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. 15, 2019 /PRNewswire/ - GREAT
PANTHER MINING LIMITED (NYSE American: GPL; TSX: GPR) ("Great
Panther", the "Company") provides an update on developments at its
Tucano Gold Mine in Brazil.
As previously reported, a geotechnical issue was 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 and into next
year.
There has since been deterioration to sections of the west wall
of the pit, including failures along the lower southern portion of
the west wall and cracks along the central section of the pit. As a
precautionary measure and following safety protocols, the pit and
access roads were closed, an adjacent haul road was re-routed and
stockpiles moved away from the pit. As an additional safety
precaution and with a view to returning the UCS pit to production,
the Company has initiated a full geotechnical review of UCS and all
other pits including installing additional monitoring equipment.
There have been no safety incidents nor stranded equipment.
A plan has also been initiated to re-sequence and accelerate
production from the other pits, primarily the Urucum North and
Urucum South pits. Geotechnical analysis and mine planning for
additional stripping and rehabilitation of UCS is ongoing to
calculate any impact on Mineral Reserves and to determine when
production at the UCS pit can be recommenced. An update will be
provided when the analysis is complete, no later than the first
quarter of 2020 when an updated Mineral Reserve and Mineral
Resource statement is published for the Tucano Gold Mine. UCS
represents approximately 150,000 ounces of Mineral Reserves that
were scheduled for production mainly in 2021 and 2022.
As a result of this event, Great Panther is lowering its fourth
quarter guidance for the Tucano Gold Mine to between 39,000 and
44,000 ounces of gold. Full year guidance for Mexico has also been revised downward to
between 40,000 and 45,000 gold equivalent ounces(1). The
Company is conducting further detailed analysis and will provide
timely announcement of any further changes in guidance.
"Based on this updated guidance we are still projecting to
deliver growth in production relative to the third quarter of 2019.
Our first priority is to take all necessary steps to ensure the
safety of our employees and contractors at the Tucano Gold Mine
while working diligently to minimize the impact to short-term and
medium-term production," stated James
Bannantine, President & CEO.
Production
guidance
|
Previous FY 2019
Guidance
|
Revised FY 2019
Guidance
|
Gold equivalent
ounces (1) – Tucano (from March 5, 2019 acquisition
date)
|
125,000 –
135,000
|
110,000 –
115,000
|
Gold equivalent
ounces (1) – Mexico
|
46,500 –
50,000
|
40,000 –
45,000
|
Total gold equivalent
ounces (1)
|
171,500 –
185,000
|
150,000 –
160,000
|
|
|
(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.
|
The technical information contained in this news release has
been reviewed and approved by Fernando A.
Cornejo, P. Eng., Vice President Projects & Technical
Services and Robert F. Brown, P.
Eng., acting Vice President Exploration, 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 and, having executed a
successful bulk sample mining program in accordance with the
May 2018 PEA for the project restart,
the Company is establishing the conditions under which a restart of
production can be implemented.
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 the
viability and reactivation of the UCS pit, the timing of a Mineral
Reserve and Mineral Resource statement for the Tucano Gold Mine,
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 results of the
geotechnical review of the UCS pit and the ability of Great Panther
to resume production at the UCS pit, 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