The silver/gold vein systems of the Veta Madre at Guanajuato were discovered as early as 1548. At their peak of production in the 18th century these systems were responsible for one third of the world’s silver output. Today the Guanajuato area and its prolific, high grade silver/gold vein systems are still one of the most prolific silver producing regions of the world.

 

According to a survey conducted by The Fraser Institute, Mexico is among the top 20 most attractive regions in the world for exploration and mining. A strong mining culture, excellent geology, political stability and favorable tax and permitting structures all combine to create major appeal for mining companies. Non-Mexican companies can maintain 100% ownership of their properties and reap the full benefits of successful exploration and project development for their shareholders.

 

Great Panther Silver (TSX – GPR) has two operating mines in Mexico and is on the prowl for further acquisitions. GPR is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The centerpiece of the Company's operations is the world class Guanajuato Silver-Gold Mine in the state of Guanajuato.

 

Great Panther also owns and operates the Topia Silver-Lead-Zinc Mine in Durango State. The Company has increased production to a new all time high and is growing the resource base through continued surface drilling and underground development.

 

 

Latest News Release

Great Panther Silver Reports 13% Increase in Third Quarter 2014 Production

Great Panther Silver Ltd. today released third-quarter production results at its two wholly owned Mexican silver mining operations, the Guanajuato mine complex, which includes the new San Ignacio satellite mine, and the Topia mine.

 

Consolidated third-quarter 2014 operations highlights (compared with third-quarter 2013):

  • Achieved record metal production of 890,641 silver equivalent ounces, a 13-per-cent increase;
  • Silver production increased 23 per cent to a record 565,965 silver ounces;
  • Gold production decreased 11 per cent to 4,200 gold ounces;
  • Ore processed rose 16 per cent to a quarterly record of 89,030 tonnes.

"Great Panther delivered continued growth in the third quarter, setting new records for total metal production and silver production as we ramped up the San Ignacio mine," stated Robert Archer, president and chief executive officer. "I would like to congratulate our operations teams for their outstanding efforts, particularly at Guanajuato, where we have achieved a significant recovery from the difficulties experienced earlier in the year. We are tracking to our production guidance of 3.0 to 3.1 million AgEq ounces for the year, and our main focus in the fourth quarter will be to continue to work on improving our efficiencies and lowering costs."

 

Metal production, in terms of Ag equivalent ounces, increased 13 per cent compared with the third quarter of 2013 and showed a robust 24-per-cent increase over the second quarter of 2014. This was primarily due to the production ramp-up at San Ignacio after initiating commercial production in June. In addition, silver grades improved significantly at Guanajuato over the second quarter of 2014.

 

CONSOLIDATED Q3 OPERATIONS SUMMARY

 
Q3 2014
Q3 2013
Q3 2014
Q2 2014
Ore processed
(tonnes milled)
89,030
76,898
89,030
80,964
Silver equivalent
ounceproduction (1)
890,641
789,250
890,641
718,794
Silver ounce production
565,965
459,924
565,965 
420,001
Gold ounce production
4,200
4,695
4,200
3,773
Lead production (tonnes)  
259
300
259
302
Zinc production (tonnes)
443
411
443
395

(1) Silver equivalent ounces for 2014 are established using prices of $18.50 (U.S.) per ounce, $1,110 (U.S.) per ounce (60:1 ratio), 90 U.S. cents per pound and 85 U.S. cents per pound for silver, gold, lead and zinc, respectively, and applied to the recovered metal content of the concentrates produced.

 

Guanajuato mine complex

 

Ore processed at the GMC, which includes San Ignacio, in the third quarter of 2014 was a record 72,047 tonnes, an increase of 19 per cent compared with the same period in 2013 and a 13-per-cent increase compared with the second quarter of 2014. Metal production for the quarter was also a record, at 636,556 Ag equivalent ounces, and represented an increase of 13 per cent and 35 per cent compared with the same period in the prior year and the second quarter of 2014, respectively. As noted previously, the ramp-up of San Ignacio was the primary contributor of growth. In addition, improved silver grades at Guanajuato over the second quarter of 2014 contributed to a more marked quarter-over-quarter increase in metal production.

       

          

GMC Q3 OPERATIONS SUMMARY

 
Q3 2014
Q3 2013 
Q3 2014
Q2 2014
Ore processed
(tonnes milled)
72,047
60,536
72,047
63,646
Silver equivalent ounce
production (1)
636,556
561,544
636,556
470,589
Silver ounce production
391,979
289,671
391,979
251,687
Gold ounce production
4,076
4,531
4,076
3,648
Ag grade (g/t) 
186
166
186
139
Au grade (g/t)
1.92
2.54
1.92
1.99
Ag recovery
90.9%
89.4%
90.9%
88.4%
Au recovery 
91.6%
91.8%
91.6%
89.4%

(1) Silver equivalent ounces for 2014 are established using prices of $18.50 (U.S.) per ounce, $1,110 (U.S.) per ounce (60:1 ratio), 90 U.S. cents per pound and 85 U.S. cents per pound for silver, gold, lead and zinc, respectively, and applied to the recovered metal content of the concentrates produced.

          

In its first full quarter of production, the San Ignacio mine contributed 14,160 tonnes of ore to the Guanajuato plant at mill grades of 131 grams per tonne silver and 2.26 grams per tonne gold. Metal production from San Ignacio accounted for 16 per cent of the overall metal production from the Guanajuato mine complex and included 50,650 Ag ounces and 887 Au ounces, or 103,897 Ag equivalent ounces. This represented an 18-per-cent increase compared with the second quarter of 2014 (the second quarter also included preproduction development ore).

 

Underground exploration drilling at Guanajuato concentrated on the Santa Margarita vein through a combination of infill and extension drill holes from the 345-, 435- and 475-metre levels. Favourable results from these holes support the development of a new ramp from the 475-metre level to access new production zones in the Veta Madre (San Cayetano area) and Santa Margarita vein systems. Additionally, underground drilling infrastructure was finalized at the deep Cata area, and drilling here is expected to commence early in the fourth quarter of 2014.

Surface diamond drilling at San Ignacio commenced in late September and will focus on expanding and upgrading the mineral resource on the Intermediate, Melladito and Nombre de Dios veins in areas adjacent to the ramp development and along strike to the south.

 

Topia mine

 

Ore processed at Topia increased 4 per cent to 16,983 tonnes when compared with the corresponding quarter in 2013 and decreased 2 per cent when compared with the second quarter of 2014. Total metal production increased 12 per cent and 2 per cent compared with the same period in 2013 and the second quarter of 2014, respectively, to 254,085 Ag equivalent ounces. Ore grades were 352 g/t silver, 0.41 gram per tonne gold, 1.62 per cent lead and 2.83 per cent zinc. While silver grades were down slightly from the same quarter the previous year, the increased tonnage led to record silver production of 173,986 ounces. Similarly, the 2-per-cent decrease in throughput compared with the second quarter of this year was more than offset by a 5-per-cent increase in silver grade.

 

  

TOPIA Q3 OPERATIONS SUMMARY

 
Q3 2014
Q3 2013
Q3 2014
Q2 2014
Ore processed
(tonnes milled) 
16,983
16,362
16,983
17,319
Silver equivalent ounce
production (1)   
254,085
227,706
254,085
248,205
Silver ounce production
173,986
170,254
173,986
168,314
Gold ounce production
124
164 
124
125
Lead production (tonnes)
259
300
259 
302
Zinc production (tonnes)
443
411
443
395
Ag grade (g/t)
352
358
352
336
Au grade (g/t)
0.41
0.55
0.41
0.40
Ag recovery
90.5%
90.4%
90.5%
89.8%
Au recovery
55.3%
56.4%
55.3% 
56.1%

(1) Silver equivalent ounces for 2014 are established using prices of $18.50 (U.S.) per ounce, $1,110 (U.S.) per ounce (60:1 ratio), 90 U.S. cents per pound and 85 U.S. cents per pound for silver, gold, lead and zinc, respectively, and applied to the recovered metal content of the concentrates produced.

              

Release of third-quarter 2014 financial results and conference call

 

The third-quarter 2014 financial results will be released after market close on Wednesday, Nov. 5, 2014, and a conference call and webcast will be held at 7 a.m. PST (10 a.m. EST) on Thursday, Nov. 6, 2014.

 

 

 

Legal Notice / Disclaimer

 

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

 

Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified.

 

Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.

 

Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


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