Mr. Robert Archer reports
GREAT PANTHER SILVER REPORTS FIRST QUARTER 2017 PRODUCTION RESULTS
Great Panther Silver Ltd. has released production results for the first quarter of 2017 from its two wholly owned Mexican silver mining operations: the Topia mine in Durango and the Guanajuato mine complex (GMC), which includes the San Ignacio mine.
First quarter 2017 production highlights (compared with first quarter 2016):
- Topia processing plant was suspended for the quarter to facilitate planned plant upgrades and the transition to new tailings handling and storage facilities.
-
This primarily accounted for a 28-per-cent decrease in metal production to 727,372 silver-equivalent ounces.
- Silver production decreased 32 per cent to 364,995 ounces.
-
Gold production decreased 8 per cent to 5,177 ounces.
-
Ore processed decreased 7 per cent, with 82,456 tonnes milled.
"The planned suspension of milling operations at Topia was in effect throughout the entire first quarter and had an obvious impact on our overall metal production," stated Robert Archer, president and chief executive officer. "However, we continued mining at Topia throughout this period, and with the commissioning of the upgraded plant and the new tailings handling facility now under way, we have commenced the processing of ore stockpiled during the shutdown. This will continue through the balance of the year, such that we anticipate meeting our annual guidance."
CONSOLIDATED OPERATIONS SUMMARY
Q1 2017 Q1 2016 Q1 2017 Q4 2016
Ore processed (tonnes milled) 82,456 88,683 82,456 92,869
Silver-equivalent production (ounces) 727,372 1,009,828 727,372 883,772
Silver production (ounces) 364,995 539,472 364,995 460,571
Gold production (ounces) 5,177 5,599 5,177 5,206
Lead production (tonnes) - 282 - 213
Zinc production (tonnes) - 424 - 315
Notes:
(1) Silver-equivalent ounces for 2017 were calculated using a 70:1 silver-to-gold
ratio and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
(2) Silver-equivalent ounces for 2016 were calculated using a 70:1 silver-to-gold
ratio and ratios of 1:0.0504 and 1:0.0504 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
Guanajuato mine complex
In the first quarter of 2017, metal production at the GMC increased 4 per cent compared with the previous quarter, but decreased by 4 per cent to 727,372 silver-equivalent ounces when compared with the same quarter in the previous year. Ore processed in the first quarter of 2017 increased by 12 per cent compared with the first quarter of 2016, partly offsetting the lower head grades and gold recovery.
GMC OPERATIONS SUMMARY
Q1 2017 Q1 2016 Q1 2017 Q4 2016
Ore processed (tonnes milled) 82,456 73,649 82,456 81,518
Silver equivalent production (ounces) 727,372 755,555 727,372 702,351
Silver production (ounces) 364,995 375,273 364,995 347,415
Gold production (ounces) 5,177 5,433 5,177 5,071
Ag grade (g/t) 155 179 155 149
Au grade (g/t) 2.30 2.58 2.30 2.25
Ag recovery (%) 88.8% 88.5% 88.8% 88.7%
Au recovery (%) 85.0% 89.0% 85.0% 85.9%
Note:
(1) Silver-equivalent ounces for 2017 and 2016 were calculated using a 70:1
silver-to-gold ratio.
San Ignacio accounted for 57 per cent of the total ore processed at the GMC in the first quarter of 2017, compared with 53 per cent in the first quarter of 2016. Lower grades at both the San Ignacio and Guanajuato mines continued through January and February, but returned to projected levels for the month of March.
During the first quarter of 2017, exploration drilling continued from both surface and underground. The emphasis of underground drilling has been on increasing definition in the mineral resource, mainly in the areas currently being mined, while surface drilling at San Ignacio has focused on expanding the resource through stepout drilling along strike of the current mine workings.
An updated mineral resource estimate for the GMC was announced on Feb. 21, 2017, that reported a 15-per-cent increase in measured and indicated resources, after replacing what was mined in the previous year.
Topia mine
The suspension of milling operations to facilitate plant upgrades and the transition to dry stack tailings storage continued through the first quarter of 2017. The majority of the upgrades and installation of the tailings handling equipment has now been completed under budget. Commissioning of the plant is presently under way, with temporary use of the old phase 1 tailings storage facility (TSF). The company has submitted all of the technical information required by the Mexican federal environmental authority (Secretaria de Medio Ambiente y Recursos Naturales, or SEMARNAT) for the phase 2 TSF permit. SEMARNAT's response is expected before the end of the month.
In February, 2017, in connection with testwork related to the plant upgrades, Topia processed 200 tonnes of lower-grade ore (282 grams per tonne silver equivalent), yielding 2,814 silver-equivalent ounces of metal production.
Mining has continued since the mill was shut down in early December, 2016, with a greater focus on increasing head grades through selective mining and dilution control measures. The company expects to process all of the ore stockpiled during the shutdown through the balance of 2017.
Surface drilling at Topia commenced in February, testing the strike extension of the more productive veins.
Outlook
The company is maintaining its guidance of four million to 4.1 million silver-equivalent ounces (based on a 70:1 silver-to-gold ratio) for 2017. The lower production for the first quarter was largely as planned, and expected higher rates of throughput at Topia will allow for the processing of ore stockpiles within the year.
The company is also maintaining its previously issued cash cost and all-in sustaining cost (AISC) guidance for 2017 of $5 (U.S.) to $6 (U.S.) per payable silver ounce and $14 (U.S.) to $16 (U.S.) per payable silver ounce, respectively. It is expected that cash cost and AISC for the first quarter of 2017 will be high due to the lower production and higher sustaining capital costs incurred in connection with the Topia plant upgrades and tailings facility expansion. Although there may not be a basis for computing Topia's costs due to the shutdown during the first quarter of 2017, sustaining capital expenditures associated with the plant upgrades and tailings facility expansion will be accounted for in the computation of the company's consolidated unit costs.
Completion of the previously announced acquisition of the Coricancha mine in Peru is now anticipated to take place before the end of the second quarter of 2017 (originally expected to take place closer to the end of the first quarter). The delay in closing is primarily due to local legal and regulatory processes and requirements to complete the transaction between Great Panther and Nyrstar NV. Once the transaction is complete, the company's plans include further evaluations of the current mine and processing infrastructure, approximately 7,800 metres of underground drilling, environmental studies, and initiation of a preliminary feasibility study (PFS). Depending upon the outcome of the PFS, development in support of operations could commence in 2018. A resource update is under way and is now expected to be completed in the second quarter.
In addition to finalizing the acquisition of the Coricancha mine in Peru, the company continues to seek and evaluate additional acquisition opportunities to meet the company's growth objectives.
The technical information contained in this news release has been reviewed and approved by Robert F. Brown, PEng, who is the qualified person for the Guanajuato mine complex and the Topia mine under the meaning of National Instrument 43-101. Aspects relating to mining and metallurgy are overseen by Ali Soltani, chief operating officer for Great Panther.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.