TSX: GPR | NYSE American: GPL
VANCOUVER, BC, Dec. 22, 2020 /PRNewswire/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the "Company")
announces today it has filed a technical report for its 100%-owned
Guanajuato Mine Complex ("GMC") in Mexico. The new technical report entitled "NI
43-101 Mineral Resource Update Technical Report on the Guanajuato
Mine Complex, Guanajuato and San
Ignacio Operations, Guanajuato State, Mexico" ("Technical Report") supports the
Company's updated Mineral Resource estimate for the GMC announced
by news release on November 23,
2020.
Highlights
- Measured and Indicated (M&I) Mineral Resources contain 10.2
million (M) silver equivalent ounces (Ag eq oz), a 17% increase
over the previous 2019 estimate
- M&I Mineral Resource silver grade increased 10% from 180 to
199 grams per tonne silver (g/t Ag) for an effective silver
equivalent grade of 385 g/t inclusive of the gold grade of 2.07
g/t
- Inferred Mineral Resources contain 18.1M Ag eq oz, more than double the previous
estimate reflecting successful exploration efforts in the
Los Pozos and Purisima areas
The consolidated GMC Mineral Resource estimate is included
below. The Technical Report has an effective date of July 31, 2020, and is available on SEDAR at
www.sedar.com and on the Company's website at
www.greatpanther.com, and will be filed on EDGAR as soon as
practicable at www.sec.gov.
Table 1 – Total GMC Mineral Resource Estimates at
July 31, 2020
Classification
|
Tonnes
|
Grade
Ag (g/t)
|
Contained
Ag
(oz)
|
Grade
Au (g/t)
|
Contained
Au (oz)
|
Grade Ag
eq (g/t)
|
Contained Ag
eq (oz)
|
Grade Au
eq (g/t)
|
Contained
Au eq (oz)
|
Measured
|
600,941
|
195
|
3,763,303
|
2.16
|
41,741
|
389
|
7,520,049
|
4.32
|
83,556
|
Indicated
|
220,910
|
209
|
1,483,209
|
1.83
|
12,951
|
373
|
2,651,863
|
4.15
|
29,465
|
Total
M&I
|
821,851
|
199
|
5,246,512
|
2.07
|
54,693
|
385
|
10,171,912
|
4.28
|
113,021
|
Inferred
|
1,453,008
|
185
|
8,664,244
|
2.25
|
105,219
|
388
|
18,109,823
|
4.31
|
201,220
|
Notes:
1.
|
This consolidated GMC
Mineral Resource estimate includes the estimates of the San Ignacio
and Guanajuato mines.
|
2.
|
Totals may not agree
due to rounding.
|
3.
|
Grades have been
estimated in metric units and contained silver and gold estimated
in troy ounces (oz).
|
4.
|
A minimum mining
width of 0.50 metres (m) was used in the estimates.
|
5.
|
For San Ignacio, a
vein bulk density of 2.68 t/m3 was used and for
Guanajuato, a vein bulk density of 2.64 t/m3 was used in
the estimates.
|
6.
|
For San Ignacio,
Mineral Resources are estimated at a full cost cut-off net smelter
return (NSR) of US$100/t using metal prices of US$17.64/oz Ag and
US$1,694/oz Au (based on CIBC 2021 forecast) and metallurgical
recoveries of 85.5% for Ag and 83.9% for Au.
|
7.
|
For Guanajuato,
Mineral Resources are estimated using cut-offs based on the full
operating costs per mining area of US$115/t for Cata, US$115/t for
Santa Margarita/San Cayetano, US$89/t for Los Pozos, US$100/t for
Guanajuato, US$125/t for Promontorio, and US$102/t for
Valenciana.
|
8.
|
For Guanajuato, metal
prices US$17.64/oz silver, and US$1,694 gold (based on CIBC 2021
forecast).
|
9.
|
For Guanajuato, block
model grades converted to US$ value using plant recoveries of 85.5%
Ag, 83.9% Au, and net smelter terms negotiated for
concentrates.
|
10.
|
Ag eq oz were
calculated using 90:1 Ag:Au ratio. The ratios are reflective of
average metal prices for 2020.
|
11.
|
Estimates have an
effective date of July 31, 2020.
|
12.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
|
13.
|
Inferred Mineral
Resources have a great amount of uncertainty as to their existence
and as to whether they can be mined economically. It cannot be
assumed that all or part of the Inferred Mineral Resources
will ever be upgraded to a higher category.
|
Permitting Update
As previously disclosed, Great Panther has been working with
permitting authorities to expand the capacity of its existing GMC
tailings storage facilities (TSF). In parallel, the Company has
completed its review to identify technical alternatives to extend
its tailings storage capacity utilizing existing permits and has
begun modifying the tailings discharge using cyclones to extend the
tailings capacity until June 30,
2021. This will allow more time for receipt of the pending
expansion approval; however, if the expansion approval of the TSF
has not been received prior to June 30,
2021, the Company may need to cease milling operations at
the GMC until receipt of the CONAGUA expansion approval.
TECHNICAL DISCLOSURE AND QUALIFIED PERSONS
The Technical Report and the Mineral Resource update for the GMC
included therein and herein were prepared by and under the
supervision of Robert F. Brown, P.
Eng., and Mohammad Nourpour, P. Geo., each a non-independent
Qualified Person within the meaning of National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"). Messrs.
Brown and Nourpour have reviewed and approved the Mineral Resource
estimate for GMC included in this news release.
The technical information regarding the GMC tailings storage and
permitting in this news release has been reviewed and approved by
Neil Hepworth, M.Sc., C. Eng., MIMM,
Chief Operating Officer for Great Panther, a non-independent
Qualified Person within the meaning of 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 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 GMC Mineral Resource estimates and
the assumptions underlying the estimates; expectations around the
Company's ability to receive the permits and regulatory approvals
necessary for an expansion of the existing GMC TSF (lifts 18 and
19) in a timely manner in order to prevent an interruption to
milling operations at the GMC; expectations around the use of an
alternative technical solution to extend the tailings capacity
until June 30, 2021 until CONAGUA
expansion approval can be obtained; 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 Resource estimates and the
assumptions upon which they are based discussed here and in the
Technical Report; ore grades and recoveries, prices for silver,
gold, and base metals and currency exchange rates remaining as
estimated; capital, decommissioning and reclamation estimates;
prices for energy inputs, labour, materials, supplies and services
(including transportation) remaining as estimated; all necessary
permits, licenses and regulatory approvals for the expansion of the
existing GMC TSF (lifts 18 and 19) are received in a timely manner
without condition; the Company's plan to extend the tailings
capacity of the GMC TSF utilizing existing permits will be
successful in extending the GMC tailings capacity until
June 30, 2021 and that such extension
will be sufficient to bridge the tailings capacity until CONAGUA
approval can be obtained in order to prevent an interruption to
milling operations at the GMC; the Company is able to procure
equipment and supplies and complete construction for the extension
of the GMC TSF without any technical or other difficulties;
operations not being disrupted by issues such as 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 of 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, and the potential for a delay in receipt of
permits necessary for the Company's GMC TSF expansion, 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 Resources and the assumptions upon which
they are based may not be accurate; gold, silver and base metal
prices may decline or may be less than forecasted; risk in
variation in production and costs as the GMC does not have
established Mineral Reserves; fluctuations in currency exchange
rates may increase costs of operations; the Company's ability to
obtain all necessary permits, licenses and regulatory approvals for
its operations in a timely manner, including the uncertainty
regarding the timing and approval of the expansion of the existing
GMC TSF (lifts 18 and 19), which if not granted, delayed or
conditioned could result in an interruption to milling operations
at the GMC which could adversely impact the Company's revenues and
financial condition; the alternative technical solution utilizing
existing permits is not successful in extending the potential
tailings capacity until CONAGUA expansion approval is obtained
which could also result in an interruption to milling operations at
the GMC; 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; 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; changes in laws, regulations and government practices
in the jurisdictions in which the Company operates; legal
restrictions related to mining; changes in project parameters as
plans continue to be refined; 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 Canadian Institute of Mining, Metallurgy, and
Petroleum Definition Standards for Mineral Resources and Mineral
Reserves 2014 ("CIM 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 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
Standards.
United States investors are
cautioned that while the foregoing terms are "substantially
similar" to corresponding definitions under the CIM Standards,
there are differences in the definitions under the SEC
Modernization Rules and the CIM 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 to 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.
View original
content:http://www.prnewswire.com/news-releases/great-panther-files-ni-43-101-technical-report-for-the-guanajuato-mine-complex-301197871.html
SOURCE Great Panther Mining Limited