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Posts tagged ‘Great Panther Silver Ltd (GPR)’

Canadian silver producer denounces harassment, violence from illegal miners in Mexico

March 6th, 2014

by Cecilia Jamasmie | March 6, 2014 | Reprinted by permission of MINING.com

Canadian silver producer denounces harassment, violence from illegal miners in Mexico

A 2011 march against cartel violence in Mexico.

 

Vancouver-based Great Panther Silver TSX:GPR said March 6 an illegal miner was killed in a clash with guards at its silver mine in Guanajuato, central Mexico.

Robert Archer, president/CEO of Great Panther, said illegal miners have been entering the mine “by force and with weapons.” For that reason, he added, the firm was forced to hire an armed security force.

“We initially took a non-confrontational approach to keep the illegal miners out … Regrettably, there was an altercation with intruders in one of our mines [March 4] that resulted in the death of an illegal miner. In addition, a group of people attacked and vandalized some of the mine offices and vehicles,” he said in the statement.

None of the company’s employees or contractors was injured.

Thieves and illegal miners steal small quantities of rich ore, but also put mine employees and themselves at risk in the underground labyrinth of tunnels, the firm said.

Guanajuato is next to Michoacán state, where drug cartels have began tapping into illegal mining as a fresh source of revenue (see map below). However, there was no immediate indication of any cartel involvement in the Guanajuato case.

Canadian silver producer denounces harassment, violence from illegal miners in Mexico

Mexican states where most of the conflict takes place, in red. (Map: Wikipedia)

Reprinted by permission of MINING.com

Meet the juniors

September 24th, 2012

Toronto Resource Investment Conference 2012 links investors with opportunities

By Ted Niles

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When market uncertainty prevails, perspective is one of the most valuable (and, needless to say, scarce) commodities an investor can hope for. And there will be perspective in abundance at Cambridge House’s Toronto Resource Investment Conference 2012 on September 27 and 28.

“It’s an anomaly right now,” says Cambridge House Owner and Founder Joe Martin. “You have record-setting prices for most of the mineral ore that we’re looking for, and yet the prices of the stocks are extremely depressed. That’s primarily because of the lack of available capital as a consequence of the world crisis, particularly in Europe. Looking at gold: companies are profitable at $800 gold, and yet we have clients who have more cash in the bank than their market cap. So it’s been a very tough period for these companies to raise money. You’re seeing financings at 10, 15, 20 cents when they should be in the 60-, 70-, 80-cent range.”

Martin notes that the last three months were particularly brutal for junior mining stocks, but he believes that August saw the bottom of the market. “We went through a very depressing summer, but the tempo of my sales force and the attitude of my whole staff in the last three weeks has been very upbeat. And we’re a good barometer of that, because we’re in touch with a wide variety of the exploration people. If you look at the TSX Venture index you’ll see that we’ve turned the corner.”

Toronto Resource Investment Conference 2012 links investors with opportunities

Investors, miners and explorers will converge on Toronto for one of the industry’s biggest annual events.

That said, it’s some indication of the strength of a number of Cambridge House’s exhibitors that they have remained reasonably unscathed despite the length and sharpness of this particular bear market’s claws. Most remarkable would be Argonaut Gold TSX:AR, whose share price has increased over 260% during the last two years, reporting in August record revenue and production from its La Colorada and El Castillo mines in Mexico. Not quite so dramatic but still noteworthy are GoldQuest Mining TSXV:GQC, Great Panther Silver TSX:GPR, Eurasian Minerals TSXV:EMX, Comstock Metals TSXV:CSL and Balmoral Resources TSXV:BAR, who have all performed well in recent months.

Martin says there is no shortage of opportunities for juniors moving forward. Consider that half the world’s population is living in countries whose economies are growing at 6% per year. Note too that central banks increased their gold purchases 571% in 2011. “Ore bodies run out, and it’s primarily up to the Canadian juniors to find new ones,” he declares. “Canadian juniors are very adept at doing this. Right now the big thing is the rush for battery-technology metals—lithium, graphite and, coming down the pipe, zinc. It’s the Canadian juniors that are meeting this demand.”

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Mexican Focus

March 28th, 2012

Cangold Pushes Ixhuatan Gold Project toward Prefeasibility

By Greg Klein

Now this is a testament to the lure of gold—and of Mexico. Two producing silver mines, a silver development project and a silver exploration project, all south of the Rio Grande, didn’t quite satisfy the management of Great Panther Silver TSX:GPR. Hence the existence of Cangold TSXV:CLD, a company whose management and board are almost identical to Great Panther’s. Having picked up a 75% option on the Ixhuatan Project in the same country, Cangold has a gold project moving toward prefeasibility.

“The beauty of this is that it’s an advanced-stage project with a compliant resource of 1.7 million gold ounces,” says President/CEO Bob Archer. “And because it’s the same management team as Great Panther, we can move it into production, if that’s the case.”

Cangold Pushes Ixhuatan Gold Project toward Prefeasibility

Cangold’s Ixhuatan Project came with a 1.7-million-ounce gold resource

Located in the southern state of Chiapas, the 4,176-hectare property had already seen 89,000 metres of drilling in 342 holes. “That’s a huge amount, and the deposit itself is fairly well defined,” says Archer. “So there’s really no need to update the resource. We’ve made it current from a regulatory standpoint, and any additional drilling will come at the prefeasibility stage, mostly a few fill-in holes, if there are any gaps in the model, or a couple of additional holes for a more detailed metallurgical study.”

Included in the project’s May 2011 43-101 technical report is a 2006 resource estimate for the Campamento Deposit, one of nine mineralized zones. The measured category shows 1.95 million tonnes grading 3.49 grams per tonne gold and 15.84 g/t silver for 219,000 gold ounces and 990,000 silver ounces. The indicated category shows 15.62 million tonnes grading 1.64 g/t gold and 6.79 g/t silver for 823,000 gold ounces and 3.41 million silver ounces. Inferred resources come to 21.75 million tonnes grading 1.01 g/t gold and 3.23 g/t silver for 703,000 gold ounces and 2.26 million silver ounces. These numbers use a 0.5 g/t gold cutoff.

Under last September’s option agreement—labelled a reverse takeover by the TSXV—Cangold may acquire 75% of Linear Gold, the project’s owner and a subsidiary of Brigus Gold Corp TSX:BRD, by paying Brigus a total of $10 million and 20 million Cangold shares over two years and completing feasibility within three years. Following production, Brigus would get $5 per gold ounce in the proven and probable reserves shown in the feasibility study as well as a 2% net smelter royalty.

Brigus did the deal with us because of our management team,” Archer declares. “They were focused on their Black Fox Gold Mine near Timmins, so Ixhuatan was a bit of an orphan for them. They had no team in Mexico, and they weren’t getting any value for it in their share price. So they decided to do the deal with a group that was already well established in Mexico, knew how to operate there and was ready to move the project forward.”

Metallurgical testing is already underway, part of an internal scoping study that will likely lead to an independent prefeasibility for an open pit mine by late summer or early fall. The metallurgy gets a bit fussy because southern Mexico’s rainfall rules out heap-leach processing. “We’d like to use a contained process that would avoid any requirement for cyanide or anything like that. That would lead to a more environmentally friendly operation,” Archer says.

The beauty of this is that it’s an advanced-stage project with a compliant resource of 1.7 million gold ounces. And because it’s the same management team as Great Panther, we can move it into production —Bob Archer

As for infrastructure, “It’s great,” Archer says. “There’s a relatively short gravel road that leads right onto the property and paved roads leading to a number of nearby towns.”

While the scoping study takes place, the company works on community relations. “Again, one of the beauties of this project is that we don’t have to go in with a big drill program. We have the luxury of time, which allows us to engage the local communities and find out what their concerns might be. There are far too many projects that have been stopped in their tracks because companies didn’t communicate properly.”

At the opposite end of the country, in Sonora State, Cangold has the early-stage Plomo Project. “It’s very close to a major regional structure that comes through northwestern Mexico,” Archer reports. “Most of the deposits in that region are related to the structure, both spatially and geologically. It’s only about 25 kilometres from La Herradura [44% owned by Newmont TSX:NMC], one of Mexico’s largest gold mines. We’ve defined an area that’s about five kilometres long and three kilometres wide with a number of gold-bearing zones. We’ll be going back to start mapping and sampling and ultimately resume drilling later this year.”

Cangold is earning 100% of Plomo subject to a 2% NSR with a private owner. Cangold also owns the Argosy Project, a past-producing gold mine in Ontario’s Red Lake District. But that one’s up for grabs, according to Archer. He wants to stay focused on Mexico.

“I love working there,” he says. “I had worked there back in the late 1990s, when I started Great Panther with a friend who’s a Mexican mining engineer. We wanted to build a Mexican mining company. The governments at all levels are very supportive of mining in general, and there’s a good mining act. The geology is fantastic, and there are still lots of discoveries to be made.”

At press time Cangold, had 33.9 million shares trading at $0.20 for a market cap of $6.8 million. “Yet we’re earning 75% of a 1.7-million-ounce gold deposit,” Archer concludes. “The share price doesn’t reflect the potential of the project whatsoever. I think there’s a huge upside there.”

Great Panther reports Mexico Results of 13.28 g/t Gold, 1,493 g/t Silver over 5.6m

November 30th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGreat Panther Silver Ltd TSX:GPR announced assays from its Guanajuato Mine in Guanajuato State, Mexico. Results include

13.28 g/t gold and 1,493 g/t silver over 5.6 metres
34.22 g/t gold and 45 g/t silver over 2.7 metres
17.15 g/t gold and 36 g/t silver over 3.5 metres
44.76 g/t gold and 46 g/t silver over 1.2 metres
27.04 g/t gold and 112 g/t silver over 1.75 metres
16.13 g/t gold and 50 g/t silver over 2.3 metres
5.56 g/t gold and 11 g/t silver over 5.2 metres
9.05 g/t gold and 11 g/t silver over 2.3 metres

The project has October 2010 proven and probable reserves totalling 320,200 tonnes grading 2.19 g/t gold for 22,530 gold ounces and 282 g/t silver for 2.9 million silver ounces. The measured and indicated resource is estimated at 399,000 tonnes grading 2.12 g/t gold for 27,200 gold ounces and 287 g/t silver for 3.68 million silver ounces. The inferred resource is estimated at 212,000 tonnes grading 4.39 g/t gold for 30,000 gold ounces and 106 g/t silver for 726,000 silver ounces. The reserves are included in the resource estimate.

View Company Profile

Contact:
Great Panther Silver Ltd
604.608.1766

by Greg Klein

Great Panther reports Mexico Assays of 2.48 g/t Gold, 623 g/t Silver over 4.3m

September 30th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGreat Panther Silver Limited TSX:GPR announced assay results from its San Ignatio Mine property in Guanajuato, Mexico. Highlights include

1.75 g/t gold and 134 g/t silver over 3.5 metres
1.32 g/t gold and 68 g/t silver over 3.1 metres
10.8 g/t gold and 1,370 g/t silver over 0.6 metres
2.38 g/t gold and 176 g/t silver over 4.2 metres
2.48 g/t gold 623 g/t silver over 4.3 metres
1,390 g/t silver over 0.8 metres
4.62 g/t gold and 359 g/t silver over 1.6 metres
2.89 g/t gold and 122 g/t silver over 2 metres
1.76 g/t gold and 93 g/t silver over 4.3 metres
1.04 g/t gold and 464 g/t silver over 3.5 metres
6.43 g/t gold and 187 g/t silver over 3.2 metres

The San Ignacio project is located in the La Luz vein system of the Guanajuato silver-gold district. Great Panther has re-initiated its NI 43-101 resource estimate for San Ignacio, which is expected to be completed by 4Q 2011.

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Read More about Great Panther Silver

Contact:
B&D Capital
604.685.6465

by Ted Niles

Curing A Hiccup

September 13th, 2011

Great Panther Recovers from its 2Q Report

By Ted Niles

“In this kind of a market,” says Bob Archer, “people have kind of a show-me attitude.” The President and CEO of Great Panther Silver is referring to the blow the company suffered last month after its 2Q financials were released. He explains, “We had a little hiccup in the second quarter in terms of our concentrate sales from our Guanajuato operation. Our primary buyer said they weren’t going to accept any more concentrate, and that forced us to scramble to find another buyer. Which meant that we had a little bit of a buildup of inventory at the end of the quarter—our revenues and earnings for the quarter were substantially below what they normally would have been.”

Hiccup certainly seems like the appropriate word. Short-lived, innocuous but still irritating. Great Panther shares lost 25% before the proverbial paper bag burst on August 18 with the announcement that the company had found a new Mexican buyer for its concentrate. Indeed, says Archer, “We have resolved the problem such that as we draw down on the inventory to a new buyer the revenues in 3Q and 4Q will be higher than they normally would be and will balance out by the end of the year.” He adds, “It’s a bit of a non-issue for us, but the market is saying I want to see those numbers. I think largely because of that we’re undervalued relative to our peers right now.”

Great Panther Recovers from its 2Q Report

The hiccup cured, Great Panther’s strengths are being recognized. Robin McCutcheon of Seeking Alpha marvelled that it was “still relatively inexpensive compared to the mainstream miners.” The Motley Fool’s Christopher Barker urged readers to “carefully consider” the company.

And there is much to consider about this primary silver producer and its two wholly-owned and royalty-free mines in Mexico. The first, Guanajuato—in, as you might expect, Guanajuato State—is a silver-gold mine occupying 4.2-kilometres of the Veta Madre vein structure. Guanajuato is an underground mine and has NI 43-101 measured and indicated resources of 5.45 million ounces silver equivalent—4.37 million ounces of which are proven and probable reserves—and 2.68 million ounces silver equivalent inferred. In 2010, it produced 1.4 million ounces silver equivalent at a cost of $6.61 per ounce.

The Topia silver-lead-zinc property is Great Panther’s second mine, located in Durango State, and is the smaller of the two operations. As with Guanajuato, silver mining in the area goes back to the Conquistadors. Topia comprises four concessions totalling 6,438 hectares and has measured and indicated resources of 7.4 million ounces silver equivalent, 16.4 million pounds zinc, 28.3 million pounds lead and inferred resources of 11.9 million ounces silver equivalent, 23.4 million pounds zinc and 41.1 million pounds lead. In 2010, it produced 822,000 ounces silver equivalent at a cost $9.06 per ounce.

Great Panther acquired the properties in 2005 planning to avoid debt and shareholder dilution. Archer explains, “Some people at the time advised us to just raise $50 million and go hard at it, but we said no. We wanted to do it at a more gradual level. We’ve been upgrading consistently year after year at the operations and doing a lot of drilling to expand the resource.” Since Great Panther began production in 2006 it has increased production and resources year over year. It achieved net positive cash flow in May 2009.

They are the highest assays we’ve seen in the drilling at the mine. We do know that bonanza-grade mineralization exists at different places within the mine, but it’s the first time we’ve had these kinds of grades in the drilling. They’re pretty spectacular —Bob Archer

Also in 2009 Great Panther announced a three-year growth strategy to increase production at Guanajuato and Topia to a total of 3.8 million silver-equivalent ounces by 2012, lower operating costs to roughly $5.00 per ounce silver and outline and maintain a total resource of 40 million ounces silver equivalent. Archer comments, “I’m pleased with our progress. It’s not a straight-line projection by any means, but we’re still maintaining our targets for 2012. We’re a little over halfway through our three-year organic growth strategy. We’ve upgraded the plants, and we’ve increased the capacity. Now it’s a matter of trying to increase the output from the mines.”

Toward that end, Great Panther’s 2011 drill program includes 60,000 metres of surface and underground exploration to upgrade resources: 6,000 metres at Topia, 30,000 metres at Guanajuato, and 24,000 metres at the company’s new San Ignacio project—located 20 kilometres by road from Guanajuato’s Cata mill. Great Panther also acquired the equally-close Santa Rosa project in July, where drilling is expected to begin by 4Q.

March 10 assays of San Ignacio included 5.04 grams per tonne gold and 1,404 g/t silver over 0.9 metres, 3.77 g/t gold and 356 g/t silver over 1.8 metres, 3.08 g/t gold and 421 g/t silver over 3.8 metres, 1.69 g/t gold and 655 g/t silver over 2.4 metres and 4.2 g/t gold and 854 g/t silver over 1.5 metres. August 30 assays of Guanajuato’s Cata mine include 29.44 g/t gold and 6,447 g/t silver over 3.2 metres, 7.38 g/t gold and 2,114 g/t silver over 5.4 metres, 6.02 g/t gold and 1,347 g/t silver over 2.3 metres and 5.41 g/t gold and 1,764 g/t silver over 3.3 metres. Archer remarks, “They are the highest assays we’ve seen in the drilling at the mine. We do know that bonanza-grade mineralization exists at different places within the mine, but it’s the first time we’ve had these kinds of grades in the drilling. They’re pretty spectacular.”

He continues, “Our COO has already given the go ahead to start development and get those zones into production as soon as possible. Probably early 4Q. Guanajuato is at half capacity right now—we’re running it at about 600 tonnes a day, and it can operate at about 1,200 tonnes a day. So there’s room there to add additional feed from San Ignacio when we get that going.” San Ignacio is anticipated to have a new resource by 4Q 2011 as well.

Great Panther continues to concentrate on steady development. “We’re very focused on acquisitions at the moment,” Archer says, “and looking to acquire either another project or another company that would bring us additional projects in the near term. We really are very growth oriented at the moment.”

At press time, Great Panther Silver had 134.2 million shares trading at $3.26 for a market cap of $437.6 million.

Great Panther reports Mexico Assays of 1,404 g/t Silver, 5.04 g/t Gold over 0.9m

March 11th, 2011

Great Panther Silver Limited TSX:GPR announced assays from its San Ignatio Mine Property in Guanajuato State, Mexico. Results include 5.04 g/t gold and 1,404 g/t silver over 0.9 metres, 2.18 g/t gold and 85 g/t silver over 3.5 metres, 3.77 g/t gold and 356 g/t silver over 1.8 metres, 1.35 g/t gold and 175 g/t silver over 1.4 metres, 3.08 g/t gold and 421 g/t silver over 3.8 metres, 1.69 g/t gold and 655 g/t silver over 2.4 metres, 4.2 g/t gold and 854 g/t silver over 1.5 metres, and 1.63 g/t gold and 513 g/t silver over 1.2 metres.

The San Ignacio Mine property covers approximately four kilometres of strike length on the La Luz vein system, which is parallel to, and five kilometres west of, the principal Veta Madre structure that hosts Great Panther Silver’s main Guanajuato mines. The company has started the permit application process, including preparation of an Environmental Impact Assessment, in anticipation of a positive decision to establish a mine portal and drive a decline ramp from surface to access the veins for underground mining.

View Company Profile

Contact:
B&D Capital
604.685.6465

by Ted Niles

Great Panther reports Mexico Assays up to 2.36 g/t Gold over 5.8m

January 28th, 2011

Great Panther Silver Limited TSX:GPR announced assays from the Guanajuatito Mine at the northwest end of its Guanajuato Mine Complex in Mexico. Results include 2.36 g/t gold and 429 g/t silver over 5.8 metres, 1.01 g/t gold and 175 g/t silver over 2.7 metres, 1.87 g/t gold and 455 g/t silver over 2.6 metres, 8.52 g/t gold and 1,300 g/t silver over 0.7 metres, 1.03 g/t gold and 194 g/t silver over 3.6 metres, 1.17 g/t gold and 274 g/t silver over 4.6 metres, and 2.27 g/t gold and 839 g/t silver over 1.9 metres.

Guanajuato Mine Manager Andrew Sharp commented, “Ore development on the 120 level is underway and the provision of ventilation for the first ore level is a priority. Once this commences, ramp development to subsequent stope levels for future production will re-commence. Given the good exploration results to date, further exploration potential along strike and the advancing ramp depth, additional capital has been committed in the form of a deeper electrical distribution network.”

View Company Profile

Contact:
B&D Capital
604.685.6465

by Ted Niles