Great Panther Silver (TSX: GPR; NYSE American: GPL) has increased the measured and indicated resource at its Topia silver-gold-lead-zinc mine in Mexico’s Durango state to nearly 15 million silver-equivalent ounces.
Despite mine depletion since the last resource estimate was completed four years ago, Great Panther Silver has boosted Topia’s measured and indicated resource by 28% to 475,900 tonnes grading 461 grams silver per tonne, 1.35 grams gold per tonne, 3.87% lead and 4.06% zinc, for 14.77 million silver equivalent ounces.
Great Panther Silver has boosted Topia’s measured and indicated resource by 28% to 475,900 tonnes grading 461 grams silver per tonne, 1.35 grams gold per tonne, 3.87% lead and 4.06% zinc, for 14.77 million silver equivalent ounces
Inferred resources add 400,400 tonnes averaging 434 grams silver, 1.34 grams gold, 2.86% lead and 2.97% zinc for 10.72 million silver-equivalent ounces.
The mine, 235 km northwest of the city of Durango, consists of several narrow-vein, underground operations utilizing a modified cut-and-fill mining method known as ‘resuing’.
The mines are typically accessed by unpaved mountain roads leading to adits that either follow the veins into the mountains or are driven to cross-cut them. The veins range from 15 cm to 150 cm in width, with an average of 30 cm.
Topia’s processing plant has a capacity of 270 tonnes per day and the concentrates are transported to the port of Manzanillo on the Pacific Ocean, where they are sold to commodity traders. The concentrates are then shipped to smelters around the world.
Between Nov. 30 2014 and July 31 2018, 221,600 tonnes of mineralized material from Topia was mined at average grades of 357 grams silver, 0.67 gram gold, 2.27% lead and 3.03% zinc.
Metal production from Topia reached a record 1.55 million silver equivalent ounces in 2018. The company says it plans to increase production at Topia by about 25% in 2019.
In addition to its 100%-owned Topia mine, Great Panther owns the Guanajuato mine complex in Mexico.
The company expects to make a decision on whether or not to restart the Coricancha project in Peru by the end of March, and anticipates closing its acquisition of gold producer Beadell Resources by mid-February. Beadell owns 100% of the Tucano gold mine in Brazil.
For 2019, Great Panther forecasts companywide production of between 3.7 million and 4.0 million silver-equivalent ounces at cash costs of between US$5.00 and US$6.50 per silver-equivalent ounce and all-in sustaining costs including corporate general and administrative expenditures of between US$13 and US$15 per silver-equivalent ounce.
At presstime in Toronto, Great Panther was trading at $0.93 per share within a 52-week trading range of $0.70 and $1.68.
The company has about 169 million shares outstanding for a market cap of about $157 million.
