This news release constitutes a "designated news release" for
the purposes of Great Panther's prospectus supplement dated
July 9, 2019 to its short form base
shelf prospectus dated July 2,
2019.
NYSE American: GPL | TSX: GPR
VANCOUVER, Oct. 7, 2019 /CNW/ - GREAT PANTHER MINING LIMITED
(NYSE American: GPL; TSX: GPR) ("Great Panther", the "Company")
announces its third quarter ("Q3") 2019 production results from its
Tucano Gold Mine in Brazil, and
two Mexican mining operations: the Guanajuato Mine Complex ("GMC"),
which includes the San Ignacio Mine, and the Topia Mine.
Consolidated
Operational Results
|
Q3
2019
|
Q3
2018
|
Change
|
Q3
2019
|
Q2
2019
|
Change
|
Ore processed
(tonnes)
|
813,260
|
92,920
|
775%
|
813,260
|
782,568
|
4%
|
Gold equivalent
production (ounces) (1)
|
47,374
|
12,789
|
270%
|
47,374
|
39,922
|
19%
|
Gold production
(ounces)
|
39,651
|
4,737
|
737%
|
39,651
|
33,461
|
18%
|
Silver production
(ounces)
|
418,032
|
448,840
|
-7%
|
418,032
|
349,668
|
20%
|
Lead production
(tonnes)
|
539
|
572
|
-6%
|
539
|
453
|
19%
|
Zinc production
(tonnes)
|
689
|
639
|
8%
|
689
|
575
|
20%
|
(1)
|
Gold equivalent
ounces were calculated using a 1:80 Au:Ag ratio, and ratios of
1:0.0007950 and 1:0.0010225 for the price/ounce of gold to
price/pound of lead and zinc, respectively.
|
"Great Panther's Tucano Gold Mine continues to see steady
improvement in performance and increased gold production by 21%
over the second quarter, achieving its third quarter guidance with
production of over 36,000 ounces of gold," stated James Bannantine, President & CEO. "We are
also pleased to report record metal production during the quarter
from our Topia Mine and continuation of our exploration initiatives
at the Guanajuato Mine Complex with an updated NI 43-101 resource
estimate expected in early 2020."
Tucano Gold Mine
The Tucano Gold Mine produced 36,317 ounces of gold in Q3 2019,
an increase of 21% over the previous quarter and same quarter in
the previous year (based on results for the comparative periods as
reported by the previous owner of Tucano). The increases are
primarily attributable to increased mining rates in the sulfide
ore, and higher gold grades and recoveries.
Material movement, particularly waste movement, increased
significantly during the third quarter as a result of pre-stripping
multiple pits in preparation for large ore movement and production
in the fourth quarter and stockpiling for the rainy season in the
beginning of 2020.
Tucano Operational
Summary
|
Q3
2019
|
Q3
2018(1)
|
Change
|
Q3
2019
|
Q2
2019
|
Change
|
Total material mined
(tonnes)
|
6,908,097
|
4,619,339
|
50%
|
6,908,097
|
5,009,392
|
38%
|
Total waste mined
(tonnes)
|
6,360,015
|
3,996,079
|
59%
|
6,360,015
|
4,474,546
|
42%
|
Ore mined
(tonnes)
|
546,561
|
621,869
|
-12%
|
546,561
|
523,424
|
4%
|
Ore processed (tonnes
milled)
|
747,498
|
864,455
|
-14%
|
747,498
|
718,682
|
4%
|
Gold production
(ounces)
|
36,317
|
29,941
|
21%
|
36,317
|
29,899
|
21%
|
Au grade
(g/t)
|
1.62
|
1.26
|
29%
|
1.62
|
1.41
|
15%
|
Au recovery
(%)
|
93.2%
|
85.6%
|
9%
|
93.2%
|
91.9%
|
1%
|
(1)
|
The production data
presented in the table above includes production for the full
quarter in Q3 2018 as reported by the previous owner of the Tucano
Gold Mine.
|
Topia Mine
Topia produced 501,469 silver
equivalent ounces in Q3, a new record level of quarterly
production. Production for Q3 represented a 21% and 23% increase
over the previous quarter and the same quarter in the previous
year, respectively. The sustained high production is mainly
attributed to increased ore processed, as well as higher silver and
zinc grades.
Topia Operational
Summary
|
Q3
2019
|
Q3
2018
|
Change
|
Q3
2019
|
Q2
2019
|
Change
|
Ore processed
(tonnes)
|
21,761
|
18,617
|
17%
|
21,761
|
18,410
|
18%
|
Silver equivalent
production (ounces) (1)
|
501,469
|
409,190
|
23%
|
501,469
|
413,467
|
21%
|
Silver production
(ounces)
|
274,225
|
188,004
|
46%
|
274,225
|
218,000
|
26%
|
Gold production
(ounces)
|
344
|
323
|
6%
|
344
|
353
|
-3%
|
Lead production
(tonnes)
|
539
|
572
|
-6%
|
539
|
453
|
19%
|
Zinc production
(tonnes)
|
689
|
639
|
8%
|
689
|
575
|
20%
|
Ag grade
(g/t)
|
418
|
334
|
25%
|
418
|
392
|
7%
|
Au grade
(g/t)
|
0.86
|
0.90
|
-5%
|
0.86
|
1.01
|
-16%
|
Ag recovery
(%)
|
93.8%
|
94.0%
|
0%
|
93.8%
|
93.9%
|
0%
|
Au recovery
(%)
|
57.4%
|
59.6%
|
-4%
|
57.4%
|
58.9%
|
-3%
|
(1)
|
Silver equivalent
ounces 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.
|
Guanajuato Mine Complex
Production from the GMC continues to be sourced entirely from
the San Ignacio Mine, and comparisons to the third quarter in 2018
year reflect the operation of both the San Ignacio Mine and the
Guanajuato Mine in the comparative period. During the third
quarter, total metal production was 383,072 silver equivalent
ounces, which represents a 1% decrease compared to the previous
quarter. This is mainly due to decreased ore processed, and lower
gold grades and recoveries, partially offset by higher silver
grades. The exploration program initiated at Guanajuato continued through the third quarter
with the objective of growing higher margin resources in order to
bring the Guanajuato Mine back into production next year.
GMC Operational
Summary
|
Q3
2019
|
Q3
2018
|
Change
|
Q3
2019
|
Q2
2019
|
Change
|
Ore processed
(tonnes)
|
44,001
|
74,303
|
-41%
|
44,001
|
45,476
|
-3%
|
Silver equivalent
production (ounces) (1)
|
383,072
|
613,938
|
-38%
|
383,072
|
388,388
|
-1%
|
Silver production
(ounces)
|
143,807
|
260,836
|
-45%
|
143,807
|
131,668
|
9%
|
Gold production
(ounces)
|
2,991
|
4,414
|
-32%
|
2,991
|
3,209
|
-7%
|
Ag grade
(g/t)
|
119
|
124
|
-4%
|
119
|
105
|
13%
|
Au grade
(g/t)
|
2.47
|
2.12
|
17%
|
2.47
|
2.52
|
-2%
|
Ag recovery
(%)
|
85.6%
|
87.8%
|
-3%
|
85.6%
|
85.5%
|
0%
|
Au recovery
(%)
|
85.4%
|
87.1%
|
-2%
|
85.4%
|
87.0%
|
-2%
|
(1)
|
Silver equivalent
ounces were calculated using an 80:1 Ag:Au ratio.
|
Combined, the Company's Mexican operations produced 30,776 gold
equivalent ounces for the nine months ended September 30, 2019.
Outlook
Fourth quarter guidance for the Tucano Gold Mine is under review
due to a geotechnical problem discovered on Sunday, October 6th in the west wall
of the Urucum Central South pit ("UCS"), one of the five pits
scheduled for production in the fourth quarter. The geotechnical
issue is limited to the UCS pit and does not impact the other pits.
The Company is reviewing whether rescheduling production from the
other pits can make up for the expected shortfall in UCS planned
production and will advise in a separate press release of any
change in guidance by Wednesday, October
16th. Safety of the Company's personnel and its
contractors will be the primary consideration in determining any
revision to the operating plan.
Production and
cash cost guidance
|
FY 2019
Guidance
|
Gold equivalent
ounces (1) – Tucano (from March 5, 2019 acquisition
date)
|
125,000 –
135,000
|
Gold equivalent
ounces (1) – Mexico
|
46,500 –
50,000
|
Total gold equivalent
ounces (1)
|
171,500 –
185,000
|
Cash cost per ounce
sold (2)
|
$820 –
$890
|
AISC per gold ounce
sold, excluding corporate G&A expenditures
(2)
|
$1,030 –
$1,130
|
(1)
|
Gold equivalent
ounces 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, and applied to the
relevant metal content of the concentrates produced, expected to be
produced, or sold from operations.
|
|
|
(2)
|
Cash cost per gold
ounce sold and AISC per gold ounce sold excluding corporate G&A
expenditures are non-GAAP measures. Refer to the Non-GAAP Measures
section of the Company's most recent 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.
|
Tucano production
guidance
|
Q4
2019
|
Gold
ounces
|
55,000 –
59,600
|
The Company cautions that its Mexico gold equivalent ounce production for
2019 may be short of guidance, based on production through Q3, and
it is reviewing opportunities to achieve full year guidance for its
Mexican operations.
Great Panther's focus in 2019 has been on the continued
optimization of the Tucano
Gold Mine following the successful commissioning of the
Supplemental Oxygen System at the end of April (see May 14, 2019 press release here). Great Panther
also continues to advance its exploration program at Tucano
following the announcement of high-grade drilling results in July.
The program is expected to complete approximately 7,450 metres in
36 holes by the end of the year, all comprising near- or in-mine
targets. The program is aimed at capitalizing on Tucano's
significant exploration potential in addition to a further regional
exploration program for which preliminary exploration activities
have commenced, focused on the extensive land package surrounding
the Tucano Gold Mine.
At the Topia Mine, the Company conducted additional mine
development in order to increase mining rates and ore feed, and
successfully secured the purchase of high-grade ore from a
neighbouring small mine. During the 3rd quarter,
exploration continued with three underground Company drill rigs
performing infill drilling, and one contractor surface drill rig
focused on step-out drilling.
Exploration at the GMC continues to advance at both the
Guanajuato Mine and San Ignacio Mine. The Company plans to complete
an updated NI 43-101 resource estimate for the GMC, based on this
year's exploration program, in the first quarter of 2020. During
the 3rd quarter at GMC, four contract underground drill
rigs were in use for infill drilling, as well as one surface
contract drill rig for both infill and step-out drilling.
At the Coricancha Mine in Peru,
the Company approved a positive production decision following the
completion of the Bulk Sample Program which confirmed the key
operating assumptions contained in its Preliminary Economic
Assessment announced in May 2018. The
restart date is anticipated in 2020 subject to securing funding for
the initial capital costs on favourable terms, and the ongoing
successful optimization of the Tucano Gold mine.
The technical information contained in this news release has
been reviewed and approved by Robert F.
Brown, P. Eng., acting Vice President Exploration and
Fernando A. Cornejo, P. Eng., Vice
President Projects & Technical Services, both Qualified Persons
for the purposes of National Instrument 43-101.
ABOUT GREAT PANTHER
Great Panther Mining Limited is an intermediate gold and 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 operates three mines including the Tucano
Gold Mine in Amapá State, Brazil,
and two primary silver mines in Mexico: the Guanajuato Mine Complex and the
Topia Mine. Great Panther also owns the Coricancha Mine in
Peru, which is expected to restart
operations in 2020.
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, statements regarding the Company's production guidance and
ability to meet its production guidance, expectations of cash cost
and AISC, the exploration potential of Tucano, Topia, and GMC, the timing for an updated
resource estimate for GMC, and the timing or ability to restart
operations for the Coricancha Mine.
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 and social risks involving Great Panther's
operations in a foreign jurisdiction, 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,
2018 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