Great Panther reports 2Q19 production results

"Great Panther's significant increase in gold production in the second quarter reflects the acquisition of the Tucano Gold Mine in March of this year," stated James Bannantine, President & CEO.

"The most significant aspect of the results, however, is the marked improvement in Tucano production since commissioning of a supplemental oxygen system at the end of April.  Tucano achieved production levels of 10 900 gold ounces in May and 12 000 in June, compared to 7000 oz in April.  This marks an important optimisation milestone for Tucano which has significantly higher planned gold production in the third and fourth quarters during the dry season."

Tucano gold mine

The Tucano Gold Mine produced 29 899 oz of gold in 2Q19, an increase of 27% over the previous quarter and the same quarter in the previous year (based on results for the comparative periods as reported by the previous owner of Tucano). The increases are primarily attributable to higher grades and recoveries as a result of upgrades to Tucano's plant which have enabled the processing of higher grade sulfide ore with increased recoveries.

Topia mine

Topia produced 413 467 silver equivalent ounces in 2Q19 a 7% increase from the same quarter last year, and a decrease of 2% compared to the record level of production achieved in the previous quarter. The sustained high production is mainly attributed to higher silver head grades.

Guanajuato mine complex

Production from the GMC continues to be sourced entirely from the San Ignacio mine, and comparisons to the second quarter in 2018 year reflect the operation of both the San Ignacio mine and the Guanajuato mine in the comparative period.  During the second quarter, total metal production was 388 388 silver equivalent ounces, which represents a 9% increase compared to the previous quarter. This is mainly due to the improved gold grades from high-grade blocks outlined by ongoing delineation drilling. The exploration programme initiated at Guanajuato continued through the second quarter with the objective of growing higher margin resources in order to bring the Guanajuato mine back into production next year. 

Outlook

The company is maintaining its 2019 production, cash cost, and all-in sustaining cost ‘AISC’ guidance. It is cautioned that cash cost and AISC are very sensitive to foreign exchange rates and metal prices through the computation of by-product credits.

Tucano's production profile is significantly weighted to the second half of the year, during the dry season, which enables higher rates of mining productivity and lower strip ratios in the open pits. The company's focus in 2019 is on the continued optimisation of Tucano. With the successful commissioning of the Supplemental Oxygen at the end of April, Great Panther has now begun an exploration and drilling programme aimed at capitalising on Tucano's significant exploration potential. 

At the Topia mine, work continues on the processing plant expansion project which is expected to increase capacity by 25%. Structural engineering analysis recently determined the need for engineered rehabilitation of the foundation of the plant. As a result, the completion date for the plant expansion has been revised to the first quarter of 2020.  

Exploration at the GMC is advancing at both the Guanajuato Mine and San Ignacio Mine. The company plans to complete an updated NI 43-101 resource estimate for the GMC based on this year's exploration programme before the end of the year. 

At the Coricancha mine in Peru, the company made a positive production decision following the completion of the bulk sample programme which confirmed the key operating assumptions contained in its Preliminary Economic Assessment announced in May 2018. The restart date is expected in the first half of 2020 in order to align with the company's other mining operations and ensure the project has the necessary planning and resources in place to optimise operations and profitability.

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, P. Eng., acting Vice President Exploration for the Company and the Qualified Person for the Tucano gold mine, Guanajuato mine complex, the Topia mine and the Coricancha mine under the meaning of NI 43-101. 

Read the article online at: https://www.globalminingreview.com/finance-business/11072019/great-panther-reports-2q19-production-results/