TSX: GPR
NYSE AMERICAN: GPL
VANCOUVER, April 10, 2018 /PRNewswire/ - GREAT PANTHER
SILVER LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther"; the
"Company") announces production results for the first quarter
("Q1") 2018 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.
First Quarter 2018 Production Highlights (Compared to First
Quarter 20171)
- Consolidated metal production increased 42% to 1,031,937 silver
equivalent ounces ("Ag eq oz")
- Silver production increased 35% to 491,063 silver ounces ("Ag
oz")
- Gold production increased 13% to 5,831 gold ounces ("Au
oz")
- Ore processed increased 17% to 96,869 tonnes milled
"Great Panther's first quarter production improved significantly
compared to the first quarter last year when the Topia plant was suspended for planned
upgrades", stated James Bannantine,
President & CEO. "To date in 2018, our Mexican operations are
performing steadily, with production in line with annual guidance,
and we are continuing to make progress on the technical evaluation
of the Coricancha Mine in Peru."
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Consolidated
Operations Summary
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Q1
2018
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Q1
2017
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Change
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Q1
2018
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Q4
2017
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Change
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Ore processed (tonnes
milled)
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96,869
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82,456
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17%
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96,869
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98,396
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-2%
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Silver equivalent
ounce production2
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1,031,937
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727,372
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42%
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1,031,937
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1,065,773
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-3%
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Silver ounce
production
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491,063
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364,995
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35%
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491,063
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514,218
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-5%
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Gold ounce
production
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5,831
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5,177
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13%
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5,831
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5,931
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-2%
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Lead production
(tonnes)
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433
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-
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n/a
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433
|
441
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-2%
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Zinc production
(tonnes)
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533
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-
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n/a
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533
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551
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-3%
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(1)
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The Topia processing
plant underwent upgrades in Q1 2017 and there was no processing
during Q1 2017.
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(2)
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Silver equivalent
ounces 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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Guanajuato Mine Complex
In Q1 2018, total metal production for the GMC was 695,909 Ag eq
oz, which represents a 4% decrease compared to both the fourth
quarter ("Q4") 2017 and Q1 2017. The decrease was mainly
attributed to lower tonnes milled and lower silver grades.
The lower tonnes milled are in part a reflection of the higher
proportion of harder ores from the San
Ignacio mine, which reduced processing capacity. The
lower average silver grade was due to the lower tonnage and grades
mined from the Guanajuato mine,
which has higher silver grades than the San Ignacio mine. In addition, the
silver grades from the Guanajuato
mine were affected by variability in the mineral resource.
These factors were partly offset by improved gold grades and
recoveries.
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GMC Operations
Summary
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Q1
2018
|
Q1
2017
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Change
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Q1
2018
|
Q4
2017
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Change
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Ore processed (tonnes
milled)
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78,919
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82,456
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-4%
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78,919
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80,896
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-2%
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Silver equivalent
ounce production1
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695,909
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727,372
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-4%
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695,909
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724,643
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-4%
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Silver ounce
production
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304,863
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364,995
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-16%
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304,863
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332,203
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-8%
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Gold ounce
production
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5,586
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5,177
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8%
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5,586
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5,606
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0%
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Ag grade
(g/t)
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135
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155
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-13%
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135
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144
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-6%
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Au grade
(g/t)
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2.50
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2.30
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9%
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2.50
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2.48
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1%
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Ag recovery
(%)
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88.8%
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88.8%
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0%
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88.8%
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88.5%
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0%
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Au recovery
(%)
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88.0%
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85.0%
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4%
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88.0%
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87.0%
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1%
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(1)
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Silver equivalent
ounces were calculated using a 70:1 Ag:Au ratio.
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The San Ignacio mine accounted
for 65% of the total ore processed at the GMC in Q1 2018, compared
to 57% in Q1 2017 and 62% in Q4 2017. The increase in tonnes
milled from the San Ignacio mine
and, to a lesser degree, higher gold grades from the Guanajuato mines, are the main contributors to
the increased gold grades.
Q1 2018 saw an increase in exploration development and
underground drilling at the Guanajuato mine, aimed at increasing
definition in the mineral resources mainly near and adjacent to
areas currently being mined.
Topia Mine
Total metal production during Q1 2018 from the Topia Mine was
336,027 Ag eq oz. There was no production from Topia during Q1 2017 due to the planned
processing plant suspension for plant upgrades along with the
installation of a dry tailings handling facility.
Compared to Q4 2017, metal production was slightly lower,
reflecting a decrease in gold grades due to variability in the ore
and ground conditions, partially offset by higher mill throughput.
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Topia Operations
Summary
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Q1
2018
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Q1
20171
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Change
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Q1
2018
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Q4
2017
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Change
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Ore processed (tonnes
milled)
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17,950
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-
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n/a
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17,950
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17,500
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3%
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Silver equivalent
ounce production2
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336,027
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-
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n/a
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336,027
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341,129
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-1%
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Silver ounce
production
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186,201
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-
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n/a
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186,201
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182,015
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2%
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Gold ounce
production
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244
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-
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n/a
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244
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325
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-25%
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Lead production
(tonnes)
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433
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-
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n/a
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433
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441
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-2%
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Zinc production
(tonnes)
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533
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-
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n/a
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533
|
551
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-3%
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Ag grade
(g/t)
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348
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-
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n/a
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348
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352
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-1%
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Au grade
(g/t)
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0.74
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-
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n/a
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0.74
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0.95
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-22%
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Ag recovery
(%)
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92.7%
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-
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n/a
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92.7%
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91.8%
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1%
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Au recovery
(%)
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57.1%
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-
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n/a
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57.1%
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60.8%
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-6%
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(1)
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The Topia processing
plant was suspended for upgrades in Q1 2017 and had no production
during that period.
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(2)
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Silver equivalent
ounces 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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OUTLOOK
The Company is maintaining its 2018 guidance of 4.0 – 4.1
million Ag eq oz (at a 70:1 silver to gold ratio). There is
also no change to 2018 guidance for cash cost per silver ounce
("cash cost") and all-in sustaining cost per payable silver ounce
("AISC") of US$5.00 – 6.50 and
US$12.50 – 14.50, respectively.
It is cautioned that cash cost and AISC are very sensitive to the
Mexican peso foreign exchange rate and metal prices through the
computation of by-product credits.
The focus for 2018 continues to be on maintaining steady and
efficient operations in Mexico,
while advancing the Company's Coricancha Mine in Peru to set a platform for production growth
in 2019 and 2020. While still in the evaluation stage, based
upon historic production records, Coricancha has the potential to
add 3 million Ag eq oz of annual production. The Company
expects to make announcements on the progress of evaluation and
technical studies for Coricancha later this quarter.
In addition, the Company continues to seek and evaluate
additional acquisition opportunities to meet the Company's growth
objectives.
The technical information contained in this news release has
been reviewed and approved by Matthew
Wunder, P. Geo., Vice President Exploration for the Company
and the Qualified Person for the Guanajuato Mine Complex, the Topia
Mine and the Coricancha 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.
RELEASE OF FIRST QUARTER 2018 FINANCIAL RESULTS AND
CONFERENCE CALL
The Company has scheduled the release of its first quarter 2018
financial results for Wednesday, May 2,
2018 after market close.
A conference call and webcast will be held on Thursday, May 3, 2018 at 2:00 p.m. Eastern Time (11:00 a.m. Pacific Time) to discuss the results.
Mr. James Bannantine,
President and CEO and Mr. Jim Zadra,
CFO and Corporate Secretary will host the call.
Shareholders, analysts, investors and media are invited to join
the live webcast and conference call by logging in or calling in
five minutes prior to the start time.
Live webcast and registration: www.greatpanther.com
U.S. & Canada Toll-Free: 1 800 281 7973
International Toll: +1 323 794 2093
Conference ID: 4742165
A replay of the webcast will be available on the Webcasts
section of the Company's website approximately one hour after the
conference call.
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 American 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 and the Topia Mine. The Company is also evaluating
the restart of the Coricancha Mine in Peru, which it acquired in 2017, and continues
to pursue the acquisition of additional mining operations or
projects 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, production and restart expectations for the Coricancha
Mine, and, in particular, any other forward-looking 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 Coricancha Mine,
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, 2017 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 Silver Limited