VANCOUVER, BRITISH COLUMBIA - GREAT PANTHER RESOURCES LIMITED (TSX: GPR) (the "Company") forecasts a further 20% increase in silver production in 2009 above the record 1.214 million ounces produced in 2008 from its two 100% owned silver mines in Mexico. The estimated total metal production for 2009 includes 1.45 million oz of silver, 6,000 oz of gold, 750 tonnes of lead and 840 tonnes of zinc, or 2.07 million oz silver equivalent (Ag Eq Oz), up from 1.81 million Ag Eq Oz in 2008. (Note: The Company will continue to provide silver equivalent totals but the volatility of metal prices in recent months has made this an inconsistent basis for comparison with past and future production. The Company has used metal prices of $11/oz Ag, $850/oz Au, $0.50/lb Pb and $0.50/lb Zn for 2009 silver equivalent calculations.)
The cash operating cost per oz of silver, net of by-product credits, is estimated to be in the range of US$7.00 to US$7.50 per oz for 2009, well below current and projected prices, and a significant improvement on the estimated cost of US$11.00 for 2008 (based on unaudited figures). The cost per oz of silver is dependent upon not only mine site operating costs and silver production, but the cost of smelting and refining, the relative value of the Mexican peso against the US dollar and the value of by-product credits. During 2008, these unit costs were adversely impacted by severe increases in smelting and refining costs and the fall in metal prices, which reduced the value of by-product metals, specifically gold at Guanajuato and gold, lead and zinc at Topia.
The changes forced on Great Panther's operations by the sharp downturn in metal prices mean that both the Guanajuato and Topia Mines are emerging from 2008 much leaner and more efficient, with lower costs and yet with excellent potential to increase production further in 2009.
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