GREAT PANTHER SILVER LIMITED (TSX: GPR) (the "Company") is pleased
to report first quarter 2010 production results from its two
wholly-owned Mexican silver mining operations, Guanajuato and
Topia. Metal production was 526,949 silver equivalent ounces (1)
("Ag eq oz"), a 10% increase over the first quarter of 2009, but
16% down compared to the previous quarter ended December 31, 2009.
It includes: 357,131 silver ounces ("Ag oz"), 1,598 gold ounces
("Au oz"), 640,200 lbs of lead, and 760,640 lbs of zinc.
First Quarter ("Q1") 2010 highlights include:
- Metal production of 526,949 Ag eq oz, an increase of 10% from Q1 2009.
- Gold production of 1,598 Au oz, an increase of 26% from Q1 2009.
- Silver production of 390,026 Ag oz, an increase of 7% from Q1 2009.
- Record production of 211,129 Ag eq oz at Topia, an increase of 25% from Q1
2009.
- Highest metallurgical silver recovery to date of 86.1% at Guanajuato.
- New mobile equipment being acquired at both mines is expected to lead to
mining efficiencies thereby increasing production by the second half of
2010.
- Exploration drilling programs underway at Guanajuato and Topia and updated
resource estimates anticipated for both mines by the fourth quarter of
2010.
(1) 2010 silver equivalents are established using prices of
US$1,000/oz Au, US$16/oz Ag, US$0.80/lb Pb and Zn.
Robert Archer, Great Panther's President & CEO, commented
"We are very pleased to see the strong performance at Topia in the
first quarter. Grades remain robust and the arrival of new
equipment continues to have a positive impact on the operations. At
Guanajuato, the decrease from last quarter's record high production
is considered to be temporary and was due to the three principal
production areas passing through lower grade pockets concurrently.
With new underground equipment being added and successful
exploration being anticipated, the initial shortfall is expected to
be recovered through the balance of the year"
Guanajuato Mine
The Guanajuato mine recorded a solid quarter, although ore
grades were lower than anticipated, resulting in lower metal
production compared to the record breaking fourth quarter of 2009.
Metal production totaled 225,030 oz Ag and 1,453 oz Au, or 315,820
Ag eq oz. The ore processed totaled 34,912 tonnes with an average
grade of 233g/t Ag and 1.51g/t Au.
The quality of ore was lower due to a combination of lower
grades from the Cata, Los Pozos and Santa Margarita veins. Detailed
diamond drilling of the Cata orebody at the 490 level has confirmed
the overall grades, but a temporary period of lower grades will be
experienced until stoping reaches the higher grade areas later in
the second quarter. The recently-discovered Los Pozos and Santa
Margarita veins are still being explored as development is
underway, and it was found that parts of the vein structures were
of lower than average grade. Further diamond drilling is being
carried out to better define both orebodies.
Mining of the Cata Clavo continued on the 490 and 470 levels,
where development was undertaken on the Veta Madre and Alto 1 veins
and stoping continued from the 460 level. Cata production, which
averaged 235 tonnes per day, represented 50% of the total
Guanajuato production with estimated grades of 232g/t Ag and 1.1g/t
Au.
Mining at Guanajuatito focused on the North Zone. Stoping from
the 50 level was completed during the quarter and continues from
the 80 level. Ore production averaged 65 tonnes per day at grades
of 224g/t Ag and 1.7g/t Au.
At Rayas, development focused on recent discoveries - the Los
Pozos and Santa Margarita vein structures. Mining of Los Pozos
continued on the 298 and 310 levels and increased to 90 tonnes per
day grading 319g/t Ag and 1.3g/t Au. A new single-boom
electric-hydraulic drill jumbo has been introduced in this mining
area which will enable development and stoping to advance more
quickly.
The gold-rich Santa Margarita vein continued to be explored by
ramp development below the 390 level. Ore grades were somewhat
lower for a small section of the vein being mined during January
and February. However, the average grade of ore improved to 18g/t
Au for March. Guanajuato gold production will increase as this vein
is developed further.
Diamond drilling to explore for extensions of, and better
define, the Cata Clavo, around and below the 490 level, was
completed and data from this drilling is being used to guide
production mining. 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 was initiated to explore
the deeper extensions of the Rayas structures including the Santa
Margarita vein and results will be published from the first set of
drillholes in the near future.
Plant performance at Guanajuato improved again with silver
recovery at an all-time high of 86.1%. Gold metal recovery, at
85.5%, was also very satisfactory. A senior metallurgical
consultant visited the plant, reviewed current progress and plans
for future improvements, and initiated further testwork. The
improved performance was a direct result of changes in the crushing
circuit to produce a finer mill feed and the installation of a
second cyclone to replace the second of three screw classifiers. It
is expected that plant metallurgical performance will continue to
improve throughout 2010.
Some of the newly acquired underground mobile equipment was
received including the first of three single-boom,
electric-hydraulic jumbos, a scissor-lift utility truck and a
4-yard Scooptram loader. All equipment is being dismantled and
lowered through the Rayas shaft to be reassembled in the mine, and
others are scheduled for delivery in the second quarter. It is
expected that the full impact of the new equipment will be
experienced in the second half of 2010.
Topia Mine
Topia achieved record metal production of 132,101 oz of silver,
145 oz of gold, 640,200 lbs of lead, and 760,640 lbs of zinc from
milling 9,745 tonnes of ore. This equates to 211,129 Ag eq oz,
which is the highest ever and 25% higher than Q1 2009. Ore grades
averaged 459g/t Ag, 0.63g/t Au, 3.20% Pb and 3.91% Zn.
Ore was mined from twelve separate small mines. Production from
the San Gregorio and El Rosario veins contributed more than one
third of the silver production and new exploratory development on
the San Gregorio vein was successful.
New underground mobile equipment was acquired including three
one-yard loaders and one seven-tonne haulage truck. These units
have been introduced to the mine and will facilitate further
improved production from the Argentina and Don Benito veins. Two,
two-yard loaders and a single-boom electric-hydraulic drill jumbo
are expected to be delivered in the second quarter.
The plant performance remained satisfactory with metal
recoveries of 91.8% for Ag, 72.9% for Au, 93.2% for Pb and 90.3%
for Zn compared to the records of 91.6% for Ag, 83.9% for Au, 94.5%
for Pb, and 90.4% for Zn in the previous quarter. In addition to
processing the 9,745 tonnes from the Company's mines, 2,060 tonnes
were custom milled for a local miner, thereby increasing revenue
and keeping unit costs down.
A new surface diamond drill program, comprising 6,000 metres,
was initiated to extend the mining potential of known veins and
explore other veins. Results from the initial part of this program
are expected during this quarter.
Outlook
Great Panther Silver has initiated its new strategy to
accelerate production with increases of 20% per year to 3.8 million
Ag eq oz by 2012. New equipment is being delivered to the mines and
exploration drill programs are underway. The impact of the new
equipment is expected to enable continuous production improvements
throughout 2010 and exploration drill results will be used to
estimate new resources to support the new growth strategy.
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, 2009 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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