TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise
noted)
VANCOUVER, BC, Nov. 23, 2020 /CNW/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the "Company")
has completed updated Mineral Resource estimates for its 100%-owned
Guanajuato Mine Complex ("GMC") in Mexico. These estimates have an effective date
of July 31, 2020 and are based on 199
holes totalling 19,913 metres of drilling since the previous
Mineral Resource estimate.
GMC is comprised of the Guanajuato and San
Ignacio underground mines and the 1,000 tonne-per-day Cata
processing plant, located in the prolific Guanajuato mining district.
Highlights
- Measured and Indicated (M&I) Mineral Resources contain 10.2
million (M) silver equivalent ounces (Ag eq oz), a 17% increase
over the previous 2019 estimate
- M&I Mineral Resource grade increased 10% from 180 to 199
grams per tonne silver (g/t Ag)
- Inferred Mineral Resources contain 18.1M Ag eq oz, more than double the previous
estimate
- At Guanajuato, Inferred
Mineral Resources increased from 2.3M
to 6.0M Ag eq oz, reflecting
successful exploration efforts in the Los
Pozos area
- At San Ignacio, Inferred
Mineral Resources increased from 5.9M
to 12.1M Ag eq oz, reflecting
successful exploration efforts in the Purisima area
Great Panther President and CEO Rob
Henderson commented: "We are pleased to have completed
another productive drilling campaign at GMC, successfully outlining
new resources and demonstrating the quality of the orebody. GMC has
been in our portfolio since 2005 and has cumulatively produced
nearly 30 million silver equivalent ounces for Great Panther. We
also expect to report updated reserve and resource estimates at
Tucano before year end."
Table 1 – Total GMC Mineral Resource Estimates at
July 31, 2020
Classification
|
Tonnes
|
Grade
Ag (g/t)
|
Contained
Ag
(oz)
|
Grade
Au (g/t)
|
Contained
Au (oz)
|
Grade
Ag eq (g/t)
|
Contained
Ag eq (oz)
|
Grade
Au eq (g/t)
|
Contained
Au eq (oz)
|
Measured
|
600,941
|
195
|
3,763,303
|
2.16
|
41,741
|
389
|
7,520,049
|
4.32
|
83,556
|
Indicated
|
220,910
|
209
|
1,483,209
|
1.83
|
12,951
|
373
|
2,651,863
|
4.15
|
29,465
|
Total
M&I
|
821,851
|
199
|
5,246,512
|
2.07
|
54,693
|
385
|
10,171,912
|
4.28
|
113,021
|
Inferred
|
1,453,008
|
185
|
8,664,244
|
2.25
|
105,219
|
388
|
18,109,823
|
4.31
|
201,220
|
|
Notes:
|
1.
|
This consolidated GMC
Mineral Resource estimate includes the estimates of the San Ignacio
and Guanajuato mines. See detailed notes in Tables 2 and 3 below
for the key assumptions, parameters and methods used for each of
the underlying estimates
|
San Ignacio
Compared to the previous Mineral Resource estimate with an
effective date of July 31, 2019,
Inferred tonnage increased 98%, silver grades increased 14%, and Ag
eq oz increased 106%. These changes reflect the use of higher metal
prices, mine depletion, and expansion and addition of zones in the
Purisima vein area due to
successful exploration drilling.
Between August 1, 2019 and
July 31, 2020, a total of 139,583
tonnes were mined at San
Ignacio.
Table 2 – San Ignacio Mineral Resource Estimates at
July 31, 2020
Classification
|
Tonnes
|
Grade
Ag (g/t)
|
Contained
Ag
(oz)
|
Grade
Au (g/t)
|
Contained
Au (oz)
|
Grade Ag
eq (g/t)
|
Contained
Ag eq (oz)
|
Grade Au
eq (g/t)
|
Contained
Au eq (oz)
|
Measured
|
314,802
|
142
|
1,435,252
|
2.64
|
26,746
|
384
|
3,842,386
|
4.27
|
42,693
|
Indicated
|
73,096
|
144
|
338,246
|
2.19
|
5,135
|
349
|
800,416
|
3.87
|
8,894
|
Total
M&I
|
387,898
|
142
|
1,773,498
|
2.56
|
31,881
|
377
|
4,642,801
|
4.19
|
51,587
|
Inferred
|
992,835
|
169
|
5,406,142
|
2.33
|
74,530
|
384
|
12,089,792
|
4.27
|
134,331
|
|
|
Notes:
|
1.
|
Totals may not agree
due to rounding
|
2.
|
Grades have been
estimated in metric units and contained silver and gold estimated
in troy ounces (oz)
|
3.
|
A minimum mining
width of 0.50 metres (m) and a vein bulk density of 2.68
t/m3 were used in the estimates
|
4.
|
Mineral Resources are
estimated at a full cost cut-off net smelter return (NSR) of
US$100/t using metal prices of US$17.64/oz Ag and US$1,694/oz Au
(based on CIBC 2021 forecast) and metallurgical recoveries of 85.5%
for Ag and 83.9% for Au
|
5.
|
Ag eq oz were
calculated using 90:1 Ag:Au ratio. The ratios are reflective of
average metal prices for 2020
|
6.
|
Estimates have an
effective date of July 31, 2020
|
7.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability
|
8.
|
Inferred Mineral
Resources have a great amount of uncertainty as to their existence
and as to whether they can be mined economically. It cannot be
assumed that all or part of the Inferred Mineral Resources
will ever be upgraded to a higher category
|
Guanajuato
Compared to the previous Mineral Resource estimate with an
effective date of October 31, 2019,
M&I tonnage increased 26%, silver grades increased 22%, and Ag
eq oz increased 47%. Inferred tonnage increased 121%, silver grades
increased 31%, and Ag eq oz increased 154%. These changes reflect
the use of higher metal prices, minor mine depletion, significant
changes (up and down) in total operating costs in several mining
areas, and expansion of zones at Los
Pozos due to successful exploration drilling.
Between August 1, 2019 and
July 31, 2020, a total of 23,175
tonnes were mined at Guanajuato.
Table 3 – Guanajuato Mineral Resource Estimates at
July 31, 2020
Classification
|
Tonnes
|
Grade
Ag (g/t)
|
Contained
Ag
(oz)
|
Grade
Au (g/t)
|
Contained
Au (oz)
|
Grade Ag
eq (g/t)
|
Contained
Ag eq (oz)
|
Grade Au
eq (g/t)
|
Contained
Au eq (oz)
|
Measured
|
286,139
|
253
|
2,328,051
|
1.63
|
14,995
|
400
|
3,677,663
|
4.44
|
40,863
|
Indicated
|
147,814
|
241
|
1,144,963
|
1.65
|
7,816
|
390
|
1,851,448
|
4.33
|
20,572
|
Total
M&I
|
433,953
|
249
|
3,473,014
|
1.64
|
22,811
|
396
|
5,529,111
|
4.40
|
61,435
|
Inferred
|
460,174
|
220
|
3,258,101
|
2.07
|
30,689
|
407
|
6,020,031
|
4.52
|
66,889
|
|
|
Notes:
|
1.
|
Totals may not agree
due to rounding
|
2.
|
Grades have
been estimated in metric units and contained silver and gold
estimated in troy ounces (oz)
|
3.
|
A minimum mining
width of 0.50 m and a vein bulk density of 2.64 t/m3
were used in the estimates
|
4.
|
Mineral Resources are
estimated using cut-offs based on the full operating costs per
mining area of US$115/t for Cata, US$115/t for Santa Margarita/San
Cayetano, US$89/t for Los Pozos, US$100/t for Guanajuato, US$125/t
for Promontorio, and US$102/t for Valenciana
|
5.
|
Block model grades
converted to US$ value using plant recoveries of 85.5% Ag, 83.9%
Au, and net smelter terms negotiated for concentrates
|
6.
|
Ag eq oz were
calculated using 90:1 Ag:Au ratio. The ratios are reflective of
average metal prices for 2020
|
7.
|
Metal prices
US$17.64/oz silver, and US$1,694 gold (based on CIBC 2021
forecast)
|
8.
|
Estimates have an
effective date of July 31, 2020
|
9.
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability
|
10.
|
Inferred Mineral
Resources have a great amount of uncertainty as to their existence
and as to whether they can be mined economically. It cannot be
assumed that all or part of the Inferred Mineral Resources will
ever be upgraded to a higher category
|
A technical report will be filed within 45 days on SEDAR at
www.sedar.com, on EDGAR at www.sec.gov/edgar, and on the Company's
website at www.greatpanther.com.
Exploration Update
Since the cut-off date of July 31,
2020 for this Mineral Resource estimate, Great Panther has
drilled an additional 63 holes totalling 9,560 metres. Drilling at
Guanajuato and San Ignacio is continuing with three
underground rigs at Guanajuato
(two in the Los Pozos area and one
in the Valenciana area), and one surface rig at San Ignacio continuing in-fill and step out
drilling along the Purisima vein
system.
Permitting Update
As previously disclosed, Great Panther has been working with
permitting authorities to expand the capacity of its existing GMC
tailings storage facilities (TSF) beyond January 2021. Approval from the environmental
permitting authority Secretaría del Medio Ambiente y Recursos
Naturales (SEMANART) for expansion of the GMC TSF (lifts 18 and 19)
has been received, subject to also receiving approval by the
national water authority, Comisión Nacional del Agua (CONAGUA)
which is outstanding. In parallel, the Company has been pursuing a
permit from SEMANART for a one-metre high center-line raise of the
existing embankment of the TSF (lift 17) to extend tailings
capacity until April 2021 and provide
more time for the receipt of approval from CONAGUA of the lift 18
and 19 expansion. SEMANART has advised Great Panther that its
permit application for the one-metre raise on lift 17 will not be
approved.
The Company has also been exploring alternatives with its
technical consultants and legal advisors for tailings storage to
continue processing beyond January
2021, including a review of technical alternatives which
utilize existing permits. The technical alternatives under
consideration have the potential to extend tailings capacity for
two to five months and provide more time for receipt of the pending
CONAGUA expansion approval. If the CONAGUA approval of expansion of
the TSF has not been received and an alternative tailing storage
solution does not get resolved prior to January 2021, the Company may need to cease
milling operations at the GMC until receipt of the CONAGUA
expansion approval.
TECHNICAL DISCLOSURE AND QUALIFIED PERSONS
The GMC Mineral Resource estimates included in this news release
were classified per the CIM Definition Standards on Mineral
Resources and Mineral Reserves (CIM Standards) and are consistent
with the requirements of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (NI 43-101). The Mineral Resource
Estimates were completed under the supervision of Robert F. Brown, P. Eng., and Mohammad Nourpour,
P. Geo. (each a Qualified Person within the meaning of NI 43-101
and together, the Company Qualified Persons). The Mineral Resource
estimates were completed using MicroMine 3D geological software,
and the inverse distance cubed estimation technique for estimation
of grade to each of the block model blocks. The estimated Mineral
Resources are a categorized compilation of blocks greater than the
full operational costs of the various mining areas.
Analyses from San Ignacio and
Guanajuato underground sampling,
operational and exploration drilling are completed at the Company's
GMC laboratory. Exploration drill core is re-assayed by SGS in
Durango, Mexico.
Great Panther's QA/QC program for drill core includes the
regular insertion of blanks, standards, and duplicates into the
sample shipments, diligent monitoring of assay results, and
necessary remedial actions. The GMC laboratory uses the following
analytical techniques: atomic absorption spectroscopy (AAS) for
silver with over-limits (300 g/t) completed by fire assay, AAS for
gold with over-limits (10 g/t) completed by fire assay, and lead,
zinc, copper, arsenic and antimony analyses completed using AAS.
QA/QC monitoring of the GMC laboratory includes shipping all
exploration drill hole pulps to SGS-DGO for re-analysis and
statistical comparison of assay values using correlation
coefficients.
The technical information contained in this news release,
including the sampling, analytical, and test data underlying the
Mineral Resource estimates, has been reviewed and approved by
Robert F. Brown, P. Eng., and
Mohammad Nourpour, P. Geo., who are the non-independent Qualified
Persons for the GMC under the meaning of NI 43-101. Aspects
relating to mining and metallurgy are overseen by Neil Hepworth, M.Sc., C. Eng., Chief Operating
Officer for Great Panther. Great Panther's Qualified Persons
confirm there were no limitations from the Company in verifying the
drilling and sample data underlying the mineral resource estimate
which were verified through site visit observations and monitoring
of the QA/QC program.
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 that includes 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 under the symbol
GPR, and on the NYSE American under the symbol GPL.
CAUTIONARY NOTES 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, statements regarding: the GMC Mineral Resource estimates and
the assumptions underlying the estimates; expectations around the
Company's ability to receive the permits and regulatory approvals
necessary for an expansion of the existing GMC TSF (lifts 18 and
19) in a timely manner in order to prevent an interruption to
milling operations at the GMC; expectations around the potential to
use alternative technical solutions to extend the tailings capacity
for two to five months until CONAGUA expansion approval can be
obtained; expectations around the timing of Mineral Resource and
Reserve reporting for the Tucano mine and 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: the
accuracy of the Company's Mineral Resource estimates and the
assumptions upon which they are based; ore grades and recoveries,
prices for silver, gold, and base metals and currency exchange
rates remaining as estimated; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation) remaining as
estimated; all necessary permits, licenses and regulatory approvals
for the expansion of the existing GMC TSF (lifts 18 and 19) are
received in a timely manner and that efforts to extend tailings
capacity beyond January 2021 until
such receipt of CONAGUA approval are successful in order to prevent
an interruption to milling operations; alternative storage
solutions will have the potential to extend the tailings capacity
of the GMC TSF two to five months and that such extension will be
sufficient to bridge the tailings capacity until CONAGUA approval
can be obtained; the ability to procure equipment and operating
supplies and that there are no material unanticipated variations in
the cost of energy or supplies; the accuracy of the geological,
operational and price and exchange rate assumptions on which the
production and cost guidance is based; operations not being
disrupted by issues such as mechanical failures, labour
disturbances and workforce shortages, illegal occupations or
mining, seismic events, and adverse weather conditions; the
Company's expectations that metallurgical, environmental,
permitting, legal, title, taxation, socio-economic, political,
marketing or other issues will not materially affect the estimates
of Mineral Resources or its future mining plans; 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: the
impact of COVID–19 on the Company's ability to operate as
anticipated, including the risk of an unplanned partial or full
shutdown of the Company's mines and processing plants, whether
voluntary or imposed, and the potential for a delay in receipt of
permits necessary for the Company's GMC TSF expansion, which would
adversely impact the Company's revenues, financial condition and
ability to meet its production and cost guidance; the inherent risk
that estimates of Mineral Resources and the assumptions upon which
they are based may not be accurate; gold, silver and base metal
prices may decline or may be less than forecasted; risk in
variation in production and costs as the GMC does not have
established Mineral Reserves; fluctuations in currency exchange
rates may increase costs of operations; the Company's ability to
obtain all necessary permits, licenses and regulatory approvals for
its operations in a timely manner, including the uncertainty
regarding the timing and approval of the expansion of the existing
GMC TSF (lifts 18 and 19), which if not granted or delayed could
result in an interruption to milling operations at the GMC which
could adversely impact the Company's revenues and financial
condition; the potential alternative storage solutions being
considered are not successful in extending the potential tailings
capacity until CONAGUA expansion approval is obtained which could
also result in an interruption to milling operations at the GMC;
even though the geotechnical consultant have approved the restart
of mining in the Urucum Central South (UCS) pit, 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 production plans and future revenues; operational and
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) may result in unforeseen
costs, shut downs, delays in production and exposure to liability;
planned exploration activities may not result in conversion of
existing mineral resources into Mineral Reserves or discovery of
new Mineral Resources; potential political and social risks
involving Great Panther's operations in a foreign jurisdiction; the
potential for unexpected costs and expenses or overruns; employee
and contractor relations; relationships with, and claims by, local
communities; changes in laws, regulations and government practices
in the jurisdictions in which the Company operates; legal
restrictions related to mining; changes in project parameters as
plans continue to be refined; ability to maintain and renew
agreements with local communities to support continued operations;
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, 2019 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 these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
CAUTIONARY NOTE TO UNITED
STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED
AND INFERRED RESOURCES
The Company prepares its disclosure in accordance with the
requirements of securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Terms relating to Mineral Resources in this
news release are defined in accordance with NI 43-101 under the
guidelines set out in CIM Standards.
The United States Securities and Exchange Commission (the "SEC")
has adopted amendments effective February
25, 2019 (the "SEC Modernization Rules") to its disclosure
rules to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the
United States Securities Exchange Act of 1934. The SEC
Modernization Rules have replaced SEC Industry Guide 7, which will
be rescinded following a transition period and after the required
compliance date of the SEC Modernization Rules.
As a result of the adoption of the SEC Modernization Rules, the
SEC will now recognize estimates of "Measured Mineral Resources",
"Indicated Mineral Resources" and "Inferred Mineral Resources",
which are defined in substantially similar terms to the
corresponding CIM Standards. In addition, the SEC has amended its
definitions of "Proven Mineral Reserves" and "Probable Mineral
Reserves" to be substantially similar to the corresponding CIM
Standards.
United States investors are
cautioned that while the foregoing terms are "substantially
similar" to corresponding definitions under the CIM Standards,
there are differences in the definitions under the SEC
Modernization Rules and the CIM Standards. Accordingly, there is no
assurance any Mineral Resources that the Company may report as
"Measured Mineral Resources", "Indicated Mineral Resources" and
"Inferred Mineral Resources" under NI 43-101 would be the same had
the Company prepared the resource estimates under the standards
adopted under the SEC Modernization Rules.
United States investors are
also cautioned that while the SEC will now recognize "Measured
Mineral Resources", "Indicated Mineral Resources" and "Inferred
Mineral Resources", investors should not to assume that any part or
all of the mineral deposits in these categories would ever be
converted into a higher category of Mineral Resources or into
Mineral Reserves. Mineralization described by these terms has a
great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility.
Accordingly, investors are cautioned not to assume that any
"Measured Mineral Resources", "Indicated Mineral Resources", or
"Inferred Mineral Resources" that the Company reports are or will
be economically or legally mineable.
Further, "Inferred Resources" have a great amount of uncertainty
as to their existence and as to whether they can be mined legally
or economically. Therefore, United
States investors are also cautioned not to assume that all
or any part of the Inferred Resources exist. In accordance with
Canadian securities laws, estimates of "Inferred Mineral Resources"
cannot form the basis of feasibility or other economic studies,
except in limited circumstances where permitted under NI
43-101.
In addition, disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC has
historically only permitted issuers to report mineralization as in
place tonnage and grade without reference to unit measures.
View original
content:http://www.prnewswire.com/news-releases/great-panther-announces-updated-mineral-resource-estimates-at-gmc-measured-and-indicated-resources-increase-by-17-and-inferred-resources-more-than-double-301178541.html
SOURCE Great Panther Mining Limited