TSX: GPR | NYSE American:
GPL
VANCOUVER, BC, April 13, 2021 /PRNewswire/ - Great Panther
Mining Limited (TSX: GPR) (NYSE: GPL) ("Great Panther" or the
"Company"), a growing gold and silver producer focused on the
Americas, announces production results for the three months ended
March 31, 2021, from its three
wholly-owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine Complex ("GMC")
in Mexico.
First Quarter 2021 Production Highlights
- Consolidated metal production of 30,556 gold equivalent ounces
("Au eq oz"), inclusive of 24,978 gold ounces ("Au oz") and 360,070
silver ounces ("Ag oz")
- Total gold production at Tucano of 22,996 Au oz
- Total silver equivalent production at Topia of 363,318 silver equivalent ounces ("Ag
eq oz")
- Total silver equivalent production at the GMC of 279,306 Ag eq
oz
- Successful completion of annual maintenance at Tucano including
replacement of the primary crusher and realignment of the SAG mill
motor
"I am pleased to report that operations continue safely despite
COVID-19 and we remain on track with our proposed guidance for the
year," commented Rob Henderson,
Great Panther's President & CEO. "Our safety protocols are
being meticulously executed in order to protect our workforce and
the communities that we operate in. As previously stated, the first
quarter was planned to be a low production quarter due to heavy
stripping. Production is expected to ramp up quarter-over-quarter
for the remainder of the year as mining progresses into sectors
with lower strip ratios."
Consolidated Operating Results
Consolidated
Operating Results
|
Q1
2021
|
Q1
2020
|
Change
|
Q1
2021
|
Q4
2020
|
Change
|
Ore processed
(tonnes)
|
854,704
|
880,162
|
-3%
|
854,704
|
951,352
|
-10%
|
Gold eq production
(oz) (1)
|
30,556
|
34,725
|
-12%
|
30,556
|
36,997
|
-17%
|
Gold production
(oz)
|
24,978
|
28,940
|
-14%
|
24,978
|
33,703
|
-26%
|
Silver production
(oz)
|
360,070
|
374,917
|
-4%
|
360,070
|
225,477
|
60%
|
|
|
(1)
|
Gold equivalent
ounces for 2021 were calculated using a 1:85 Au:Ag ratio, and
ratios of 1:0.0005 and 1:0.0006 for the price/ounce of gold to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Gold equivalent ounces for 2020
were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0.0006
and 1:0.0008 for the price/ounce of gold to price/pound of lead and
zinc, respectively, consistent with the Company's guidance for the
year.
|
The Company's operations are on track to meet previously
announced consolidated production guidance for 2021 of 135,000 to
150,000 Au eq oz. The mine plan for Tucano reflects higher
stripping and lower production levels in the first half of 2021
with approximately 55% of annual guidance expected in the second
half of the year.
Production guidance here and elsewhere in this news release is
forward-looking information that should be read in conjunction with
the Cautionary Statement on Forward-Looking Information section at
the end of this news release and the Company's most recently filed
Management Discussion and Analysis for the year ended December 31, 2020. The Company may revise
guidance during the year to reflect actual results to date and
those anticipated for the remainder of the year.
COVID-19 continues to affect every corner of the globe, in
Mexico, Brazil and Peru in particular. Great Panther's
established COVID-19 prevention, monitoring and response plans
remain a top priority for the Company to ensure a safe work
environment for its employees and communities in which it operates.
Protocols include mandatory medical screening and testing on
arrival at site, continuous training on health awareness and health
and safety protocols, physical distancing and increased sanitation
measures, and updated operating procedures. Specific areas have
been prepared for the isolation, testing and care of employees
showing COVID-19 symptoms. All confirmed cases of COVID-19 are in
isolation and being monitored by Company health professionals with
regular reports to health authorities.
Tucano
Tucano Operating
Results
|
Q1
2021
|
Q1
2020
|
Change
|
Q1
2021
|
Q4
2020
|
Change
|
Total material mined
(tonnes)
|
6,898,581
|
7,155,135
|
-4%
|
6,898,581
|
6,605,369
|
4%
|
Total waste mined
(tonnes)
|
6,399,499
|
6,804,081
|
-6%
|
6,399,499
|
5,803,286
|
10%
|
Ore mined
(tonnes)
|
347,466
|
310,597
|
12%
|
347,466
|
749,510
|
-54%
|
Ore processed (tonnes
milled)
|
796,035
|
811,197
|
-2%
|
796,035
|
901,584
|
-12%
|
Au grade
(g/t)
|
0.90
|
1.09
|
-17%
|
0.90
|
1.23
|
-27%
|
Au recovery
(%)
|
88.7%
|
91.7%
|
-3%
|
88.7%
|
89.5%
|
-1%
|
Gold production
(oz)
|
20,422
|
26,176
|
-22%
|
20,422
|
32,017
|
-36%
|
Carbon fines
recovery
|
2,574
|
-
|
100%
|
2,574
|
|
100%
|
Total production
(oz)
|
22,996
|
26,176
|
-12%
|
22,996
|
32,017
|
-28%
|
Tucano produced 22,996 Au oz in Q1 2021, a decrease of 12%
compared to the first quarter of 2020, primarily due to lower ore
production in the mine and reduced process plant availability and
lower grades. Tucano processed a higher proportion of low-grade
stockpile material this quarter due to the focus on stripping of
the upper pit levels and position of mining activity relative to
the ore in the lower benches.
Plant throughput in the first quarter was 2% lower compared to
the same period in 2020, due mainly to longer plant stoppages
required to replace the existing primary crusher, realignment of
the SAG mill motor and higher number of hours lost due to power
outages.
Compared to Q1 2020, Tucano had an additional 2,574 Au oz of
production from fine carbon screening and then elution of the
coarser fraction of the fine carbon from a pond located within
the plant premises. Gold produced from this process is expected to
be less than 5% of total gold production for 2021.
Lower production during the first quarter of 2021 was expected
based on the reduction in ore mined and planned plant shutdown.
Production guidance for 2021 remains between 110,000 and 120,000 Au
oz, as announced in the Company's news release dated January 14, 2021.
Towards the end of Q1 2021, Tucano experienced disruption in its
purchased oxygen supply with scheduled deliveries shipped to
Brazil's hospitals to meet
increased demand as a result of COVID-19. Shortages in purchased
oxygen supply are expected to decrease recovery rates over the next
few months. With the exception of oxygen supply chain issues,
mining activities at Tucano continue uninterrupted due to COVID-19.
While the reported infections in the state of Amapá are of
concern, they are primarily concentrated in Macapá, the state
capital. The Company is monitoring the situation closely and has
implemented strong measures to protect against the spread of the
virus and its new variants and is working closely with local health
and labour authorities to protect its people and local
communities.
Topia
Topia Operating
Results
|
Q1
2021
|
Q1
2020
|
Change
|
Q1
2021
|
Q4
2020
|
Change
|
Ore processed
(tonnes)
|
19,004
|
19,359
|
-2%
|
19,004
|
9,959
|
91%
|
Ag grade
(g/t)
|
398
|
357
|
11%
|
398
|
337
|
18%
|
Au grade
(g/t)
|
0.87
|
0.82
|
6%
|
0.87
|
0.81
|
7%
|
Ag recovery
(%)
|
92.4%
|
92.3%
|
0%
|
92.4%
|
90.0%
|
3%
|
Au recovery
(%)
|
55.4%
|
55.2%
|
0%
|
55.4%
|
48.7%
|
14%
|
Silver eq
production (oz) (1)
|
363,318
|
376,303
|
-3%
|
363,318
|
179,657
|
102%
|
Silver production
(ounces)
|
224,333
|
205,184
|
9%
|
224,333
|
97,263
|
131%
|
Gold production
(ounces)
|
293
|
282
|
4%
|
293
|
127
|
131%
|
Lead production
(tonnes)
|
526
|
401
|
31%
|
526
|
212
|
148%
|
Zinc production
(tonnes)
|
619
|
632
|
-2%
|
619
|
294
|
111%
|
Gold eq production
(oz) (2)
|
4,274
|
4,181
|
2%
|
4,274
|
1,996
|
114%
|
|
|
(1)
|
Silver equivalent
ounces for 2021 were calculated using an 85:1 Ag:Au ratio, and
ratios of 1:0.041 and 1:0.049 for the price/ounce of silver to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Silver equivalent ounces for 2020
were calculated using a 90:1 Ag:Au ratio, and ratios of 1:0.058 and
1:0.068 for the price/ounce of silver to price/pound of lead and
zinc, respectively, consistent with the Company's guidance for the
year.
|
(2)
|
See footnote (1)
under the heading Consolidated Operating Results above for
information on the calculation of gold equivalent ounces for 2021
and 2020, respectively.
|
Silver equivalent production in Q1 2021 from Topia was 363,318 Ag eq oz compared with
376,303 Ag eq oz for the same period in 2020 and 179,657 Ag eq oz
in Q4 2020. Note that production in Q4 2020 was impacted by a
voluntary five-week suspension to safeguard the health of the
Company's workforce and local community against the spread of
COVID-19. Topia realized higher
grades and recovery rates for gold and silver during Q1 2021,
however, these increases were offset by a decrease in production
attributed to the change in metal equivalency ratios for lead and
zinc.
Guanajuato Mine Complex
GMC Operating
Results
|
Q1
2021
|
Q1
2020
|
Change
|
Q1
2021
|
Q4
2020
|
Change
|
Ore processed
(tonnes)
|
39,665
|
49,607
|
-20%
|
39,665
|
39,539
|
0%
|
Ag grade
(g/t)
|
124
|
125
|
-1%
|
124
|
117
|
6%
|
Au grade
(g/t)
|
1.53
|
1.85
|
-17%
|
1.53
|
1.46
|
5%
|
Ag recovery
(%)
|
86.1%
|
85.4%
|
1%
|
86.1%
|
85.9%
|
0%
|
Au recovery
(%)
|
86.5%
|
84.1%
|
3%
|
86.5%
|
84.3%
|
3%
|
Silver eq
production (oz) (1)
|
279,306
|
393,126
|
-29%
|
279,306
|
268,524
|
4%
|
Silver production
(oz)
|
135,737
|
169,734
|
-20%
|
135,737
|
128,214
|
6%
|
Gold production
(oz)
|
1,689
|
2,482
|
-32%
|
1,689
|
1,559
|
8%
|
Gold eq production
(oz) (2)
|
3,286
|
4,368
|
-25%
|
3,286
|
2,984
|
10%
|
|
|
(1)
|
Silver equivalent
ounces for 2021 were calculated using an 85:1 Ag:Au ratio,
consistent with the Company's guidance for the year. Silver
equivalent ounces for 2020 were calculated using a 90:1 Ag:Au
ratio, consistent with the Company's guidance for the
year.
|
(2)
|
See footnote (1)
under the heading Consolidated Operating Results above for
information on the calculation of gold equivalent ounces for 2021
and 2020, respectively.
|
Silver equivalent production at the GMC in Q1 2021 was 279,306
Ag eq oz, an increase of 4% over Q4 2020 as a result of higher
grades and recovery rates for both gold and silver. Silver
equivalent production was 29% lower than in Q1 2020 due primarily
to workforce shortages related to COVID-19.
First Quarter 2021 Financial Results
Great Panther has scheduled the release of its first quarter
2021 financial results for Wednesday, May 5,
2021, after market close. The Company will host a conference
call and webcast to discuss the results on Thursday, May 6, 2021, at 9:00 AM PT/12:00 PM
ET. Shareholders, analysts, investors and media are invited
to join by logging in or calling in to the details below:
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
Canada and US
Toll-Free:
+ 1 800 319 4610
International
Toll:
+ 1 604 638 5340
A replay of the webcast will be available on the Webcasts
section of Great Panther's website approximately one hour after the
conference call. Audio replay will be available for four weeks by
calling the numbers below using the replay access code 6660.
Canada and US
Toll-Free: +
1 800 319 6413
International
Toll:
+ 1 604 638 9010
Replay Access
Code:
6660
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Neil
Hepworth, Chartered Engineer UK, MIMMM, Chief Operating
Officer, a non-independent Qualified Person for the purposes of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
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, including 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 trading under
the symbol GPR, and on the NYSE American under the symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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: (i) 2021 guidance on production and
stripping and the assumptions upon which they rely on; (ii)
expectations that production is expected to ramp up
quarter-over-quarter for the remainder of the year as mining
progresses into sectors with lower strip ratios; (iii) expectations
regarding the future impacts of COVID-19 and the Company's ability
to continue its operations without interruption should the
situation not be as anticipated, including the expectation that
shortages in purchased oxygen supply will decrease recovery rates
over the next few months; and (iv) 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:
continued operations at Tucano in accordance with the Company's
mine plan, including the expectations regarding the ongoing
geotechnical control/stability of UCS and the Company's ability to
successful access the mineralization in the UCS pit without
additional costs or interruption; continuation of operations
without interruption, additional costs, workforce and supply
shortages due to COVID-19 or any other reason; the accuracy of the
Company's Mineral Reserve and Mineral Resource estimates and the
assumptions upon which they are based; ore grades and recoveries;
prices for silver, gold, and base metals 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;
capital, decommissioning and reclamation estimates; prices for
energy inputs, labour, materials, supplies and services (including
transportation) remaining as estimated; currency exchange rates
remaining as estimated; all necessary permits, licenses and
regulatory approvals for the Company's operations are received in a
timely manner and maintained, including the expectations around the
Company's ability to receive the permits and regulatory approvals
necessary for an expansion of the existing GMC tailings storage
facility (lifts 18 and 19) in a timely manner and without
conditions in order to prevent an interruption to milling
operations at the GMC; the accuracy of the geological, operational
and price and exchange rate assumptions on which the production
guidance is based; operations not being disrupted by issues such as
pit-wall failures or instability, mechanical failures, labour
disturbances or workforce shortages, illegal occupations or mining,
seismic events, and adverse weather condition; assumption that the
Company will be successful in resolving the legal claims that ban
the use of cyanide in the Tucano processing; conditions in the
financial markets; the ability to procure equipment and operating
supplies and that there are no material unanticipated variations in
the cost or availability of energy or supplies; 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
potential political, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction; developments with
respect to COVID-19 that may impact the Company's operations,
including potential for further workforce and supply shortages, or
future orders of federal governments to curtail or cease mining
operations or voluntary shutdowns, including the risk that ongoing
oxygen supply shortages in purchased oxygen supply will decrease
recovery rates; 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 and
accordingly that mine production will not be as estimated or
predicted; the discontinuity of the Tucano 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; as the
Company's mines, including, but not limited to its Mexican
operations, do not have established Mineral Reserves, except for
Tucano and the Company may extend mine operations by mining
material at Tucano that is classified as a Mineral Resource without
completing a feasibility study demonstrating economic or technical
viability, the Company faces higher risks that anticipated rates of
production/recovery or estimates of costs will not be achieved;
litigation risk, 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); the potential for unexpected costs and expenses;
fluctuations in metal prices; fluctuations in currency exchange
rates; 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); 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 guidance
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;
the inability to operate the Topia Phase II TSF as planned, or to
commence stacking at Topia Phase III when Phase II TSF is no longer
available; 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, 2020 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. 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