GREAT PANTHER RESOURCES LIMITED (TSX: GPR) (the "Company") is
pleased to report production results for the third quarter of 2009
from its two wholly owned mines in Mexico. This was by far the best
quarter to date for Guanajuato, in particular, where gold and
silver production was at record levels, as ore grades continued to
improve.
Third Quarter ("Q3"), 2009 highlights from the Guanajuato and
Topia silver mines include:
- Metal production of 597,057 Ag eq oz, an increase of 34% from
Q3 2008, 19% from Q2 2009, and a new record.
- Silver production of 398,811 Ag oz, an increase of 41% from Q3
2008 and a new record.
- Gold production of 1,951 Au oz, an increase of 36% from Q3
2008 and a new record.
- Guanajuato metal production of 432,795 Ag eq oz, an increase
of 83% from Q3 2008 and a new record.
- Guanajuato silver production of 288,087 Ag oz, a 62% increase
from Q3 2008 and a new record.
- Guanajuato gold production of 1,872 Au oz, a 61% increase from
Q3 2008 and a new record.
- Guanajuato ore grades at record highs of 2.0g/t Au and 315g/t
Ag.
- Guanajuato metallurgical recovery of gold, at 84.8%, a new
record.
- Discovery and development of three new ore zones at
Guanajuato.
- Topia silver production of 110,724 Ag oz, a 5% increase from
Q3 2008.
- Topia metallurgical recoveries of silver, lead and zinc at
record highs of 91.2%, 93.0% and 89.3%, respectively.
- Topia lead concentrate grade at a record high of 8.97kg/t
silver.
- NI 43-101 compliant measured and indicated resources for Topia
increased to 5.5 million Ag eq oz, plus inferred resources of 5.7
million Ag eq oz, sufficient to support a 10-year mine plan.
- New three-year strategy announced to accelerate annual
production to 3.8 million Ag eq oz and increase resources to 40
million Ag eq oz, including a capital investment of $22 million and
a 65,000-metre, $14 million diamond drilling programme for both
mines.
To view the GPR 2006 - 2009 TOTAL QUARTERLY PRODUCTION graph,
please visit the following link:
http://media3.marketwire.com/docs/gpr_graph_1006.pdf
(Note: Silver equivalent ounces, (Ag eq oz), for 2009, are
established using prices of US$850/oz Au, US$11/oz Ag, US$0.50/lb
Pb and US$0.50/lb Zn.)
Guanajuato Mine
Guanajuato achieved record production of 288,087 oz silver and
1,872 oz gold, (432,795 Ag eq oz), from milling 34,325 tonnes of
ore. The average ore grade, at 315g/t Ag, and 2.00g/t Au, (15.10 Ag
eq oz), represents a 70% increase in the silver equivalent grade
when compared to Q3 2008.
The discovery and development of three new ore zones helped to
provide increased production at Guanajuato. Ore from the Santa
Margarita vein averaged more than 5g/t Au, while the grade of ore
mined from the Los Pozos and Cata Alto 2 zones was generally higher
than average. Production at Cata, by cut-and-fill mining, continued
from the 460 and 417 levels on the Veta Madre and the decline ramp
was extended towards the 490 level. Rayas production was achieved
from a combination of remnant and pillar recovery from the main
Rayas Clavo and new resource development on the gold-rich Santa
Margarita and Los Pozos zones. Stoping of the Guanajuatito North
zone continued on the 20 and 50 levels and development was
initiated on the 80 level.
Guanajuato plant performance continues to excel. Metal
recoveries for Q3 2009 averaged 84.8% for gold and 82.9% for silver
compared to Q3 2008 when they were 77.5% and 83.0%, respectively.
The quality of concentrates shipped to the IMMSA copper smelter
averaged 14.13kg/t Ag and 92g/t Au.
Exploration for the extensions of and/or ore definition diamond
drilling for the Cata Clavo and other high grade areas continue
from stations located adjacent to current underground workings. An
exploration drift is being driven on the 390 level at Rayas to
facilitate deep drilling of the extensions of the Rayas Clavo,
Santa Margarita and other veins.
Topia Mine
Metal production for the third quarter totaled 110,724 oz Ag, 79
oz Au, 464,510 lbs Pb, and 580,043 lbs Zn, or 164,262 Ag eq oz,
from milling 7,680 tonnes of ore. The silver production represents
a 5% increase from Q3 2008. The ore grades, at 492g/t Ag, 0.4g/t
Au, 2.95% Pb and 3.84% Zn, or 23.62 Ag eq oz, represent a 10%
improvement over Q3 2008.
Topia plant performance was excellent, with metal recoveries of
91.2% for Ag (a record), 79.8% for Au, 93.0% for Pb (a record), and
89.3% for Zn (a record). Concentrate qualities were at record
highs, with the lead concentrate at 57.2% Pb and 8,971g/t Ag, and
the zinc concentrate at 54.8% Zn. In addition to processing the
7,680 tonnes from the Company's mines, 3,069 tonnes were custom
milled for a local miner, thereby increasing revenue and keeping
unit costs down.
Topia processes ore being mined and hauled from 12 small
separate mines. The high-grade narrow veins are being mined to
ensure minimal waste dilution. A small surface diamond drilling
programme was completed to explore extensions of the Recompensa,
San Gregorio, El Rosario, Veta Madre (El Ochenta), and Cantarranas
veins. Assays of vein intersections are being compiled and will
guide future mine development and production expansion.
Topia's concentrates were sold under long term agreements to
Louis Dreyfus Commodities Metals Suisse S.A., part of one of the
world's largest commodities trading companies. Concentrates were
shipped through the Pacific port of Manzanillo to Asian smelters.
The terms of the new agreements represent a significant unit cost
saving for Topia.
The NI 43-101 compliant mineral resource estimate for Topia has
been updated and comprises Measured & Indicated Mineral
Resources of 173,103 tonnes at 552g/t silver, 0.99g/t gold, 5.58%
lead and 4.83% zinc (5,458,218 silver equivalent ounces) as well as
174,562 tonnes of 633g/t silver, 1.03g/t gold, 5.10% lead and 3.84%
zinc (5,692,957 silver equivalent ounces) in the Inferred category.
At current production levels, management considers the new resource
to be sufficient for at least a 10 year mine life.
Outlook.
On a year-to-date basis, metal production from both operations,
at 1.58 million Ag eq oz, is ahead of plan and Great Panther
remains on target to meet or exceed its annual goal of 2.07 million
Ag eq oz. Costs are being controlled at both mines and the improved
concentrate sales contracts and higher base metal prices will give
lower unit costs and higher profitability at Topia. The record high
metals production at Guanajuato will mean yet lower unit costs and
with strong silver and gold prices, profitability is expected to
improve further. Combined unit costs for the two mines are
estimated to be in the range of US$6.00 to $6.50 per oz Ag, net of
by-products for the year 2009.
The ultimate goal of Great Panther's new 3-year growth strategy
is one of profitable growth. The record high third quarter
production should result in a third straight quarter of record
earnings from mining operations and, providing metal prices remain
robust, earnings are projected to continue to increase. Great
Panther's management considers that the best way to capitalize on a
rise in the silver price is to do so by monetizing it through
production.
It is anticipated that the new strategy should see the Company's
annual production increase to approximately 3.8 million Ag eq oz by
2012 from its two existing mines in Mexico. Increased throughput
and operating efficiencies should allow for further increases
beyond this level such that production upside will remain. The new
plan foresees the production of 2.5 million Ag eq oz in 2010, 3.0
million Ag eq oz in 2011 and 3.8 million Ag eq oz in 2012. This
equates to annual increases of approximately 20% and a total
increase of more than 100% from 2008 levels. In addition, Great
Panther intends to build its resource base at the Guanajuato and
Topia operations to support a minimum 10 year mine life at the
planned rate - a minimum of 40 million Ag eq oz.
Operating costs are anticipated to continue to decrease from
existing levels towards US$4.00 per oz of silver (net of by-product
credits). Capital expenditures for the new strategy are projected
to total approximately $22 million over the next 3 years, with an
additional $14 million in exploration spending. It is anticipated
that the vast majority of this will be funded internally from cash
flows.
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
www.greatpanther.com.
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 parametres 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, 2008 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.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX) Email:
info@greatpanther.com Website: www.greatpanther.com
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