TSX: GPR
NYSE AMERICAN: GPL
VANCOUVER, Jan. 11, 2018 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther"; the
"Company") announces its fourth quarter ("Q4") and 2017 production
results 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.
2017 Production Highlights (Compared to Full Year
2016)
- Consolidated metal production increased 2% to 3,978,731 silver
equivalent ounces ("Ag eq oz")
- Silver production decreased 3% to 1,982,685 silver ounces ("Ag
oz")
- Gold production increased 1% to 22,501 gold ounces ("Au oz"),
an annual record
- Ore processed decreased 1% to 373,709 tonnes
- Topia achieved a record
1,086,663 Ag eq oz in metal production, representing 21%
growth
Fourth Quarter 2017 Production Highlights (Compared to Fourth
Quarter 2016)
- Consolidated metal production increased 21% to 1,065,773 Ag eq
oz
- Silver production increased 12% to 514,218 Ag oz
- Gold production increased 14% to 5,931 Au oz
- Ore processed increased 6%, with 98,396 tonnes milled
"Great Panther's 2017 production was consistent with the
previous year, however, this was a considerable achievement given
the work completed to accommodate the tailings expansion and plant
improvements at the Topia Mine in the first quarter of the year",
stated James Bannantine, President
and CEO. "We are also pleased with the recent completion of
the permitting process for the Phase II tailings storage facility
at Topia. While the
regulatory process took longer than we expected, our team did an
outstanding job of maintaining operations by extending capacity
while improving the state of the existing facility."
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Consolidated
Operations Summary
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Q4
2017
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Q4
2016
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Change
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FY
2017
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FY
2016
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Change
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Ore processed (tonnes
milled)
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98,396
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92,869
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6%
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373,709
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376,739
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-1%
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Silver equivalent
ounce production1, 2
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1,065,773
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883,772
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21%
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3,978,731
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3,884,960
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2%
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Silver ounce
production
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514,218
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460,571
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12%
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1,982,685
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2,047,260
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-3%
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Gold ounce
production
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5,931
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5,206
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14%
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22,501
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22,238
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1%
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Lead production
(tonnes)
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441
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213
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106%
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1,291
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1,034
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25%
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Zinc production
(tonnes)
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551
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315
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75%
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1,758
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1,496
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17%
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(1)
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Silver equivalent
ounces for 2017 were calculated using a 70:1 Ag:Au 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.
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(2)
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Silver equivalent
ounces for 2016 were calculated using a 70:1 Ag:Au 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.
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Guanajuato Mine Complex
Total metal production in the fourth quarter of 2017 increased
by 3%, to 724,643 Ag eq oz, compared to the fourth quarter of 2016,
due to an increase in gold grades and gold recoveries. The
increase in the average gold grade was attributed to increased
production from San Ignacio which
has as a higher gold to silver ratio. San Ignacio accounted for 62% of the total ore
processed at the GMC in Q4 2017, compared to 59% in Q4 2016.
When compared to the previous full year, total metal production
decreased by 3%, to 2,892,068 Ag eq oz. The decrease was
attributed to the lower silver grades reflecting lower tonnage
mined from higher silver grade zones and grade variability in the
mineral resource.
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GMC Operations
Summary
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Q4
2017
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Q4
2016
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Change
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FY
2017
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FY
2016
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Change
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Ore processed (tonnes
milled)
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80,896
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81,518
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-1%
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319,964
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320,903
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0%
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Silver equivalent
ounce production 1
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724,643
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702,351
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3%
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2,892,068
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2,987,074
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-3%
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Silver ounce
production
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332,203
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347,415
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-4%
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1,386,964
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1,473,229
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-6%
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Gold ounce
production
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5,606
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5,071
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11%
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21,501
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21,626
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-1%
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Ag grade
(g/t)
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144
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149
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-3%
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151
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163
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-7%
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Au grade
(g/t)
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2.48
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2.25
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10%
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2.41
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2.43
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-1%
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Ag recovery
(%)
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88.5%
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88.7%
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0%
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89.2%
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87.9%
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1%
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Au recovery
(%)
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87.0%
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85.9%
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1%
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86.9%
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86.4%
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1%
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(1)
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Silver equivalent
ounces for 2017 and 2016 were calculated using a 70:1 Ag:Au
ratio.
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Topia Mine
Total metal production during the fourth quarter of 2017
increased by 88%, to 341,129 Ag eq oz, compared to the fourth
quarter of 2016, mainly reflecting the planned processing
suspension that commenced in December
2016 to complete a plant refurbishment and the addition of a
dry tailings handlings facility.
When compared to the previous year, the total metal production
increased by 21%, to a record 1,086,663 Ag eq oz, due to a
combination of higher grades and recoveries. The increases in
grades and recoveries were achieved from more selective mining and
a controlled blending of the run of mine ore with stockpiled
ore.
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Topia Operations
Summary
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Q4
2017
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Q4
2016
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Change
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FY
2017
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FY
2016
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Change
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Ore processed (tonnes
milled)
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17,500
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11,351
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54%
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53,745
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55,836
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-4%
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Silver equivalent
ounce production 1, 2
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341,129
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181,421
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88%
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1,086,663
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897,886
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21%
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Silver ounce
production
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182,015
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113,156
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61%
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595,720
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574,031
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4%
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Gold ounce
production
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325
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136
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139%
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999
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612
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63%
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Lead production
(tonnes)
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441
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213
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106%
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1,291
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1,034
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25%
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Zinc production
(tonnes)
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551
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315
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75%
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1,758
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1,496
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17%
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Ag grade
(g/t)
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352
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349
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1%
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376
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354
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6%
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Au grade
(g/t)
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0.95
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0.63
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51%
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0.89
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0.56
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57%
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Ag recovery
(%)
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91.8%
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88.8%
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3%
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91.7%
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90.4%
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1%
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Au recovery
(%)
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60.8%
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59.4%
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2%
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65.3%
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60.6%
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8%
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(1)
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Silver equivalent
ounces for 2017 were calculated using a 70:1 Ag:Au 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.
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(2)
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Silver equivalent
ounces for 2016 were calculated using a 70:1 Ag:Au 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.
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As announced last month, the Company obtained all permits for
the Phase II tailings storage facility ("TSF") from the
environmental authority and construction has since commenced.
In the meantime, tailings continue to be deposited at the Phase I
facility which has sufficient capacity to allow for an orderly
transition to the new Phase II TSF.
OUTLOOK
For 2018, production is expected to be in the range of 4.0 to
4.1 million Ag eq oz (at a 70:1 silver to gold ratio). Cash
cost per silver ounce ("cash cost") and all-in sustaining cost per
payable silver ounce ("AISC") guidance for 2018 is US$5.00 – 6.50 and US$12.50 – 14.50, 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 by-product credits.
The focus for 2018 will be to maintain 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 early stage of
evaluation, based upon historic production records, Coricancha has
the potential to add 3 million Ag eq oz of annual
production.
Last month, the Company announced an updated NI 43-101 Mineral
Resource Estimate for Coricancha which was acquired in June of
2017, and is currently on care and maintenance. The Company
is completing optimization studies and evaluating alternative
mining methods to reduce costs and project risk, and plans to
release additional technical studies for the project in the second
quarter of 2018.
The Company also expects to release an updated NI 43-101 Mineral
Resource Estimate for the GMC later this month.
The technical information contained in this news release has
been reviewed and approved by Matthew
Wunder, P. Geo., 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 NI 43-101.
Aspects relating to mining and metallurgy are overseen by
Ali Soltani, Chief Operating Officer
for Great Panther.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver 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'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 in Durango. 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.
James Bannantine
President & CEO
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, the Company's production guidance and
ability to meet its production guidance, expectations of cash cost
and AISC. Forward looking statements expressed in this news
release also include expectations of completing construction of the
Phase II Tailings Storage Facility on time and, generally, any
statements made under the heading "Outlook" above.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which 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, permitting and environmental risks involving
the Company's operations in foreign jurisdictions, technical and
operational difficulties that may be encountered with reactivation
of the Coricancha Mine, uncertainty of production and cost
estimates and the potential for unexpected costs and expenses,
uncertainty in mineral resource estimation, physical risks inherent
in mining operations, currency fluctuations, fluctuations in the
price of silver, gold and base metals, completion of economic
evaluations or resource estimates, exploration results being
indicative of future production of its properties, changes in
project parameters, and other risks and uncertainties, including
those described in the Company's Annual Information Form for the
year ended December 31, 2016 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.
SOURCE Great Panther Silver Limited