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Great Panther Silver expects to lift Topia mine output by 25% this year due to increased processing capacity

The forecasts relate to the Topia mine and the Guanajuato mine complex (GMC)

Great Panther miners working underground
Great Panther Silver is a specialist in underground, narrow vein mines

Great Panther Silver Ltd (TSE:GPR) (NYSEAMERICAN:GPL) said it expects output at its Topia mine to increase around 25% in 2019 as it updated on guidance for the coming year on its Mexican operations.

The forecasts relate to the company's Topia mine and the Guanajuato mine complex (GMC), which includes the San Ignacio mine and the Guanajuato mine.

READ: Great Panther s ays proxy advisory firm ISS recommends shareholder support for Beadell deal

Vancouver-based Great Panther said it had undertaken a multi-mine optimization strategy, under which the entire production for the GMC will be sourced from the lower cost San Ignacio Mine.

This will allow a focused exploration program for the Guanajuato mine aimed at growing higher margin resources, it said.

Across the operations, production in 2019 is expected to be in the range of between 3.7 and 4 million silver equivalent ounces (Ag Eq oz).

In addition, a planned increase in the processing capacity from the Topia mine in 2019 is expected to increase production by approximately 25% compared to 2018, the company said.

All-in sustaining costs (AISC), not including corporate general and administrative expenses, are put at between $10 and 12 per ounce.

"We have taken the step of realigning our Mexican operations to reduce unit costs and maximize mine operating cash-flow, with a modest reduction in our production ounces," said James Bannantine, president and CEO.

Improvement of Mexico operations is important

He said the continuous improvement of the Mexican operations was important to the firm's primary growth initiatives that include completing the acquisition of Beadell Resources Limited.

This is expected to close shortly after respective shareholders vote during the week of February 11, and also the completion of the latest phase of the Coricancha project in Peru to move towards a production decision by the end of March.

Yesterday, Great Panther said proxy advisory firm Institutional Shareholder Services Inc has recommended that shareholders vote in favor of the company’s acquisitions of Beadell Resources Ltd.

"The merger makes strategic sense as it will create a new emerging intermediate metals producer and will result in significant pro forma gold and silver production,” ISS said.

Great Panther agreed in September to acquire Beadell for US$105 million. After completion of the deal, the company plans to change its name to Great Panther Mining Ltd.

Shares in Toronto added 1.20% to $0.84.

Contact Giles at [email protected] 

Follow him on Twitter @Gile74

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