TSX: GPR | NYSE American: GPL
VANCOUVER, April 9, 2019 /PRNewswire/ - GREAT PANTHER
MINING LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther", the
"Company") announces its first quarter ("Q1") 2019 production
results from its recently acquired Tucano Gold Mine in Brazil ("Tucano"), and two Mexican mining
operations: the Guanajuato Mine Complex ("GMC") and the Topia
Mine.
The production data presented in the Consolidated Operations
Summary table below and related discussion reflects Tucano
production for the period from March 5,
2019 to March 31, 2019 as the
acquisition of Beadell Resources Limited ("Beadell") was completed
on March 5, 2019.
The Company notes that it has changed to presenting
consolidated production in gold equivalent ounces from silver
equivalent ounces as gold is now the primary metal produced by
value, reflecting the addition of Tucano. Metal production
for the Company's Mexican operating mines continues to be reported
in silver equivalent ounces.
Consolidated
Operations Summary
|
Q1
2019
|
Q1
2018
|
Change
|
Q1
2019
|
Q4
2018
|
Change
|
Ore processed
(tonnes)
|
263,821
|
96,869
|
172%
|
263,821
|
89,270
|
196%
|
Gold equivalent
production (ounces) (1)
|
14,860
|
13,928
|
7%
|
14,860
|
11,897
|
25%
|
Gold production
(ounces)
|
8,293
|
5,831
|
42%
|
8,293
|
4,101
|
102%
|
Silver production
(ounces)
|
338,431
|
491,063
|
-31%
|
338,431
|
438,152
|
-23%
|
Lead production
(tonnes)
|
481
|
433
|
11%
|
481
|
474
|
2%
|
Zinc production
(tonnes)
|
662
|
533
|
24%
|
662
|
661
|
0%
|
|
|
(1)
|
Gold equivalent
ounces were calculated using a 1:80 Au:Ag ratio, and ratios of
1:0.000795 and 1:0.00102258 for the price/ounce of gold to
price/pound of lead and zinc, respectively. The ratios are
reflective of average metal prices for 2018.
|
"We have begun the important task of integrating our newest
mine, the Tucano Gold Mine, into our portfolio of precious metals
mines and projects", stated James
Bannantine, President & CEO. "Given the timing of
the Beadell acquisition, our consolidated results for Q1 only
reflect Tucano operating results for the last three weeks of the
first quarter. Despite this, consolidated gold equivalent
metal production increased by 25% compared to the last quarter of
2018. We are focused on completing the commissioning of the
supplemental oxygen supply at Tucano before the end of this month,
which is designed to enable the processing of higher-grade ore and
increase gold recoveries. In addition to production, the
Tucano Gold Mine immediately adds significant gold reserves and
resources and, together with our Mexican operations, has
transformed the Company into a new intermediate precious metals
producer focused on Latin
America."
Tucano Gold Mine
For the period from the March 5,
2019 closing of the acquisition of Beadell to the end of the
first quarter, the operation produced 5,164 ounces of gold.
For this same three-week period a total of 1,568,682 tonnes of
material was moved, and 194,167 tonnes were processed through the
mill with an average grade of 0.95 g/t Au.
As outlined in Beadell's 2018 Quarterly Report issued on
January 29, 2019 (available here) in
which Beadell provided full year 2019 production guidance of
145,000 to 155,000 ounces of gold, Tucano's gold production profile
is heavily weighted to the second half of the year due to pit
sequencing and the wet season, which is prominent in the first half
of the year. For the full first quarter, the Tucano operation
produced 23,470 ounces of gold, an 11% decrease from the same
quarter last year. A total of 4,850,075 tonnes of materials
was moved, and 747,200 tonnes were processed through the mill with
an average grade of 1.11 g/t Au. The decrease in gold
production compared to the same quarter last year is a result of
reduced throughput through the mill while stockpiling high grade
sulfide ore in anticipation of the commissioning of the
supplemental modular liquid oxygen supply system.
Tucano Operations
Summary (Full First Quarter Results)
|
Q1
2019
|
Q1
2018
|
Change
|
Total material mined
(tonnes)
|
4,850,075
|
6,500,433
|
-25%
|
Total waste mined
(tonnes)
|
4,293,277
|
5,866,219
|
-27%
|
Ore mined
(tonnes)
|
481,550
|
634,215
|
-24%
|
Ore processed (tonnes
milled)
|
747,200
|
879,907
|
-15%
|
Gold production
(ounces)
|
23,470
|
26,386
|
-11%
|
Au grade
(g/t)
|
1.11
|
1.06
|
5%
|
Au recovery
(%)
|
88.0%
|
88.0%
|
0%
|
Topia Mine
In Q1 2019, total metal production at the Topia Mine increased
to a record 420,926 silver equivalent ounces, which represents
increases of 8% and 16%, respectively, compared to the previous
quarter and the same quarter in the previous year. The rise
in production is attributed to higher tonnage processed and higher
head grades.
The increase in ore processed reflects an increase in mining
capacity combined with an increase in mill availability and
processing rate per day.
The increase in head grades is attributed to an increase in
focus on mines with higher gold grades.
Topia Operations
Summary
|
Q1
2019
|
Q1
2018
|
Change
|
Q1
2019
|
Q4
2018
|
Change
|
Ore processed
(tonnes)
|
20,232
|
17,950
|
13%
|
20,232
|
18,883
|
7%
|
Silver equivalent
production (ounces) (1)
|
420,926
|
362,495
|
16%
|
420,926
|
390,701
|
8%
|
Silver production
(ounces)
|
203,579
|
186,201
|
9%
|
203,579
|
183,747
|
11%
|
Gold production
(ounces)
|
380
|
244
|
55%
|
380
|
267
|
42%
|
Lead production
(tonnes)
|
481
|
433
|
11%
|
481
|
474
|
2%
|
Zinc production
(tonnes)
|
662
|
533
|
24%
|
662
|
661
|
0%
|
Ag grade
(g/t)
|
336
|
348
|
-4%
|
336
|
326
|
3%
|
Au grade
(g/t)
|
1.09
|
0.74
|
48%
|
1.09
|
0.83
|
33%
|
Ag recovery
(%)
|
93.3%
|
92.7%
|
1%
|
93.3%
|
92.9%
|
0%
|
Au recovery
(%)
|
53.4%
|
57.1%
|
-7%
|
53.4%
|
53.4%
|
0%
|
|
|
(1)
|
Silver equivalent
ounces were calculated using an 80:1 Ag:Au ratio, and ratios of
1:0.0636 and 1:0.0818 for the price/ounce of silver to price/pound
of lead and zinc, respectively. The ratios are reflective of
average metal prices for 2018.
|
Guanajuato Mine Complex
As previously announced, Great Panther commenced a multi-mine
optimization strategy at the start of 2019. In addition to a
planned expansion of the Topia
processing plant, this involved only sourcing production for the
GMC from the San Ignacio Mine, enabling a focused exploration
program for the Guanajuato Mine aimed at growing higher margin
resources. Further cost reduction measures were also taken to
lower fixed costs and overhead at GMC. During the first
quarter, the operations experienced somewhat lower grades than in
the past at the San Ignacio Mine, caused by variability in the
mineralization and ramp up in mining output to make up for the
suspension of mining at Guanajuato.
GMC Operations
Summary
|
Q1
2019
|
Q1
2018
|
Change
|
Q1
2019
|
Q4
2018
|
Change
|
Ore processed
(tonnes)
|
49,422
|
78,919
|
-37%
|
49,422
|
70,387
|
-30%
|
Silver equivalent
production (ounces) (1)
|
354,756
|
751,773
|
-53%
|
354,756
|
561,083
|
-37%
|
Silver production
(ounces)
|
134,852
|
304,863
|
-56%
|
134,852
|
254,405
|
-47%
|
Gold production
(ounces)
|
2,749
|
5,586
|
-51%
|
2,749
|
3,833
|
-28%
|
Ag grade
(g/t)
|
102
|
135
|
-25%
|
102
|
129
|
-21%
|
Au grade
(g/t)
|
2.07
|
2.50
|
-17%
|
2.07
|
2.01
|
3%
|
Ag recovery
(%)
|
83.3%
|
88.8%
|
-6%
|
83.3%
|
87.2%
|
-4%
|
Au recovery
(%)
|
83.7%
|
88.0%
|
-5%
|
83.7%
|
84.4%
|
-1%
|
|
|
(1)
|
Silver equivalent
ounces were calculated using an 80:1 Ag:Au ratio. The ratio
is reflective of average metal prices for 2018.
|
Outlook
Great Panther's primary focus in 2019 will be on the integration
and optimization of Tucano and advancing an exploration program
designed to develop near mine exploration targets.
At Tucano, the supplemental modular liquid oxygen supply system
is expected to be completed and commissioned this month. The
new system is expected to enable the processing of higher-grade
sulphide ore and improve gold recoveries.
At the Topia Mine, the Company expects to complete a project to
increase processing capacity by 25% in the second half of the
year.
As noted, a focused 2019 exploration program at the Guanajuato
Mine is underway with the objective of outlining blocks of
higher-grade mineralization. To date an extensive mine scale
program of historical data review, geological mapping, rock
sampling, and data compilation and interpretation has outlined
numerous targets for drill-hole testing. Presently one drill
rig is being mobilized to site, and a second rig by month end.
At the Coricancha Mine in Peru,
the mining phase of the Bulk Sample Program ("BSP") has been
completed; however, due to a decision to upgrade the ore handling
infrastructure, the final results of the BSP are now expected to be
completed by early June. Once the bulk sample has been
processed and concentrates analyzed, the Company expects to be in a
position to make a production decision.
With the integration of Tucano underway, the Company expects to
provide updated consolidated guidance with the Company's financial
reporting for the first quarter of 2019.
The technical information contained in this news release has
been reviewed and approved by Robert F.
Brown, P. Eng., acting Vice President Exploration for the
Company and the Qualified Person for the Tucano Gold Mine,
Guanajuato Mine Complex, the Topia Mine and the Coricancha Mine
under the meaning of NI 43-101.
ABOUT GREAT PANTHER
Great Panther Mining Limited is a new intermediate precious
metals mining and exploration company listed on the Toronto Stock
Exchange trading under the symbol GPR, and on the NYSE American
under the symbol GPL. Great Panther operates three mines
including the Tucano Gold Mine in Amapá State, Brazil, and two primary silver mines in
Mexico: the Guanajuato Mine
Complex and the Topia Mine. Great Panther is also evaluating
the restart of the Coricancha project in Peru and expects to make a decision on whether
or not to restart the project in mid-2019.
CAUTIONARY STATEMENT 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 integration of the
Brazilian operations, the timing of the commissioning of the
supplemental modular liquid oxygen supply system, Beadell's
2019 production guidance for the Tucano Gold Mine, the exploration
potential of the Tucano property, the planned increase in
processing capacity at Topia, and
the timing or positive outcome of a production decision for the
Coricancha project.
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
potential political and social risks involving Great Panther's
operations in a foreign jurisdiction, the potential for unexpected
costs and expenses, fluctuations in metal prices, fluctuations in
currency exchange rates, physical risks inherent in mining
operations, operating or technical difficulties in mineral
exploration, changes in project parameters as plans continue to be
refined, and other risks and uncertainties, including those
described in respect of Great Panther, in its annual information
form for the year ended December 31,
2018 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 such forward looking statements will
prove accurate; results may vary materially from such
forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed.
Readers are cautioned not to place undue reliance on forward
looking statements. The Company has no intention to update
forward looking statements except as required by law.
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SOURCE Great Panther Mining Limited