PR Newswire
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
,
Jan. 19, 2022
/PRNewswire/ – Great Panther Mining Limited (TSX: GPR) (NYSE-A: GPL) (“Great Panther” or the “Company”), a growing gold and silver producer focused on the Americas, reports production results for the three months ended
December 31, 2021
, and fiscal year 2021, from its three wholly-owned mines: Tucano in
Brazil
, and
Topia
and the Guanajuato Mine Complex (“GMC”) in
Mexico
.
2021 Production Highlights
- Consolidated metal production of 105,006 gold equivalent ounces (“Au eq oz”), inclusive of 87,054 gold ounces (“Au oz”) and 1,201,822 silver ounces (“Ag oz”)
- Total gold production at Tucano of 79,348 Au oz
-
Total silver equivalent production at
Topia
of 1,129,611 silver equivalent ounces (“Ag eq oz”) - Total silver equivalent production at the GMC of 1,051,336 Ag eq oz
Fourth Quarter 2021 Production Highlights
- Consolidated metal production of 24,284 Au eq oz, inclusive of 20,850 Au oz and 227,084 Ag oz
- Total gold production at Tucano of 19,330 Au oz
-
Total silver equivalent production at
Topia
of 212,006 Ag eq oz - Total silver equivalent production at the GMC of 209,074 Ag eq oz
“Great Panther Mining had a challenging year operationally, but the team has risen to those challenges and is in action to pave the way for future growth for the Company,” stated
Rob Henderson
, President and CEO of Great Panther. “Coming off a record production year in 2020, last year was not what we expected, however, we remain committed to unlocking the value from our asset portfolio in 2022 and beyond. The first half of the year will require vigilance as we invest in Tucano and build back steady state production in the second half. To that end, we have secured a new mining contractor for Tucano and will be working on transitioning them over the course of the year. Furthermore, I am pleased to report that success in our exploration programs has enabled us to accelerate development of the high-grade Urucum North underground project. 2022 will see continued investment in exploration of our district-scale land package in
Brazil
, the majority of which will come in the second half.”
Operational Update
Lower production and higher costs in 2021 were attributed to geotechnical issues resulting from wall pit stability in the UCS open pit and additional remediation work needed to ensure safety for workers as well as operational issues due to low contractor performance at Tucano. Mining in the UCS pit was ramped down in the fourth quarter and will be suspended until mid-2022, following the rainy season, when the additional pushback necessary can be completed in a safe and cost-effective manner. The pushback is expected to start in the second half of 2022 and gold production from the UCS pit is planned to recommence in 2023.
A letter of intent has been signed with a new open pit mining contractor for Tucano to operate in parallel with the existing contractor. Mobilization of the new mining contractor has already begun and will continue until
May 2022
. The new contractor is a Brazilian company using a new mining fleet, which will contribute to an improvement in overall mine performance.
Further to the news release on
December 30, 2021
, the Company has filed its defense applying for the cancellation of the infraction notices issued by the State Department of the Environment (“SEMA”) in connection with SEMA’s investigation of a fish mortality event in the Areia and Silvestre Creeks (the “Event”). Preliminary water quality assaying and fish toxicology results, point to the absence of a causal link between the activities of the Tucano mine and the Event. The Company has been working collaboratively with authorities, providing access to all necessary information. Furthermore, the Company reinforces its commitment to the local community and the state of Amapá and has supported the local authorities in their assistance efforts.
The
Guanajuato
mine and the Cata processing plant of the Guanajuato Mine Complex (“GMC”) were placed on care and maintenance in
November 2021
while the Company awaits the permits from CONAGUA necessary to extend the tailings dam. Mining activity at the
San Ignacio
mine has also been suspended while 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.
Although the COVID-19 pandemic did not significantly impact operations during the reporting period, case counts have recently increased at the Company’s operations. Great Panther’s priority is to safeguard the health and safety of personnel and host communities, support and enforce government actions to slow the spread of COVID-19 and assess and mitigate the risks to our business continuity. All preventative protocols remain in place and vaccination rates at sites continue to improve. The Company will continue to assess the effectiveness of business continuity measures implemented to minimize and mitigate any potential impact of the pandemic that may occur on its operations, supply chain, commercial and financial activities to ensure timely and reasonable precautionary action.
Tucano Exploration Update
Exploration in 2021 was focused on two objectives: near-mine resource conversion and extension and developing new regional exploration targets. Regionally, a 16-kilometre-long elevated gold trend was successfully identified, and the exploration team is prioritizing targets within this trend using multi-element geochemistry combined with ground magnetics and mapping for drilling later this year.
At the Urucum North underground project a drilling program was initiated to upgrade the resource estimate and five diamond drills are operating with the drilling program scheduled to be completed by the end of March.
2021 Consolidated Operating Results
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Tucano
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As a result of the previously mentioned operational issues in the UCS pit at Tucano, production decreased 40% when compared to the fourth quarter of 2020 to 19,330 Au oz. The decrease is primarily attributed to lower gold grade resulting from higher consumption of the low-grade stockpile and marginal ore. Overall lower plant feed grade resulted in lower gold recoveries.
Topia
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Silver equivalent production at
Topia
in Q4 2021 was 212,006 Ag eq oz compared with 179,657 Ag eq oz in Q4 2020, an increase of 18% primarily due to higher tonnes milled and higher gold and silver recoveries. The lower plant throughput in Q4 2020 was primarily due to a voluntary five-week suspension related to the COVID-19 pandemic.
Guanajuato Mine Complex
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Silver equivalent production at the GMC in Q4 2021 was 209,074 Ag eq oz compared with 268,524 Aq eq oz, a decrease of 22% over Q4 2020 primarily due to lower plant throughput resulting from the previously mentioned suspension of mining activities at the GMC late in the quarter.
2022 Guidance
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In 2022, consolidated gold equivalent production from the Tucano and
Topia
mines is expected to be in the range of 100,000 to 119,000 Au eq oz. H2 2022 is expected to account for at least 65% of annual production guidance. The mine plan for Tucano reflects more stripping in H1 2022 and therefore AISC in the first half is expected to be higher than annual guidance and offset by increased production rates in H2.
Mining activities in H2 2022 will focus on the TAP AB, Tap C and Urucum North pits. Resequencing plans also include accelerating the decision to develop the high-grade underground mine at the Urucum North deposit. 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.
The company has budgeted
$6 million
for exploration in 2022, which will be focused on the continued exploration of the Company’s district-scale land package in
Brazil
, the majority of which will come in the second half of 2022. Total capital expenditures are budgeted at
$22 million
in 2022, including approximately
$9 million
for underground mine development (also concentrated in H2 2022).
These production and cost guidance estimates are forward-looking statements and information. They should be read in conjunction with the Cautionary Statement on Forward-Looking Information section at the end of this news release. The Company may revise guidance during the year to reflect actual results to date and those anticipated for the remainder of the year.
Readers are cautioned that there are no current estimates of Mineral Reserves for any of the Company’s Mexican mines. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. Mineral Resources that are not Mineral Reserves have no demonstrated economic or technical viability. These risks could have a material adverse impact on the Company’s ability to generate anticipated revenues and cash flows to fund operations and ultimately achieve or maintain profitable operations.
Fourth Quarter and Fiscal Year 2021 Financial Results
Great Panther has scheduled the release of its fourth quarter and fiscal year 2021 financial results for
Wednesday, March 2, 2022
, after market close. The Company will host a conference call and webcast to discuss the results on
Thursday, March 3, 2022
, at
9:00 AM PT
/
12:00 PM ET
. Shareholders, analysts, investors and media are invited to join by logging in or calling in to the details below:
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
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 for four weeks by calling the numbers below using the replay access code 8340.
Canada
and US Toll-Free: + 1 800 319 6413
International Toll: + 1 604 638 9010
Replay Access Code: 8340
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.
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View original content to download multimedia:
https://www.prnewswire.com/news-releases/great-panther-reports-full-year-2021-production-of-105-006-gold-equivalent-ounces-and-provides-2022-guidance-301463397.html
SOURCE Great Panther Mining Limited
