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News Article

Great Panther Increases GMC Resources

By Paloma Duran | Wed, 11/25/2020 - 17:02

Great Panther Mining, the silver and gold producer, has released the Mineral Resource Estimate for its Guanajuato Mine Complex (GMC). Results show that Measure and Indicate (M&I) Resources have increased by 17 percent, while Inferred Mineral Resources have grown more than 50 percent compared to previous estimates from 2019.

GMC is 100 percent owned by Great Panther and has the Guanajuato and San Ignacio underground mines and a 1,000ton-per-day Cata processing plant. In a press release, the company reported that the estimates are based on 199 holes, which totaled 19,913m of drilling.

Great Panther President and CEO, Rob Henderson said the company is pleased for its successful drilling campaign at GMC, which showed new resources and high quality in its mines. Henderson said GMC has been in the company’s portfolio since 2005 and has produced 30 million oz Ag.

In an interview with MBN, Great Panther’s former President and CEO James Bannantine said the company has been operating in Mexico for 15 years and that its main priority is to have a responsible and safe production. The previous Mineral Resource Estimate at San Ignacio was done in 2019.

Compared to the new estimate, the inferred tonnage increased 98 percent, silver grades increased 14 percent and Ag eq oz increased 106 percent. These increments show the use of higher metal prices, mine depletion and the expansion in the Purisima vein area due to successful drillings.

Compared to the previous estimate of 2019 at the Guanajuato mine, M&I increased 26 percent, silver grades increased 22 percent, Ag eq oz increased 47 percent and inferred tonnage increased 121 percent. These changes show the use of higher metal prices, minor mine depletion, change in operation costs and the expansion of areas at Los Pozos.

In addition, the press release mentioned that Great Panther aims to receive a permit to expand the GMC tailings storage facility (TSF) to increase its capacity beyond January 2021.

The company said that it has received the approval of the Ministry of Environment and Natural Resources (SEMARNAT) and it is waiting for the National Water Commission’s (CONAGUA) response. The company also hopes to receive another permit from SEMANART for a 1m high centerline raise of the embankment of the TSF to increase its capacity until April 2021, reported Canadian Mining Journal.

The company has been looking for alternatives with its technical consultants and legal advisors to continue processing beyond January 2021. The alternatives include technical processes that will continue using the current permits and will potentially extend the tailings capacity by two-five months, which will provide more time for CONAGUA’s approval, according to the press release.

However, if CONAGUA’s approval were not received nor an alternative to it before January 2021, the company may need to cease operations at GMC until it receives the expansion approval, reported Canadian Mining Journal.

The data used in this article was sourced from:  
Canadian Mining Journal, MBN, Great Panther
Photo by:   xusenru
Paloma Duran Paloma Duran Journalist and Industry Analyst