TSX: GPR | NYSE American:
GPL
This news release constitutes a "designated news release" for
the purposes of Great Panther's prospectus supplement dated
July 9, 2019 to its short form base
shelf prospectus dated July 2,
2019.
VANCOUVER, July 10, 2019 /CNW/ - GREAT PANTHER MINING
LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther", the
"Company") announces its second quarter ("Q2") 2019 production
results from its Tucano Gold Mine in Brazil, and two Mexican mining operations: the
Guanajuato Mine Complex ("GMC"), which includes the San Ignacio
Mine, and the Topia Mine.
Consolidated
Operations Summary
|
Q2
2019
|
Q2
2018
|
Change
|
Q2
2019
|
Q1
2019
|
Change
|
Ore processed
(tonnes)
|
782,568
|
95,169
|
722%
|
782,568
|
263,821
|
197%
|
Gold equivalent
production (ounces) (1)
|
39,922
|
13,522
|
195%
|
39,922
|
14,860
|
169%
|
Gold production
(ounces)
|
33,461
|
5,492
|
509%
|
33,461
|
8,293
|
303%
|
Silver production
(ounces)
|
349,668
|
479,809
|
-27%
|
349,668
|
338,431
|
3%
|
Lead production
(tonnes)
|
453
|
480
|
-6%
|
453
|
481
|
-6%
|
Zinc production
(tonnes)
|
575
|
528
|
9%
|
575
|
662
|
-13%
|
|
(1) Gold equivalent ounces were
calculated using a 1:80 Au:Ag ratio, and ratios of 1:0.0007950 and
1:0.0010225 for the price/ounce of gold to price/pound of lead and
zinc, respectively.
|
"Great Panther's significant increase in gold production in the
second quarter reflects the acquisition of the Tucano Gold Mine in
March of this year," stated James
Bannantine, President & CEO. "The most significant
aspect of the results, however, is the marked improvement in Tucano
production since commissioning of a supplemental oxygen system at
the end of April. Tucano achieved production levels of 10,900
gold ounces in May and 12,000 in June, compared to 7,000 ounces in
April. This marks an important optimization milestone for
Tucano which has significantly higher planned gold production in
the third and fourth quarters during the dry season."
Tucano Gold Mine
The Tucano Gold Mine produced 29,899 ounces of gold in Q2 2019,
an increase of 27% over the previous quarter and the same quarter
in the previous year (based on results for the comparative periods
as reported by the previous owner of Tucano). The increases
are primarily attributable to higher grades and recoveries as a
result of upgrades to Tucano's plant which have enabled the
processing of higher grade sulphide ore with increased
recoveries.
Tucano Operations
Summary
|
Q2
2019
|
Q2
2018(1)
|
Change
|
Q2
2019
|
Q1
2019(1)
|
Change
|
Total material mined
(tonnes)
|
5,009,392
|
4,659,121
|
8%
|
5,009,392
|
4,850,075
|
3%
|
Total waste mined
(tonnes)
|
4,474,546
|
4,229,751
|
6%
|
4,474,546
|
4,293,277
|
4%
|
Ore mined
(tonnes)
|
523,424
|
415,462
|
26%
|
523,424
|
481,550
|
9%
|
Ore processed (tonnes
milled)
|
718,682
|
887,630
|
-19%
|
718,682
|
747,200
|
-4%
|
Gold production
(ounces)
|
29,899
|
23,604
|
27%
|
29,899
|
23,470
|
27%
|
Au grade
(g/t)
|
1.41
|
0.95
|
48%
|
1.41
|
1.11
|
27%
|
Au recovery
(%)
|
91.9%
|
87.0%
|
6%
|
91.9%
|
88.0%
|
4%
|
|
(1) The production data presented in
the table above includes Tucano production for the full quarter in
Q1 2019, and for Q2 2018 as reported by Beadell Resources
Limited.
|
The following provides a summary of the monthly plant
performance during Q2 showing the impact since the commissioning of
the supplemental modular liquid oxygen supply system ("Supplemental
Oxygen") at the end of April, which enabled increased input of
sulphide ore.
Tucano Operations
Summary (Monthly)
|
April
2019
|
May
2019
|
June
2019
|
Q2
2019
|
Ore processed (tonnes
milled)
|
254,700
|
204,795
|
259,187
|
718,682
|
Gold production
(ounces)
|
7,020
|
10,899
|
11,980
|
29,899
|
Au grade
(g/t)
|
0.98
|
1.76
|
1.56
|
1.41
|
Au recovery
(%)
|
87.6%
|
94.1%
|
92.4%
|
91.9%
|
Topia Mine
Topia produced 413,467 silver
equivalent ounces in Q2, a 7% increase from the same quarter last
year, and a decrease of 2% compared to the record level of
production achieved in the previous quarter. The sustained
high production is mainly attributed to higher silver head
grades.
Topia Operations
Summary
|
Q2
2019
|
Q2
2018
|
Change
|
Q2
2019
|
Q1
2019
|
Change
|
Ore processed
(tonnes)
|
18,410
|
18,155
|
1%
|
18,410
|
20,232
|
-9%
|
Silver equivalent
production (ounces) (1)
|
413,467
|
385,953
|
7%
|
413,467
|
420,926
|
-2%
|
Silver production
(ounces)
|
218,000
|
203,155
|
7%
|
218,000
|
203,579
|
7%
|
Gold production
(ounces)
|
353
|
253
|
40%
|
353
|
380
|
-7%
|
Lead production
(tonnes)
|
453
|
480
|
-6%
|
453
|
481
|
-6%
|
Zinc production
(tonnes)
|
575
|
528
|
9%
|
575
|
662
|
-13%
|
Ag grade
(g/t)
|
392
|
371
|
6%
|
392
|
336
|
17%
|
Au grade
(g/t)
|
1.01
|
0.69
|
48%
|
1.01
|
1.09
|
-8%
|
Ag recovery
(%)
|
93.9%
|
93.9%
|
0%
|
93.9%
|
93.3%
|
1%
|
Au recovery
(%)
|
58.9%
|
63.1%
|
-7%
|
58.9%
|
53.4%
|
10%
|
|
(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.
|
Guanajuato Mine Complex
Production from the GMC continues to be sourced entirely from
the San Ignacio Mine, and comparisons to the second quarter in 2018
year reflect the operation of both the San Ignacio Mine and the
Guanajuato Mine in the comparative period. During the second
quarter, total metal production was 388,388 silver equivalent
ounces, which represents a 9% increase compared to the previous
quarter. This is mainly due to the improved gold grades from
high-grade blocks outlined by ongoing delineation drilling.
The exploration program initiated at Guanajuato continued through the second
quarter with the objective of growing higher margin resources in
order to bring the Guanajuato Mine back into production next
year. (Refer to the Outlook section for the expected timing
of a resource update).
GMC Operations
Summary
|
Q2
2019
|
Q2
2018
|
Change
|
Q2
2019
|
Q1
2019
|
Change
|
Ore processed
(tonnes)
|
45,476
|
77,014
|
-41%
|
45,476
|
49,422
|
-8%
|
Silver equivalent
production (ounces) (1)
|
388,388
|
695,829
|
-44%
|
388,388
|
354,756
|
9%
|
Silver production
(ounces)
|
131,668
|
276,654
|
-52%
|
131,668
|
134,852
|
-2%
|
Gold production
(ounces)
|
3,209
|
5,240
|
-39%
|
3,209
|
2,749
|
17%
|
Ag grade
(g/t)
|
105
|
127
|
-17%
|
105
|
102
|
3%
|
Au grade
(g/t)
|
2.52
|
2.40
|
5%
|
2.52
|
2.07
|
22%
|
Ag recovery
(%)
|
85.5%
|
87.7%
|
-3%
|
85.5%
|
83.3%
|
3%
|
Au recovery
(%)
|
87.0%
|
88.2%
|
-1%
|
87.0%
|
83.7%
|
4%
|
|
(1) Silver equivalent ounces were
calculated using an 80:1 Ag:Au ratio.
|
Outlook
The Company is maintaining its 2019 production, cash cost, and
all-in sustaining cost "AISC" guidance. It is cautioned that
cash cost and AISC are very sensitive to foreign exchange rates and
metal prices through the computation of by-product credits.
Production and
cash cost guidance
|
FY 2019
Guidance
|
Gold equivalent
ounces (1) – Tucano (from March 5, 2019 acquisition
date)
|
125,000 –
135,000
|
Gold equivalent
ounces (1) – Mexico
|
46,500 –
50,000
|
Total gold equivalent
ounces (1)
|
171,500 –
185,000
|
Cash cost per ounce
sold (2)
|
$820 –
$890
|
AISC per gold ounce
sold, excluding corporate G&A expenditures
(2)
|
$1,030 –
$1,130
|
|
(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, and applied to the relevant metal content of
the concentrates produced, expected to be produced, or sold from
operations.
|
|
(2) Cash cost per gold ounce sold and
AISC per gold ounce sold excluding corporate G&A expenditures
are non-GAAP measures. Refer to the Non-GAAP Measures section of
the Company's most recent MD&A for an explanation of these
measures and reconciliation to the Company's reported financial
results in accordance with IFRS. As these are not standardized
measures, they may not be directly comparable to similarly titled
measures used by others.
|
Tucano's production profile is significantly weighted to the
second half of the year, during the dry season, which enables
higher rates of mining productivity and lower strip ratios in the
open pits. The quarterly production profile for the remaining
quarters of the fiscal year guidance is expected to be as
follows:
Tucano production
guidance
|
Q3
2019
|
Q4
2019
|
Gold
ounces
|
35,600 –
38,600
|
55,000 –
59,600
|
The Company's focus in 2019 is on the continued optimization of
Tucano. With the successful commissioning of the Supplemental
Oxygen at the end of April, Great Panther has now begun an
exploration and drilling program aimed at capitalizing on Tucano's
significant exploration potential.
At the Topia Mine, work continues on the processing plant
expansion project which is expected to increase capacity by
25%. Structural engineering analysis recently determined the
need for engineered rehabilitation of the foundation of the plant.
As a result, the completion date for the plant expansion has
been revised to the first quarter of 2020.
Exploration at the GMC is advancing at both the Guanajuato Mine
and San Ignacio Mine. The Company plans to complete an updated
NI 43-101 resource estimate for the GMC based on this year's
exploration program before the end of the year.
At the Coricancha Mine in Peru,
the Company made a positive production decision following the
completion of the Bulk Sample Program which confirmed the key
operating assumptions contained in its Preliminary Economic
Assessment announced in May 2018. The restart date is
expected in the first half of 2020 in order to align with the
Company's other mining operations and ensure the project has the
necessary planning and resources in place to optimize operations
and profitability.
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 an 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 also owns the
Coricancha Mine in Peru, which is
expected to restart operations in 2020.
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 Company's
production guidance and ability to meet its production guidance,
expectations of cash cost and AISC, the exploration potential of
Tucano and GMC, the planned increase in processing capacity of
Topia, the timing for an updated
resource estimate for GMC, and the timing of a production restart
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