TSX: GPR | NYSE American: GPL
VANCOUVER, BC, Oct. 9, 2020 /CNW/ - Great Panther Mining Limited
(TSX: GPR) (NYSE-A: GPL) ("Great Panther" or "the Company")
announces third quarter (Q3) 2020 production results from its three
100% owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine Complex (GMC) in
Mexico. Consolidated
quarterly production totalled 39,788 gold equivalent ounces (Au eq
oz), positioning Great Panther on track to meet full-year 2020
guidance of 146,000 to 158,000 Au eq oz.
Q3 2020 Highlights
- Produced 39,788 Au eq oz on a consolidated basis – a 3%
increase over Q2 2020 – including 34,030 gold ounces (Au oz) and
375,427 silver ounces (Ag oz)
- Produced 93,401 Au oz at Tucano for the nine months ended
September 30, 2020, 4% higher than
for the same period in 2019
- On track to meet 2020 full year guidance of 146,000 to 158,000
Au eq oz
Great Panther President and CEO Rob
Henderson commented, "We delivered a solid quarter of steady
state operations at all of our mines in Q3, in spite of the
challenges of managing COVID-19. As Tucano transitioned from
Urucum Central North to mining in the southern pits, throughput was
slightly lower, but operations remain on track to meet full year
guidance. In Mexico, both mines reported a full quarter of
operations despite challenging conditions related to controls in
place for COVID-19. All in, the mines are operating well,
while we continue to put the health and safety of our people and
communities first and foremost."
Q3 2020 production results are preliminary and subject to
adjustment with Great Panther's Q3 2020 earnings results, scheduled
for release before market open on November
5, 2020. A conference call will follow at 9am PST/12pm
EST.
COVID-19 Response
Great Panther has developed and implemented significant COVID-19
prevention, monitoring and response plans following the guidelines
of the World Health Organization and the regulatory agencies of
each country in which it operates to ensure a safe work
environment. Protocols include mandatory medical screening
and testing on arrival at site, training sessions on health
awareness and health and safety protocols, physical distancing and
increased sanitation measures, and updated operating procedures.
Specific areas have been prepared for the isolation, testing
and care of employees showing COVID-19 symptoms. All
confirmed cases of COVID-19 are in isolation and being monitored by
Company health professionals with regular reports to health
authorities.
Q3 2020 Consolidated Operating Results
Consolidated
Operating Results
|
Three months ended
Sept 30, 2020
|
Three months ended
Sept 30, 2019
|
Change
|
Nine months ended
Sept 30, 2020
|
Nine months ended
Sept 30, 2019
|
Change
|
Ore processed
(tonnes)
|
5,752,684
|
6,973,859
|
-18%
|
19,036,700
|
16,966,867
|
12%
|
Gold eq production
(oz) (1,2)
|
39,788
|
47,373
|
-16%
|
107,250
|
120,462
|
-11%
|
Gold production
(oz)
|
34,030
|
39,652
|
-14%
|
99,329
|
99,712
|
0%
|
Silver production
(oz)
|
375,247
|
418,032
|
-10%
|
892,616
|
1,106,131
|
-19%
|
(1) Gold equivalent
ounces for 2020 are calculated using a 1:90 Au:Ag ratio, and ratios
of 1:0.0006412 and 1:0.0007554 for the price/ounce of gold to
price/pound of lead and zinc, respectively.
|
(2) Gold equivalent
ounces for 2019 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, consistent with the
Company's guidance for the year.
|
Tucano
Tucano Operating
Results
|
Three months ended
Sept 30, 2020
|
Three months ended
Sept 30, 2019
|
Change
|
Nine months ended
Sept 30, 2020
|
Nine months ended
Sept 30, 2019
|
Change
|
Total material mined
(tonnes)
|
5,687,291
|
6,908,097
|
-18%
|
18,877,807
|
16,767,564
|
13%
|
Total waste mined
(tonnes)
|
5,305,426
|
6,360,015
|
-17%
|
17,759,678
|
15,127,838
|
17%
|
Ore mined
(tonnes)
|
373,928
|
546,561
|
-32%
|
1,108,526
|
1,551,535
|
-29%
|
Ore processed (tonnes
milled)
|
823,353
|
747,498
|
10%
|
2,457,187
|
2,213,380
|
11%
|
Au grade
(g/t)
|
1.31
|
1.62
|
-19%
|
1.30
|
1.38
|
-6%
|
Au recovery
(%)
|
92%
|
93%
|
-1%
|
91%
|
91%
|
0%
|
Gold production
(oz)
|
31,803
|
36,317
|
-12%
|
93,401
|
89,686
|
4%
|
Tucano produced 31,803 Au oz in Q3 2020. Mining moved as
planned from the Urucum Central North pit, where the ore is harder
and typically higher grade, to mining softer ore in the TAP AB3 and
Urucum Central South pits. Although plant throughput was 10%
higher, this transition resulted in lower average grades and
ounces. Mining of ore in Urucum Central North will resume
following completion of a planned pit pushback.
Year to date at the end of Q3 2020, production at Tucano
totalled 93,401 Au oz, 4% higher than 2019 as a result of higher
rates of mining and plant throughput.
Tucano is on track to meet 2020 full year production guidance of
120,000 to 130,000 Au oz.
Mexico Operations
Topia
Topia Operating
Results
|
Three months ended
Sept 30, 2020
|
Three months ended
Sept 30, 2019
|
Change
|
Nine months ended
Sept 30, 2020
|
Nine months ended
Sept 30, 2019
|
Change
|
Ore processed
(tonnes)
|
20,292
|
21,761
|
-7%
|
47,431
|
60,403
|
-21%
|
Ag grade
(g/t)
|
353
|
418
|
-15%
|
355
|
382
|
-7%
|
Au grade
(g/t)
|
0.85
|
0.86
|
0%
|
0.84
|
0.98
|
-14%
|
Ag recovery
(%)
|
92.5%
|
93.8%
|
-1%
|
92.4%
|
93.7%
|
-1%
|
Au recovery
(%)
|
55.5%
|
57.4%
|
-3%
|
55.1%
|
56.4%
|
-2%
|
Silver eq
production (oz) (1,2)
|
383,897
|
501,469
|
-23%
|
906,322
|
1,335,862
|
-32%
|
Silver production
(ounces)
|
213,320
|
274,225
|
-22%
|
499,927
|
695,805
|
-28%
|
Gold production
(ounces)
|
308
|
344
|
-10%
|
708
|
1,077
|
-34%
|
Lead production
(tonnes)
|
457
|
539
|
-15%
|
1,021
|
1,473
|
-31%
|
Zinc production
(tonnes)
|
565
|
689
|
-18%
|
1420
|
1,926
|
-26%
|
Gold eq production
(oz) (1,2)
|
4,266
|
6,268
|
-32%
|
10,070
|
16,698
|
-74%
|
(1) Silver equivalent
ounces for 2020 are calculated using a 90:1 Ag:Au ratio, and ratios
of 1:0.05770751 and 1:0.06798419 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
|
(2) Silver equivalent
ounces for 2019 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, consistent with the
Company's guidance for the year.
|
Topia produced 383,897 Ag eq oz
in Q3 2020, or 4,266 Au eq oz, which was lower than the same period
of 2019 due to COVID-19 related delays on the delivery and
installation of a key component for one of the mills which impacted
processing. The component was received and installed in early
October. Although COVID-19 impacted the supply of this
component, the Topia community
remains relatively unaffected by COVID-19.
Topia remains on track to meet
2020 full year production guidance of 1.2 to 1.3 million Ag eq
oz.
Guanajuato Mine Complex
GMC Operations
Summary
|
Three months ended
Sept 30, 2020
|
Three months ended
Sept 30, 2019
|
Change
|
Nine months ended
Sept 30, 2020
|
Nine months ended
Sept 30, 2019
|
Change
|
Ore processed
(tonnes)
|
45,101
|
44,001
|
2%
|
111,462
|
138,900
|
-20%
|
Ag grade
(g/t)
|
131
|
119
|
10%
|
128
|
108
|
18%
|
Au grade
(g/t)
|
1.59
|
2.47
|
-36%
|
1.74
|
2.34
|
-26%
|
Ag recovery
(%)
|
85.5%
|
85.6%
|
0%
|
85.3%
|
84.7%
|
1%
|
Au recovery
(%)
|
83.4%
|
85.4%
|
-2%
|
84.4%
|
85.2%
|
-1%
|
Silver eq
production (oz) (1,2)
|
334,675
|
383,072
|
-13%
|
862,501
|
1,126,216
|
-23%
|
Silver production
(oz)
|
161,927
|
143,807
|
13%
|
392,689
|
410,326
|
-4%
|
Gold production
(oz)
|
1,919
|
2,991
|
-36%
|
5,220
|
8,949
|
-42%
|
Gold eq production
(oz) (1,2)
|
3,719
|
4,788
|
-22%
|
9,583
|
14,078
|
-32%
|
(1) Silver equivalent
ounces for 2020 are calculated using a 90:1 Ag:Au ratio.
|
(2) Silver equivalent
ounces for 2019 were calculated using an 80:1 Ag:Au
ratio
|
GMC produced 334,675 Ag eq oz in Q3 2020, or 3,719 Au eq oz.
Operations were maintained throughout the quarter albeit at
lower levels of production due to continued spread of COVID-19 in
Guanajuato and measures and
protocols to safeguard the workforce.
GMC remains on track to meet 2020 full year production guidance
of 1.2 to 1.3 million Ag eq oz.
Mineral Reserve and Resource Updates
Great Panther also plans to release Mineral Reserve and Resource
updates for its Tucano and GMC mines in the fourth quarter.
These will incorporate the results of the Company's 2020
drill programs. Exploration at Tucano is ongoing, with the
current focus on near-mine mineralization and a regional tenement
20 kilometres from the existing plant.
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Neil
Hepworth, Chartered Engineer UK, Chief Operating Officer, a
Qualified Person for the purposes of National Instrument
43-101.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of
assets in Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring
large land packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing portfolio.
Great Panther trades on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE American under the symbol
GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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 2020 production guidance and the
Company's ability to meet production guidance for Tucano,
Topia and GMC, the Company's plans
to resume mining in the Urucum Central North pit following the
planned pit pushback, the timeline for delivery of updated Mineral
Resource and Reserve estimates for Tucano and GMC, the Company's
plans and timeline for geotechnical drilling and related results
and the Company's plans to pursue acquisition opportunities to
complement its existing portfolio.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include:
continued operations at Tucano in accordance with the Company's
mine plan and in all operations without interruption due to
COVID-19 or any other reason; the accuracy of the Company's mineral
reserve and mineral resource estimates and the assumptions upon
which they are based; ore grades and recoveries; prices for silver,
gold, and base metals remaining as estimated; currency exchange
rates remaining as estimated; all necessary permits, licenses and
regulatory approvals for the Company's operations are received in a
timely manner and maintained; the accuracy of the geological,
operational and price and exchange rate assumptions on which the
production guidance is based; operations not being disrupted by
issues such as mechanical failures, labour disturbances or
workforce shortages, illegal occupations or mining, seismic events,
and adverse weather condition; and the Company's ability to comply
with environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
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, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction, developments with
respect to COVID-19 that may impact the Company's operations,
including potential for further workforce shortages, or future
orders of federal governments to curtail or cease mining
operations, the inherent risk that estimates of mineral reserves
and resources may not be accurate and accordingly that mine
production will not be as estimated or predicted, as the Company's
mines do not have established mineral reserves, except for Tucano,
the Company faces higher risks that anticipated rates of production
will not be achieved, litigation risk, the potential for unexpected
costs and expenses, fluctuations in metal prices, fluctuations in
currency exchange rates, physical risks inherent in mining
operations (including pit wall collapses, tailings storage facility
failures, environmental accidents and hazards, industrial
accidents, equipment breakdown, unusual or unexpected geological or
structural formations, cave-ins, flooding and severe weather),
operating or technical difficulties in mineral exploration, changes
in project parameters as plans continue to be refined, there is no
assurance that the Company will be able to identify or complete
acquisition opportunities and other risks and uncertainties,
including those described in respect of Great Panther, in its
annual information form for the year ended December 31, 2019 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. 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