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Great Panther reaches record quarterly production as San Ignacio kicks in

Published: 11:12 16 Oct 2014 EDT

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Great Panther Silver (TSE:GPR) (NYSE MKT:GPL) posted Thursday record production, with total metal output in the third quarter rising 13 percent from the year earlier period and 24 percent from the second quarter, supported by the ramp up of production at its San Ignacio mine.

The satellite mine, which is part of the company's Guanajuato Mine Complex in Mexico, began commercial operations in June, and the precious metals miner has been working to ramp up production at the site ever since.

In the third quarter, the company produced a record 890,641 silver equivalent ounces, up 13 percent from the same period last year, on the back of a 23 percent increase in pure silver output to 565,965 ounces.

Gold production decreased 11 percent to 4,200 ounces, Great Panther said.

The Mexico-focused miner has two operations in the country, including Guanajuato and the Topia mine. Ore processed from both sites rose 16 percent in the most recent period to a quarterly record of 89,030 tonnes.

On top of new production from the San Ignacio satellite mine at the Guanajuato complex, Great Panther said it also benefited from significantly improved silver grades at the site over the second quarter. Metal production at the Guanajuato complex in the latest period increased 35 percent from the previous three months.

Earlier this year, the company was hit by an illegal occupation at its Guanajuato mine, as well as by continued grade challenges at the site, some of which were associated with the preparation necessary to resume normal operation at the higher grade zones. 

The miner worked to improve operations by placing more emphasis on geological controls and by accelerating development at San Ignacio, which is located 22 km from the Guanajuato complex's processing facility.

"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," said president and chief executive officer, Robert Archer, in a statement released Thursday.

"We are tracking to our production guidance of 3.0-3.1 million Ag eq oz for the year and our main focus in the fourth quarter will be to continue to work on improving our efficiencies and lowering costs."

Indeed, the company began surface diamond drilling at San Ignacio in late September, with the aim of expanding and upgrading the mineral resource in areas adjacent to the ramp development and along strike to the south.

At Great Panther's Topia mine, while silver grades were down slightly from the same quarter the previous year, increased tonnage led to record silver production during the third quarter, and a 12 percent increase in total metal output.

The company's full third quarter results are slated to be released after market on November 5.

Shares added 1 percent to C$1.01 in Toronto early Thursday, extending year-to-date gains to over 31 percent.

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