Silver demand in China and India is set to rise 30 percent in 2011. Silver prices for July delivery surged $1.058, or 2.2 percent, to $48.599 an ounce. Silver prices have risen 5.5 percent this week and 57.1 percent in 2011.
China said its net imports of silver nearly quadrupled to more than 3,500 metric tons in 2010, boosted by sharp increases in demand by the industrial sector and the jewelry industry. Silver demand in China and India has increased sharply in recent months as more investors use silver as a store of value. About 70% of China’s silver demand comes from the industrial sectors.
Silver is widely used in the production of electronic products, jewelry, industrial production, such as medical, solar power and water purification industries. China is the world’s largest producer of solar power and electronics. Silver price increased more than 80% in 2010.
Demand for silver in China and India is up 30 per cent in 2011. In 2010 India consumed about 2,800 tonnes of silver, this year’s consumption is expected to rise to 5,000 tonnes, according to Albanian Minerals trading experts
Silver investments in India is mostly from rural areas, which account for 70 percent of the country’s 1.2 billion population. The world’s silver output was 21,500 tons in 2009. In 2009, global supply of physical silver was 27,000 tons, rising by 0.20% in 2008. The total global production of silver was 29,000 tons in 2010.
Great Panther Silver Reports Second Quarter Production Jul. 12, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED - (TSX:GPR)(NYSE Amex:GPL)(the "Company") reports second quarter ("Q2") production at its two wholly-owned Mexican silver mining operations, Topia and Guanajuato.
Metal production from the two mines, at 562,944 silver equivalent ounces ("Ag eq oz"), including 386,209 ounces silver, 1,931 ounces gold, 266 tonnes lead, and 348 tonnes zinc, is within 2% of production for the second quarter 2010. Plant throughput is up by an average of 30% compared to Q2 2010, however, ore grades were lower than anticipated.
Record quarterly metal production of 212,108 Ag eq oz was achieved at Topia, including record silver production of 143,774 silver ounces ("Ag oz").
For the year to date, the combined metal production, at 1.17 million Ag eq oz, is up 6% from a year ago and the production rate is expected to increase further in the second half of the year.
The following summarizes the main highlights for the second quarter, 2011:
* Metal production of 562,944 Ag eq oz is down 2% from Q2, 2010. * Silver production of 386,209 Ag oz is down 6% from Q2, 2010.
* Gold production of 1,931 Au oz is up 31% from Q2, 2010.
* Metal production at Topia of 212,108 Ag Eq oz is up 3% from Q2, 2010 and is a quarterly record.
* Silver production at Topia of 143,774 oz Ag is up 18% from Q2, 2010 and is a quarterly record.
* Plant throughput at both operations is up by a record 30% over Q2 2010.
* Exploration drilling continues from surface at San Ignacio and from underground at Rayas and Guanajuatito in Guanajuato.
* Surface drilling program for Topia to start in the near term.
(For consistency, silver equivalents for 2011 have been established and maintained using budget prices of US$1200/oz Au, US$20/oz Ag, US$0.90/lb Pb and Zn.)
Guanajuato Mine
Metal production at Guanajuato in Q2 was down over the previous quarter primarily due to lower mined grades and, to a lesser degree, to the installation and commissioning of a new flotation circuit in the plant.
The Guanajuato operation processed 44,748 tonnes (up 30% from Q2 2010), at ore grades of 1.38g/t Au and 193g/t Ag (down 26% from Q2 2010), to produce 1,807 Au oz and 242,436 Ag oz, or 350,836 Ag eq oz (down 5% from Q2 2010).
The plant throughput includes old surface dump material hauled from the San Ignacio Property totaling 4,437 tonnes at low ore grades of 0.45 g/t Au and 66 g/t Ag to produce 8,323 Ag eq oz. Despite the lower grade of this material, it was processed to check the metallurgy of San Ignacio mineralization, with positive results.
The Guanajuato plant achieved excellent gold and silver recovery of 90.8% and 87.4%, respectively. The planned installation of five new, 5.0 cubic metre Outotec flotation cells, including an automated control system, was completed and commissioned in May together with a third set of Krebs cyclones. Metallurgical performance improved in June and is expected to improve further as ore quality improves.
The market for high grade precious metals concentrate sales became more difficult during the quarter as a result of a global surplus of concentrates due to the general upsurge in mine production in response to higher metal prices. Great Panther has secured a contract to sell the Guanajuato concentrates through a trader to an overseas smelter. However, the smelter has an oversupply of concentrates and has reduced the quantity of purchases, such that inventories of unsold concentrates at Guanajuato were higher than normal at the end of the quarter. While this will influence second quarter revenue, it is considered to be a short-term issue and negotiations with alternative buyers are being pursued.
Cata Clavo production improved and contributed 38% of total metal production from 14,000 tonnes at ore grades of 1.11g/t Au and 266g/t Ag. Development on the new 510 metre level will access both the Alto 1 and Veta Madre zones in Q3 to provide additional stoping areas for higher production at higher than average ore grades.
Production stoping of the Santa Margarita vein progressed well at the planned 50 tonnes per day ("tpd"), although gold grades of the ore extracted were lower than previous quarters, at 5.1g/t Au. Production from this vein will be increased by year end when a second production level is established on the 475 metre level.
Production from the Los Pozos area on the 310, 345 and 380 metre levels progressed, with ore production at 225 tpd, and contributed 37% of total metal production from 16,700 tonnes at estimated grades of 0.93g/t Au and 215g/t Ag. These grades are below those expected from channel sampling, and steps are being taken to improve grade control in this area. Mining efficiencies are also being improved and an access decline ramp is being driven to establish a fourth production level. Exploratory diamond drilling from the 390 metre level has intercepted the orebody below this level and deeper exploratory drilling will probe the Los Pozos zone down to the 500 metre level.
The ramp haulage system is being upgraded and extended to the Cata shaft ore loading pocket such that, as of August, the inclined hoisting shafts of both Rayas and Cata will be redundant, thereby eliminating current bottlenecks to production efficiency.
Stoping of the Guanajuatito North Zone continued from the 120 metre level with ore production totaling 2,000 tonnes at grades of 0.90g/t Au and 167g/t Ag. Ramp access is being extended to the 160 metre level where diamond drilling has indicated an extension of the orebody.
Underground diamond drilling at Guanajuato totaled 7,137 metres, with 36 holes completed during the quarter. Drilling tested: (1) the potential of the Deep Rayas area - 3,654 metres, (2) the Guanajuatito Zona Norte area - 2,779 metres, (3) the Valenciana area - 413 metres, and (4) the Los Pozos area - 291 metres. Results to date are being compiled and will be announced in due course.
During the third quarter, it is expected that the Deep Rayas drill rig will move to the Los Pozos area and then on to Valenciana exploration. The Valenciana area is currently being rehabilitated and drill stations established in order to accommodate the deep drilling program. Drilling to explore the Guanajuatito area will continue, an additional rig will drill the Santa Margarita inferred resource area and a new, smaller rig will drill the deeper resource area of Cata.
Meanwhile, underground development continues, providing additional diamond drill stations for the Santa Margarita, Deep Valenciana and Guanajuatito areas. Underground diamond drilling is being accelerated in the third and fourth quarters.
Topia Mine
The Topia operation reported metal production of 143,774 oz of silver (a record), 124 oz of gold, 586,136 lbs of lead, and 768,282 lbs of zinc, from milling 11,895 tonnes of ore. This equates to 212,108 Ag eq oz, also a quarterly record, which is 6% higher than the previous quarter and 3% higher than Q2 2010. Ore grades averaged 418g/t Ag, 0.40g/t Au, 2.34% Pb and 3.18% Zn.
Thanks to the recent expansion of the Topia plant, a quarterly record of 11,895 tonnes was processed from the Company's mines in the district. Metallurgical performance resulted in excellent recoveries of all metals. Gold recovery was 81.6%, silver recovery was 89.9%, lead recovery was 95.5% and zinc recovery was 92.2%. Lead concentrate grades of 53.33% Pb and 8,463g/t Ag were achieved while the zinc concentrate averaged 52.89% Zn and 674g/t Ag. In addition to processing the Company's ore, 3,170 tonnes were custom milled for a local miner, thereby increasing revenue and keeping unit costs down.
Mine development continued to extend known areas and provide access to new mining areas.
At the San Gregorio/El Rosario vein operations, a surface road has been established to provide access to the veins at the 1630 metre elevation which is 30 and 50 metres, respectively, below the current workings.
At the Durangueno mine, the San Gregorio vein is being explored and prepared for production on the 1475 elevation. As there are limited mineral resources and no previous exploitation between the 1475 and 1660 metre elevations, these developments will provide for additional production in the second half of the year and add new mineral resources.
Preparations continue at the La Prieta mine. Ore and waste handling facilities have been established and the main haulage route is being widened and rehabilitated. This is a past producing mine with modest mineral resources and large exploration potential, and is expected to add silver production by year end.
A total of 1,020 metres of underground diamond drilling was completed in 20 diamond core holes. Drilling was carried out to test for additional resources on the possible east extension of the Don Benito vein, between 1500 and 1534 metre elevations, and on the past producing Santa Bibiana vein between 1380 and 1460 metre elevations.
Results from the drilling are being used to direct further exploratory development and, in the case of the Santa Bibiana vein, to justify the re-opening of a formerly producing mine.
A new surface program of 7,000 metres has been planned and will start later this month once the rainy season has brought much needed water to the area.
San Ignacio Property
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.
Diamond drilling has continued at San Ignacio, where silver-gold mineralization was initially intersected in Q3 2010 and results announced for the first 8 diamond core holes. As drilling continued and results were compiled, steps were taken to prepare an internal NI 43-101 compliant resource estimate. However, as a result of a stringent Quality Assurance ("QA") procedure, it was observed that there was no consistent correlation between the original and quarter-core check assays in the first 9 holes. As such, on May 24, 2011, the Company announced its decision to postpone the NI 43-101 compliant mineral resource estimate for the San Ignacio property, pending further drilling.
Visible silver sulphides can be identified in some zones and certain check assays correlate well with the original assays while others do not. Check assaying at ALS Chemex in Vancouver, B.C. and SGS in Durango has ruled out any laboratory error at the Guanajuato on-site SGS laboratory. Quality Control ("QC") core logging and sampling procedures of the San Ignacio cores have been reviewed by Dave Rennie, P. Eng, of Roscoe Postle Associates and some modifications were made, with more rigorous logging and sample collection protocols now in place.
During the second quarter, 8 diamond drill holes totalling 3,458 metres were completed. Re-logging and quarter core sampling of the initial nine drill holes is on-going. Three of the recent holes were twins of the initial 9 holes. Twenty-one holes have now been drilled at San Ignacio, for a cumulative total of 9,558 metres and drilling is continuing with one drill rig to delimit the mineralization. A second drill should arrive by September.
A comparison of the twin holes with the original holes, as well as continued check assaying is confirming that extreme short scale variability exists in some places within the silver-gold epithermal quartz veins at San Ignacio. Larger diameter HQ core is now being used in order to increase the sample size. QA/QC checking is ongoing in order to build a larger database for statistical analysis. The Company has decided not to release any further assays from San Ignacio until the check program is complete, estimated to be later in the third quarter. When this has been completed and reviewed the Company will then proceed with the mineral resource estimate. As a complement to the drilling, detailed surface geological mapping and rock sampling continue to identify further targets.
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. During the course of development, any ore from the San Ignacio mine property will be trucked to Great Panther's Guanajuato plant for processing, where the capacity currently exists to double ore throughput.
Outlook
Great Panther Silver continues to work towards achieving the goals of its 3-year (2010-12) growth strategy for its two operations. Key to the success of the growth strategy is the delineation of new NI 43-101 compliant Mineral Resources, and drilling is being accelerated in 2011 to achieve these goals for 2012. Also, the addition of new production areas, from the increased development in the first two quarters, and better grade control are anticipated to lead to increased mine output and higher grades in the second half of 2011.
New NI 43-101 compliant Mineral Resource estimates by RPA have been published for both operations. Resources for Topia support current and future mine expansions and the plant capacity has been increased to 275 tpd. Resource estimates for Guanajuato support medium term production goals and plant capacity has already exceeded what is required to achieve these. The published resources did not include estimates for the Guanajuatito area and the San Ignacio Property. The NI 43-101 Mineral Resource estimates for San Ignacio and Guanajuatito are being prepared for release later this year while the resources for other areas of Guanajuato will be updated as new drilling data has been interpreted.
Due to delays in shipments of concentrate from its Guanajuato mine, inventories at quarter end were higher than normal and the Company advises that second quarter revenue will be lower than anticipated. However, once these sales are realized, revenue will be positively affected in coming quarters.
The Company sells its concentrates for both the Topia and Guanajuato mines through contracts with third party metal traders. During the second quarter, the principal trader, who is contractually obligated to take agreed upon concentrate volumes from Guanajuato, initially advised the Company that there would be delays in fulfilling their contractual obligations until later in the quarter, at which time they would catch up and clear the backlog. Towards the end of the quarter, they advised that the delays would persist due to conditions at the smelter. The Company has been working with this trader continuously and towards the end of June, was able to arrange for the sale of a portion but not all of the concentrates. The sale of concentrates from the Topia mine have been unaffected by this issue as these are sold to a different trader.
The Company has also been working directly with other metal traders and smelters to negotiate new contracts and expects that any such new arrangements, together with the existing contract, will allow the Company to sell the concentrate inventory on hand at Guanajuato through the balance of the year. Some smelters have sharply increased their refining charges in response to higher precious metal prices but the Company has decided to stockpile the concentrate rather than sell it under these onerous conditions.
"We have been working hard to ensure the continuous delivery of our Guanajuato concentrates through this period and see this as a short-term issue which will be resolved over the next two quarters," stated Robert Archer, Great Panther's President and CEO. "While our quarterly revenue might be a bit bumpy until things smooth out, we have a strong cash position to weather this issue and have not altered our plans to increase production."
Robert F. Brown, P.Eng. and Vice President of Exploration for the Company is the Qualified Person for both the Guanajuato Mine and the Topia Mine, under the meaning of NI 43-101. Aspects of both mines relating to mining and metallurgy are overseen by Charles Brown, Chief Operating Officer for Great Panther and its Mexican subsidiary, Minera Mexicana El Rosario, S.A. de C.V.
This news release contains forward-looking statements --- available at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Gold extended this weeks gains to exceed the early-May high at 1564.70, establishing new record highs (currently 1587.58 :-) Gains in the yellow metal have been driven by safe-haven demand stemming from the worsening of the eurozone sovereign debt crisis and the failure of US policymakers to make any substantive progress toward a debt ceiling compromise. However, it was recent hints about the possibility of another round of quantitative easing that really sent gold flying and the dollar reeling.
The initial hint at QE3 came yesterday, buried in the minutes of the June 21-22 FOMC meeting. Then today, in Humphrey Hawkins testimony, Fed chairman Bernanke said, "recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support." As we already know, the Fed and Bernanke specifically, view deflation as a far greater evil than inflation, and will therefore take whatever action is necessary to prevent the former. QE3 is just the most obvious and easily implemented option the Fed has, even though it has proven to be largely ineffective in boosting the languishing US economy. One could argue however that it has prevented deflation from occurring, so it would be no surprise if the Fed began new Treasury purchases if they see those deflation risks rearing their ugly heads once again.
Heightened expectations of more debt monetization by the Fed weighed heavily on the dollar over the past two sessions, providing additional impetus to an already strong rally in gold. Clearly the stock market loves the notion of more Fed asset purchases too.
Global stocks were already on pretty firm footing when Bernanke spoke, thanks to some robust economic data out of China. These data mitigated concerns of a hard landing in China, but also simultaneously increased the likelihood that the PBoC would remain focused on inflation fighting. The State Information Center, a leading government think tank, suggested in a research report that, "The central bank should raise the interest rates by one to two percentage points further to ensure residents' wealth won't depreciate."
Based on today's Humphrey Hawkins testimony, it would seem that the Fed chairman doesn't have similar concerns about the wealth of American residents. Investors are therefore prudently seeking protection from currency dilution by buying gold. by P. Grant
“The rule of law has basically been thrown out the window. Money printing is the order of the day. And when politicians take control of central banks, which they have done in the United States and they are also doing in Europe, that basically destroys the currency. It puts the currency on the road to what I call the Fiat Currency Graveyard, so I expect there are going to be massive currency problems as we go forward. The financial crisis that we have been dealing with for the last several years has not been solved.”
So cautions James Turk, widely-respected precious metals expert and founder/chairman of GoldMoney. In this detailed interview (recorded in June), Chris and James explore the probable outcome of the current US debt-ceiling operatics, the likelihood of future Fed money printing, and strategies for preserving wealth. In short, James believes we are witnessing the decline of the world’s major fiat currencies, and expects gold to be remonetized in the aftermath. By C. Martenson
GPL chart TA Alert Breakout Bull Start :-)
ST strong bull start - filled the st. gap - better sooner than later :-)
LT TI Fib. new trend often to be 162% bull :-) of the previous lucifer ws bolsheviks bear corrections.
Great Panther Silver Purchases New Silver-Gold Project in Guanajuato Jul. 18, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED - (TSX:GPR)(NYSE Amex:GPL) (the "Company") is pleased to announce the acquisition of four mining concessions, totaling 1,514 hectares, approximately 10-15 kilometres northeast of Guanajuato, Mexico (see maps on Great Panther Silver's website). The claims are located on the north-west extension of a system of multiple northwest-southeastern trending parallel structures that could be part of the "La Sierra" vein system. The La Sierra system is the most easterly of the three structural systems in the prolific Guanajuato district along with the main Veta Madre and the La Luz trends. Presently the Company is mining on the Veta Madre system at its Guanajuato Mine and exploring on the westerly La Luz system at the San Ignacio project.
There are numerous past producing mines along the La Sierra system, including AuRico Gold's currently operating El Cubo mine, with 620,000 gold equivalent ounces in reserves (AuRico Gold Inc. website). Several old mines, some with multiple levels, are evident on the newly-acquired concessions, collectively called the Santa Rosa Project, but no production records exist.
"This is a strategic acquisition for Great Panther Silver, as the concessions have excellent exploration potential and are within trucking distance to the Company's Cata plant in Guanajuato," stated Robert Archer, Great Panther's President & CEO. "We know from our success at San Ignacio that new discoveries are still possible in this historic district and we are excited about the prospects for the Santa Rosa Project."
Through the course of due diligence, Great Panther has already completed considerable ground work on the Santa Rosa claims. Multiple veins have been identified, with argillic alteration and erratic silver and gold values. Having now signed the formal agreement, the Company will be immediately re-commencing geological mapping and rock sampling, while potential drill sites are being investigated to test the various structures.
The four claims were purchased from Minera Blanca Alicia, S.A. de C.V., a private Mexican company, for USD$1,500,000 with 50% payable on signing of the purchase agreement and 50% on the registration of the contract with the Direccion General de Minas (Mexico). A royalty of 1.3% is payable from ore produced from the four claims only.
Robert F. Brown, P. Eng. and Vice President of Exploration for the Company is the Qualified Person for the Santa Rosa project, under the meaning of NI 43-101, and has overseen all of the aforementioned work. A full QA/QC program is being followed including the regular insertion of splits, blanks, and standards into the sampling sequence. Analysis of the rock samples is being conducted at the Guanajuato Mine on-site laboratory, independently operated by SGS.
This news release contains forward-looking statements within the meaning of ---- Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Great Panther traded as low as US$2.40 this summer and recovered nicely trading above the US$4 mark a few times in the last couple of weeks. From $2.52 to a recent high of $4.09 we are looking at a 62% increase. Even today, on a day where the DOW is down 200pts and the TSX down over 250pts, Great Panther’s pull back to US$3.50 is still a 40% increase is just a few weeks. Volatility works both ways and silver is certainly more volatile than gold at these levels.
We are increasing production by opening up new areas at both mines and with exploration results from the two mines and two exploration properties, we expect to release a lot of news this fall and will work to deliver resource estimates hopefully prior to year end. We have a substantial amount of growth ahead of us.
All the best,
Erick --
ERICK J. BERTSCH
Vice President, Corporate Development defender thanks for good info :-)
Often the deeper the mining goes - the richer the ore and the wider veins :-)
the old timers got a lot of Au and Ag treasures - the new drilling will make greater discoveries :-) the GPL new mining modern tech. and the art will recover more treasure gems at lower the cost :-) it will be more and more interesting with - we haven't seen anything yet - wait to the Au and Ag bulls picking UP the speed :-) e.g.,
Gold breaks $1,800 level Aug 10th, 2011 13:58 by News
August 10 (CNNMoney) — Ding! Gold broke yet another record Wednesday, reaching as high as $1,801 an ounce, as investors keep fleeing from the volatile stock and currency markets.
In midday trading, the precious metal surged $58 to $1,801 per ounce, before retreating slightly to settle at a record high of $1,788.30 on the Chicago Mercantile Exchange.
It marked the first time ever gold has exceeded $1,800 in intra-day trading.
In less than a month, it has surged more than $200 amid worries about the debt ceiling, the S&P downgrade, Europe’s sovereign debt woes and weakness in the U.S. economy.
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