Great Panther Silver (NYSE-Amex: GPL; TSX: GPR), in Q3, increased the amount of ore it processed by 16% year over year. Despite this increase, lower ore grades resulted in lower overall metal production of 484,550 silver equivalent ounces from the Company’s two wholly owned mines. At Guanajuato, ore grades are expected to improve in Q4. The deeper extensions of the Cata Alto 1 and 2 zones have been explored and found to be significantly higher grade and production improvements are now anticipated with the addition of high grade ore from the Alto 1, 1a and 2 zones at the 510 metre level.
In reviewing the numbers, it is important to understand that ore grades are going to vary, this is simply part of mining, not just in Mexico, but around the world. However, the grades remain economic and so it only makes sense for the Company to continue mining through the lower grade sections en route to higher grade ones. Significantly too, the Company’s ability to increase production is partially dependent on its ability to increase throughput, which the Company did by 16%. And as higher grade ore is mined and throughput is increased, overall production would be expected to rebound.