GREAT PANTHER SILVER LIMITED (TSX: GPR) (the "Company") is very
pleased to report record 2009 production of 2,202,456 silver
equivalent ounces ("Ag eq oz"), a 22% increase over 2008, and 6%
higher than the target for 2009 of 2.07 million Ag eq oz. Total
metal production for the year includes 1,456,830 ounces silver,
7,151 ounces gold, 871 tonnes lead, and 1,057 tonnes zinc.
The fourth quarter ("Q4") production of 625,288 Ag eq oz is a
record and a 26% increase over Q4 2008. It includes 390,026 ounces
silver, 2,456 ounces gold, 205 tonnes lead and 248 tonnes zinc.
This marks 13 out of 16 successive quarterly increases since the
Company commenced production in 2006, and 2009 represents the
fourth consecutive year of production growth for GPR.
Fourth Quarter 2009 highlights include:
- Record metal production of 625,288 Ag eq oz, up 5% from Q3
2009 and 26% from Q4 2008.
- Record gold production of 2,456 oz Au, up 26% from Q3 2009 and
53% from Q4 2008.
- Silver production of 390,026 oz Ag, within 2% of Q3 2009 and
up 9% from Q4 2008.
- Record production from Guanajuato of 470,025 Ag eq oz, up 9%
from Q3 2009 and 37% from Q4 2008.
- Excellent metallurgical performance at both Topia and
Guanajuato.
- New 3-year growth strategy planned to increase GPR's
production to 3.8 million Ag eq oz and NI 43-101 compliant
resources to 40 million Ag eq oz by 2012.
- Acquisition of La Prieta concession at Topia should provide
increased production by late 2010.
2009 Year-end highlights include:
- Record annual metal production of 2,202,456 Ag eq oz, up 22%
from 2008, and 6% above target.
- Record silver production of 1,456,830 oz Ag, up 20% from 2008,
and as targeted.
- Record gold production of 7,151 oz Au, up 14% from 2008, and
19% above target.
- Highest quality concentrates produced at record metal
recoveries.
(Silver equivalents for all of 2009 were established using
prices of US$850/oz Au, US$11/oz Ag, US$0.50/lb Pb and Zn. These
will be revised for 2010.)
To view the graph accompanying this press release please click
on the following link:
http://media3.marketwire.com/docs/gpr0111.pdf
Guanajuato Mine
The Guanajuato Mine had a record breaking fourth quarter,
achieving records for both gold and combined metal production.
Metal production totaled 287,101 oz Ag and 2,367 oz Au, or 470,025
Ag eq oz, from 39,853 tonnes of ore with an average grade of 271g/t
Ag and 2.14g/t Au. The quality of ore represents excellent silver
values and the highest gold value to date.
Metal production for the year was 1,019,751 oz Ag and 6,748 oz
Au, or 1,541,220 Ag eq oz, which was 4% greater than planned and a
37% increase over 2008.
Mining of the Cata Clavo reached the 490 level where development
was carried out on the Veta Madre and Alto 1 veins. Stoping from
the 460 level advanced well such that production from Cata averaged
more than 250 tonnes per day, or 50% of the total Guanajuato
production, at grades of 277g/t Ag and 1.6g/t Au.
Mining at Guanajuatito focused on the North Zone, with cut and
fill stoping from the 50 and 80 levels. Ore production averaged 115
tonnes per day at excellent grades of 2.3g/t Au and 318g/t Ag.
At Rayas, development focused on new discoveries, the Los Pozos
and Santa Margarita structures, which continued to demonstrate
significant potential. Development of Los Pozos was extended to the
298 and 310 levels from where 4,600 tonnes were mined grading
340g/t Ag and 1.9g/t Au. Production will be accelerated in the
first quarter 2010 with the introduction of new mining
equipment.
The gold-rich Santa Margarita vein was explored by ramp
development below the 390 level with ore grades from development on
vein of more than 8.0g/t Au. It was this source of gold-rich ore
that contributed to the higher gold production in the quarter. Gold
production from this vein will continue to increase during
2010.
Diamond drilling to explore for extensions of, and better
define, the Cata Clavo, around and below the 490 level, was
underway in the fourth quarter. Diamond drilling is also in
progress to define and explore the Los Pozos structure between the
275 and 345 levels. An extensive exploration drill program will be
initiated in the first quarter of 2010 to explore the deeper
extensions of the Rayas structures including the Santa Margarita
vein.
Plant performance at Guanajuato was excellent in the fourth
quarter. Gold recovery, at 86.4% was the highest to date while
silver recovery, at 82.6%, was satisfactory. The quality of the
concentrates remained high at 13,488g/t Ag and 111g/t Au.
Topia Mine
Topia produced 102,925 oz of silver, 89 oz of gold, 453,216 lbs
of lead, and 547,047 lbs of zinc from milling 7,268 tonnes of ore.
This equates to 155,263 Ag eq oz, which is 1% higher than Q4 2008.
Overall ore grades were maintained at a high level at 481g/t Ag,
0.46g/t Au, 2.99% Pb and 3.78% Zn.
Metal production for the year was 437,079 oz Ag, 403 oz Au,
1,919,816 lbs Pb, and 2,331,015 lbs Zn, or 661,236 Ag eq oz, which
was 12% greater than planned and within 4% of 2008.
Ore was mined from twelve separate small mines. Production from
the San Gregorio and El Rosario veins contributed one third of the
silver production and new development on both veins will ensure
further improved production in 2010. Production from the Argentina
vein will also increase as accelerated development and stoping are
facilitated by the addition of new mobile equipment in the first
quarter.
The plant performance at Topia was excellent in the fourth
quarter with record metal recoveries of 91.6% for Ag, 83.9% for Au,
94.5% for Pb, and 90.4% for Zn compared to 91.2% for Ag, 79.8% for
Au, 93.0% for Pb and 89.3% for Zn in the third quarter of 2009. In
addition to processing 7,268 tonnes from the Company's mines, 2,450
tonnes were custom milled for a local miner, thereby increasing
revenue and keeping unit costs down.
Results of an exploratory diamond drill program were very
encouraging and a new program will be conducted in the first
quarter of 2010, to extend the mining potential of known veins and
explore other veins. The acquisition of the 94-hectare La Prieta
concession in the Topia District was a strategic move that should
lead to additional production later this year, once the vein has
been drilled and a mine plan put in place. La Prieta is within easy
trucking distance of the Topia plant.
Outlook
Great Panther Silver has initiated its new strategy to
accelerate production and increase resources at both Guanajuato and
Topia. The new plan forecasts increases to 2.5 million Ag eq oz in
2010 and to 3.8 million Ag eq oz by 2012. In the fourth quarter of
2009, the Company successfully raised the financing required to
initiate and accelerate this strategy. Consequently, new equipment
has been ordered and is being delivered to the mines, and
exploration drill programs will start in the first quarter of 2010.
Great Panther Silver is confident that the targets outlined in its
new strategy will be achieved or exceeded.
"We are extremely pleased by the 2009 production results and our
entire production team is to be commended for an outstanding
effort," stated Robert Archer, President and CEO. "With new
equipment being delivered over the next six months, development
will continue to ramp up throughout the year, leading to
significant production increases as outlined in our new 3-year
growth strategy. In addition, we are preparing to begin the new
deep drilling program at Rayas in Guanajuato, in order to build our
resource base. With a strong treasury and robust metal prices,
Great Panther has an excellent future."
Robert F. Brown, P.Eng. and Vice President of Exploration for
the Company is the Qualified Person for both the Guanajuato Mine
and the Topia Mine, under the meaning of NI 43-101. Aspects of both
mines relating to mining and metallurgy are overseen by Charles
Brown, Chief Operating Officer for Great Panther and its Mexican
subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
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
the Securities Act (Ontario) (together, "forward-looking
statements"). Such forward-looking statements may include but are
not limited to the Company's plans for production at its Guanajuato
and Topia Mines in Mexico, exploring its other properties in
Mexico, the overall economic potential of its properties, the
availability of adequate financing and involve known and unknown
risks, uncertainties and other factors which 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 risks involving the Company's operations in a
foreign jurisdiction, uncertainty of production and cost estimates
and the potential for unexpected costs and expenses, physical risks
inherent in mining operations, currency fluctuations, fluctuations
in the price of silver, gold and base metals, completion of
economic evaluations, changes in project parameters as plans
continue to be refined, the inability or failure to obtain adequate
financing on a timely basis, and other risks and uncertainties,
including those described in the Company's Annual Report on Form
20-F for the year ended December 31, 2008 and reports on Form 6-K
filed with the Securities and Exchange Commission and available at
www.sec.gov and Material Change Reports filed with the Canadian
Securities Administrators and available at www.sedar.com.
Standard & Poor's Listed
SEC 20-F Statement Filed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@greatpanther.com www.greatpanther.com
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