Great Panther Mining provides operational update for Tucano mine in Brazil

Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) (FRA:G3U) has reported that movements have been detected in the west wall of the south-central portion of the Urucum Central South (UCS) open pit at Tucano in Brazil. 

The company said that heavy rainfall, well above the seasonal average, triggered higher phreatic levels in the west wall impacting slope stability and to ensure the health and safety of workers, mining activities in UCS have been temporarily halted. 

Great Panther added that the mill will continue to receive ore from the Urucum North open pit and from stockpiles.

READ: Great Panther Mining says firmer metals prices and weaker Brazilian currency boosted 1Q numbers

“We are working with our consultants to make operations safe, with the expectation that mining of the higher-grade gold ore in the UCS pit will start back up again in the third quarter of this year,” said Great Panther CEO Rob Henderson in a statement. “As a consequence, 2021 consolidated guidance is being reduced by 10,000 ounces to 125,000 to 140,000 gold equivalent ounces.”

Activities are underway to improve wall stability, including unloading additional waste material and improving drainage from the upper benches. 

The company said it expects this additional waste movement will impact ore mining in UCS throughout the 2Q and 3Q of 2021. 

“These activities are being carried out with monitoring of movement by radar and within strict safety protocols,” the company said. “Water levels are being monitored closely, and preparations are being made for horizontal drainage holes that may be required in the lower part of the west wall.”

Meanwhile, Great Panther said its preliminary assessment for 2021 production at wholly-owned Tucano will be reduced by about 10,000 gold ounces (oz) to 100,000–110,000 oz. The second half of 2021 is expected to account for 60% of this guidance. 

All-in-sustaining costs (excluding corporate general and administrative expenses) are expected to increase to $1,450–$1,550 per gold oz sold, the company said.

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Story by ProactiveInvestors