TSX: GPR | NYSE American:
GPL
Consolidated production of 17,913 Au eq oz in line with
the Company's plan to return to steady-state production in H2
2022
This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
October 15, 2021, to its short form
base shelf prospectus dated September 10,
2021.
VANCOUVER, BC, April 14, 2022 /CNW/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A:GPL) ("Great Panther" or the "Company"),
a growth-oriented precious metals producer focused on the
Americas, reports production results for the three months
ended March 31, 2022, from its two
wholly-owned operating mines, Tucano in Brazil and Topia in Mexico.
First Quarter 2022 Production Highlights
- Consolidated metal production of 17,913 gold equivalent ounces
("Au eq oz"), inclusive of 14,319 gold ounces ("Au oz") and 173,698
silver ounces
- Total gold production at Tucano of 14,037 Au oz
- Total silver equivalent production at Topia of 290,694 silver equivalent ounces ("Ag
eq oz")
"I am pleased to report that production for the quarter was in
line with expectations as we build back steady-state production at
Tucano," stated Alan Hair, Chair and
Interim CEO of Great Panther. "We remain on track to return to a
normalized rate of production in the second half of the year. In
addition, an extensive drilling program at the Urucum North
underground project has been completed. Engineering studies and
permitting are underway and construction work is expected to
commence in late 2022 with gold production from the Urucum North
underground mine anticipated to come onstream in 2023."
2022 Consolidated Operating Results
Consolidated
Operating Results
|
Q1
2022
|
Q1
2021
|
Change
|
Q1
2022
|
Q4
2021
|
Change
|
Ore processed
(tonnes)
|
889,365
|
854,704
|
4%
|
889,365
|
925,626
|
-4%
|
Gold eq production
(oz) (1)
|
17,913
|
30,556
|
-41%
|
17,913
|
24,284
|
-26%
|
Gold production
(oz)
|
14,319
|
24,978
|
-43%
|
14,319
|
20,850
|
-31%
|
Silver production
(oz)
|
173,698
|
360,070
|
-52%
|
173,698
|
227,084
|
-24%
|
|
|
(1)
|
Gold equivalent
ounces for 2022 were calculated using a 1:75 Au:Ag ratio, and
ratios of 1:0.0005 and 1:0.0007 for the price/ounce of gold to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Gold equivalent ounces for 2021
were calculated using a 1:85 Au:Ag ratio, and ratios of 1:0.0005
and 1:0.0006 for the price/ounce of gold to price/pound of lead and
zinc, respectively, consistent with the Company's guidance for the
year.
|
The Company's operations are on track to meet previously
announced consolidated production guidance for 2022 of 100,000 to
119,000 Au eq oz. The mine plan for Tucano reflects more stripping
in the first half of 2022 with the second half of 2022 expected to
account for at least 65% of annual production guidance.
Tucano
Tucano Operating
Results
|
Q1
2022
|
Q1
2021
|
Change
|
Q1
2022
|
Q4
2021
|
Change
|
Total material mined
(tonnes)
|
4,372,726
|
6,898,581
|
-37%
|
4,372,726
|
6,260,316
|
-30%
|
Total waste mined
(tonnes)
|
4,004,733
|
6,399,499
|
-37%
|
4,004,733
|
5,469,661
|
-27%
|
Ore mined
(tonnes)
|
232,213
|
347,466
|
-33%
|
232,213
|
303,845
|
-24%
|
Ore processed (tonnes
milled)
|
873,133
|
796,035
|
10%
|
873,133
|
883,222
|
-1%
|
Au grade
(g/t)
|
0.57
|
0.90
|
-37%
|
0.57
|
0.77
|
-26%
|
Au recovery
(%)
|
87%
|
89%
|
-2%
|
87%
|
88%
|
-1%
|
Gold production
(oz)
|
14,037
|
20,422
|
-31%
|
14,037
|
19,107
|
-27%
|
Carbon fines gold
recovery
|
–
|
2,574
|
-100%
|
–
|
223
|
-100%
|
Total gold
production (oz)
|
14,037
|
22,996
|
-39%
|
14,037
|
19,330
|
-27%
|
To overcome previously indicated contractor performance issues,
the mobilization of our new mining contractor, MINAX, commenced
during the quarter. The Company continues to work closely with its
current contractor, U&M, to ensure a safe and efficient
transition with MINAX. MINAX is expected to fully mobilize its
fleet by the end of May. During the transition, Tucano will
continue to offset U&M's mined tonnage deficit with capacity
from the new MINAX mine fleet.
Despite ounce production being lower compared to the first
quarter of 2021 ("Q1 2021"), production in the first quarter of
2022 ("Q1 2022") at Tucano was positively affected by mine
reconciliation and higher milled ore tonnage due to the high
availability of the MINAX mine fleet to rehandle stockpiles. In
line with expectations, production decreased 39% in Q1 2022 when
compared to the first quarter of 2021 to 14,037 Au oz, primarily
attributed to ongoing stripping of the TAP AB, TAP C and Urucum
North pits, which resulted in low ore production triggering higher
consumption of the low-grade stockpiles. Rain levels recorded in
March and during the first quarter were 65% and 32% higher,
respectively, compared to historical averages, which had a negative
impact on mine development.
Topia
Topia Operating
Results
|
Q1
2022
|
Q1
2021
|
Change
|
Q1
2022
|
Q4
2021
|
Change
|
Ore mined
(tonnes)
|
16,258
|
16,654
|
-2%
|
16,232
|
14,865
|
9%
|
Ore milled
(tonnes)
|
16,232
|
19,004
|
-15%
|
16,232
|
14,560
|
11%
|
Waste development
(meters)
|
3,704
|
2,573
|
44%
|
3,704
|
2,978
|
24%
|
Ag grade
(g/t)
|
362
|
398
|
-9%
|
362
|
301
|
20%
|
Au grade
(g/t)
|
0.84
|
0.87
|
-3%
|
0.84
|
0.74
|
14%
|
Ag recovery
(%)
|
92%
|
92%
|
0%
|
92%
|
91%
|
1%
|
Au recovery
(%)
|
64%
|
55%
|
16%
|
64%
|
63%
|
2%
|
Silver eq
production (oz) (1)
|
290,694
|
363,318
|
-20%
|
290,694
|
212,006
|
37%
|
Silver production
(ounces)
|
173,698
|
224,333
|
-23%
|
173,698
|
128,647
|
35%
|
Gold production
(ounces)
|
282
|
293
|
-4%
|
282
|
218
|
29%
|
Lead production
(tonnes)
|
365
|
526
|
-31%
|
365
|
235
|
55%
|
Zinc production
(tonnes)
|
525
|
619
|
-15%
|
525
|
406
|
29%
|
Gold eq production
(oz) (2)
|
3,876
|
4,274
|
-9%
|
3,876
|
2,494
|
55%
|
|
|
(1)
|
Silver equivalent
ounces for 2022 were calculated using an 75:1 Ag:Au ratio, and
ratios of 1:0.041 and 1:0.056 for the price/ounce of silver to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Silver equivalent ounces for 2021
were calculated using an 85:1 Ag:Au ratio, and ratios of 1:0.041
and 1:0.049 for the price/ounce of silver to price/pound of lead
and zinc, respectively, consistent with the Company's guidance for
the year.
|
(2)
|
See footnote (1)
under the heading Consolidated Operating Results above for
information on the calculation of gold equivalent ounces for 2022
and 2021, respectively.
|
Silver equivalent production at Topia in Q1 2022 was 290,694 Ag eq oz compared
with 363,318 Ag eq oz in Q1 2021, a decrease of 20% primarily due
to lower tonnes milled in the absence of stockpiles, and lower gold
and silver grades. These factors were partly offset by higher gold
recovery and the increase in production attributed to the change in
metal equivalency ratios for zinc. The mine development meterage
during this period was 40% higher compared to Q1 2021 as
preparations for full mine production in mines 1522, La Prieta, Rosario and Durangueño will support future
production from these key ore sources for the next three
quarters.
Guanajuato Mine Complex
The Guanajuato Mine Complex ("GMC") is currently on care and
maintenance while the Company awaits the permits from CONAGUA
necessary to extend the tailings facility. Consequently, there was
no production at the GMC during Q1 2022. Great Panther continues to
proactively engage with CONAGUA in regards of the tailings dam
permit and to explore other alternatives to maximize value from the
GMC.
First Quarter 2022 Financial Results
Great Panther has scheduled the release of its first quarter
2022 financial results for Thursday, May 12,
2022, after market close. The Company will host a conference
call and webcast to discuss the results on Friday, May 13, 2022, at 9:00 AM PT/12:00 PM
ET.
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
Conference call
Canada and US
Toll-Free:
+ 1 800 319 4610
International
Toll:
+ 1 604 638 5340
A replay of the webcast will be available on the Webcasts
section of Great Panther's website approximately one hour after the
conference call. Audio replay will be available until June 13, 2022.
Audio replay
Canada and US
Toll-Free: + 1 800 319 6413
International
Toll:
+ 1 604 638 9010
Replay Access
Code:
8842
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Fernando A.
Cornejo, P. Eng., Chief Operating Officer, a non-independent
Qualified Person for the purposes of National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of assets in
Brazil, Mexico and Peru that includes three gold and silver
mines, an advanced development project and a large land package
with district-scale potential. Great Panther is focused on creating
long-term stakeholder value through safe and sustainable
production, reinvesting into exploration and pursuing acquisition
opportunities to complement its existing portfolio. Great Panther
trades on the Toronto Stock Exchange trading under the symbol GPR,
and on the NYSE American under the symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
This news release contains forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking
information within the meaning of Canadian securities laws
(together, "forward-looking statements"). Such forward-looking
statements may include, but are not limited to, statements
regarding (i) the Company's expectations for of a return to
steady state production in the second half of 2022; (ii) the
Company's ability to execute its growth plan and to unlock value
from its asset portfolio, (iii) the expected timing and success for
mobilization of MINAX and the Company's ability to offset U&M's
mined tonnage deficits with the MINAX fleet, (iv) the expected cost
and timing for receipt of permits, mine development and
commencement of production from the underground Urucum North
project at Tucano, (v) the potential for the production from the
La Prieta, Rosario and Durangueño mines to support for
the next three quarters at Topia,
(vi) the Company's ability to secure a tailings facility expansion
permit for the GMC mine or to successfully negotiate an agreement
for third-party processing of the GMC tailings, and (vii) the
Company's ability to meet its 2022 production and cost
guidance.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that,
while considered reasonable by the Company, are inherently subject
to significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include:
continued operations and exploration work in 2022 occur without
significant interruption due to COVID-19 or any other reason; the
accuracy of the Company's geological modeling at Tucano and the
assumptions upon which they are based, ore grades and recoveries;
prices for gold, silver, and base metals remaining as estimated;
currency exchange rates remaining as estimated; prices for energy
inputs, labour, materials, supplies and services (including
transportation); all necessary permits, licenses and regulatory
approvals for the Company's operations and exploration work are
received in a timely manner on favourable terms; Tucano will be
able to continue to use cyanide in its operations; the Company will
not be required to further impair Tucano as the current open pit
mineral reserves are depleted through mining; the ability to
procure equipment and operating supplies without interruption and
that there are no material unanticipated variations in the cost of
energy or supplies; operations not being disrupted by issues such
as pit-wall failures or instability, mechanical failures, labour
disturbances and workforce shortages, illegal occupations or
mining, seismic events, and adverse weather conditions; and the
Company's ability to comply with environmental, health and safety
laws. The foregoing list of assumptions is not exhaustive.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Such factors
include, among others, risks and uncertainties relating to: the
impact of COVID-19 on the Company's ability to operate and conduct
exploration work, including drilling plans, as anticipated, and the
risk of an unplanned partial or full shutdown of the Company's
mines and processing plants, whether voluntary or imposed, which
would adversely impact the Company's revenues, financial condition
and ability to meet its production and cost guidance and fund its
capital programs and repay its indebtedness; the inherent risk that
estimates of Mineral Reserves and Resources may not be accurate and
accordingly that mine production will not be as estimated or
predicted; planned exploration activities, may not result in the
discovery of new Mineral Resources/definition of Mineral Resources
and readers are cautioned that Mineral Resources that are not
Mineral Reserves have no defined economic viability; open pit
mining operations at Tucano have a limited established mine life
and the Company may not be able to extend the mine life for Tucano
open pit operations beyond 2023 as anticipated; gold, silver and
base metal prices may decline or may be less than forecasted;
fluctuations in currency exchange rates (including the U.S. dollar
to Brazilian real exchange rate) may increase costs of operations;
operational and physical risks inherent in mining operations
(including pit wall collapses, tailings storage facility failures,
environmental accidents and hazards, industrial accidents,
equipment breakdown, unusual or unexpected geological or structural
formations, cave-ins, flooding and severe weather) may result in
unforeseen costs, shut downs, delays in production and drilling and
exposure to liability; potential political and social risks
involving Great Panther's operations in a foreign jurisdiction; the
potential for unexpected costs and expenses or overruns; shortages
in the ability to procure equipment and operating supplies without
interruption; employee and contractor relations; relationships
with, and claims by, local communities; the Company's ability to
obtain all necessary permits, licenses and regulatory approvals in
a timely manner on favourable terms; changes in laws, regulations
and government practices in the jurisdictions in which the Company
operates; legal restrictions related to mining; diminishing
quantities or grades of mineral reserves as properties are mined;
operating or technical difficulties in mineral exploration, changes
in project parameters as plans continue to be refined; the
Company's inability to meet its production forecasts or to generate
the anticipated cash flows from operations could result in the
Company's inability to meet its scheduled debt payments when due or
to meet financial covenants to which the Company is subject or to
fund its exploration programs as planned; ability to maintain and
renew agreements with local communities to support continued
operations; there is no assurance that the Company will be able to
identify or complete acquisition opportunities of, if completed,
that such acquisitions will be accretive to the Company; the risk
that incremental closure bond requirements with respect to the
Company's Coricancha mine could have a material and adverse effect
on the company's liquidity and could require additional financing
to be raised; the Company's ability to raise additional financing
as debt comes due or to undertake its planned exploration and
development activities; the risk that the Company's defense in
respect of the fish mortality event at Areia and Silvestre Creeks
is not accepted by the Brazilian authorities and the Company is
required to pay all or a portion of the fines issued on
December 21, 2021 and that these
payments have a material adverse impact on the Company's financial
condition; and other risks and uncertainties, including those
described in respect of Great Panther in its most recent annual
information form, and management's discussion and analysis and
material change reports filed with the Canadian Securities
Administrators available at www.sedar.com and reports on
Form 40-F and Form 6-K filed with the Securities and Exchange
Commission and available at www.sec.gov.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements.
Forward-looking statements and information are designed to
help readers understand management's current views of our near- and
longer-term prospects and may not be appropriate for other
purposes. The Company does not intend, nor does it assume any
obligation to update or revise forward-looking statements or
information, whether as a result of new information, changes in
assumptions, future events or otherwise, except to the extent
required by applicable law.
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SOURCE Great Panther Mining Limited