Production Results At The Guanajuato Mine Complex

 

VANCOUVER - Great Panther reports production results for the third quarter (Q3) 2016 from its two wholly-owned Mexican silver mining operations: the Guanajuato Mine Complex (GMC), which includes the San Ignacio Mine, and the Topia Mine in Durango. Third Quarter 2016 Production Highlights (Compared to Third Quarter 2015): Consolidated metal production decreased 12% to 953,632 silver equivalent ounces (Ag eq oz); Silver production decreased 13% to 510,491 silver ounces (Ag oz); Gold production decreased 11% to 5,423 gold ounces (Au oz); and Ore processed increased 2%, with 95,282 tonnes milled.

"Despite the third quarter being challenged by lower grades, recoveries and two temporary shut-downs, we expect to meet our production guidance for 2016," stated Robert Archer, President & CEO.  "Furthermore, we expect to continue the trend of significant reductions in our cash costs over prior year levels." 

In the third quarter of 2016, metal production at the GMC was 2% lower than the previous quarter, and decreased by 5%, to 755,008 Ag eq oz, when compared to the same quarter in the previous year.  The decrease was attributed to lower grades and gold recoveries at San Ignacio, mainly reflecting variance from the modeled mineral resource.  Additional underground drilling is being undertaken to improve the resource definition in these areas.  These factors were partly offset by a 6% increase in ore processed compared to the third quarter of 2015.  

The decrease in mill throughput was mainly attributed to the two temporary plant shutdowns during the quarter.  In addition, third quarter production was challenged by narrower veins, which increased dilution and decreased grade.

Despite lower production in the third quarter of 2016, the Company continues to expect to achieve its guidance of 4.0 - 4.2 million Ag eq oz (based on a 70:1 silver:gold ratio) for 2016.  For the nine months ended September 30, 2016 production totaled just over 3 million Ag eq oz. 

As noted in previous disclosures, the Company is undertaking the construction of a Phase II dry-stack tailings facility at Topia that is expected to add five to seven years of capacity.  As work proceeds through the fourth quarter, there is the potential for a temporary disruption of throughput at the plant.  In the unlikely event of a disruption, it is anticipated that ore will be stockpiled for later processing.

After completing a US$29.9 million financing early in the third quarter, the Company has an exceptionally strong balance sheet, and continues to focus on an acquisition strategy to add precious metal production opportunities in the Americas.

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, P. Eng. and Vice President of Exploration for the Company, who is the Qualified Person (QP) for the Guanajuato Mine Complex and the Topia Mine under the meaning of NI 43-101.  Aspects relating to mining and metallurgy are overseen by Ali Soltani, Chief Operating Officer for Great Panther.