(All dollar amounts expressed in US dollars unless otherwise
noted)
TSX: GPR | NYSE American: GPL
VANCOUVER, Dec. 15, 2020 /CNW/ - Great Panther Mining
Limited (TSX: GPR; NYSE-A: GPL) ("Great Panther" or the "Company")
has completed updated Mineral Reserve and Mineral Resource (MRMR)
estimates for its 100% owned Tucano mine in Brazil. This updated MRMR has an effective
date of September 30, 2020.
Highlights
- Proven and Probable (P&P) Mineral Reserves are now
estimated to be 629K gold ounces, of
which 299K ounces are open pit
reserves. This represents a replacement of depleted reserves since
the previous MRMR estimate.
- Measured and Indicated (M&I) Mineral Resources, which are
inclusive of Reserves, now total 953K
gold ounces. In the Tucano open pit, M&I Resources are
561K gold ounces, an increase of 28%
since September 2019.
- Inferred Resources now total 534K
gold ounces.
- This MRMR reflects results of near-mine drilling up to the end
of July 2020 focused on the TAP AB
pits which represents approximately two kilometres of the
seven-kilometre mining trend. Drilling of near-mine targets
continued at TAP AB and Urucum in the second half of the year.
Exploration drilling will continue on these targets and the area
between TAP AB and Urucum in 2021.
- Three diamond drills and a one reverse circulation (RC) rig are
working on near-mine resource definition/conversion. Ongoing rotary
air blast (RAB) drilling is also targeting regional potential with
the current focus being Mutum and Saraminda, two of seven regional
priority targets.
Great Panther President and CEO Rob
Henderson commented: "We have successfully replaced 2020
mining depletion and added another year to the mine life at Tucano.
The updated MRMR estimate provides us with a higher level of
confidence for future mine and operational planning and we are
confident that, in parallel, we can unlock the larger potential of
the region.
"Going forward we will be aggressively advancing opportunities
for resource growth and mine life extension on multiple fronts,"
added Mr. Henderson. "We are actively drilling, both near the mine
and in the extensive and largely under-explored regional land
package."
This MRMR update uses the same rigorous approach to Mineral
Resource and Mineral Reserve estimation adopted in 2019 (refer to
the NI 43-101 Technical Report on the Tucano Gold Mine completed by
Roscoe Postle Associates Inc. (RPA) dated March 25, 2020). The key difference between the
2019 and this 2020 MRMR is that the Mineral Resource models for the
Urucum and TAP AB deposits, which are the focus of production in
2021, were estimated using wireframes constructed using 0.3 grams
per tonne (g/t) gold cut-off for the oxide zone and 0.4 g/t gold
cut-off for the sulphide zone, compared to a single cut-off of 0.5
g/t gold used in 2019. The new wireframes were produced to improve
the understanding of the geologic model and provide a more accurate
picture of resource continuity for block modelling.
Table 1 – Tucano Mineral Reserve Estimates as of September 30, 2020
|
Proven
|
Probable
|
Total Proven and
Probable
|
Location/area
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Contained
gold
(000s oz)
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Contained
gold
(000s oz)
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Contained
gold
(000s oz)
|
Open pit
|
1,688
|
1.61
|
87
|
3,880
|
1.70
|
212
|
5,568
|
1.67
|
299
|
Underground
|
189
|
3.78
|
23
|
1,976
|
4.17
|
265
|
2,164
|
4.13
|
288
|
Stockpile
|
2,026
|
0.64
|
42
|
0
|
0.00
|
0
|
2,026
|
0.64
|
42
|
Total
|
3,903
|
1.21
|
152
|
5,856
|
2.53
|
477
|
9,758
|
2.00
|
629
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
1.
|
Mineral Reserves were
classified using the Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards for Mineral Resources and Mineral
Reserves 2014 (CIM Definition Standards).
|
2.
|
Mineral Reserve
estimation includes mine depletion through to September 30, 2020
and drills results through to July 31, 2020. The effective date of
the Mineral Reserve estimate is September 30,
2020.
|
3.
|
Open pit Mineral
Reserves are estimated within designed pits above discard cut-off
grades that vary from 0.43 g/t Au to 0.5, g/t Au for oxide ore and
0.58 g/t Au to 0.63 g/t Au for fresh ore. The cut-off grades are
based on a gold price of US$1,500/oz Au and operating costs sourced
from the current operations and mining contracts at an
US$/Brazilian exchange rate of 1:4.5.
|
4.
|
Mineral Reserves
incorporate estimates of dilution and mineral losses.
|
5.
|
Underground Mineral
Reserves were estimated using an incremental cut-off grade of 2.4
g/t Au. The cut-off grades are based on a gold price of US$1,250/oz
Au and operating costs sourced from the operations and mining
contracts at an US$/Brazilian exchange rate of 1:3.8.
|
6.
|
A minimum mining
width of 20 metres was used for open pit Mineral Reserves and three
metres was used for underground Mineral Reserves.
|
7.
|
The Mineral Reserve
estimate includes surface stockpiles.
|
8.
|
Average metallurgical
process recovery is 91.5%.
|
9.
|
Numbers may not add
due to rounding.
|
|
|
Table 2 – Tucano Mineral Resource Estimates as of
September 30, 2020
|
Measured
|
Indicated
|
Total Measured and
Indicated
|
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Contained
gold
(000s oz)
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Gold
(000s oz)
|
Tonnes
(000s)
|
Gold
grade
(g)/t
|
Gold
(000s oz)
|
Open pit
|
2,309
|
1.46
|
108
|
8,793
|
1.60
|
453
|
11,102
|
1.57
|
561
|
Underground
|
0
|
0
|
0
|
2,649
|
4.11
|
350
|
2,649
|
4.11
|
350
|
Stockpile
|
2,491
|
0.53
|
42
|
0
|
0
|
0
|
2,491
|
0.53
|
42
|
Total
|
4,800
|
0.97
|
150
|
11,442
|
2.18
|
803
|
16,242
|
1.83
|
953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred
|
|
Tonnes
(000s)
|
Gold
grade
(g/t)
|
Contained
gold
(000s oz)
|
Open pit
|
647
|
2.48
|
52
|
Underground
|
5,350
|
2.80
|
483
|
Stockpile
|
0
|
0
|
0
|
Total
|
5.997
|
2.77
|
534
|
Notes:
|
1.
|
Mineral Resources
were classified using CIM Definition Standards.
|
2.
|
Mineral Resources are
inclusive of Mineral Reserves.
|
3.
|
The effective date of
the Mineral Resource estimate is September 30, 2020.
|
4.
|
Mineral Resources are
estimated at various cut-off grades depending on mining method and
mineralization style.
|
5.
|
For open pit
development at Urucum, Urucum East and TAP AB, Mineral Resource
estimates use a long-term gold price of US$1,750/oz and a
US$/Brazilian real exchange rate of 1:4.5 with cutoff grades of 0.3
g/t Au for oxide and 0.4 g/t Au for fresh rock.
|
6.
|
Underground Mineral
Resource estimates for TAP AB use a long-term gold price of
US$1,750/oz and a US$/Brazilian real exchange rate of 1:4.5, with
cutoff grade of 1.3g/t Au for fresh rock.
|
7.
|
Since September 30,
2019, no additional drilling data is available for the Urucum
underground and Duckhead so Mineral Resource estimates for 2020
remain unchanged from 2019. Estimates use a long-term gold price of
US$1,500/oz and a US$/Brazilian real exchange rate of 1:3.8 with
cutoff grades of 0.4 g/t Au for oxide and 0.55 g/t Au for fresh
rock in the open pit and 2.1 g/t Au for oxide and 1.6 g/t Au for
fresh for the underground.
|
8.
|
A minimum mining
width of three metres was used for preparation of mineralization
wireframes.
|
9.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
10.
|
Inferred Mineral
Resources have a great amount of uncertainty as to their existence
and as to whether they can be mined legally or economically. It
cannot be assumed that all or part of the Inferred Mineral
Resources will ever be upgraded to a higher category.
|
11.
|
Numbers may not add
due to rounding.
|
Between September 30, 2019 and
July 30, 2020, there was no new
drilling data for Duckhead or for the underground resource at
Urucum, therefore Mineral Resource estimates for these areas have
not been updated. At TAP AB, higher grades near the base of the
current open pit (refer to Great Panther's news release dated
June 23, 2020) allowed the pit to be
significantly deepened, converting a large part of the underground
resource stated in 2019 to open pit Mineral Resources at a gold
price of $1,750/oz. At Urucum, the
deeper pits did not impact Mineral Reserves, however marginally
reduced underground Mineral Resources immediately below Urucum
North pit, but this change is not considered material. In 2021, GPM
has budgeted a first phase, +8,000 metre diamond drilling program
on the Urucum underground deposit to provide additional data for an
MRMR update in 2021. Mineral Resource modelling and
estimation at TAP AB was conducted by RPA, now part of SLR
Consulting Ltd. Other Mineral Resources estimates and all Mineral
Reserve estimates were completed by Great Panther's Technical
Services group at Tucano.
A technical report will be filed on SEDAR at www.sedar.com, on
EDGAR at www.sec.gov/EDGAR, and on the Company's website at
www.greatpanther.com.
Exploration Update
In 2020, Great Panther launched a 55,000-metre drill program at
Tucano for a budget of $7 million.
The program is under way and to date approximately 23,000 metres
have been completed, and further expansion of the program is
planned for 2021. The program has three priority focus areas:
Near-mine exploration
In the first half of 2020, Great Panther drilled 101 holes
totaling 18,828 metres focused primarily on the TAP AB open pit.
This drill program was designed to replace 2020 mining depletion by
upgrading Mineral Resources for conversion to Mineral Reserves and
led to a significant part of the MRMR open pit increase presented
above. Similar programs are now underway at Urucum North and Urucum
East. In 2021, further programs are anticipated at TAP C and Urso
and other near-mine targets as justified by ongoing geologic
modelling.
Underground exploration
In fourth quarter of 2020, Great Panther initiated drilling
along strike and beneath the current Urucum North pit to evaluate
access to shallow parts of the underground resource through
extension of the open pit or underground development. To date, five
RC and 12 diamond drill holes totaling 4,627 metres have been
completed. Drilling in 2021 will focus on infill in deeper
high-grade ore zones that form part of the potential development of
an underground mine at Urucum. An important part of this program
will be increasing the density of drill data to enhance a
prefeasibility study to support the development of an underground
mine.
Regional exploration
The Great Panther exploration tenement package covers
approximately 90 kilometers (2,000 square kilometres) of the Vila
Nova Greenstone Belt in which Great Panther has identified numerous
targets based on a compilation of aerogeophysics and historical
geochemical data. Shallow RAB drilling to date has focused on three
known exploration targets: Lona Amarela, Mutum and Sarraminda.
Drilling is ongoing at Saraminda while results of drilling from
Lona Amarela and Saraminda identified extensive surficial gold
geochemistry anomalies that require further detailing. A
1,000-metre diamond drilling program is under way at Mutum to test
the target and provide geologic context to the southern anomaly.
These targets are being prioritized and fast-tracked as they lie
within a 20 kilometre radius of the Tucano plant and existing
infrastructure.
QUALIFIED PERSONS
Great Panther's own technical qualified persons oversaw the
process and carried out new estimates on the Urucum and Urucum East
open pit deposits. SLR Consulting Ltd. (previously RPA) prepared
and acted as independent technical qualified persons for the TAP AB
deposit.
On behalf of Great Panther, Neil
Hepworth, Chartered Engineer MIMMM supervised the
preparation of and approved for inclusion in this news release, the
Tucano Mineral Reserve estimates and Nicholas Winer, Fellow AusIMM and Carlos Pires, Chartered Professional, Member
AusIMM (CP) supervised the preparation of and approved for
inclusion in this news release, the Tucano Mineral Resource
estimates (other than TAP AB open pit and underground Mineral
Resource estimate). Messrs. Hepworth, Winer and Pires are
non-independent Qualified Persons as defined by NI 43-101.
On behalf of SLR Consulting Ltd., Reno Pressacco, P. Geo., and
Tudorel Ciuculescu P. Geo. supervised the preparation of and
approved for inclusion in this news release, the TAP AB Mineral
Resource estimate. Messrs. Pressacco and Ciuculescu are independent
Qualified Persons as defined by National Instrument 43-101.
The Qualified Persons for Mineral Resource and Mineral Reserve
estimation have reviewed the Tucano QA/QC program. The QA/QC
program for drill core includes the regular insertion of blanks,
standards, and duplicates into sample batches, diligent monitoring
of assay results, and necessary remedial actions. Resource drilling
samples are first assayed at the Tucano onsite laboratory. All
intervals with anomalous gold are submitted and re-analyzed by the
Certified, SGS Geosol laboratory in Belo
Horizonte by 50 g fire-assay. All SGS Geosol assays, after
diligent monitoring of QA/QC and necessary remedial actions,
supersede the Tucano assay results in the database for MRMR grade
estimation. QA/QC monitoring of the SGS laboratory also includes
inter-laboratory checks on five percent of samples with the
Certified, ALS laboratory in Belo
Horizonte. In addition to the data verification methodology
described above, personal inspections of the Tucano property have
also been completed.
Unless stated otherwise, all scientific and technical
information contained in this news release has been reviewed and
approved by Neil Hepworth, Chartered
Engineer MIMM, Chief Operating Officer, Fernando A. Cornejo, P. Eng., Vice-President,
Operations, Brazil and
Nicholas Winer, Vice-President,
Exploration of Great Panther, each a Qualified Person as defined by
NI 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 NOTES 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 Tucano Mineral Reserve and Mineral
Resource estimates and the assumptions underlying the estimates;
the Company's ability to advance successfully opportunities for
resource growth and mine life extension in the future; the
exploration potential of Tucano near-mine, underground and regional
land package; the Company's plans to complete and results of
further drilling at Tucano; ability of the Company to enhance a
prefeasibility study to support the development of an underground
mine; 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: the
accuracy of the Company's mineral reserve and mineral resource
estimates and the assumptions upon which they are based; ore grades
and recoveries; gold prices remaining as estimated; national and
international transportation arrangements to deliver Tucano's gold
doré to international refineries continue to remain available,
despite inherent risks due to COVID–19; international refineries
that the Company uses continue to operate and refine the Company's
gold doré, and in a timely manner such that the Company is able to
realize revenue from the sale of its refined metal in the timeframe
anticipated, despite inherent risks due to COVID–19; currency
exchange rates remaining as estimated; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); all necessary
permits, licenses and regulatory approvals for the Company's
operations are received in a timely manner and maintained;
continued operations at Tucano in accordance with the Company's
mine plan, including the expectations regarding the ongoing
geotechnical control of Urucum Central South ("UCS") where mining
re-started in the last week of October; management's estimates in
connection with the assessment of provisions for loss and
contingent liabilities relating to legal proceedings may differ
materially from the ultimate loss or damages incurred by the
Company; assumption that the Company will be successful in
resolving the legal claims that ban the use of cyanide in the
Tucano processing; management's estimates regarding the carrying
value of its mineral properties may be subject to change in future
financial periods, which may result in further write–downs and
consequential impairment loss; conditions in the financial markets;
the ability to procure equipment and operating supplies and that
there are no material unanticipated variations in the cost of
energy or supplies; the accuracy of the geological, operational and
price and exchange rate assumptions on which the cost assumptions
are based; operations not being disrupted by issues such as
pit-wall failures or instability, mechanical failures, labour
disturbances and workforce shortages, illegal occupations or
mining, seismic events, and adverse weather conditions; the
Company's expectations that metallurgical, environmental,
permitting, legal, title, taxation, socio-economic, political,
marketing or other issues will not materially affect the estimates
or mineral reserves and mineral resources or its future mining
plans; 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: the
impact of COVID–19 on the Company's ability to operate as
anticipated, including the risk of an unplanned partial or full
shutdown of the Company's mines and processing plants, whether
voluntary or imposed, which would adversely impact the Company's
revenues, financial condition and ability to meet its production
and cost guidance; the inherent risk that estimates of mineral
reserves and resources may not be accurate or that the assumptions
upon which they are based are different than expected; the
discontinuity of the ore body and mine selectivity may result in a
risk that dilution and mining recovery estimates used in the
Mineral Reserve estimation do not accurately reconcile with the
Company's ability to recover the tonnage, grade and metal content
estimated in the Mineral Reserves; gold, prices may decline or may
be less than forecasted; fluctuations in currency exchange rates
(including the U.S. dollar to Brazilian real exchange rate) may
increase costs of operations; potential of further instability or
failure of walls of the UCS pit, which compromises a material part
of the Mineral Reserves being accessed in 2021; there is no
assurance that the Company will be able to continue mining and be
able to access the UCS Mineral Reserves which may adversely impact
the Company's Mineral Reserve estimates, production plans and
future revenues, including the potential risk that the Mineral
Reserves at UCS may not be accessible at all or that access may be
dependent on further remedial work that might interrupt operations;
operational and 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) may result in
unforeseen costs, shut downs, delays in production and exposure to
liability; risk that the Company is not successful in its Brazilian
litigation, including a risk that the use of cyanide would be
banned in respect of Tucano's operations causing Tucano to have to
cease operations if an alternative to cyanide treatment cannot be
identified and implemented in a cost-effective way (of which there
is no assurance); planned exploration activities may not result in
conversion of existing Mineral Resources into Mineral Reserves or
discovery of new Mineral Resources; potential political and social
risks involving Great Panther's operations in a foreign
jurisdiction; the potential for unexpected costs and expenses or
overruns; employee and contractor relations; relationships with,
and claims by, local communities; the Company's ability to obtain
and maintain all necessary permits, licenses and regulatory
approvals in a timely manner, which if not granted could result in
an interruption to operations; changes in laws, regulations and
government practices in the jurisdictions in which the Company
operates; legal restrictions related to mining; diminishing
quantities or grades of Mineral Reserves as properties are mined;
operating or technical difficulties in mineral exploration; changes
in project parameters as plans continue to be refined; the
Company's inability to meet its production forecasts or to generate
the anticipated cash flows from operations could result in the
Company's inability to meet its scheduled debt payments when due or
to meet financial covenants to which the Company is subject;
ability to maintain and renew agreements with local communities to
support continued operations; 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 these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
CAUTIONARY NOTE TO UNITED
STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED
AND INFERRED RESOURCES
The Company prepares its disclosure in accordance with the
requirements of securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Terms relating to Mineral Resources in this
news release are defined in accordance with NI 43-101 under the
guidelines set out in the CIM Definition Standards.
The United States Securities and Exchange Commission (the "SEC")
has adopted amendments effective February
25, 2019 (the "SEC Modernization Rules") to its disclosure
rules to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the
United States Securities Exchange Act of 1934. The SEC
Modernization Rules have replaced SEC Industry Guide 7, which will
be rescinded following a transition period and after the required
compliance date of the SEC Modernization Rules.
As a result of the adoption of the SEC Modernization Rules, the
SEC will now recognize estimates of "Measured Mineral Resources",
"Indicated Mineral Resources" and "Inferred Mineral Resources",
which are defined in substantially similar terms to the
corresponding CIM Definition Standards. In addition, the SEC has
amended its definitions of "Proven Mineral Reserves" and "Probable
Mineral Reserves" to be substantially similar to the corresponding
CIM Definition Standards.
United States investors are
cautioned that while the foregoing terms are "substantially
similar" to corresponding definitions under the CIM Definition
Standards, there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any Mineral Resources that the Company may
report as "Measured Mineral Resources", "Indicated Mineral
Resources" and "Inferred Mineral Resources" under NI 43-101 would
be the same had the Company prepared the resource estimates under
the standards adopted under the SEC Modernization Rules.
United States investors are
also cautioned that while the SEC will now recognize "Measured
Mineral Resources", "Indicated Mineral Resources" and "Inferred
Mineral Resources", investors should not assume that any part or
all of the mineral deposits in these categories would ever be
converted into a higher category of Mineral Resources or into
Mineral Reserves. Mineralization described by these terms has a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility.
Accordingly, investors are cautioned not to assume that any
"Measured Mineral Resources", "Indicated Mineral Resources", or
"Inferred Mineral Resources" that the Company reports are or will
be economically or legally mineable.
Further, "Inferred Resources" have a great amount of uncertainty
as to their existence and as to whether they can be mined legally
or economically. Therefore, United
States investors are also cautioned not to assume that all
or any part of the Inferred Resources exist. In accordance with
Canadian securities laws, estimates of "Inferred Mineral Resources"
cannot form the basis of feasibility or other economic studies,
except in limited circumstances where permitted under NI
43-101.
In addition, disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC has
historically only permitted issuers to report mineralization as in
place tonnage and grade without reference to unit measures.
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SOURCE Great Panther Mining Limited