Gold and Silver miners (Jr and Exploration)

[Edge83]

Great Panther Silver Reports Positive Preliminary Economic Assessment for the Coricancha Mine

Great Panther Silver Limited Ordinary Shares (Canada) (AMEX:GPL)
Intraday Stock Chart
Today : Thursday 31 May 2018

TSX: GPR
NYSE AMERICAN: GPL

VANCOUVER, May 31, 2018 /CNW/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE American: GPL) ("Great Panther"; or the "Company") reports the results of the Preliminary Economic Assessment (the "PEA") for its 100% owned Coricancha gold-silver-lead-zinc-copper underground mine and mill complex ("Coricancha"). Coricancha is located approximately 90 kilometres east of Lima, Peru, and was acquired by Great Panther in June 2017. Coricancha has a 600 tonne per day processing plant and is fully permitted for production. Production was suspended at Coricancha in 2013 by the previous owner. The PEA will be filed on SEDAR and EDGAR within 45 days of this news release.

"We are very pleased with the results of the Coricancha PEA as it confirms the potential for average annual production of three million silver-equivalent ounces and estimates an after-tax internal rate of return in excess of 80%, with low capital costs", stated James Bannantine, President and CEO. "We look forward to advancing Coricancha by building on the PEA and gaining a better understanding of the potential of the project as we begin preparations for full-scale mining and milling."

With the PEA completed, Great Panther has decided to advance the project with the initiation of a trial stope and bulk sample program (the "Bulk Sample Program") early in the third quarter of this year to further de-risk the project. The objective of the Bulk Sample Program is to provide confirmation of expectations regarding throughput, grades, and recoveries.

The PEA involved an in-depth review of underground development and mining methodologies, ore and waste handling, ore processing, tailings treatment and handling, environmental and social aspects, costs and sensitivities. The PEA focuses on the restart of Coricancha using existing processing plant infrastructure and a relatively small portion (approximately 28%) of the overall existing Mineral Resources (see press release dated December 20, 2017 and Cautionary Statement below) which are accessible through additional development work from existing mine workings. The focused mine plan provides insight as to the ability of Great Panther to restart Coricancha based on a relatively low initial capital investment which can be funded entirely from the Company's current cash reserves. In the event the mine is returned to production, the development work in the PEA is expected to provide the opportunity to incorporate a greater portion of the existing resources into an expanded mine plan with a longer mine life. It is also expected to provide the access to conduct underground drilling, which may provide further opportunity to both add Mineral Resources, as defined by NI 43-101 and CIM Definition Standards (see Cautionary Note to United States Investors below) and extend the mine life.

Great Panther will leverage its expertise in developing and operating underground, narrow vein mines in Mexico to advance Coricancha. The existing infrastructure in place includes a crushing and grinding plant, flotation and bio-oxidation plant, electrical and water supply, plus existing mine access development. With development associated with the Bulk Sample Program starting in 2018, and following a successful outcome, the Company expects to be able to make a decision in early 2019 to commence the restart of Coricancha. The Company presently does not plan to complete a feasibility study in connection with any production decision due to (i) the existing processing plant facility, (ii) the ability to move ahead to development and production based on low initial capital costs, and (iii) the Company's knowledge of the mine and resource base.

https://ih.advfn.com/p.php?pid=nmona&article=77559933