Great Panther grows Guanajuato complex resources in Mexico

A jumbo drill underground at Great Panther's Guanajuato mine complex in Mexico. Photo credit: Great Panther Silver.

Silver and gold producer Great Panther Mining (TSX: GPR; NYSE-AM: GPL) has released updated mineral resource estimates for the Guanajuato and San Ignacio underground mines within its wholly owned Guanajuato mine complex (GMC) in Mexico.

Combined measured and indicated resources increased by 17%, to 10.2 million silver-equivalent ounces. These ounces are within 821,851 tonnes, grading 199 grams silver per tonne and 2.07 grams gold per tonne (385 grams silver-equivalent per tonne).

Total inferred resources more than doubled, to 18.1 million oz. of silver-equivalent. The inferred resources total 1.5 million tonnes, at 185 grams silver and 2.25 grams gold (388 grams silver-equivalent).

“We are pleased to have completed another productive drilling campaign at GMC, successfully outlining new resources and demonstrating the quality of the orebody. GMC has been in our portfolio since 2005 and has cumulatively produced nearly 30 million silver equivalent ounces for Great Panther,” Rob Henderson, Great Panther’s president and CEO, said in a news release.

Henderson added that the company expects to provide an updated resource and reserve estimate for its Tucano gold mine in Brazil before the end of the year.

Within the above resource totals, the San Ignacio mine holds 387,898 measured and indicated tonnes, at 377 grams silver-equivalent, and 992,835 inferred tonnes, at 384 grams silver-equivalent. Guanajuato contributes 433,953 measured and indicated tonnes, at 396 grams silver-equivalent; and 460,174 inferred tonnes, grading 407 grams silver-equivalent.

The resources are based on net smelter return cut-offs between US$89 and US$125 per tonne. The two mines at GMC feed the 1,000 tonne per day Cata processing plant on-site. Since the July 31 resource cut-off, the company has drilled 9,560 metres. Three rigs are working at the Guanajuato mine and one drill is active at San Ignacio.

On the permitting front, Great Panther is looking to permit an expansion of the GMC tailings storage facility (TSF), to increase capacity beyond January 2021. It has received approval from SEMANART, the environmental permitting authority and is waiting for approval from the national water authority, CONAGUA. In conjunction with this permitting, the company has also been seeking a permit from SEMANART for a one-metre raise of the existing TSF, to increase tailings capacity beyond April 2021, and to allow more time for the CONAGUA approval – SEMANART has advised Great Panther that the one-metre raise will not be approved.

The company is looking into alternatives for tailings storage to continue processing beyond January – these could extend the tailings capacity for two to five months, to allow more time till the CONAGUA permit is received. The release notes that “if the CONAGUA approval of expansion of the TSF has not been received and an alternative tailing storage solution does not get resolved prior to January 2021 , the Company may need to cease milling operations at the GMC until receipt of the CONAGUA expansion approval.”

Last year, the GMC generated 1.5 million silver-equivalent oz. and is expected to churn out 1.2 to 1.3 million silver-equivalent oz. in 2020.

In its portfolio, the company also holds the Topia silver mine in Mexico, in addition to Tucano and the GMC.

This article first appeared in the Canadian Mining Journal, part of Glacier Resource Innovation Group.


1 Comment on "Great Panther grows Guanajuato complex resources in Mexico"

  1. Brian R Murphy | November 27, 2020 at 2:21 am | Reply

    Great story with assays re Juanajuato…..mice work

    Nice Juanajuato story…plus asays, you rock!


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