TSX: GPR | NYSE American: GPL
VANCOUVER, BC, July 9, 2020 /CNW/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or "the Company")
announces second quarter (Q2) 2020 production results from its
three 100% owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine Complex (GMC) in
Mexico. Consolidated
quarterly production totalled 38,540 gold equivalent ounces (Au eq
oz) and included record monthly production in June at Tucano since
its acquisition in early 2019.
Q2 2020 Highlights
- Produced 38,540 Au eq oz on a consolidated basis, including
36,356 gold ounces (Au oz) and 142,457 silver ounces (Ag oz)
- Produced 35,421 Au oz at Tucano, 35% higher than Q1 2020 and
18% higher than Q2 2019
- In June, set new Tucano monthly production record of 15,389 Au
oz since acquisition
- Recommenced production at Topia and GMC following COVID-19 related
shutdown in April and May
- Strengthened the balance sheet with a US$16 million bought deal financing, adding to
the March 31, 2020 cash position of
US$39 million
Great Panther President and CEO Rob
Henderson commented, "In Brazil, Tucano outperformed this quarter
despite the challenges of COVID-19, and in Mexico, Topia
and GMC have returned to stable production following the lifting of
government mandated restrictions on mining. I would like to
thank our teams for delivering these strong results while
prioritizing the safety and health of our people and communities
and adjusting to these unprecedented times."
On a consolidated basis, Great Panther expects to produce
146,000-158,000 Au eq oz in 2020. This reflects the addition
of 2020 production guidance for Topia which is being provided for the first
time. Details are included in the 2020 Guidance section near
the end of this news release.
Q2 2020 production results are preliminary and subject to
adjustment with Great Panther's Q2 2020 earnings results, scheduled
for release after the close of markets on August 5, 2020. A conference call will
follow on August 6, 2020.
COVID-19 Response
Great Panther has developed and implemented significant COVID-19
prevention, monitoring and response plans following the guidelines
of the World Health Organization and the regulatory agencies of
each country in which it operates to ensure a safe work
environment. Protocols include mandatory medical screening
and testing on arrival at site, mandatory medical leave, training
sessions on health awareness and new health and safety protocols,
physical distancing and increased sanitation measures, and updated
operating procedures. Specific areas have been prepared for
the isolation, testing and care of employees showing COVID-19
symptoms. All confirmed cases of COVID-19 are in isolation
and being monitored by Company health professionals with regular
reports to health authorities.
Q2 2020 Consolidated Operating Results
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Consolidated
Operating Results
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Q2
2020
|
Q2
2019
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Change
|
Q2
2020
|
Q1
2020
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Change
|
Ore processed
(tonnes)
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847,174
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782,568
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8%
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847,174
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880,162
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-4%
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Gold equivalent
production (ounces) (1,2)
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38,540
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39,992
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-4%
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38,540
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34,725
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11%
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Gold production
(ounces)
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36,356
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33,461
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9%
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36,356
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28,940
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26%
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Silver production
(ounces)
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142,457
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349,668
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-59%
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142,457
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374,917
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-62%
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(1)
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Gold equivalent
ounces for 2020 are calculated using a 1:90 Au:Ag ratio, and ratios
of 1:0.0006412 and 1:0.0007554 for the price/ounce of gold to
price/pound of lead and zinc, respectively.
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(2)
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Gold equivalent
ounces for 2019 were calculated using a 1:80 Au:Ag ratio, and
ratios of 1:0.000795 and 1:0.00102258 for the price/ounce of gold
to price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year.
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Silver production was impacted by government-imposed
restrictions on non-essential business operations in Mexico in response to COVID-19, which limited
mining activities in the country for most of April and May.
Great Panther's mining operations in Mexico recommenced operations in June
following the lifting of restrictions.
Tucano
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Tucano Operating
Results
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Q2
2020
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Q2
2019
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Change
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Q2
2020
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Q1
2020
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Change
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Total material mined
(tonnes)
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6,075,380
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5,009,392
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21%
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6,075,380
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7,115,135
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-15%
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Total waste mined
(tonnes)
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5,650,171
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4,474,546
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26%
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5,650,171
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6,804,081
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-17%
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Ore mined
(tonnes)
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424,001
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523,424
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-19%
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424,001
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310,597
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37%
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Ore processed (tonnes
milled)
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822,638
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718,682
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14%
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822,638
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811,197
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1%
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Au grade
(g/t)
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1.48
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1.41
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5%
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1.48
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1.09
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36%
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Au recovery
(%)
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90.3%
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87.0%
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4%
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90.3%
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91.7%
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-2%
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Gold production
(ounces)
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35,421
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29,899
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18%
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35,421
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26,176
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35%
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Tucano produced 35,421 Au oz in Q2 2020, an increase of 18%
compared to Q2 2019 due to increased ore processing rates, higher
gold grades and higher recoveries. Despite particularly
adverse weather conditions in Q2 2020 and the implementation of
measures to manage COVID-19, Tucano also achieved a 21% increase in
material mined relative to Q2 2019, benefitting from the
implementation of operational improvements. Notably,
June 2020 production of 15,389 Au oz
set a new monthly production record since the time of acquisition
in March 2019. The 35% increase in Q2 2020 production
relative to Q1 2020 was primarily due to higher gold grades.
Mining activities continue uninterrupted at Tucano at this time
as the state of Amapá in Brazil
has not introduced measures to restrict mining activities in
response to COVID-19. Separately, Great Panther has
implemented numerous health and safety measures to protect against
the spread of the virus, working closely with local health and
labour authorities to protect its people and local
communities. The Company continues to monitor the situation
closely to be in a state of preparedness.
The investigation following the geotechnical incident which
suspended mining at Tucano's Urucum Central South pit in Q4 2019 is
ongoing under the supervision of independent engineering
consultants Knight Piesold.
Mexico Operations
Great Panther's Mexican operations produced 3,122 Au eq oz in Q2
2020 or 280,911 Ag eq oz. Mining operations in Mexico were suspended for the months of April
and May following a directive of the Mexican Federal Government to
mitigate the spread of COVID-19. Production resumed in early
June, following a government order adding mining to the list of
essential services.
Topia
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Topia Operating
Results
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Q2
2020
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Q2
2019
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Change
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Q2
2020
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Q1
2020
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Change
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Ore processed
(tonnes)
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7,781
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18,410
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-58%
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7,781
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19,359
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-60%
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Ag grade
(g/t)
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352
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392
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-10%
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352
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357
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-1%
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Au grade
(g/t)
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0.87
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1.01
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-14%
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0.87
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0.82
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6%
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Ag recovery
(%)
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92.5%
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93.9%
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-1%
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92.5%
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92.3%
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0%
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Au recovery
(%)
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54.0%
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58.9%
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-8%
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54.0%
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55.2%
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-2%
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Silver equivalent
production (ounces) (1,2)
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146,208
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413,467
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-65%
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146,208
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376,303
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-61%
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Silver production
(ounces)
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81,427
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218,000
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-63%
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81,427
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205,184
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-60%
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Gold production
(ounces)
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118
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353
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-67%
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118
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282
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-58%
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Lead production
(tonnes)
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163
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453
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-64%
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163
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401
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-59%
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Zinc production
(tonnes)
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223
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575
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-61%
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223
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632
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-65%
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Gold equivalent
production (ounces) (1,2)
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1,625
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5,168
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-69%
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1,625
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4,181
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-61%
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(1)
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Silver equivalent
ounces for 2020 are calculated using a 90:1 Ag:Au ratio, and ratios
of 1:0.05770751 and 1:0.06798419 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 2019 were calculated using an 80:1 Ag:Au ratio, and
ratios of 1:0.0636 and 1:0.0818 for the price/ounce of silver to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year.
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Topia produced 146,208 Ag eq oz
in Q2 2020, a decrease of 65% compared to the same period in 2019
due to the COVID-19 related shutdown in the months of April and
May.
As disclosed on March 9, 2020,
Great Panther ceased depositing tailings on the Topia Phase II
tailings storage facility ("TSF") following a recommendation from
the Company's independent tailings management and geotechnical
consultants.
During the suspension of non-essential activities due to
COVID-19, Great Panther continued monitoring the conditions on
Phase II and installed additional geotechnical instrumentation. In
addition, tests were carried out to determine the state of the
tailings in Phase I. Extensive work has been carried out to
identify and reduce the flow of water into the base of the TSF.
Monitoring indicates it is safe to return to stacking in
Phase II, subject to receipt of a final report from consultants who
will also provide a revised stacking plan. The Company has
now also received the required government approvals and a permit to
start stacking on Phase III, which becomes available after
constructing gabion walls and erosion controls around the base of
the facility. In the meantime, there is sufficient capacity
at the temporary tailings storage location to continue
operations.
Guanajuato Mine Complex
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GMC Operations
Summary
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Q2
2020
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Q2
2019
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Change
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Q2
2020
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Q1
2020
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Change
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Ore processed
(tonnes)
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16,755
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45,476
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-63%
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16,755
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49,607
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-66%
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Ag grade
(g/t)
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133
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105
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26%
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133
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125
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7%
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Au grade
(g/t)
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1.80
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2.52
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-29%
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1.80
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1.85
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-3%
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Ag recovery
(%)
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85.4%
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85.5%
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0%
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85.4%
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85.4%
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0%
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Au recovery
(%)
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84.7%
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87.0%
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-3%
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84.7%
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84.1%
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1%
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Silver equivalent
production (ounces) (1,2)
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134,703
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388,388
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-65%
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134,703
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393,126
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-66%
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Silver production
(ounces)
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61,031
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131,668
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-54%
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61,031
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169,734
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-64%
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Gold production
(ounces)
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819
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3,209
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-74%
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819
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2,482
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-67%
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Gold equivalent
production (ounces) (1,2)
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1,497
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4,855
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-69%
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1,497
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4,368
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-66%
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(1)
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Silver equivalent
ounces for 2020 are calculated using a 90:1 Ag:Au
ratio.
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(2)
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Silver equivalent
ounces for 2019 were calculated using an 80:1 Ag:Au
ratio
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GMC produced 134,703 Ag eq oz in Q2 2020, a decrease of 65%
compared to the same period in 2019 due to the COVID-19 related
shutdown in the months of April and May.
2020 Guidance
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Mine
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Au
oz
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Ag eq
oz1
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Au eq
oz2
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Tucano
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120,000-130,000
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-
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120,000-130,000
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Topia
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-
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1,200,000-1,300,000
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13,000-14,000
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GMC
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-
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1,200,000-1,300,000
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13,000-14,000
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Total
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120,000-130,000
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2,400,000-2,600,000
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146,000-158,000
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(1)
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Silver equivalent
ounces are calculated using a 90:1 Ag:Au ratio, and ratios of
1:0.05770751 and 1:0.06798419 for the price/ounce of silver to
price/pound of lead and zinc, respectively. Figures in table are
rounded
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(2)
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Gold equivalent
ounces are calculated using a 1:90 Au:Ag ratio. Figures in table
are rounded
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Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Neil
Hepworth, Chartered Engineer UK, Chief Operating Officer, a
Qualified Person for the purposes of National Instrument
43-101.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of
assets in Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring
large land packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing
portfolio. Great Panther trades on the Toronto Stock Exchange
trading under the symbol GPR, and on the NYSE American under the
symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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, statements regarding 2020 production guidance and the
Company's ability to meet production guidance for Tucano, the
recovery of the UCS pit and plans and expectations for the
rehabilitation of UCS, and the timing or ability to restart
operations at Coricancha.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that 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, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction, developments with
respect to COVID-19 that may impact the Company's operations, the
potential for unexpected costs and expenses, fluctuations in metal
prices, fluctuations in currency exchange rates, physical risks
inherent in mining operations, operating or technical difficulties
in mineral exploration, changes in project parameters as plans
continue to be refined, and other risks and uncertainties,
including those described in respect of Great Panther, in its
annual information form for the year ended December 31, 2019 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.
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SOURCE Great Panther Mining Limited