Great Panther Exceeds 2008 Production Target with Record-Breaking Fourth Quarter
VANCOUVER, BC Ð Great Panther Resources reported that 2008 production totaled 1,809,720 silver equivalent ounces (Ag Eq Oz), exceeding the target of 1.75 million Ag Eq Oz. Both of Great Panther's 100% owned Mexican mines exceeded their targeted production, with 1,122,482 Ag Eq Oz at Guanajuato and 687,238 Ag Eq Oz at Topia. Total metal production for 2008 was 1.21 million ounces of silver, 6,300 ounces of gold, 876 tonnes of lead and 1,074 tonnes of zinc. Significantly, quarterly production records were set in the fourth quarter, while increasing production and implementing substantial and successful cost reductions.
Production from the Guanajuato Mine in the fourth quarter, and particularly in December, resulted in the achievement of several new production records. Quarterly metal production was a record 269,795 oz silver and 1,479 oz gold, or 343,738 Ag Eq Oz, from 38,498 tonnes of ore. The average ore grade increased to its highest level of 254g/t Ag and 1.44g/t Au, resulting in a 35% increase in the silver equivalent grade when compared to Q3 2008 and an increase of 108% from Q4 2007. December production was particularly strong at Guanajuato, with 148,716 Ag Eq Oz produced from 11,780 tonnes at a grade of 358g/t silver and 1.84g/t gold. This is the highest monthly metal production ever from Guanajuato and exceeds the previous record, set the month before, by 37%.
As metal prices declined in the latter half of 2008, ore cut-off values were increased, forcing several changes. Lower grade production from the San Vicente and Promontorio areas was stopped and mining was focused on the higher grade areas of Cata, Rayas and Guanajuatito. Two new 3.5 yard scooptrams had been deployed in the Cata and Guanajuatito areas in the third quarter and these have enabled improved production from these higher grade areas.
During the fourth quarter, mining between the 430 and 417 metre levels of the Cata Clavo, coupled with undercut development on the new 460 metre level, accounted for 16,800 tonnes of ore milled at grades of 319g/t silver and 1.46g/t gold. This confirms the validity of some of the high grade drill intersections reported from the deep exploration drilling conducted earlier in 2008.
The sharp fall in metal prices resulted in the temporary closure of all but five of the fourteen small narrow-vein mining operations at Topia in order to reduce costs, while operating only those mines that are currently profitable. Metals produced during the fourth quarter totaled 89,168 oz of silver, 129 oz of gold, 413,393 lbs of lead, and 452,653 lbs of zinc from milling 7,511 tonnes of ore. This equates to 153,585 Ag Eq Oz, which is down 26% from Q3 2008 and down 11% from Q4 2007. Overall ore grades were maintained at a high level, at 426g/t Ag (a record high), 0.62g/t Au, 2.76% Pb and 3.23% Zn.
The plant operated satisfactorily with metal recoveries of 86.7% for Ag, 86.5% for Au, 91.38% for Pb and 81.38% for Zn, which were marginally down compared to 89.4% for Ag, 90.7% for Au, 91.6% for Pb and 88.0% for Zn in the third quarter. In addition to processing the 7,511 tonnes from the Company's mines, 4,025 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down.
Currently, seven of the closed mines are being evaluated for re-opening, to operate with reduced costs. The company has worked in close cooperation with the local small mining contractors to negotiate new contracts which will encourage higher grade production at lower unit costs. The Topia Mine management will focus on the clean mining of the high-grade narrow veins to further increase ore grade while minimizing development and underground exploration.
Both of Great Panther's mining operations are emerging from 2008 much leaner with potential to further increase production during 2009. The emphasis will be on maintaining positive operating cash flow while selectively developing and exploring to continually increase metal production.
The company's address is Suite 2100, 1177 W. Hastings St., Vancouver, BC V6E 2K3, 604-608-1766, fax: 604-608-1744, email: [email protected].
VANCOUVER, BC Ð Great Panther Resources reported that 2008 production totaled 1,809,720 silver equivalent ounces (Ag Eq Oz), exceeding the target of 1.75 million Ag Eq Oz. Both of Great Panther's 100% owned Mexican mines exceeded their targeted production, with 1,122,482 Ag Eq Oz at Guanajuato and 687,238 Ag Eq Oz at Topia. Total metal production for 2008 was 1.21 million ounces of silver, 6,300 ounces of gold, 876 tonnes of lead and 1,074 tonnes of zinc. Significantly, quarterly production records were set in the fourth quarter, while increasing production and implementing substantial and successful cost reductions.
Production from the Guanajuato Mine in the fourth quarter, and particularly in December, resulted in the achievement of several new production records. Quarterly metal production was a record 269,795 oz silver and 1,479 oz gold, or 343,738 Ag Eq Oz, from 38,498 tonnes of ore. The average ore grade increased to its highest level of 254g/t Ag and 1.44g/t Au, resulting in a 35% increase in the silver equivalent grade when compared to Q3 2008 and an increase of 108% from Q4 2007. December production was particularly strong at Guanajuato, with 148,716 Ag Eq Oz produced from 11,780 tonnes at a grade of 358g/t silver and 1.84g/t gold. This is the highest monthly metal production ever from Guanajuato and exceeds the previous record, set the month before, by 37%.
As metal prices declined in the latter half of 2008, ore cut-off values were increased, forcing several changes. Lower grade production from the San Vicente and Promontorio areas was stopped and mining was focused on the higher grade areas of Cata, Rayas and Guanajuatito. Two new 3.5 yard scooptrams had been deployed in the Cata and Guanajuatito areas in the third quarter and these have enabled improved production from these higher grade areas.
During the fourth quarter, mining between the 430 and 417 metre levels of the Cata Clavo, coupled with undercut development on the new 460 metre level, accounted for 16,800 tonnes of ore milled at grades of 319g/t silver and 1.46g/t gold. This confirms the validity of some of the high grade drill intersections reported from the deep exploration drilling conducted earlier in 2008.
The sharp fall in metal prices resulted in the temporary closure of all but five of the fourteen small narrow-vein mining operations at Topia in order to reduce costs, while operating only those mines that are currently profitable. Metals produced during the fourth quarter totaled 89,168 oz of silver, 129 oz of gold, 413,393 lbs of lead, and 452,653 lbs of zinc from milling 7,511 tonnes of ore. This equates to 153,585 Ag Eq Oz, which is down 26% from Q3 2008 and down 11% from Q4 2007. Overall ore grades were maintained at a high level, at 426g/t Ag (a record high), 0.62g/t Au, 2.76% Pb and 3.23% Zn.
The plant operated satisfactorily with metal recoveries of 86.7% for Ag, 86.5% for Au, 91.38% for Pb and 81.38% for Zn, which were marginally down compared to 89.4% for Ag, 90.7% for Au, 91.6% for Pb and 88.0% for Zn in the third quarter. In addition to processing the 7,511 tonnes from the Company's mines, 4,025 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down.
Currently, seven of the closed mines are being evaluated for re-opening, to operate with reduced costs. The company has worked in close cooperation with the local small mining contractors to negotiate new contracts which will encourage higher grade production at lower unit costs. The Topia Mine management will focus on the clean mining of the high-grade narrow veins to further increase ore grade while minimizing development and underground exploration.
Both of Great Panther's mining operations are emerging from 2008 much leaner with potential to further increase production during 2009. The emphasis will be on maintaining positive operating cash flow while selectively developing and exploring to continually increase metal production.
The company's address is Suite 2100, 1177 W. Hastings St., Vancouver, BC V6E 2K3, 604-608-1766, fax: 604-608-1744, email: [email protected].