Great Panther produces 17,913 AuEq ounces in Q1 2022

Tucano Gold Mine in Brazil. Source: Great Panther Mining Ltd.

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Great Panther Mining Ltd. [GPR-TSX; GPL– NYSE American] reported production results for the three months ended March 31, 2022, from its two wholly-owned operating mines, Tucano in Brazil and Topia in Mexico.

First Quarter 2022 production highlights include consolidated metal production of 17,913 gold equivalent ounces (AuEq oz), inclusive of 14,319 gold ounces and 173,698 silver ounces. Total gold production at Tucano was 14,037 gold ounces. Total silver equivalent production at Topia was 290,694 AgEq oz.

“I am pleased to report that production for the quarter was in line with expectations as we build back steady-state production at Tucano,” stated Alan Hair, Chair and Interim CEO of Great Panther. “We remain on track to return to a normalized rate of production in the second half of the year. In addition, an extensive drilling program at the Urucum North underground project has been completed. Engineering studies and permitting are underway and construction work is expected to commence in late 2022 with gold production from the Urucum North underground mine anticipated to come onstream in 2023.”

The company’s operations are on track to meet previously announced consolidated production guidance for 2022 of 100,000 to 119,000 AuEq oz. The mine plan for Tucano reflects more stripping in the first half of 2022 with the second half of 2022 expected to account for at least 65% of annual production guidance.

To overcome previously indicated contractor performance issues, the mobilization of our new mining contractor, MINAX, commenced during the quarter. The company continues to work closely with its current contractor, U&M, to ensure a safe and efficient transition with MINAX. MINAX is expected to fully mobilize its fleet by the end of May. During the transition, Tucano will continue to offset U&M’s mined tonnage deficit with capacity from the new MINAX mine fleet.

Despite ounce production being lower compared to the first quarter of 2021, production in the first quarter of 2022 at Tucano was positively affected by mine reconciliation and higher milled ore tonnage due to the high availability of the MINAX mine fleet to rehandle stockpiles.

In line with expectations, production decreased 39% in Q1 2022 when compared to the first quarter of 2021 to 14,037 gold oz, primarily attributed to ongoing stripping of the TAP AB, TAP C and Urucum North pits, which resulted in low ore production triggering higher consumption of the low-grade stockpiles. Rain levels recorded in March and during the first quarter were 65% and 32% higher, respectively, compared to historical averages, which had a negative impact on mine development.

Silver equivalent production at Topia in Q1 2022 was 290,694 Ag eq oz compared with 363,318 Ag eq oz in Q1 2021, a decrease of 20% primarily due to lower tonnes milled in the absence of stockpiles, and lower gold and silver grades. These factors were partly offset by higher gold recovery and the increase in production attributed to the change in metal equivalency ratios for zinc. The mine development meterage during this period was 40% higher compared to Q1 2021 as preparations for full mine production in mines 1522, La Prieta, Rosario and Durangueno will support future production from these key ore sources for the next three quarters.

The Guanajuato Mine Complex (GMC) is currently on care and maintenance while the Company awaits the permits from CONAGUA necessary to extend the tailings facility. Consequently, there was no production at the GMC during Q1 2022. Great Panther continues to proactively engage with CONAGUA in regards of the tailings dam permit and to explore other alternatives to maximize value from the GMC.

Great Panther owns a diversified portfolio of assets in Brazil, Mexico and Peru that includes three gold and silver mines, an advanced development project and a large land package with district-scale potential.


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