Great Panther suspends processing at Mexico mine for upgrade

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Thursday, December 1, 2016

Great Panther Silver suspended processing at its Topia mine in Mexico's Durango state for a plant and tailings storage upgrade.

Processing will be halted for three months for the overhaul and transition to a new tailings storage facility (TSF) that is currently under construction, the Vancouver-based company said in a statement.

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Mining operations will continue during the shutdown, with the ore stockpiled for processing during next year.

"This [suspension] will provide the opportunity to safely engage in improvements at the processing plant concurrently with the construction of the new TSF while continuing with mine and resource development," CEO Robert Archer said.

The new TSF entails a shift from wet deposition to dry stack tailings storage, involving installation of a thickener and filter presses and upgrades to the crushing plant, flotation circuits and ball mills, the statement said.

The existing tailings facility will be dewatered and transition to remediation.

An ore control optimization is being carried to increase grades with the aim of raising production and lowering costs.

GUIDANCE

Great Panther now expects production of 3.9Moz silver equivalent for 2016, below guidance of 4.0-4.2Moz. The company expects to meet the lower end of cash cost and all-in sustaining cost guidance of US$4-5/oz and US$12-14/oz payable silver, respectively.

Topia produced 198,624oz silver equivalent in Q3, when Great Panther's total output was 953,632oz. The company also has the Guanajuato mine complex in Mexico, which includes the San Ignacio mine.