TSX: GPR
NYSE American: GPL
VANCOUVER, July 10, 2018 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther"; the
"Company") announces production results for the second quarter
("Q2") 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.
Second Quarter 2018 Production Highlights (Compared to Second
Quarter 2017)
- Consolidated metal production decreased 9% to 1,002,169 silver
equivalent ounces ("Ag eq oz")
- Silver production decreased 16% to 479,809 silver ounces ("Ag
oz")
- Gold production decreased 1% to 5,492 gold ounces ("Au
oz")
- Ore processed decreased 3% to 95,169 tonnes
"While production during the second quarter was somewhat lower
than planned due to heavier than usual rainfall at our Guanajuato
Mine Complex, we continue to expect to meet our production guidance
for 2018", stated James Bannantine,
President & CEO. "In addition, we are very pleased with the
positive results of our recently announced Preliminary Economic
Assessment for the Coricancha Mine in Peru. We have now begun preparations for the
Bulk Sample Program and look forward to providing further updates
as we continue to advance the project."
|
Consolidated
Operations Summary
|
Q2
2018
|
Q2
2017
|
Change
|
Q2
2018
|
Q1
2018
|
Change
|
Ore processed (tonnes
milled)
|
95,169
|
98,576
|
-3%
|
95,169
|
96,869
|
-2%
|
Metal production
(Silver equivalent
ounces)1
|
1,002,169
|
1,102,290
|
-9%
|
1,002,169
|
1,031,937
|
-3%
|
Silver production
(ounces)
|
479,809
|
569,229
|
-16%
|
479,809
|
491,063
|
-2%
|
Gold production
(ounces)
|
5,492
|
5,543
|
-1%
|
5,492
|
5,831
|
-6%
|
Lead production
(tonnes)
|
480
|
405
|
18%
|
480
|
433
|
11%
|
Zinc production
(tonnes)
|
528
|
638
|
-17%
|
528
|
533
|
-1%
|
(1) Silver
equivalent ounces were calculated using a 70:1 Au:Ag 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.
|
Guanajuato Mine Complex
In Q2 2018, total metal production at the GMC was 643,432 Ag eq
oz, which represents an 8% decrease compared to the previous
quarter, and a 10% decrease compared to the same quarter in the
previous year. The decreases are mainly attributed to lower tonnes
milled and lower silver grades, partly offset by higher gold
grades.
Tonnes milled in Q2 2018 were lower than the previous quarter
and the same quarter in the previous year due to a combination of a
temporary suspension of processing to ensure safety following heavy
rainfall, and a higher proportion of harder ores from the
San Ignacio mine, which reduced
processing capacity. The San
Ignacio mine accounted for 70% of the total ore processed at
the GMC in Q2 2018, compared to 55% in Q2 2017 and 65% in the
previous quarter.
The lower average grades were in part the result of lower
tonnage mined from the Guanajuato
mine, which has higher silver grades than the San Ignacio mine. In addition, the silver
grades from the Guanajuato mine
and the gold grades from the San
Ignacio mine were affected by variability in the mineral
resource.
During the quarter, 8,059 meters of exploration drilling were
completed at the GMC, primarily focused on defining areas in the
near-term mine plan.
|
GMC Operations
Summary
|
Q2
2018
|
Q2
2017
|
Change
|
Q2
2018
|
Q1
2018
|
Change
|
Ore processed (tonnes
milled)
|
77,014
|
80,535
|
-4%
|
77,014
|
78,919
|
-2%
|
Metal production
(Silver equivalent ounces)1
|
643,432
|
715,423
|
-10%
|
643,432
|
695,909
|
-8%
|
Silver production
(ounces)
|
276,654
|
348,130
|
-21%
|
276,654
|
304,863
|
-9%
|
Gold production
(ounces)
|
5,240
|
5,247
|
0%
|
5,240
|
5,586
|
-6%
|
Ag grade
(g/t)
|
127
|
150
|
-15%
|
127
|
135
|
-6%
|
Au grade
(g/t)
|
2.40
|
2.32
|
3%
|
2.40
|
2.50
|
-4%
|
Ag recovery
(%)
|
87.7%
|
89.5%
|
-2%
|
87.7%
|
88.8%
|
-1%
|
Au recovery
(%)
|
88.2%
|
87.2%
|
1%
|
88.2%
|
88.0%
|
0%
|
(1) Silver
equivalent ounces were calculated using a 70:1 Au:Ag
ratio.
|
Topia Mine
Total metal production in Q2 2018 from the Topia Mine was
358,737 Ag eq oz, an increase of 7% over the previous quarter. The
rise is attributed to higher silver grades due to the increased
proportion of production from higher silver grade zones and
improved metallurgical recoveries.
Compared to Q2 2017, total metal production on an Ag eq oz basis
decreased 7%, as the comparative quarter reflected higher grades as
a result of drawing down on higher grade ore stockpiles
following the completion of a plant refurbishment and upgrade.
|
Topia Operations
Summary
|
Q2
2018
|
Q2
2017
|
Change
|
Q2
2018
|
Q1
2018
|
Change
|
Ore processed (tonnes
milled)
|
18,155
|
18,041
|
1%
|
18,155
|
17,950
|
1%
|
Metal production
(Silver equivalent
ounces)1
|
358,737
|
386,867
|
-7%
|
358,737
|
336,027
|
7%
|
Silver production
(ounces)
|
203,155
|
221,099
|
-8%
|
203,155
|
186,201
|
9%
|
Gold production
(ounces)
|
253
|
296
|
-15%
|
253
|
244
|
3%
|
Lead production
(tonnes)
|
480
|
405
|
18%
|
480
|
433
|
11%
|
Zinc production
(tonnes)
|
528
|
638
|
-17%
|
528
|
533
|
-1%
|
Ag grade
(g/t)
|
371
|
414
|
-11%
|
371
|
348
|
6%
|
Au grade
(g/t)
|
0.69
|
0.74
|
-8%
|
0.69
|
0.74
|
-8%
|
Ag recovery
(%)
|
93.9%
|
92.0%
|
2%
|
93.9%
|
92.7%
|
1%
|
Au recovery
(%)
|
63.1%
|
68.6%
|
-8%
|
63.1%
|
57.1%
|
10%
|
(1) Silver
equivalent ounces were calculated using a 70:1 Au:Ag 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.
|
OUTLOOK
The Company is maintaining its 2018 production, cash cost and
AISC guidance. 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.
|
Production and
cash cost guidance
|
FY 2018
Guidance
|
Total silver
equivalent ounces1
|
4,000,000 –
4,100,000
|
Cash
cost2
|
$ 5.00 – $
6.50
|
AISC2
|
$ 12.50 – $
14.50
|
(1) Silver
equivalent ounces were calculated using a 70:1 Au:Ag 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) Cash
cost and AISC are non-GAAP measures. Refer to the "Non-GAAP
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.
|
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. In May, the Company announced a positive
Preliminary Economic Assessment ("PEA") for the Coricancha Mine,
which confirmed the potential for three million silver equivalent
ounces of annual production. The Company is advancing the
project with the initiation of a Bulk Sample Program and recently
mobilized contractors to site.
The Company expects to file a Technical Report in respect of the
PEA for the Coricancha Mine on SEDAR by July
13, 2018.
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 Robert F.
Brown, P. Eng., acting 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.
RELEASE OF SECOND QUARTER 2018 FINANCIAL RESULTS AND
CONFERENCE CALL
The Company has scheduled the release of its second quarter 2018
financial results for Wednesday, August 1,
2018 after market close.
A conference call and webcast will be held on Thursday, August 2, 2018 at 11:00 a.m. Eastern Time (8:00 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: 1 888 599 8686
International Toll: +1 323 994 2093
Conference ID: 9387135
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 advancing
towards the restart of the Coricancha Mine in Peru with the initiation of a Bulk Sample
Program following the completion of a positive Preliminary Economic
Assessment in May 2018. The Company also 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,
statements with respect to the findings of the PEA for Coricancha
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 at the Company's operations as well as with the
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