TSX: GPR
NYSE MKT: GPL
VANCOUVER, Oct. 12, 2017 /PRNewswire/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE MKT: GPL) ("Great Panther"; the "Company")
announces production results for the third quarter ("Q3") 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.
Third Quarter 2017 Production Highlights (Compared to Third
Quarter 2016)
- Consolidated metal production increased 13% to 1,080,483 silver
equivalent ounces ("Ag eq oz")
- Silver production increased 4% to 532,803 silver ounces ("Ag
oz")
- Gold production increased 8% to 5,848 gold ounces ("Au
oz")
- Lead and zinc production increased 78% and 74%,
respectively
- Ore processed decreased 1%, with 94,080 tonnes milled
"Great Panther delivered good production results in the third
quarter. The results are consistent with the previous quarter
and fall in line with the Company's annual guidance", stated
James Bannantine, President &
CEO. "The increase in gold production compared to the second
quarter 2017 is a direct result of the improved gold grades and
recoveries."
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(1)
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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.
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(2)
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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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Consolidated
Operations Summary
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Q3
2017
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Q3
2016
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Change
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Q3
2017
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Q2
2017
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Change
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Ore processed (tonnes
milled)
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94,080
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95,282
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-1%
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94,080
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98,576
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-5%
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Silver equivalent
ounce production1, 2
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1,080,483
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953,632
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13%
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1,080,483
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1,102,290
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-2%
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Silver ounce
production
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532,803
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510,491
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4%
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532,803
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569,229
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-6%
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Gold ounce
production
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5,848
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5,423
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8%
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5,848
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5,543
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5%
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Lead production
(tonnes)
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442
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248
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78%
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442
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405
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9%
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Zinc production
(tonnes)
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562
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324
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74%
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562
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638
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-12%
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Guanajuato Mine Complex
Total metal production for the GMC was 755,008 Ag eq oz, which
represents a modest 1% increase over the previous quarter, but a
decrease of 4%, when compared to the same quarter in the previous
year. The decrease is attributed to lower tonnes milled due
to narrower than anticipated veins at the San Ignacio mine and lower silver grades.
These factors were partly offset by improved gold grades and
recoveries.
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GMC Operations
Summary
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Q3
2017
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Q3
2016
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Change
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Q3
2017
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Q2
2017
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Change
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Ore processed (tonnes
milled)
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76,076
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81,602
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-7%
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76,076
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80,535
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-6%
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Silver equivalent
ounce production 1
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724,630
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755,008
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-4%
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724,630
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715,423
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1%
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Silver ounce
production
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341,636
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383,598
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-11%
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341,636
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348,130
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-2%
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Gold ounce
production
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5,471
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5,306
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3%
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5,471
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5,247
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4%
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Ag grade
(g/t)
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155
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164
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-5%
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155
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150
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4%
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Au grade
(g/t)
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2.54
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2.36
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8%
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2.54
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2.32
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9%
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Ag recovery
(%)
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89.8%
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88.9%
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1%
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89.8%
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89.5%
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0%
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Au recovery
(%)
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88.1%
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85.8%
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3%
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88.1%
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87.2%
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1%
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(1)
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Silver equivalent
ounces for 2017 and 2016 were calculated using a 70:1 Ag:Au
ratio.
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Topia Mine
Total metal production decreased 8% over the previous quarter
due to lower silver grades and recoveries than anticipated.
Compared to the third quarter of 2016, production increased 79%, as
metal production for the third quarter of 2016 was negatively
impacted by two temporary plant shutdowns.
All tailings continued to be deposited at the Phase I Tailings
Storage Facility ("TSF") while the Company continues the regulatory
process to obtain the Phase II permit from SEMARNAT (the Mexican
environmental permitting agency).
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Topia Operations
Summary
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Q3
2017
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Q3
2016
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Change
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Q3
2017
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Q2
2017
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Change
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Ore processed (tonnes
milled)
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18,004
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13,680
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32%
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18,004
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18,041
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0%
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Silver equivalent
ounce production 1, 2
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355,853
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198,624
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79%
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355,853
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386,867
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-8%
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Silver ounce
production
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191,167
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126,892
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51%
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191,167
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221,099
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-14%
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Gold ounce
production
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377
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117
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223%
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377
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296
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27%
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Lead production
(tonnes)
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442
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248
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78%
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442
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405
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9%
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Zinc production
(tonnes)
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562
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324
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74%
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562
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638
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-12%
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Ag grade
(g/t)
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362
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322
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13%
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362
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414
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-13%
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Au grade
(g/t)
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0.97
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0.49
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98%
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0.97
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0.74
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30%
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Ag recovery
(%)
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91.1%
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89.7%
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2%
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91.1%
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92.0%
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-1%
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Au recovery
(%)
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67.1%
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54.3%
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24%
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67.1%
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68.6%
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-2%
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(1)
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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.
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(2)
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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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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.
As at the date of this release, the Company has not yet received
final approvals for the Topia Phase II tailings facility.
After meeting certain conditions, a formal application was
submitted in July with the expectation that a formal response would
be received within 60 business days of filing. Since the
filing, there has been a lapse in a deadline for one aspect of the
application: the environmental assessment study ("IP"), which now
requires resubmission with the inclusion of expanded technical
information. The Company plans to file this by
mid-October. A response to the resubmitted IP and the overall
permitting is expected within two months of filing.
The Company believes that it will be able to obtain the 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.
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.
The Company is currently working on an updated Mineral Resource
Estimate for the recently acquired Coricancha Mine Complex ("CMC")
in Peru, which is on care and
maintenance. The updated Mineral Resource Estimate is now
expected to be completed in the current quarter.
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.
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; and on advancing the development of the Coricancha Mine
Complex in Peru. The Company's activities also include the
pursuit of additional mining opportunities in the Americas.
James Bannantine
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 production guidance and
ability to meet its production guidance, expectations of cash cost
and AISC, project plans for the Coricancha Mine including the
completion of an updated Mineral Resource Estimate and the ability
and timing of a reactivation of the CMC. Forward looking
statements expressed in this news release also include expectations
of obtaining a permit for the Phase II TSF at Topia without interruption of processing 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.
_______________________________________________
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.
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SOURCE Great Panther Silver Limited