TSX: GPR
NYSE MKT: GPL
VANCOUVER, July 13, 2017 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE MKT: GPL) ("Great Panther"; the "Company")
announces production results for the second quarter ("Q2") 2017
from its two wholly-owned Mexican silver mining operations: the
Topia Mine in Durango and the Guanajuato Mine Complex ("GMC"),
which includes the San Ignacio Mine.
Second Quarter 2017 Production Highlights (Compared to Second
Quarter 2016)
- Consolidated metal production increased 6% to a record
1,102,290 silver equivalent ounces ("Ag eq oz")
- Silver production increased 6% to 569,229 silver ounces ("Ag
oz")
- Gold production decreased 8% to 5,543 gold ounces ("Au
oz")
- Ore processed decreased 1%, with 98,576 tonnes milled
"Great Panther had an excellent second quarter, setting a new
Company record for consolidated metal production and a new record
for metal production in Topia,"
stated Robert Archer, President
& CEO. "I would like to congratulate our entire
operations team, especially in Topia, for all their hard work and efforts in
achieving this quarter's milestones."
|
|
|
|
|
|
|
Consolidated
Operations Summary
|
Q2
2017
|
Q2
2016
|
Change
|
Q2
2017
|
Q1
20173
|
Change
|
Ore processed (tonnes
milled)
|
98,576
|
99,905
|
-1%
|
98,576
|
82,456
|
20%
|
Silver equivalent
ounce production1, 2
|
1,102,290
|
1,037,728
|
6%
|
1,102,290
|
727,372
|
52%
|
Silver ounce
production
|
569,229
|
536,726
|
6%
|
569,229
|
364,995
|
56%
|
Gold ounce
production
|
5,543
|
6,010
|
-8%
|
5,543
|
5,177
|
7%
|
Lead production
(tonnes)
|
405
|
290
|
40%
|
405
|
-
|
-
|
Zinc production
(tonnes)
|
638
|
433
|
47%
|
638
|
-
|
-
|
(1)
|
Silver equivalent
ounces for 2017 were calculated using a 70:1 Ag:Au ratio, and
ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
|
(2)
|
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.
|
(3)
|
The Topia processing
plant was shut down for upgrades in Q1 2017 and so had no
production during that period.
|
Guanajuato Mine Complex
In Q2 2017, metal production at the GMC was 2% lower than the
previous quarter, and decreased by 8%, to 715,423 Ag eq oz, when
compared to the same quarter in the previous year. The
decrease was attributed to lower tonnes milled from San Ignacio, combined with lower overall
grades, mainly reflecting variability in the mineral
resource. Additional exploration drilling and development is
being undertaken to improve the resource definition in these
areas.
|
|
|
|
|
|
|
GMC Operations
Summary
|
Q2
2017
|
Q2
2016
|
Change
|
Q2
2017
|
Q1
2017
|
Change
|
Ore processed (tonnes
milled)
|
80,535
|
84,134
|
-4%
|
80,535
|
82,456
|
-2%
|
Silver equivalent
ounce production 1
|
715,423
|
774,160
|
-8%
|
715,423
|
727,372
|
-2%
|
Silver ounce
production
|
348,130
|
366,943
|
-5%
|
348,130
|
364,995
|
-5%
|
Gold ounce
production
|
5,247
|
5,817
|
-10%
|
5,247
|
5,177
|
1%
|
Ag grade
(g/t)
|
150
|
159
|
-6%
|
150
|
155
|
-3%
|
Au grade
(g/t)
|
2.32
|
2.52
|
-8%
|
2.32
|
2.30
|
1%
|
Ag recovery
(%)
|
89.5%
|
85.3%
|
5%
|
89.5%
|
88.8%
|
1%
|
Au recovery
(%)
|
87.2%
|
85.2%
|
2%
|
87.2%
|
85.0%
|
3%
|
(1)
|
Silver equivalent
ounces for 2017 and 2016 were calculated using a 70:1 Ag:Au
ratio.
|
San Ignacio accounted for 55%
of the total ore processed at the GMC in Q2 2017, compared to 62%
in Q2 2016. The decrease partially accounted for the lower
average gold grades as San Ignacio
has a higher gold:silver ratio. The increase in the
proportion of production from the Guanajuato mines partially compensated for the
decrease from San Ignacio and
resulted in the higher metallurgical recoveries.
Exploration drilling increased during the second quarter of
2017, compared to the previous quarter, with a focus on enhancing
ore zone definition and increasing mineral resources.
Following the encouraging indications from the drilling
program at San Ignacio (announced
on June 19, 2017), exploration
development and drilling along strike of the current workings were
fast-tracked with the objective of better defining the
newly-identified mineralization.
Topia Mine
Milling operations returned to design capacity in the second
quarter of 2017, following the commissioning of the new tailings
handling facility and the upgraded processing plant. The
operation is now producing exclusively dry tailings through the new
filtration plant. All tailings are being deposited on the
Phase I Tailings Storage Facility ("TSF") while the Company
continues its efforts to obtain the Phase II permit from SEMARNAT
(the Mexican environmental permitting agency).
Topia achieved a record 386,867
Ag eq oz in metal production, reflecting an increase of 47%
compared to the second quarter of 2016. This was attributed
to a combination of higher tonnes milled, higher grades of feed
material and improved recoveries. The increase in tonnes
milled reflects maximizing the plant capacity by processing a
controlled blend of run-of-mine production and ore stockpiled
during the scheduled plant shutdown. The improved
metallurgical recoveries were attributed to improved control over
the mill feed and head grade, coupled with the recent plant
upgrades. The increase in grades was due to a greater focus
on selective mining, dilution control and ore sorting.
|
|
|
|
|
|
|
Topia Operations
Summary
|
Q2
2017
|
Q2
2016
|
Change
|
Q2
2017
|
Q1
20173
|
Change
|
Ore processed (tonnes
milled)
|
18,041
|
15,771
|
14%
|
18,041
|
-
|
-
|
Silver equivalent
ounce production 1, 2
|
386,867
|
263,568
|
47%
|
386,867
|
-
|
-
|
Silver ounce
production
|
221,099
|
169,783
|
30%
|
221,099
|
-
|
-
|
Gold ounce
production
|
296
|
192
|
54%
|
296
|
-
|
-
|
Lead production
(tonnes)
|
405
|
290
|
40%
|
405
|
-
|
-
|
Zinc production
(tonnes)
|
638
|
433
|
47%
|
638
|
-
|
-
|
Ag grade
(g/t)
|
414
|
367
|
13%
|
414
|
-
|
-
|
Au grade
(g/t)
|
0.74
|
0.59
|
26%
|
0.74
|
-
|
-
|
Ag recovery
(%)
|
92.0%
|
91.3%
|
1%
|
92.0%
|
-
|
-
|
Au recovery
(%)
|
68.6%
|
64.0%
|
7%
|
68.6%
|
-
|
-
|
(1)
|
Silver equivalent
ounces for 2017 were calculated using a 70:1 Ag:Au ratio, and
ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
|
(2)
|
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.
|
(3)
|
Milling operation
suspended to facilitate plant upgrades and the transition to new
tailings handling and storage facilities.
|
OUTLOOK
The Company is maintaining its guidance of 4.0 – 4.1 million Ag
eq oz (based on a 70:1 silver:gold ratio) for 2017 and continues to
believe that it will be able to obtain a permit for the Phase II
tailings facility at Topia without
interruption of operations. However, the deposition of dry
tailings on the Phase I TSF cannot continue indefinitely and the
Company cannot provide complete assurance that a disruption can be
avoided. Discussions to date with the authorities and other
stakeholders have been positive and are continuing.
The Company is also maintaining its previously issued cash cost
and all-in sustaining cost ("AISC") guidance for 2017 of
US$5 – 6 per payable silver ounce,
and US$14 – 16 per payable silver
ounce, respectively1.
There is a risk that guidance will be affected if the Company is
unable to obtain a permit for the Topia Phase II TSF on a timely
basis or at all. In the event there is a significant change
to the Company's production guidance expectations, the Company will
provide a timely update to the market.
The previously announced acquisition of the Coricancha Mine
Complex ("CMC") in Peru, currently
on care and maintenance, was completed effective June 30, 2017. The Company's plans include
further evaluations of the mine and processing infrastructure, mine
rehabilitation and development in preparation for underground
drilling, environmental studies, and the initiation of a
preliminary feasibility study ("PFS"). Depending upon the
outcome of the PFS, capital investments in support of restarting
operations could commence in 2018. The Company is currently
working on an updated mineral resource estimate for the Coricancha
Mine, which is expected to be completed towards the end of the
third quarter of 2017.
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, the Topia Mine and the Coricancha Mine
Complex under the meaning of NI 43-101. Aspects relating to
mining and metallurgy are overseen by Ali
Soltani, Chief Operating Officer for Great Panther.
__________________________________
|
1 Cash
cost and AISC are non-IFRS measures. Refer to the Non-IFRS Measures
section of the Company's MD&A for an explanation of these
measures and reconciliation to the Company's reported financial
results in accordance with IFRS. As these are not standardized
measures, they may not be directly comparable to similarly titled
measures used by others.
|
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 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. With the recent completion of the acquisition of the
Coricancha Mine Complex in Peru,
the Company's activities will include efforts to return the
Coricancha Mine to production, and the pursuit of additional mining
opportunities in the Americas.
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 ability to meet its
production guidance, expectations of cash cost and AISC, project
plans for the CMC, including the timing and results of a PFS and
drilling, development and evaluation programs; the ability and
timing of a reactivation of the CMC, expectations of obtaining a
permit for the Phase II TSF at Topia without interruption of processing, the
Company`s plans for drilling and resource delineation, and,
generally, any 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, permitting and environmental risks involving
the Company's operations in foreign jurisdictions, technical and
operational difficulties that may be encountered with reactivation
of the CMC, 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, 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, 2016 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