TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise
noted)
VANCOUVER, BC, Jan. 29,
2021 /CNW/ - Great Panther Mining Limited (TSX: GPR) (NYSE-A: GPL)
("Great Panther" or the "Company") announces today it has filed the
"Technical Report on the 2020 Mineral Reserves and Mineral
Resources of the Tucano Gold Mine, Amapa State, Brazil" ("Technical Report"). The
Technical Report supports the Company's updated Mineral Reserve and
Mineral Resource estimate ("MRMR") for Tucano announced by news
release on December 15, 2020.
The Technical Report has an effective date of September 30,
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.
2021 Exploration Programs and Exploration Strategy
Update
"Our 2020 exploration programs were successful in extending the
existing open pit mine life at Tucano and adding significant
resources to our mineral inventory for the Guanajuato Mine
Complex", stated Rob Henderson,
President and CEO. "2021 will represent a significant
increase in our exploration efforts with a planned record of 90,000
metres of drilling representing a $13
million investment. Our key objectives will be to
continue to extend the Tucano open pit mine life, further prove up
the underground with a view to extending the high-grade zones, and
make meaningful inroads into key targets in the expansive Tucano
regional land package. Building on our 2020 exploration
success in Mexico will also be a
key focus for this year."
The Great Panther exploration strategy is built on the objective
of result driven exploration programs leading to resource
replacement and near-mine growth, and longer-term organic growth
through regional exploration.
The following outlines Great Panther's 90,000 metres ("m")
drilling program for 2021.
Drilling
Program
|
Meters
|
USD
(millions)
|
Tucano
(Brazil)
|
|
|
Open
pit
|
24,000
|
3.5
|
Underground
|
8,000
|
1.7
|
Regional
|
28,000
|
3.2
|
Sub-Total
|
60,000
|
8.4
|
Mexican Operating
Mines
|
|
|
GMC(1)
|
15,000
|
2.0
|
Topia
|
5,000
|
1.0
|
Sub-Total
|
20,000
|
3.0
|
Other
Projects(2)
|
10,000
|
2.0
|
Total
|
90,000
|
13.4
|
|
|
(1)
|
"GMC" refers to the
Guanajuato Mine Complex comprised of the Guanajuato Mine, San
Ignacio Mine and the Cata processing plant.
|
(2)
|
Planned 2021 drilling
metres and expenditure for Other Projects (described below) are new
disclosures. The Company previously provided planned 2021
drilling expenditures for the Tucano Mine and Mexican operating
mines in its January 14, 2021 press release which provided
production and cost guidance for these mines.
|
Tucano (Brazil)
Great Panther's strategy for Tucano is to explore and grow the
gold resource potential of the tenement portfolio, covering an
almost 2,000 square kilometres ("km2") portion of the
Vila Nova Greenstone Belt (the "Belt"). In 2021, five drill
rigs are planned to complete 60,000m
of drilling and over 500km of regional soil sampling will identify
high priority regional targets.
The Tucano Gold Mine is host to a 7-kilometer-long trend of gold
deposits surrounded by the large, near 2,000km2 tenement
package controlled by Great Panther. Despite the long history
of the deposit, discovered in the late 1990's and with first
production in 2005, little exploration or resource drilling has
been carried out outside the Tucano mine trend. A number of
targets were defined in aero-geophysical and regional geochemical
surveys in the late 1990's and Great Panther plans include carrying
exploration of those viewed as the highest potential targets within
reasonable proximity of the current mining operations.
Open Pit Resource replacement and expansion. The
24,000m combined Reverse Circulation
("RC") and Diamond Drilling ("DD")
campaign is focused on near-mine targets including TAP C, Urso
and Torres, as well as testing of several geochemical anomalies
associated with the mine sequence that have not been evaluated.
Urucum underground. The current underground MRMR
incorporates just part of the anomalous trend below the Urucum
pits. There are a number of high-grade mineralized zones
suggested by the modelling of the historical drilling. The
8,000m diamond drilling program is
focused on upgrading one of the known high-grade zones at Urucum
North while testing another zone at Urucum Central. The
extent of these high-grade zones is important in determining the
placement of the primary decline that will be used to access the
mining areas.
Regional target drilling. A total of 28,000m has been planned for fast-track
evaluation of key targets such as Mutum, Saraminda and Lona Amarela
using Auger, Rotary Air Blast ("RAB") and RC drilling programs plus
multi-element soil geochemistry. Initial orientation studies
in 2020 and currently underway at Mutum suggest the interpretation
of detailed soil sampling using multi-element geochemical analyses
will allow for the skipping of the auger drilling step and going
straight to RAB or RC drilling, which is expected to accelerate the
start of drill permitting processes by four to eight months.
A detailed soil grid is currently being opened to cover the
5km long Mutum gold trend and RAB and RC programs are being
prepared for Saraminda and Lona Amarela. Mutum, Saraminda and
Lona Amarela are within 15 km of the of the existing mine
operations.
New target generation. Having defined the regional
structural model associated with the mineralization events, Great
Panther has prioritized high potential exploration corridors within
the 2000km2 area of interest. It has initiated a
program of regional multi-element soil sampling over these
corridors with the intention of defining new targets within the
Belt and prioritizing these targets using the combination of the
geochemistry and existing regional aero-geophysical data.
Mexico
San
Ignacio. Exploration efforts continue with
5,000m of fill-in surface drilling
planned along the Purisima veins
south of the development of the San
Pedro ramp, deeper in the Purisima/Purisima alto vein system and continue testing
for Au-Ag mineralization along 1.1km of Purisima vein north from the old San Ignacio shaft.
Guanajuato. A concerted
effort of sampling and geological mapping in accessible parts of
the historical mining areas is near completion and will be followed
by a planned 10,000m of underground
drilling on the most prospective areas, including along the north
side of Valenciana, between Valenciana and Cata, and in the
Pozos, Promontorio, and
Guanajuatito areas. The 2020 exploration efforts more than
doubled the known Inferred Mineral Resource estimate. – See the
Company's news release dated November 23,
2020 and the related technical report filed on December 23, 2020 with an effective date of
July 31, 2020 for more details.
Topia. 5,000 m exploration surface drilling are planned
focussed on defining new Mineral Resources in six areas along the
strike and down-dip extents of present mining efforts.
Other Projects
Other Projects. These may include the
Plomo gold project in Sonora
("Plomo"), El Horcón which has proximity to the GMC, or Coricancha
in Peru. The $2.0 million
budgeted for these projects will be allocated on the basis of a
number of factors including potential for return on investment,
access and availability of resources, community and permitting
considerations. Plans for Plomo, for example, will see
detailed geological / alteration / structural mapping to confirm an
earlier geological interpretation from 2012, before any surface
drill testing. El Horcon drilling will be subject to a
successful study on the addition of a zinc concentrate flotation
for the Guanajuato plant.
Drilling for Coricancha would focus on expanding readily accessible
high grade Mineral Resources along the Constancia, Wellington, and Escondida veins and is subject
to achieving acceptable community agreements for
access.
QUALIFIED PERSONS
All scientific and technical information contained in this news
release has been reviewed and approved by Neil Hepworth, Chartered Engineer MIMMM, Chief
Operating Officer of Great Panther, Nicholas Winer, FAusIMM, Vice-President,
Exploration of Great Panther, and Robert F.
Brown, P. Eng., Geological Consultant of Great Panther, each
a non-independent Qualified Person as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("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 Tucano Mineral Reserve and
Mineral Resource estimates and the GMC Mineral Resource estimates
and the assumptions underlying the estimates; the Tucano life of
mine extensions; 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 exploration and drilling at Tucano, Topia, GMC, Plomo, El Horcón and Coricancha;
the Company's ability to further prove up the underground resources
to support the development of an underground mine; the Company's
ability to successfully execute and fund its exploration strategies
as planned; 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; metal 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 and exploration and drilling programs are received in a
timely manner and maintained, including the various drilling
permits required to complete the programs; the Company will be able
to access the prospective exploration and drilling areas without
interruption; 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 by authorities, 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; metal 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
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, including the permits and approvals
of the expansion of the GMC tailings facility and the exploration
and drilling programs required to complete the various programs
being planned; 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,
including any access which may be required for the exploration and
drilling programs described in this news release; 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 Canadian Institute of Mining,
Metallurgy, and Petroleum Definition Standards for Mineral
Resources and Mineral Reserves 2014 (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