Great Panther approves positive production decision for Coricancha
Vancouver-based Great Panther Mining Ltd (TSX: GPR) announced on Monday that it has approved a positive production decision for its Coricancha mine in Peru.
The decision was made based upon the final results of the company’s bulk sampling program, which confirmed key operating parameters for the Coricancha gold/silver/lead/zinc/copper mine contained in the 2018 preliminary economic assessment (PEA).
Although a feasibility study has not been completed for Coricancha, the company still decided to give it the production go-ahead due to the existing processing facility, the project’s low initial capital outlay, and the company’s knowledge of the mine and resource base.
The next step is to keep Coricancha on care and maintenance while additional engineering and operational planning are completed prior to start-up. The development timeline necessary to restart Coricancha and reach full-scale production is expected to be less than one year.
“The actual restart date is expected in the first half of 2020,” said James Bannantine, President and CEO of Great Panther Mining. He added that “Coricancha is expected to produce approximately 40,000 gold-equivalent ounces annually.”
The Coricancha PEA released last year estimated an after-tax internal rate of return of 81% and an after-tax net present value of $16.6-million (at a 7.5% discount rate).
The Coricancha mine, located about 90 km by road east of Lima, Peru, was previously owned by European smelting giant Nyrstar. It has been under care and maintenance since August 2013.