Precious metals miner Great Panther Silver Ltd (TSX:GPR; NYSE:GPL) is making good progress on its bulk sample program (BSP) at the Coricancha gold-silver-lead-zinc-copper project in Peru.
The BSP will process around 6,000 tonnes of material and is expected to be finished in the first quarter of 2019, the firm said Thursday.
The project was started after the release of a preliminary economic assessment (PEA) for the Peru project, which put a net present value on it at US$16.6mln.
Access decline advanced..
Since then, the access decline has been advanced 75 metres, which is ahead of schedule, said Great Panther.
Work has also begun on the upgrade and rehabilitation of surface roads and underground mine infrastructure.
Mechanical, electrical and instrumentation testing has also begun on the crushing, grinding, and flotation circuits.
Also today, the miner posted its second quarter and half year results, which showed the second three months had been impacted by Coricancha related project and care and maintenance and higher costs at the Guanajuato mine complex due to narrower vein widths than expected.
"Despite this, we are maintaining our cost guidance for the year, as we expect the trend in Q2 to reverse in the remainder of the year based on our recent drill results and development to date to access these drilled targets," said Jim Bannantine, president and chief executive.
Strong balance sheet..
"We continue to maintain a strong balance sheet with approximately $60-million of cash and short-term investments, and no debt, which is more than sufficient to fund the development of Coricancha.
"Further, we expect our Mexican operations will continue to provide cash flow to fund the company's ongoing requirements."
Revenue for the six months to June 30 came in at US$34mln versus US$28.1mln last year. The net loss was US$2.8MLn versus a profit of US$3.8mln in 2017.
The production guidance for 2018 remains unchanged at between 4mln and 4.1mln silver equivalent ounces at all in sustaining costs (ASIC) of US$12.50 and US$14.50.
Shares in Great Panther in Toronto dropped 2.03% to C$1.45 each.