Mr. James Bannantine reports
GREAT PANTHER SILVER REPORTS FIRST QUARTER 2018 PRODUCTION RESULTS
Great Panther Silver Ltd. has released its production results for the first quarter of 2018 from its two wholly owned Mexican silver mining operations: the Guanajuato mine complex, which includes the San Ignacio mine, and the Topia mine in Durango.
First quarter 2018 production highlights (compared with first quarter 2017 (1)):
- Consolidated metal production increased 42 per cent to 1,031,937 silver equivalent ounces (AgEq);
- Silver production increased 35 per cent to 491,063 silver ounces;
- Gold production increased 13 per cent to 5,831 gold ounces;
- Ore processed increased 17 per cent to 96,869 tonnes milled.
"Great Panther's first quarter production improved significantly compared to the first quarter last year when the Topia plant was suspended for planned upgrades," stated James Bannantine, president and chief executive officer. "To date in 2018, our Mexican operations are performing steadily, with production in line with annual guidance, and we are continuing to make progress on the technical evaluation of the Coricancha mine in Peru."
CONSOLIDATED OPERATIONS SUMMARY
Q1 2018 Q1 2017 Q1 2018 Q4 2017
Ore processed (tonnes milled) 96,869 82,456 96,869 98,396
Silver equivalent ounce production (2) 1,031,937 727,372 1,031,937 1,065,773
Silver ounce production 491,063 364,995 491,063 514,218
Gold ounce production 5,831 5,177 5,831 5,931
Lead production (tonnes) 433 - 433 441
Zinc production (tonnes) 533 - 533 551
(1) The Topia processing plant underwent upgrades in Q1 2017 and there was no
processing during Q1 2017.
(2) Silver equivalent ounces were calculated using a 70:1 Ag:Au ratio, and ratios of
1:0.0559 and 1:0.0676 for the price per ounce of silver to price per pound of lead
and zinc, respectively.
Guanajuato mine complex
In Q1 2018, total metal production for the GMC was 695,909 AgEq, which represents a 4-per-cent decrease compared with both the fourth quarter of 2017 and first quarter of 2017. The decrease was mainly attributed to lower tonnes milled and lower silver grades. The lower tonnes milled are in part a reflection of the higher proportion of harder ores from the San Ignacio mine, which reduced processing capacity. The lower average silver grade was due to the lower tonnage and grades mined from the Guanajuato mine, which has higher silver grades than the San Ignacio mine. In addition, the silver grades from the Guanajuato mine were affected by variability in the mineral resource. These factors were partly offset by improved gold grades and recoveries.
GMC OPERATIONS SUMMARY
Q1 2018 Q1 2017 Q1 2018 Q4 2017
Ore processed (tonnes milled) 78,919 82,456 78,919 80,896
Silver equivalent ounce production (1) 695,909 727,372 695,909 724,643
Silver ounce production 304,863 364,995 304,863 332,203
Gold ounce production 5,586 5,177 5,586 5,606
Ag grade (g/t) 135 155 135 144
Au grade (g/t) 2.50 2.30 2.50 2.48
Ag recovery (%) 88.8% 88.8% 88.8% 88.5%
Au recovery (%) 88.0% 85.0% 88.0% 87.0%
(1) Silver equivalent ounces were calculated using a 70:1 Ag:Au ratio.
The San Ignacio mine accounted for 65 per cent of the total ore processed at the GMC in Q1 2018, compared with 57 per cent in Q1 2017 and 62 per cent in Q4 2017. The increase in tonnes milled from the San Ignacio mine and, to a lesser degree, higher gold grades from the Guanajuato mines, are the main contributors to the increased gold grades.
Q1 2018 saw an increase in exploration development and underground drilling at the Guanajuato mine, aimed at increasing definition in the mineral resources mainly near and adjacent to areas currently being mined.
Topia mine
Total metal production during Q1 2018 from the Topia mine was 336,027 AgEq ounces. There was no production from Topia during Q1 2017 due to the planned processing plant suspension for plant upgrades along with the installation of a dry tailings handling facility.
Compared with Q4 2017, metal production was slightly lower, reflecting a decrease in gold grades due to variability in the ore and ground conditions, partially offset by higher mill throughput.
TOPIA OPERATIONS SUMMARY
Q1 2018 Q1 2017 (1) Q1 2018 Q4 2017
Ore processed (tonnes milled) 17,950 - 17,950 17,500
Silver equivalent ounce production (2) 336,027 - 336,027 341,129
Silver ounce production 186,201 - 186,201 182,015
Gold ounce production 244 - 244 325
Lead production (tonnes) 433 - 433 441
Zinc production (tonnes) 533 - 533 551
Ag grade (g/t) 348 - 348 352
Au grade (g/t) 0.74 - 0.74 0.95
Ag recovery (%) 92.7% - 92.7% 91.8%
Au recovery (%) 57.1% - 57.1% 60.8%
(1) The Topia processing plant was suspended for upgrades in Q1 2017 and had no
production during that period.
(2) Silver equivalent ounces were calculated using a 70:1 Ag:Au ratio, and ratios
of 1:0.0559 and 1:0.0676 for the price per ounce of silver to price per pound of
lead and zinc, respectively.
Outlook
The company is maintaining its 2018 guidance of 4.0 million to 4.1 million AgEq ounces (at a 70:1 silver-to-gold ratio). There is also no change to 2018 guidance for cash cost per silver ounce and all-in sustaining cost per payable silver ounce of $5 (U.S.) to $6.50 (U.S.) and $12.50 (U.S.) to $14.50 (U.S.), respectively. It is cautioned that cash cost and AISC are very sensitive to the Mexican peso foreign exchange rate and metal prices through the computation of byproduct credits.
The focus for 2018 continues to be on maintaining steady and efficient operations in Mexico, while advancing the company's Coricancha mine in Peru to set a platform for production growth in 2019 and 2020. While still in the evaluation stage, based upon historic production records, Coricancha has the potential to add three million AgEq ounces of annual production. The company expects to make announcements on the progress of evaluation and technical studies for Coricancha later this quarter.
In addition, 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 Matthew Wunder, PGeo, vice-president, exploration, for the company and the qualified person for the Guanajuato mine complex, the Topia mine and the Coricancha 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.
Release of first quarter 2018 financial results and conference call
The company has scheduled the release of its first quarter 2018 financial results for Wednesday, May 2, 2018, after market close.
A conference call and webcast will be held on Thursday, May 3, 2018, at 2 p.m. Eastern Time/11 a.m. Pacific Time to discuss the results. Mr. Bannantine, president and chief executive officer, and Jim Zadra, chief financial officer and corporate secretary, will host the call.
Shareholders, analysts, investors and media are invited to join the live webcast and conference call by logging in or calling in five minutes prior to the start time.
Live webcast and registration: available on the company's website
United States and Canada toll-free: 1-800-281-7973
International toll: 1-323-794-2093
Conference ID: 4742165
A replay of the webcast will be available on the webcasts section of the company's website approximately one hour after the conference call.
About Great Panther Silver Ltd.
Great Panther is a primary silver mining and exploration company. Great Panther's current activities are focused on the mining of precious metals from its two wholly owned operating mines in Mexico: the Guanajuato mine complex and the Topia mine. The company is also evaluating the restart of the Coricancha mine in Peru, which it acquired in 2017, and continues to pursue the acquisition of additional mining operations or projects in the Americas.
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