TSX: GPR | NYSE American: GPL
UCS pushback activities ahead of schedule and production
ramping up with higher grade ore to be mined in upcoming
quarters
VANCOUVER, BC, July 14, 2021 /PRNewswire/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the
"Company"), a growing gold and silver producer focused on the
Americas, reports that mining of ore has recommenced in the Urucum
Central South ("UCS") open pit of the Company's Tucano Mine in
Brazil.
"I am pleased to report that mining of ore has resumed ahead of
schedule in the Urucum Central South pit as the conditions
affecting the stability of the west wall have improved
significantly," stated Robert
Henderson, President and CEO. "The radar measurements of the
west wall have shown a considerable reduction of movement compared
to the earlier levels recorded over the past two months, and
improved weather conditions are resulting in greater wall
stability. Although the delay in safely accessing ore from UCS
resulted in low production for the second quarter, production has
begun ramping up in July and the higher grade ore not mined in the
second quarter will be mined in upcoming quarters."
Operations have removed approximately 1.4 million tonnes of
unstable weathered waste material from the upper west wall of the
UCS pit and have improved water drainage in the upper oxide area of
the deposit while pushback activities continue. A further 1.2
million tonnes of waste material is expected to be removed as part
of the designed pushback. Strict safety protocols are being
followed to ensure continued health and safety of workers, which
includes radar monitoring for wall movement, prisms and drone
surveys.
The Company also reports production results for the three months
ended June 30, 2021, from its three
wholly owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine Complex ("GMC")
in Mexico.
Second Quarter 2021 Production Highlights
- Consolidated metal production of 27,722 gold equivalent ounces
("Au eq oz"), inclusive of 22,804 gold ounces ("Au oz") and 334,423
silver ounces ("Ag oz")
- Total gold production at Tucano of 20,696 Au oz
- Total silver equivalent production at Topia of 312,259 silver equivalent ounces ("Ag
eq oz")
- Total silver equivalent production at the GMC of 284,883 Ag eq
oz
- UCS pushback activities ahead of schedule; resumption of mining
of ore ramping up to full production
- Tailings capacity at the GMC determined to be sufficient
through December 2021
Consolidated Operating Results
Consolidated
Operating Results
|
Q2
2021
|
Q2
2020
|
Change
|
Q2
2021
|
Q1
2021
|
Change
|
Ore processed
(tonnes)
|
929,430
|
847,174
|
10%
|
929,430
|
854,704
|
9%
|
Gold eq production
(oz) (1)
|
27,722
|
38,541
|
-28%
|
27,722
|
30,556
|
-9%
|
Gold production
(oz)
|
22,804
|
36,357
|
-37%
|
22,804
|
24,978
|
-9%
|
Silver production
(oz)
|
334,423
|
142,457
|
135%
|
334,423
|
360,070
|
-7%
|
|
|
(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 125,000 to
140,000 Au eq oz. Approximately 60% of annual guidance is expected
in the second half of the year, considered the dry season in
Northern Brazil, following the
temporary halt of mining at UCS as well as higher stripping and
lower production levels in the first half of 2021 as per the mine
plan for Tucano.
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. The Company may revise guidance
during the year to reflect actual results to date and those
anticipated for the remainder of the year.
The COVID-19 pandemic continues to affect the regions in which
the Company operates. Strict health and safety protocols remain in
place, and the Company is particularly focused on maintaining
top-of-mind awareness about prevention practices within the
organization and the communities that surround its operations.
Vaccination programs are advancing, albeit slowly, and vigilance is
of the utmost importance in order to support health authorities
during this time.
Tucano
Tucano Operating
Results
|
Q2
2021
|
Q2
2020
|
Change
|
Q2
2021
|
Q1
2021
|
Change
|
Total material mined
(tonnes)
|
5,678,601
|
6,075,380
|
-7%
|
5,678,601
|
6,898,581
|
-18%
|
Total waste mined
(tonnes)
|
5,466,688
|
5,651,379
|
-3%
|
5,466,688
|
6,551,115
|
-17%
|
Ore mined
(tonnes)
|
211,913
|
424,001
|
-50%
|
211,913
|
347,466
|
-39%
|
Ore processed (tonnes
milled)
|
873,433
|
822,638
|
6%
|
873,433
|
796,035
|
10%
|
Au grade
(g/t)
|
0.81
|
1.48
|
-45%
|
0.81
|
0.90
|
-10%
|
Au recovery
(%)
|
88.7%
|
90.2%
|
-2%
|
88.7%
|
88.7%
|
0%
|
Gold production
(oz)
|
20,284
|
35,421
|
-43%
|
20,284
|
20,422
|
-1%
|
Carbon fines
recovery
|
412
|
-
|
100%
|
412
|
2,574
|
-84%
|
Total production
(oz)
|
20,696
|
35,421
|
-42%
|
20,696
|
22,996
|
-10%
|
Tucano produced 20,696 Au oz in Q2 2021, a decrease of 42%
compared to the second quarter of 2020, primarily due to of the
stoppage in ore production from the UCS pit and therefore feeding
the plant lower grades from stockpiles and Urucum North.
Plant throughput in the second quarter was 6% higher compared to
the same period in 2020, due mainly to a higher amount of oxide
material processed this quarter in the absence of sulfide ore from
UCS.
Topia
Topia Operating
Results
|
Q2
2021
|
Q2
2020
|
Change
|
Q2
2021
|
Q1
2021
|
Change
|
Ore processed
(tonnes)
|
15,520
|
7,781
|
99%
|
15,520
|
19,004
|
-18%
|
Ag grade
(g/t)
|
432
|
352
|
23%
|
432
|
398
|
9%
|
Au grade
(g/t)
|
1.07
|
0.87
|
23%
|
1.07
|
0.87
|
23%
|
Ag recovery
(%)
|
93.5%
|
92.5%
|
1%
|
93.5%
|
92.4%
|
1%
|
Au recovery
(%)
|
60.3%
|
54.0%
|
12%
|
60.3%
|
55.4%
|
9%
|
Silver eq
production (oz) (1)
|
312,259
|
146,128
|
114%
|
312,259
|
363,318
|
-14%
|
Silver production
(ounces)
|
201,339
|
81,427
|
147%
|
201,339
|
224,333
|
-10%
|
Gold production
(ounces)
|
321
|
118
|
172%
|
321
|
293
|
10%
|
Lead production
(tonnes)
|
357
|
163
|
119%
|
357
|
526
|
-32%
|
Zinc production
(tonnes)
|
478
|
223
|
114%
|
478
|
619
|
-23%
|
Gold eq production
(oz) (2)
|
3,674
|
1,624
|
126%
|
3,674
|
4,274
|
-14%
|
|
|
(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 at Topia in Q2 2021 was 312,259 Ag eq oz compared
with 146,128 Ag eq oz in Q2 2020, an increase of 114%. Note that
production in Q2 2020 was impacted by the suspension of mining
operations in Mexico for the
months of April and May 2020
following a directive of the Mexican Federal Government to mitigate
the spread of COVID-19. Silver equivalent production was 14% lower
than in Q1 2021 due primarily to lower throughput, partly offset by
higher grade and recovery rates for both gold and silver.
Guanajuato Mine Complex
GMC Operating
Results
|
Q2
2021
|
Q2
2020
|
Change
|
Q2
2021
|
Q1
2021
|
Change
|
Ore processed
(tonnes)
|
40,477
|
16,755
|
142%
|
40,477
|
39,665
|
2%
|
Ag grade
(g/t)
|
118
|
133
|
-11%
|
118
|
124
|
-5%
|
Au grade
(g/t)
|
1.58
|
1.80
|
-12%
|
1.58
|
1.53
|
3%
|
Ag recovery
(%)
|
87.4%
|
85.4%
|
2%
|
87.4%
|
86.1%
|
2%
|
Au recovery
(%)
|
87.6%
|
84.7%
|
3%
|
87.6%
|
86.5%
|
1%
|
Silver eq
production (oz) (1)
|
284,883
|
134,703
|
111%
|
284,883
|
279,306
|
2%
|
Silver production
(oz)
|
133,083
|
61,031
|
118%
|
133,083
|
135,737
|
-2%
|
Gold production
(oz)
|
1,786
|
819
|
118%
|
1,786
|
1,689
|
6%
|
Gold eq production
(oz) (2)
|
3,352
|
1,497
|
124%
|
3,352
|
3,286
|
2%
|
|
|
(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 Q2 2021 was 284,883
Ag eq oz compared with 134,703 Aq eq oz, an increase of 111% over
Q2 2020 as a result of higher throughput and recovery rates for
both gold and silver. Note that production in Q2 2020 was impacted
by the COVID-19 related shutdown in the months of April and
May 2020. Silver equivalent
production was 2% higher than in Q1 2021 due primarily to higher
throughput, gold grade and recovery rates for both gold and
silver.
While the Company continues to wait for approval by the Comisión
Nacional de Agua ("CONAGUA") to expand the tailings storage
facility at the GMC, the Company's technical consultants have
determined that there is sufficient tailings capacity to continue
milling operations until December
2021. Numerous longer-term solutions are currently being
assessed while the Company continues to proactively engage with
CONAGUA to expedite the permitting process.
Second Quarter 2021 Financial Results
Great Panther has scheduled the release of its second quarter
2021 financial results for Wednesday, August
4, 2021, after market close. The Company will host a
conference call and webcast to discuss the results on Thursday, August 5, 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 7370.
Canada and US
Toll-Free:
|
+ 1 800 319
6413
|
International
Toll:
|
+ 1 604 638
9010
|
Replay Access
Code:
|
7370
|
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Fernando A.
Cornejo, P. Eng., 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; 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, including the Brazilian real to US dollar
exchange rate of 5.30 used in the Company's 2021 guidance; 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; 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; 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 may 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); the inability to
operate the Topia Phase II tailings storage facility as planned, or
to commence stacking at Topia Phase III when Phase II tailings
storage facility 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