Slumping ore-grade continues to plague Great Panther Silver in Q3
Disappointing metal output due to falls in ore grades in the third quarter forces Great Panther Silver to cut its 2011 production forecast sharply to 2.2 million ounces silver equivalent.
Posted: Friday , 14 Oct 2011
HALIFAX, NS -
Despite pushing through more ore at its Guanajuato and Topia mines in Mexico, Great Panther Silver (TSX: GPR) said production fell in the third quarter on what it called "a significant drop in ore grades."
Output on a silver equivalent basis was 484,550 ounces, down 18 percent year-on-year and 14 percent from the second quarter, which was also disappointing for Great Panther in terms of ore grade.
With flagging production Great Panther chopped 2011 guidance from just shy of 3 million ounces silver equivalent to 2.2 million ounces silver equivalent.
"While this demonstrates no growth from the previous year, both operations show good opportunities for realizing continued growth into 2012 and the plants at both Guanajuato and Topia have been upgraded in anticipation of this increased throughput," Great Panther stated.
While Great Panther looked forward to growth in 2012, it nonetheless hinted at additional revisions, stating, "production targets for fiscal 2012 are currently under review."
Great Panther was hit hardest at the Guanajuato mine, which accounts for a bit more than half its metal output. Guanajuato ore graded 175 g/t silver and 1.12 g/t gold, down a big 34 percent over the same quarter the year previous.
Ore grade at Topia, however, was steadier, averaging 420 g/t Ag, 0.47 g/t Au, 2.02 percent lead and 2.67 percent zinc. Though down 12 percent against the third quarter in 2010, it matched more closely ore grades from the second quarter this year.
As of presstime Great Panther's shareprice was down three percent to C$2.56.