Great Panther Mining Ltd. [GPR-TSX; GPL-NYSE American] on Tuesday December 15 released an updated mineral reserve and resource update for its 100%-owned Tucano gold mine in Brazil.
The company operates three mines: the Tucano mine in Amapa State Brazil, and two primary silver mines in Mexico: the Guanajuato Mine Complex and Topia Mine.
The Tucano mine is approximately 200 km from Macapa, the state capital, and is accessible by a federal highway or by chartered aircraft. Formerly a heap leach operation, it produced 123,867 ounces of recovered gold last year at an all-in sustaining cost of US$1,406/oz. Plant modifications in 2018 and 2019 allow Tucano to process up to 90% of sulfide ore with gold recoveries of 90%.
On Tuesday, the company said proven and probable reserves at Tucano are now estimated at 629,000 oz gold, of which 299,000 oz are open pit reserves. This represents a replacement of depleted reserves.
Measured and Indicated Resources, inclusive of reserves, are 953,000 oz. In the Tucano open pit, Measured and Indicated Resources are 561,000 oz, an increase of 28% since September 2019. Inferred Resources are 534,000 oz.
Great Panther shares advanced on the news, rising 2.0% or $0.02 to $1.04.
The company said the latest estimates reflect results of near-mine drilling up to the end of July 2020 that was focused on the TAP and AB pits. This represents approximately 2 km of the 7-km mining trend.
“We have successfully replaced 2020 mining depletion and added another year to the mine life at Tucano,” said Great Panther President and CEO Rob Henderson.
In 2020, Great Panther launched a 55,000-metre drill program at Tucano for a budget of $7 million. The program is under way and to date approximately 23,000 metres have been completed. A further expansion of the program is planned for 2021.
The program has three priority focus areas including near-mine exploration, underground exploration, and regional exploration.
Meanwhile, Great Panther recently said it is on track to meet 2020 guidance of 146,000 to 158,000 gold equivalent ounces at an all-in-sustaining cost of US$1,150 to US$1,250 an ounce.
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. It said Coricancha is expected to produce approximately 40,000 gold equivalent ounces annually.