Great Panther Silver Operations

VANCOUVER - Great Panther Silver reported that in in Q2 2018, total metal production at the Guanajuato Mine Complex (GMC) was 643,432 Ag eq oz, which represents an 8% decrease compared to the previous quarter, and a 10% decrease compared to the same quarter in the previous year. The decreases are mainly attributed to lower tonnes milled and lower silver grades, partly offset by higher gold grades. 

Tonnes milled in Q2 2018 were lower than the previous quarter and the same quarter in the previous year due to a combination of a temporary suspension of processing to ensure safety following heavy rainfall, and a higher proportion of harder ores from the San Ignacio mine, which reduced processing capacity. The San Ignacio mine accounted for 70% of the total ore processed at the GMC in Q2 2018, compared to 55% in Q2 2017 and 65% in the previous quarter. 

The lower average grades were in part the result of lower tonnage mined from the Guanajuato mine, which has higher silver grades than the San Ignacio mine. In addition, the silver grades from the Guanajuato mine and the gold grades from the San Ignacio mine were affected by variability in the mineral resource.

During the quarter, 8,059 meters of exploration drilling were completed at the GMC, primarily focused on defining areas in the near-term mine plan.

At the Topia Mine total metal production in Q2 2018 from the Topia Mine was 358,737 Ag eq oz, an increase of 7% over the previous quarter. The rise is attributed to higher silver grades due to the increased proportion of production from higher silver grade zones and improved metallurgical recoveries.

Compared to Q2 2017, total metal production on an Ag eq oz basis decreased 7%, as the comparative quarter reflected higher grades as a result of drawing down on higher grade ore stockpiles following the completion of a plant refurbishment and upgrade.

The focus for 2018 continues to be on maintaining steady and efficient operations in Mexico, while advancing the Company's Coricancha Mine in Peru to set a platform for production growth in 2019 and 2020.  In May, the Company announced a positive Preliminary Economic Assessment ("PEA") for the Coricancha Mine, which confirmed the potential for three million silver equivalent ounces of annual production. The Company is advancing the project with the initiation of a Bulk Sample Program and recently mobilized contractors to site.