Great Panther Mining Ltd. [GPR-TSX; GPL-NYSE American] on Tuesday July 30 reported the first drill results from in-mine exploration since the company acquired the Tucano Gold Mine in Brazil back in March, 2019.
In a press release Tuesday, Great Panther said the first drill results are returning high-gold grades over notable widths below the existing TAP AB3 open pit. Highlights from the first 12 holes include 15.35 g/t gold over 13.55 metres, including 30.94 g/t gold over 5.35 metres in hole 19TABDD001; and 13.00 g/t gold over 25.50 metres, including 63.40 g/t gold over 5.00 metres in hole 19TABDD010.
Great Panther shares advanced on the news, rising 1.83% or $0.02 to $1.11 on volume of 251,065. The shares are trading in a 52-week range of 70 cents and $1.58.
Great Panther is a low-cost producer with a very strong leverage to the price of silver. Already holding two mines in Mexico, the company has successfully expanded into Peru and Brazil.
The company was in the news recently when it approved a positive production decision for its 100%-owned Coricancha gold-silver-zinc-copper mine in Peru.
The company said the decision was based upon the final results of the trial stope and bulk sample program (BSP) which confirmed the key operating assumptions for Coricancha contained in a preliminary economic assessment that was announced in May, 2018.
“The actual restart date is expected in the first half of 2020 and will be aligned with our other mining operations to ensure the project has the necessary planning and resources in place to optimize operations and profitability,” said Great Panther President and CEO James Bannantine.
“Coricancha is expected to produce approximately 40,000 ounces of gold equivalent annually and will be an important addition to Great Panther’s production portfolio going forward, Bannantine said.
Meanwhile, Great Panther has said its primary focus for 2019 will be on the integration and optimization of the recently acquired Tucano Gold Mine, which is now a 100%-owned asset. The Tucano Gold Mine is located in Amapa State in northern Brazil. It is currently the second largest gold producer in Brazil, producing 145,000 ounces of gold per year from several open pit mines.
Formerly a heap leach operation, it ran from late 2005 until January 2009, producing approximately 292,000 ounces of gold from 8.8 million tonnes of ore. The processing plant was upgraded in 2018 with the addition of the SAG mill and CIL infrastructure and is now capable of treating sulphide ore.
The current in-mine drilling program contemplates approximately 7,450 metres of drilling in 36 holes from two rigs. The aim of the program is to convert inferred resources into the measured and indicated category, while an additional medium-term program will test other near-mine targets.
A further regional exploration program is in the planning stages and will focus on regional exploration of the extensive land package surrounding the Tucano Gold Mine.
Great Panther has said it plans to produce up to 200,000 ounces of gold equivalent this year.