Resource World Magazine

O C T O B E R / N O V E M B E R 2 0 1 7 www.resourceworld.com 51 this year (actual production in the second quarter was 1.1 million ounces) at an all-in sustaining cost of US $14.93/oz. A key part of Bannatine's mandate is to maintain production at existing operations and grow organically, all the while improv- ing profitability. The company has already accomplished part of that goal via the upgrades at Topia, which cost around $3 million. In keep- ing with its strategic goals, the company has been doing surface drilling at the San Ignacio Mine in a bid to confirm the con- tinuity of gold-silver mineralization found along strike from the current mine work- ings. The program, which was conducted between October 2016 and April, 2017, consisted of 32 holes or 7,464 metres. Results have given the exploration team sufficient confidence to commence drifting in that direction (to the southeast of mine workings) to further evaluate and delin- eate the mineralized zones. Meanwhile, the Coricancha Mine in the Central Andes in Peru represents a new phase of growth for the company – one that it hopes will drive production towards 7 million ounces by 2020. Great Panther completed the acquisition from Belgian metals giant Nyrstar NV in early July 2017. Currently on care and mainte- nance, Coricancha is thought be capable of producing around 3 million ounces of silver annually. The Coricancha gold- silver-lead-zinc-copper underground mine and mill complex is a fully permitted mine that features a 600 tonne-per-day flota- tion and gold BIOX bio-leach plant (for refractory gold extraction) along with supporting infrastructure. It is located 90 km east of Lima. This year, the company is completing 7,700 metres of drilling in a bid to establish a new resource estimate that will form the basis of a future min- ing and engineering plan. The program includes surface and underground drilling and sampling. This work is necessary because previous historical estimates (non-43-101 compliant) show the project contains proven and prob- able reserves of 0.64 million tonnes, grading 4.35 g/t gold, 149.12 g/t silver, 0.32% cop- per and 1.77% lead and 2.60% zinc. On August 14, the company released results from 33 diamond drill holes (5,875 metres) completed during the year ended May 15, 2016. The company says results demon- strate the potential to extend known zones of high-grade mineralization, thus under- scoring its optimism that Coricancha has the potential to be a new mine that could be in production within 18 months. Archer has said the company's exten- sive experience in mining narrow widths at the Topia Mine should be a benefit as Great Panther works to achieve it produc- tion goals at Coricancha, where mining dates back the 1906. At this stage, Great Panther is a smaller company that Bannatine's previous com- pany Aura Minerals. However, he said that could quickly change. "If you have moderate success at a small company, it has a much bigger impact," he said. Aside from the potential he sees at Great Panther, Bannatine said he likes the outlook for silver, which was trading at US $17.86/oz on September 4, 2017. "If you think that the stock market is overvalued right now and you are looking for a place to invest, silver is a good place to put [your money],'' he said. "Investors should be looking for well-run silver pro- ducers. I think this is one of them." Asked about the threat of drug cartels in Mexico, he said the Guanajuato Complex is highly secure. "It is something that you have to be aware of in terms of protecting your people. We haven't been messed with either at Great Panther or my last company [Aura Minerals]," he said. While admitting that drug cartels are always a concern, Bannatine said he rates Mexico ahead of other Latin American countries he has worked in, including Colombia, Honduras and Brazil. He said Mexico gets high marks for geological potential, availability of skilled labour and for its mining laws. n

• Cover