commissioning of the new tailings facility and
resumption of processing at the Topia Mine, the Company's plans for
drilling and resource delineation, and the statements made under
the heading "Outlook" above. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements
expressed or implied by such forward-looking statements to be
materially different. Such factors include, among others,
risks and uncertainties relating to potential political risks
involving the Company's operations in a foreign jurisdiction,
uncertainty of production and cost estimates and the potential for
unexpected costs and expenses, uncertainty in mineral resource
estimation, physical risks inherent in mining operations, currency
fluctuations, fluctuations in the price of silver, gold and base
metals, completion of economic evaluations or resource estimates,
exploration results being indicative of future production of its
properties, the expected timing of the completion of upgrades at
Topia and the receipt of permits
therefor, expectations regarding the timing of conditions for the
closing of the Coricancha acquisition, changes in project
parameters, and other risks and uncertainties, including those
described in the Company's Annual Information Form for the year
ended December 31, 2015 and Material
Change Reports filed with the Canadian Securities Administrators
available at www.sedar.com and reports on Form 40-F and Form 6-K
filed with the Securities and Exchange Commission and available at
www.sec.gov. There is no assurance that such forward looking
statements will prove accurate; results may vary materially from
such forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed.
Readers are cautioned not to place undue reliance on forward
looking statements. The Company has no intention to update
forward looking statements except as required by law.
SOURCE Great Panther Silver Limited