Great Panther full-year guidance remains unchanged

JOHANNESBURG (miningweekly.com) – TSX-listed silver mining and exploration company Great Panther Silver expects its rate of production to remain the same for the rest of the year, following comparatively flat consolidated metal production in preceding quarters.

The South America-focused miner currently mines precious metals from its two wholly owned operating mines in Mexico, namely the Guanajuato mine complex (GMC), which includes the San Ignacio mine, and the Topia mine, both in Durango. 

The company noted that silver production had decreased by 17% to 536 726 oz, while gold production increased by 13%, with 6 010 oz produced. Ore processed increased 14% to 99 905 t milled.

CEO Robert Archer said the year-on-year and quarter-on-quarter increase in gold production and the decrease in silver production were a direct result of the increased production from San Ignacio, which had a higher gold-to-silver ratio.

"Great Panther's second-quarter production of 1.04-million ounces silver was consistent with the previous quarter and is in line with our yearly guidance, reflecting our continued focus on operational efficiencies.”

He added that, by maintaining consistent production at a low cost, Great Panther was well positioned to benefit from the recent rise in commodity prices.

During the second quarter, metal production at GMC increased 2% compared with the previous quarter, but decreased by 5%, to 774 160 oz silver, compared with the same quarter in the previous year.

The decrease was attributed to lower silver grades and recoveries at San Ignacio, reflecting local variation in the resource block.  These factors were partly offset by 14% and 18% increases in ore processed, compared with the first quarter of this year and the second quarter of 2015, respectively.
 
San Ignacio accounted for 60% of the overall metal production and 62% of the total ore processed at GMC in the second quarter, compared with 52% and 53%, respectively, in the first quarter. The rising production at San Ignacio accounts for the higher average gold grades and lower average silver grades at GMC.

Metal production at the Topia mine increased 4% over the previous quarter, but decreased by 2%, to 263 568 oz silver, when compared with the same quarter in the previous year.  The decrease in metal production was attributed to lower tonnes milled, reflecting a greater effort to control dilution, which resulted in higher head grades and recoveries.

Meanwhile, Great Panther warned that the transition of the Phase I tailings dam at Topia to the Phase II dry-stack dam, scheduled for the third and fourth quarters, could result in a temporary disruption of throughput at the plant, while mined ore was being stockpiled for later processing.

This transition was targeted to extend the life of the tailings storage facility by five to seven years of production.

Production from the San Ignacio mine was expected to gradually increase through the balance of the year, with a corresponding decrease from the main GMC mines. This should result in higher gold production relative to silver.

Additionally, the company was completing its evaluation of the Coricancha mine in Peru, and would continue to review acquisition opportunities in the Americas on a regular basis.