NYBob
13 years ago
Great Panther Silver Reports Improved Fourth Quarter Production
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2012) -
GREAT PANTHER SILVER LIMITED -
(TSX:GPR)(NYSE Amex:GPL) (the "Company") reports fourth quarter
("Q4") and annual production at its two wholly-owned Mexican
silver mining operations, Guanajuato and Topia.
Metal production for Q4 increased from Q3 by 13% to 545,294
silver equivalent ounces ("Ag eq oz").
For the year, metal production totaled 2,200,013 Ag eq oz;
including record gold production of 8,015 oz.
This is in line with the revised production guidance provided
in October 2011.
The following summarizes the production results and highlights for Q4, 2011:
Metal production of 545,294 Ag eq oz, up 13% from previous quarter
Silver production of 354,754 ounces ("Ag oz"), up 3% from previous quarter
Gold production of 2,281 ounces ("Au oz"), up 53% from previous quarter
Ore grades improved at Guanajuato, to 235g/t Ag and 2.12g/t Au, in November and December, the highest since September, 2010
Deep Cata development yielded 6,300 tonnes at 482g/t Ag and 1.83g/t Au
Santa Margarita drilling, stoping on 400 metre level and new 455 metre level development confirms ore continuity with gold values ranging from 7.5g/t to 9.0g/t
Guanajuatito drilling extends new resource area for 400 metres down dip to the 390 metre level
Concentrate backlog at Guanajuato all sold
New General Manager for Guanajuato appointed
Record mining and plant throughput at Topia of 12,056 tonnes, up 33% from Q4, 2010
Ore processed in Q4, at 52,170 tonnes, is up 8% compared to Q4, 2010 and, for the year, at 216,180 tonnes, is up by 19%. Metal production for Q4, at 545,294 Ag eq oz, improved by 13% over the third quarter, 2011, but was down by 4% compared to Q4, 2010. Metals produced include 354,754 Ag oz, 2,281 Au oz, 467,000 pounds lead ("Pb lbs"), and 721,500 pounds zinc ("Zn lbs").
As anticipated, Guanajuato ore grades, at 207g/t Ag and 1.84g/t
Au improved significantly compared to the previous quarter
(175g/t Ag and 1.12g/t Au).
Development of the Deep Cata ore zones at the 510 metre level
commenced towards the end of October and the average grades of
all ore processed at Guanajuato in November and December jumped
to 235g/t Ag and 2.12g/t Au.
To date, development has commenced on six separate high grade
veins/structures and ore processed from this development
contributed approximately 29% of the total metal production
from Guanajuato.
As development advances further and stoping commences, metal
production from this area will continue to increase, supporting
the improved production guidance of 2.50 to 2.75 million Ag eq
oz for 2012.
For the year, the combined metal production for both operations
was 2.2 million Ag eq oz.
The metals produced include 1,495,371 Ag oz (a decrease of 3%,
year on year), a record 8,015 Au oz (an increase of 11%, year
on year),
2,073,600 Pb lbs (a decrease of 14%, year on year), and
2,898,750 Zn lbs (a decrease of 3%, year on year).
The Company has sold all available concentrate inventories from
Guanajuato and is well advanced in securing new contracts for
fiscal 2012 concentrate sales for both
the Guanajuato and Topia Mines.
This will ensure strong fourth quarter revenues which will
balance out the previous revenue shortfall in the second
quarter.
The following summarizes the results and highlights for Fiscal 2011 (compared to 2010):
Achieved revised metal production target of 2.2 million Ag eq oz (down 2%)
Silver production of 1,495,371 oz (down 3%)
Record gold production of 8,015 oz (up 11%)
Record silver production at Topia of 535,881 oz (up 4%)
Record gold production at Guanajuato of 7,515 oz (up 14%)
Record metallurgical recoveries at Guanajuato of 88.5% for Ag and 90.7% for Au (up 1% and 2%, respectively)
Mining and plant throughput at Guanajuato of 169,213 tonnes (up 17%, year on year)
Record mining and plant throughput at Topia of 46,967 tonnes (up 23%, year on year)
San Ignacio Project diamond drilling (17,313 metres) indicates multiple veins with widths up to nine metres
Initial NI43-101 compliant Mineral Resource published for
San Ignacio of 4.5 million Ag eq oz (611,000 tonnes grading
127g/t Ag and 2.05g/t Au)
(For consistency, silver equivalents for 2011 were established
and maintained using budget prices of US$1,200/oz Au, US$20/oz
Ag, US$0.90/lb Pb and Zn.)
Guanajuato Mine Complex
For the quarter, the Guanajuato operation processed 40,114 tonnes, up 3% from Q4, 2010, at ore grades of 207g/t Ag and 1.84g/t Au. This is a significant improvement from the previous quarter and within 2% of the combined ore grades for Q4, 2010. Metal production included 237,572 Ag oz and 2,145 Au oz, or 366,286 Ag eq oz, which was up 28% from the previous quarter and down just 1% from Q4, 2010. Plant metallurgical performance remained strong, with metal recoveries of 89.1% for silver and 90.3% for gold.
For the year, 169,212 tonnes were processed at ore grades of 199g/t Ag and 1.52g/t Au. Metals produced totaled 959,490 Ag oz (down 6% from 2010), plus 7,515 Au oz (up 14% from 2010 and a record), or 1,410,404 Ag eq oz (down 2% from 2010). The significant improvement in ore grades for the quarter resulted from the initiation of development of the high-grade Deep Cata area and from improved gold production from the Santa Margarita vein. Plant metallurgical performance was excellent with record recoveries of 88.5% for Ag and 90.3% for Au compared to 88.5% and 88.6%, respectively in 2010.
A new General Manager, Mr. Graham Parsons, MBA, was appointed in October for the Guanajuato Operations. Mr. Parsons is fluent in Spanish, having worked in underground operations and open pit projects in Spain, Argentina and Venezuela. He brings a wealth of international mine engineering and operations management experience to Great Panther. Most recently, he held the position of COO for Empire Mining Corporation, a junior exploration and mining company with interests in South-Eastern Europe. Several opportunities exist to improve production output at Guanajuato and Mr. Parsons is already adding his mining expertise and management skills necessary to influence positive change.
Development of Deep Cata, at the 510 metre level, exposed six, discreet, high-grade veins/zones: Veta Madre, Contact, Alto 1, Alto 1a, Alto 2, and Alto 2a. The geology of this area is complex and required additional, closely spaced diamond drilling in order to facilitate the interpretation and 3-D modelling of each separate vein. Ore mined from the development of these veins totaled 6,300 tonnes, at grades of 482g/t Ag and 1.83g/t Au, and contributed almost 30% of the total metal production. Development is continuing, leading to stoping in the first quarter 2012 and improved metal production throughout 2012.
Production from the gold-rich Santa Margarita vein also improved significantly. Stoping at the 400 metre level accounted for 3,300 tonnes at grades of 8.93g/t Ag and 50g/t Ag while new exploratory development on the 455 metre level produced 845 tonnes at 7.47g/t Ag and 87g/t Ag. Access to the 475 metre level and the two additional, sub-parallel footwall veins (SMBo1 and 2) will be established in the first quarter. Further increases in gold production are expected from Santa Margarita throughout 2012.
Production from the lower grade, Los Pozos zone continued with modest grade improvements evident in two of the three production levels. Ore produced totaled almost 16,000 tonnes at grades of 183g/t Ag and 0.75g/t Au. Further improvements in ore quality are expected in the first quarter of 2012.
Production stoping of the Guanajuatito North Zone continued from the 120 metre level with ore production totaling 2,730 tonnes at improved grades of 196g/t Ag and 0.98g/t Au. Ramp access has been extended to the 160 metre level and initial stope development is underway.
The Guanajuato plant achieved very satisfactory silver and gold recoveries of 89.1% and 90.3%, respectively, while the concentrate quality improved to 10,910g/t Ag and 98.5g/t Au. Additional improvement modifications are being made to the plant and continuous improvement in metallurgical performance is expected in 2012.
The Company has sold all available concentrate inventories from Guanajuato and is well advanced in securing new contracts for fiscal 2012 concentrate sales. The sales of the backlog will ensure strong fourth quarter revenues which will balance out the previous revenue shortfall in the second quarter.
In addition, underground diamond drilling at Guanajuato totaled 5,544 metres, with 55 holes completed during the quarter. For the year, 169 holes were drilled for a total of 26,546 metres.
Drilling in the fourth quarter tested the potential of the:
Los Pozos area - four holes completed for 789 metres,
Valenciana area - five holes completed for 988 metres,
Guanajuatito North Zone area - six holes completed for 1,562 metres,
Santa Margarita area - 19 holes completed for 1,633 metres,
Deep Cata area - 14 holes completed for 517 metres,
Others - seven holes completed for 247 metres.
The Deep Cata short-hole drilling continued to help define the extensions to the six high grade veins between the 500 and 530 metre levels. Refer to Company news release dated August 30, 2011.
Deeper drilling at Guanajuatito has defined new mineralization over a strike length of approximately 100 metres and 300 metres vertically (approximately 400 metres down the dip). Drilling is being conducted from drill stations located at or near the 120 metre level in a hanging wall cross-cut ramp. Two mineralized zones are interpreted from the data - the Veta Madre zone, and a slightly deeper Footwall zone. Typically, the mineralized portion of the zones pinches and swells with true widths varying from less than one metre to 5.38 metres. Intersections of the Veta Madre include assays of 268g/t Ag and 0.91g/t Au over a true width of 3.36 metres in UGG11-045. Intersections of the Footwall zone include assays of 1,493g/t Ag and 13.28g/t Au over a true width of 5.38 metres in UGG11-029, and 866g/t Ag and 2.92g/t Au over a true width of 1.14 metres in UGG11-047.
Results from exploratory and ore definition drilling at Santa Margarita include intersections on the main structure of 44.76g/t gold and 46g/t silver over a true width of 1.14 metres in drill hole UGSM11-005. The SM footwall 1 (SMBo1) stockwork zone is located adjacent to or within four to eight metres below the Santa Margarita structure. Intersections on the SMBo1 zone include 17.15g/t Au and 36g/t Ag over a true width of 3.28 metres in UGSM11-003. The SM footwall 2 (SMBo2) stockwork zone is located about 20 metres below the Santa Margarita structure. Intersections on the SMBo2 zone include 6.04g/t Au and 7g/t Ag over a true width of 1.74 metres in UGSM11-007. Refer to Company news release dated November 30, 2011 for more details on Guanajuatito and Santa Margarita drilling.
Topia Mine
For the quarter, the Topia operation reported metal production of 117,182 Ag oz, 136 Au oz, 467,000 Pb lbs, and 721,500 Zn lbs from milling 12,056 tonnes of ore, up by 33% from Q4, 2010 and a quarterly processing record. This equates to 179,008 Ag eq oz, which is 8% down from Q4, 2010.
For the year, Topia reported metal production of 535,881 Ag oz (a record), 500 Au oz, 2,073,600 Pb lbs and 2,898,750 Zn lbs, from milling 46,968 tonnes of ore, up by 23% from 2010 and a record. In terms of silver equivalents, this equates to 789,609 Ag eq oz, 4% less than in 2010. The average grades of ore processed were 400g/t Ag, 0.41g/t Au, 2.13% Pb and 3.05% Zn and plant metallurgical performance, with metal recoveries of 88.7% for Ag; 80.1% for Au; 94% for Pb; and 91.7% for Zn, were satisfactory.
In Q4, metal production was down in spite of processing a quarterly record throughput due to lower ore grades of 345g/t Ag, 0.44g/t Au, 1.85% Pb and 2.97% Zn. In terms of Ag eq oz per tonne milled, the grades were 27% down against the grades for Q4, 2010.
Plant metallurgical performance was satisfactory, according to the lower ore quality. Silver recovery was 87.7%, gold recovery was 79.2%, lead recovery was 95.0% and zinc recovery was 91.3%. Lead concentrate grades of 52.83% Pb and 8,528g/t Ag were achieved while the zinc concentrate averaged 53.60% Zn and 619g/t Ag. In addition to processing the Company's ore, 4,231 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down. The crushing and flotation sections of the processing plant are being modified through the next two quarters to further improve capacity to approximately 300 tonnes per day, from 220 tonnes per day in 2011. The flotation circuit improvements are now complete and the crushing section modifications will be completed by end of the second quarter.
The lower overall ore grades have resulted from lower vein grades encountered in the San Gregorio, El Rosario and El Ochenta vein operations, which account for approximately 43% of Topia's production. Recent vein sampling has indicated an improvement in ore quality and this, together with planned increases in production from the Argentina vein, is expected to lead to higher overall grades in the first quarter of 2012.
Exploratory development to access the veins at the 1,630 metre elevation (Mina 5) has proved successful but initially with lower quality ore. At the Durangueno mine, the San Gregorio vein is being mined at the 1,475 and 1,510 metre elevations. As there are currently limited Mineral Resources defined there and no previous exploitation between the 1,475 and 1,660 metre elevations, these developments will provide for additional production and add new Mineral Resources.
Exploratory development at the La Prieta mine is successful and 1-yard underground loaders are being acquired for the anticipated production mining. This is a past producing mine with modest Inferred Mineral Resources and large exploration potential. The expansion of production in this new mine will contribute to the overall increase in production expected in 2012.
At the Argentina mine, ramp development has been completed to the third level, providing access for exploratory development in a new area of Inferred Mineral Resources. Production mining from this level will also contribute to an increase in production for 2012.
A total of 669 metres of underground diamond drilling was completed in 22 diamond drill holes. Drilling was carried out to test for additional resources on many vein structures including Animas, Don Benito, Veta Madre, San Jorge, Cantarranas, Hormiguera, Argentina, Santa Cruz and Santa Bibiana.
For the year, 59 underground drill holes were completed for a total of 2,767 metres.
The surface drilling program continued with the completion of six diamond drill holes in the fourth quarter for a total of 1,152 metres. All six holes targeted veins at the La Prieta mine.
For the year, 10 surface drill holes were completed for a total of 1,759 metres.
San Ignacio Project
The San Ignacio Project covers approximately four kilometres of strike length on the La Luz vein system, which is parallel to, and five kilometres west of, the principal Veta Madre structure that hosts Great Panther Silver's main Guanajuato mines.
An initial, NI 43-101 compliant, Mineral Resource estimate has been published (see Company news release of October 11, 2011). The estimate comprises Inferred Mineral Resources of 611,000 tonnes at 127g/t silver and 2.05g/t gold (4,494,000 Ag eq oz), using a 118g/t Ag eq cut-off grade. A Mineral Resource update is expected towards the end of Q2, 2012.
Diamond drilling has continued in Q4 with the completion of 26 holes for a total of 5,494 metres. For the year, 58 holes were completed for 17,313 metres over a strike length of only 450 metres.
An update on recent results was provided in Company news release of December 05, 2011. Highlights of the Intermediate Zone intercepts included 213g/t Ag and 5.12g/t Au over a true width of 3.26 metres, and 201g/t Ag and 6.34g/t Au over a true width of 4.96 metres in ESI11-039 (section 450N). These two intersections are separated by a void with a true width of approximately 0.7 metres that is possibly an old mine working from the 1800s implying a vein width of almost nine metres from which only a very narrow portion has been previously mined. On section 700N, drill-hole ESI11-048 intersected 296g/t Ag and 1.28g/t Au over a true width of 3.86 metres.
The Nombre de Dios vein intercepts demonstrate a thickening of the vein on section 600N, with an intersection of 106g/t Ag and 2.11g/t Au over a true width of 5.15 metres in ESI11-044 (section 600N). Drilling intercepts on the Melladito vein included 198g/t Ag and 2.26g/t Au over a true width of 3.69 metres in ESI11-048 (Section 700N).
Presently, and through to February 2012, the drill rig is completing fill-in holes to upgrade the mineral resource estimate, anticipated near the end of the second quarter of 2012. Drilling will be extended south of section 450N for approximately 800 metres, northwards of section 900N for approximately 300 metres, and to initially test a 600 metre strike portion on the southern San Antonio claim.
Outlook
Metal production from both Guanajuato and Topia in 2011, at 2.20 million Ag eq oz, was lower than initially expected, primarily as a result of lower ore grades encountered at both operations. As we enter 2012, there are a number of positive developments:
At Guanajuato:
Ore mined and processed in 2011 increased by 17% to almost 170,000 tonnes. The plan for 2012 includes a further increase of 18% to 200,000 tonnes. The plant has ample capacity for over 300,000 tonnes.
Ore grades have already improved in the latest two months, to 235 g/t Ag and 2.12g/t Au (25% higher than the average for 2011), since mining of the high grade Deep Cata and the deeper parts of the gold-rich Santa Margarita ore bodies was initiated. Further expansions of production from these areas are planned in 2012.
At Topia:
Ore mined and processed in 2011 increased by 23% to almost 47,000 tonnes (plus 13,000 tonnes for custom milling). The plan for 2012 includes a further increase of 17% to 57,000 tonnes (plus 13,000 tonnes for custom milling). Improvement modifications have been made to accommodate in excess of 75,000 tonnes.
Ore grades are expected to improve to the 400g/t Ag range in 2012. Recent vein sampling on the San Gregorio and El Rosario operations has indicated an improvement in ore quality and this, together with planned increases in production from the Argentina vein, will lead to the improved grades.
Improvement modifications, including additional flotation cells, have been completed to facilitate the 2012 capacity increase with improved metallurgical performance. The capacity of the processing plant is being further increased over the next six months to approximately 300 tonnes per day (up from 220 tonnes per day in 2011).
Exploration & Development:
San Ignacio: A NI 43-101 compliant initial Mineral Resource Estimate of 4.5 million Ag eq oz was released after drilling 24 diamond core holes. Metres drilled have more than doubled to date and a resource update is expected by the end of Q2, 2012. The San Ignacio Project is expected to realize its potential during 2012 with an intensive exploration and mine development program being planned and will no doubt add to the growth potential for 2013.
Santa Rosa: After a mechanical breakdown on the diamond drill at Valenciana delayed the start of the Santa Rosa program, it is now scheduled to begin in Q1, 2012.
The Company expects metal production growth of approximately 20% year on year from its two wholly owned Mexican silver operations. The Company estimates metal production in the range of 2.50 to 2.75 million silver equivalent ounces for fiscal 2012.
In terms of contained metals, the Company's estimated ranges for 2012 are as follows:
Silver: 1.72 to 1.90 million ounces, up from 1.495 million ounces in 2011
Gold: 10,000 to 11,000 ounces, up from 8,015 ounces in 2011
Lead: 2.50 to 2.80 million pounds, up from 2.07 million pounds in 2011
Zinc: 3.30 to 3.60 million pounds, up from 2.90 million pounds in 2011
(Silver equivalents for 2012 have been established using prices of US$1,680/oz Au; US$28/oz Ag; and US$0.85/lb for Pb and Zn).
Robert F. Brown, P.Eng., Vice President of Exploration for the Company is the Qualified Person for both the Guanajuato Mine Complex and the Topia Mine, under the meaning of NI 43-101. Aspects of both mines relating to mining and metallurgy are overseen by Charles Brown, Chief Operating Officer for Great Panther Silver and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
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 the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and 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 risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2010 and reports on Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
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NYBob
13 years ago
GPL 2011 SECOND QUARTER HIGHLIGHTS
• Closed equity offering for gross proceeds of $24.2 million on April 12, 2011.
• Cash and cash equivalents of $37.7 million at June 30, 2011.
• 8% decrease in revenue to $8.6 million for the quarter ended
June 30, 2011 from $9.3 million for the same period in 2010.
• 39% increase in revenue to $24.0 million for the six months
ended June 30, 2011 from $17.0 million for the same period in
2010.
• 15% increase in gross profit (earnings from mining operations)
to $4.0 million for the three months ended June 30, 2011 from
$3.4 million for the same period in 2010.
• 43% decrease in net income to $2.5 million for the quarter
ended June 30, 2011 from $4.4 million for the same period in
2010, due to a one-time deferred income tax recovery of $3.1
million in 2010.
• 25% increase in Adjusted EBITDA(3) to $3.1 million for the
three months ended June 30, 2011 from $2.5 million for the
three months ended June 30, 2010.
• 2% decrease in overall metal production to 562,944 silver
equivalent ounces ("Ag eq oz") for the quarter ended June 30,
2011 from 574,740 for the same period in 2010.
• 6% decrease in silver production from 410,583 for the quarter
ended June 30, 2010 to 386,210 Ag oz for the quarter ended
June 30, 2011.
• 31% increase in gold production to 1,931 Au oz for the three
months ended June 30, 2011 compared to 1,474 Au oz for the same
period in 2010.
• 3% increase in overall metal production at Topia for a
quarterly record of 212,108 Ag Eq oz as compared to the same
period in 2010.
• 18% increase in silver production at Topia for a quarterly
record of 143,774 Ag oz as compared to the same period in 2010.
• 30% increase in plant throughput at both operations to 56,643
from 43,555 tonnes for the three months ended June 31, 2011
and 2010, respectively.
Exploration drilling continues from surface at San Ignacio
and from underground at Rayas and Guanajuatito in Guanajuato.
• 54% increase in cash cost per silver ounce, net of by-products,
for the second quarter of 2011 to US$11.84 from US$7.70
for the second quarter of 2010. Cash costs are higher due
to the impact of higher metal prices and lower ore grades
while site unit costs per tonne of ore processed remain
unchanged.
• Joined the Russell Global Index and the Market Vectors Junior
Gold Miners Index raising the Company profile with investment
managers and institutional investors.
• On July 12, 2011, purchased the new Santa Rosa silver-gold
project totalling 1,514 hectares, approximately 10 to 15
kilometres northeast of Guanajuato, Mexico for US$1.5 million,
increasing land holdings in Guanajuato by 136%.
(1) Silver equivalent ounces in 2011 were established using
prices of US$1,200 per oz of gold, US$20 per oz of silver,
US$0.90 per lb of lead, and US$0.90 per lb of zinc.
(2) "Cash cost per ounce" is a non-IFRS measure and is used
by the Company to manage and evaluate operating performance
at each of the Company's mines and is widely reported in
the silver mining industry as a benchmark for performance,
but does not have a standardized meaning.
(3) "Adjusted EBITDA" is a non-IFRS measure in which standard
EBITDA (earnings before interest expense, taxes, and
depreciation and amortization) is adjusted for stock-based
compensation expense and non-recurring items.
Refer to the "Non-IFRS Measures" section of management's
discussion and analysis for the three and six months
ended June 30, 2011 for a reconciliation of standardized
and adjusted EBITDA to the financial statements.
2011 OUTLOOK
As we reach the mid-point of our three-year growth strategy
(2010 – 2012), production from both operations continues
to grow, plant capacities have been increased to meet
the anticipated demand, mineral resources are being updated
and increased, and exploration drilling is being increased.
The new NI 43-101 Mineral Resource estimates for San Ignacio
and Guanajuatito are being prepared for release later this
year while the resources for other areas of Guanajuato will
be updated as new drilling data is interpreted.
The anticipated development of the San Ignacio Property
combined with the improved mineral resources at Guanajuato
and Topia support ongoing growth and increased throughput.
Operating efficiencies will allow for further increases such
that production upside will remain at both mines.
The recent drop in ore grades at both operations is being
addressed as the cost per ounce at both mines is sensitive
to grade.
The 2012 mine plans will be confirmed once the drill results
for the current programs have been interpreted, and mineral
resources are updated.
In response to delays in shipments of concentrate from our
Guanajuato mine stemming from technical reasons with our
metal trader's smelter, we have been working directly with
the trader and other concentrate purchasers in order to sell
the balance.
Consequently, we have reached a new agreement, with another
mine operator in Mexico, whereby they will start processing
Guanajuato concentrates on a monthly basis.
We expect that this new arrangement, together with the
existing contract, will allow us to sell the concentrate
inventory on hand at Guanajuato through the balance of 2011.
Teleconference to Review Second Quarter 2011 Financial Results
The Company will hold a conference call to discuss the
financial results tomorrow, August 12, at 7:00 AM Pacific
Time, 10:00 AM Eastern Time.
Hosting the call will be Mr. Robert Archer, President and
Chief Executive Officer and Mr. Martin Carsky, Executive
Vice President and Chief Financial Officer.
We welcome interested shareholders, analysts, investors
and media to join us in the live conference call by dialing
just prior to the starting time.
Dial in number (Toll Free): 1-877-407-9205
Dial in number (International): +1-201-689-8054
No passcode is required
Replay number (Toll Free): 1-877-660-6853
Replay number (International): +1-201-612-7415
Replay Passcodes (both are required for playback):
Account #: 286
Conference ID #: 377042
A replay of the teleconference call will be available until
August 26, 2011 by dialing the numbers above.
In addition, the call will be archived in the Company's website.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a profitable, primary silver mining and exploration company listed on the Toronto Stock Exchange, trading under the symbol GPR and on the NYSE Amex, trading under the symbol GPL. The Company's current activities are focused on the mining of precious and base metals from its two wholly-owned operating mines in Mexico. In addition, the Company is also pursuing acquisition opportunities throughout Latin America to add additional mines to its portfolio of properties. Great Panther's mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals.
All shareholders have the ability to receive a hard copy of the Company's complete audited financial statements free of charge upon request. Should you wish to receive Great Panther Silver's Financial Statements or the Annual Report on Form 20-F in hard copy, please contact us at the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
Robert A. Archer, President CEO
Kaare G. Foy, Executive Chairman
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NYBob
13 years ago
Great Panther Silver Reports Second Quarter Production
Jul. 12, 2011 (Marketwire Canada) --
VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED -
(TSX:GPR)(NYSE Amex:GPL)(the "Company") reports second quarter ("Q2")
production at its two wholly-owned Mexican silver mining
operations, Topia and Guanajuato.
Metal production from the two mines, at 562,944 silver equivalent
ounces ("Ag eq oz"), including 386,209 ounces silver,
1,931 ounces gold,
266 tonnes lead,
and 348 tonnes zinc,
is within 2% of production for the second quarter 2010.
Plant throughput is up by an average of 30% compared to Q2 2010,
however, ore grades were lower than anticipated.
Record quarterly metal production of 212,108 Ag eq oz was
achieved at Topia, including record silver production of
143,774 silver ounces ("Ag oz").
For the year to date, the combined metal production, at 1.17 million Ag eq oz,
is up 6% from a year ago and the production rate is expected
to increase further in the second half of the year.
The following summarizes the main highlights for the second
quarter, 2011:
* Metal production of 562,944 Ag eq oz is down 2% from Q2, 2010.
* Silver production of 386,209 Ag oz is down 6% from Q2, 2010.
* Gold production of 1,931 Au oz is up 31% from Q2, 2010.
* Metal production at Topia of 212,108 Ag Eq oz is up
3% from Q2, 2010 and is a quarterly record.
* Silver production at Topia of 143,774 oz Ag is up
18% from Q2, 2010 and is a quarterly record.
* Plant throughput at both operations is up by a record 30%
over Q2 2010.
* Exploration drilling continues from surface at
San Ignacio and from underground at Rayas
and Guanajuatito in Guanajuato.
* Surface drilling program for Topia to start
in the near term.
(For consistency, silver equivalents for 2011 have been
established and maintained using budget prices of US$1200/oz Au,
US$20/oz Ag, US$0.90/lb Pb and Zn.)
Guanajuato Mine
Metal production at Guanajuato in Q2 was down over the previous
quarter primarily due to lower mined grades and, to a lesser
degree, to the installation and commissioning of a new flotation
circuit in the plant.
The Guanajuato operation processed 44,748 tonnes
(up 30% from Q2 2010), at ore grades of 1.38g/t Au
and 193g/t Ag (down 26% from Q2 2010), to produce 1,807 Au oz
and 242,436 Ag oz, or 350,836 Ag eq oz
(down 5% from Q2 2010).
The plant throughput includes old surface dump material hauled
from the San Ignacio Property totaling 4,437 tonnes at low
ore grades of 0.45 g/t Au and 66 g/t Ag to produce 8,323 Ag eq oz.
Despite the lower grade of this material, it was processed
to check the metallurgy of San Ignacio mineralization,
with positive results.
The Guanajuato plant achieved excellent gold and silver recovery
of 90.8% and 87.4%, respectively.
The planned installation of five new, 5.0 cubic metre Outotec
flotation cells, including an automated control system, was
completed and commissioned in May together with a third set
of Krebs cyclones.
Metallurgical performance improved in June and is expected
to improve further as ore quality improves.
The market for high grade precious metals concentrate sales
became more difficult during the quarter as a result of a global
surplus of concentrates due to the general upsurge in mine
production in response to higher metal prices.
Great Panther has secured a contract to sell the Guanajuato
concentrates through a trader to an overseas smelter.
However, the smelter has an oversupply of concentrates and has
reduced the quantity of purchases, such that inventories of
unsold concentrates at Guanajuato were higher than normal at
the end of the quarter.
While this will influence second quarter revenue, it is
considered to be a short-term issue and negotiations with
alternative buyers are being pursued.
Cata Clavo production improved and contributed 38% of total metal
production from 14,000 tonnes at ore grades of 1.11g/t Au
and 266g/t Ag.
Development on the new 510 metre level will access both the Alto
1 and Veta Madre zones in Q3 to provide additional stoping areas
for higher production at higher than average ore grades.
Production stoping of the Santa Margarita vein progressed well
at the planned 50 tonnes per day ("tpd"), although gold grades
of the ore extracted were lower than previous quarters,
at 5.1g/t Au.
Production from this vein will be increased by year end when
a second production level is established on the 475 metre level.
Production from the Los Pozos area on the 310, 345 and 380 metre
levels progressed, with ore production at 225 tpd,
and contributed 37% of total metal production from 16,700 tonnes
at estimated grades of 0.93g/t Au and 215g/t Ag.
These grades are below those expected from channel sampling,
and steps are being taken to improve grade control in this area.
Mining efficiencies are also being improved and an access
decline ramp is being driven to establish a fourth production
level.
Exploratory diamond drilling from the 390 metre level has
intercepted the orebody below this level and deeper exploratory
drilling will probe the Los Pozos zone down to
the 500 metre level.
The ramp haulage system is being upgraded and extended to the
Cata shaft ore loading pocket such that, as of August,
the inclined hoisting shafts of both Rayas and Cata will
be redundant, thereby eliminating current bottlenecks
to production efficiency.
Stoping of the Guanajuatito North Zone continued from the 120 metre
level with ore production totaling 2,000 tonnes at grades
of 0.90g/t Au and 167g/t Ag. Ramp access is being extended
to the 160 metre level where diamond drilling has indicated
an extension of the orebody.
Underground diamond drilling at Guanajuato totaled 7,137 metres,
with 36 holes completed during the quarter.
Drilling tested:
(1) the potential of the Deep Rayas area - 3,654 metres,
(2) the Guanajuatito Zona Norte area - 2,779 metres,
(3) the Valenciana area - 413 metres,
and (4) the Los Pozos area - 291 metres.
Results to date are being compiled and will be announced
in due course.
During the third quarter, it is expected that the Deep Rayas
drill rig will move to the Los Pozos area and then on
to Valenciana exploration.
The Valenciana area is currently being rehabilitated
and drill stations established in order to accommodate
the deep drilling program.
Drilling to explore the Guanajuatito area will continue,
an additional rig will drill the Santa Margarita inferred
resource area and a new, smaller rig will drill
the deeper resource area of Cata.
Meanwhile, underground development continues, providing
additional diamond drill stations for the Santa Margarita,
Deep Valenciana and Guanajuatito areas.
Underground diamond drilling is being accelerated in
the third and fourth quarters.
Topia Mine
The Topia operation reported metal production
of 143,774 oz of silver (a record),
124 oz of gold,
586,136 lbs of lead,
and 768,282 lbs of zinc, from milling 11,895 tonnes of ore.
This equates to 212,108 Ag eq oz, also a quarterly record,
which is 6% higher than the previous quarter and 3% higher
than Q2 2010.
Ore grades averaged 418g/t Ag, 0.40g/t Au, 2.34% Pb and 3.18% Zn.
Thanks to the recent expansion of the Topia plant,
a quarterly record of 11,895 tonnes was processed
from the Company's mines in the district.
Metallurgical performance resulted in excellent recoveries
of all metals.
Gold recovery was 81.6%, silver recovery was 89.9%,
lead recovery was 95.5% and zinc recovery was 92.2%.
Lead concentrate grades of 53.33% Pb and 8,463g/t Ag were
achieved while the zinc concentrate averaged 52.89% Zn
and 674g/t Ag.
In addition to processing the Company's ore, 3,170 tonnes
were custom milled for a local miner, thereby increasing
revenue and keeping unit costs down.
Mine development continued to extend known areas and provide
access to new mining areas.
At the San Gregorio/El Rosario vein operations, a surface road
has been established to provide access to the veins at the 1630
metre elevation which is 30 and 50 metres, respectively,
below the current workings.
At the Durangueno mine, the San Gregorio vein is being explored
and prepared for production on the 1475 elevation.
As there are limited mineral resources and no previous
exploitation between the 1475 and 1660 metre elevations,
these developments will provide for additional production in
the second half of the year and add new mineral resources.
Preparations continue at the La Prieta mine.
Ore and waste handling facilities have been established and
the main haulage route is being widened and rehabilitated.
This is a past producing mine with modest mineral resources
and large exploration potential, and is expected
to add silver production by year end.
A total of 1,020 metres of underground diamond drilling
was completed in 20 diamond core holes.
Drilling was carried out to test for additional resources on
the possible east extension of the Don Benito vein, between
1500 and 1534 metre elevations, and on the past producing
Santa Bibiana vein between 1380 and 1460 metre elevations.
Results from the drilling are being used to direct further
exploratory development and, in the case of the Santa Bibiana
vein, to justify the re-opening of a formerly producing mine.
A new surface program of 7,000 metres has been planned and
will start later this month once the rainy season has
brought much needed water to the area.
San Ignacio Property
The San Ignacio mine property covers approximately four
kilometres of strike length on the La Luz vein system,
which is parallel to, and five kilometres west of,
the principal Veta Madre structure that hosts
Great Panther Silver's main Guanajuato mines.
Diamond drilling has continued at San Ignacio, where
silver-gold mineralization was initially intersected in
Q3 2010 and results announced for the first 8 diamond
core holes.
As drilling continued and results were compiled, steps
were taken to prepare an internal NI 43-101 compliant
resource estimate.
However, as a result of a stringent Quality Assurance ("QA")
procedure, it was observed that there was no consistent
correlation between the original and quarter-core check assays
in the first 9 holes.
As such, on May 24, 2011, the Company announced its decision
to postpone the NI 43-101 compliant mineral resource estimate
for the San Ignacio property, pending further drilling.
Visible silver sulphides can be identified in some zones
and certain check assays correlate well with the original
assays while others do not.
Check assaying at ALS Chemex in Vancouver, B.C. and SGS
in Durango has ruled out any laboratory error at the Guanajuato
on-site SGS laboratory.
Quality Control ("QC") core logging and sampling procedures
of the San Ignacio cores have been reviewed by Dave Rennie,
P. Eng, of Roscoe Postle Associates and some modifications
were made, with more rigorous logging and sample
collection protocols now in place.
During the second quarter, 8 diamond drill holes totalling 3,458 metres
were completed.
Re-logging and quarter core sampling of the initial nine drill
holes is on-going.
Three of the recent holes were twins of the initial 9 holes.
Twenty-one holes have now been drilled at San Ignacio,
for a cumulative total of 9,558 metres and drilling is
continuing with one drill rig to delimit the mineralization.
A second drill should arrive by September.
A comparison of the twin holes with the original holes,
as well as continued check assaying is confirming that
extreme short scale variability exists in some places
within the silver-gold epithermal quartz veins at San Ignacio.
Larger diameter HQ core is now being used in order
to increase the sample size.
QA/QC checking is ongoing in order to build a larger
database for statistical analysis.
The Company has decided not to release any further assays
from San Ignacio until the check program is complete,
estimated to be later in the third quarter.
When this has been completed and reviewed the Company
will then proceed with the mineral resource estimate.
As a complement to the drilling, detailed surface
geological mapping and rock sampling continue to
identify further targets.
The Company has started the permit application process,
including preparation of an Environmental Impact Assessment,
in anticipation of a positive decision to establish a mine
portal and drive a decline ramp from surface to access
the veins for underground mining.
During the course of development, any ore from
the San Ignacio mine property
will be trucked to Great Panther's Guanajuato plant
for processing, where the capacity currently exists
to double ore throughput.
Outlook
Great Panther Silver continues to work towards achieving
the goals of its 3-year (2010-12) growth strategy for its
two operations.
Key to the success of the growth strategy is the delineation
of new NI 43-101 compliant Mineral Resources, and drilling
is being accelerated in 2011 to achieve these goals for 2012.
Also, the addition of new production areas, from the increased
development in the first two quarters, and better grade
control are anticipated to lead to increased mine output
and higher grades in the second half of 2011.
New NI 43-101 compliant Mineral Resource estimates by RPA
have been published for both operations.
Resources for Topia support current and future mine expansions
and the plant capacity has been increased to 275 tpd.
Resource estimates for Guanajuato support medium term
production goals and plant capacity has already exceeded
what is required to achieve these.
The published resources did not include estimates
for the Guanajuatito area and the San Ignacio Property.
The NI 43-101 Mineral Resource estimates for San Ignacio
and Guanajuatito are being prepared for release later
this year while the resources for other areas of
Guanajuato will be updated as new drilling data
has been interpreted.
Due to delays in shipments of concentrate from its Guanajuato mine,
inventories at quarter end were higher than normal and
the Company advises that second quarter revenue will be
lower than anticipated.
However, once these sales are realized, revenue will
be positively affected in coming quarters.
The Company sells its concentrates for both the Topia
and Guanajuato mines through contracts with third party
metal traders.
During the second quarter, the principal trader, who
is contractually obligated to take agreed upon concentrate
volumes from Guanajuato, initially advised the Company
that there would be delays in fulfilling their contractual
obligations until later in the quarter, at which time they
would catch up and clear the backlog.
Towards the end of the quarter, they advised that the
delays would persist due to conditions at the smelter.
The Company has been working with this trader continuously
and towards the end of June, was able to arrange for
the sale of a portion but not all of the concentrates.
The sale of concentrates from the Topia mine have been
unaffected by this issue as these are sold to
a different trader.
The Company has also been working directly with other metal
traders and smelters to negotiate new contracts and expects
that any such new arrangements, together with the existing
contract, will allow the Company to sell the concentrate
inventory on hand at Guanajuato through the balance of the year.
Some smelters have sharply increased their refining charges
in response to higher precious metal prices but the Company
has decided to stockpile the concentrate rather than sell
it under these onerous conditions.
"We have been working hard to ensure the continuous delivery
of our Guanajuato concentrates through this period and see
this as a short-term issue which will be resolved over the
next two quarters," stated Robert Archer, Great Panther's
President and CEO.
"While our quarterly revenue might be a bit bumpy until
things smooth out, we have a strong cash position to
weather this issue and have not altered our plans to
increase production."
Robert F. Brown, P.Eng. and Vice President of Exploration for
the Company is the Qualified Person for both the Guanajuato Mine
and the Topia Mine, under the meaning of NI 43-101.
Aspects of both mines relating to mining and metallurgy
are overseen by Charles Brown, Chief Operating Officer
for Great Panther and its Mexican subsidiary,
Minera Mexicana El Rosario, S.A. de C.V.
For further information, please visit the Company's website at
http://www.greatpanther.com.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
This news release contains forward-looking statements --- available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
B&D Capital
604 899 4303 (FAX)
info@greatpanther.com
http://www.greatpanther.com
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64280669
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