Great Panther reports 2Q20 production results

2Q20 highlights

• Produced 38 540 AuEq oz on a consolidated basis, including 36 356 oz of gold and 142 457 oz of silver.
• Produced 35 421 oz of gold at Tucano, 35% higher than 1Q20 and 18% higher than 2Q19.
• In June, Tucano set a new monthly production record of 15 389 oz of gold since its acquisition.
• Recommenced production at Topia and GMC following COVID-19 related shutdown in April and May.
• Strengthened the balance sheet with a US$16 million bought deal financing, adding to the 31 March 2020 cash position of US$39 million.

Great Panther President and CEO, Rob Henderson, commented: "In Brazil, Tucano outperformed this quarter despite the challenges of COVID-19, and in Mexico, Topia and GMC have returned to stable production following the lifting of government mandated restrictions on mining. I would like to thank our teams for delivering these strong results while prioritising the safety and health of our people and communities and adjusting to these unprecedented times."

On a consolidated basis, the comapny expects to produce 146 000 – 158 000 AuEq oz in 2020. This reflects the addition of 2020 production guidance for Topia which is being provided for the first time.

COVID-19 Response

Great Panther has developed and implemented significant COVID-19 prevention, monitoring and response plans following the guidelines of the World Health Organization and the regulatory agencies of each country in which it operates to ensure a safe work environment.

Protocols include mandatory medical screening and testing on arrival at site, mandatory medical leave, training sessions on health awareness and new health and safety protocols, physical distancing and increased sanitation measures and updated operating procedures. Specific areas have been prepared for the isolation, testing and care of employees showing COVID-19 symptoms. All confirmed cases of COVID-19 are in isolation and being monitored by company health professionals with regular reports to health authorities.

Tucano

Tucano produced 35 421 oz of gold in 2Q20, an increase of 18% compared to 2Q19 due to increased ore processing rates, higher gold grades and higher recoveries. Despite particularly adverse weather conditions in 2Q20 and the implementation of measures to manage COVID-19, Tucano also achieved a 21% increase in material mined relative to 2Q19, benefitting from the implementation of operational improvements. Notably, June 2020 production of 15 389 oz fo gold set a new monthly production record since the time of acquisition in March 2019. The 35% increase in 2Q20 production relative to 1Q20 was primarily due to higher gold grades.

Mining activities continue uninterrupted at Tucano at this time as the state of Amapá in Brazil has not introduced measures to restrict mining activities in response to COVID-19. Separately, the company has implemented numerous health and safety measures to protect against the spread of the virus, working closely with local health and labour authorities to protect its people and local communities. The company continues to monitor the situation closely to be in a state of preparedness.

Mexico Operations

Great Panther's Mexican operations produced 3122 AuEq oz in 2Q20 or 280 911 AgEq oz. Mining operations in Mexico were suspended for the months of April and May following a directive of the Mexican Federal Government to mitigate the spread of COVID-19. Production resumed in early June, following a government order adding mining to the list of essential services.

Topia

Topia produced 146 208 AgEq oz in 2Q20, a decrease of 65% compared to the same period in 2019 due to the COVID-19 related shutdown in the months of April and May.

Great Panther ceased depositing tailings on the Topia Phase II tailings storage facility (TSF) on 9 March 2020 following a recommendation from the company's independent tailings management and geotechnical consultants.

During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. Monitoring indicates it is safe to return to stacking in Phase II, subject to receipt of a final report from consultants who will also provide a revised stacking plan. The company has now also received the required government approvals and a permit to start stacking on Phase III, which becomes available after constructing gabion walls and erosion controls around the base of the facility. In the meantime, there is sufficient capacity at the temporary tailings storage location to continue operations.

Guanajuato Mine Complex

GMC produced 134 703 AgEq oz in 2Q20, a decrease of 65% compared to the same period in 2019 due to the COVID-19 related shutdown in the months of April and May.

Read the article online at: https://www.globalminingreview.com/finance-business/10072020/great-panther-reports-2q20-production-results/