GREAT PANTHER SILVER LIMITED (TSX: GPR; NYSE American: GPL) (“Great Panther”; the “Company”) announces production results for the first quarter (“Q1”) 2018 from its two wholly-owned Mexican silver mining operations: the Guanajuato Mine Complex (“GMC”), which includes the San Ignacio Mine, and the Topia Mine in Durango.

First Quarter 2018 Production Highlights (Compared to First Quarter 20171)

  • Consolidated metal production increased 42% to 1,031,937 silver equivalent ounces (“Ag eq oz”)
  • Silver production increased 35% to 491,063 silver ounces (“Ag oz”)
  • Gold production increased 13% to 5,831 gold ounces (“Au oz”)
  • Ore processed increased 17% to 96,869 tonnes milled

“Great Panther’s first quarter production improved significantly compared to the first quarter last year when the Topiaplant was suspended for planned upgrades”, stated James Bannantine, President & CEO. “To date in 2018, our Mexican operations are performing steadily, with production in line with annual guidance, and we are continuing to make progress on the technical evaluation of the Coricancha Mine in Peru.”

Consolidated Operations Summary Q1 2018 Q1 2017 Change Q1 2018 Q4 2017 Change
Ore processed (tonnes milled) 96,869 82,456 17% 96,869 98,396 -2%
Silver equivalent ounce production2 1,031,937 727,372 42% 1,031,937 1,065,773 -3%
Silver ounce production 491,063 364,995 35% 491,063 514,218 -5%
Gold ounce production 5,831 5,177 13% 5,831 5,931 -2%
Lead production (tonnes) 433 n/a 433 441 -2%
Zinc production (tonnes) 533 n/a 533 551 -3%

(1) The Topia processing plant underwent upgrades in Q1 2017 and there was no processing during Q1 2017.
(2) Silver equivalent ounces were calculated using a 70:1 Ag:Au ratio, and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to price/pound of lead and zinc, respectively.

Guanajuato Mine Complex

In Q1 2018, total metal production for the GMC was 695,909 Ag eq oz, which represents a 4% decrease compared to both the fourth quarter (“Q4”) 2017 and Q1 2017.  The decrease was mainly attributed to lower tonnes milled and lower silver grades.  The lower tonnes milled are in part a reflection of the higher proportion of harder ores from the San Ignacio mine, which reduced processing capacity.  The lower average silver grade was due to the lower tonnage and grades mined from the Guanajuato mine, which has higher silver grades than the San Ignacio mine.  In addition, the silver grades from the Guanajuato mine were affected by variability in the mineral resource.  These factors were partly offset by improved gold grades and recoveries.

GMC Operations Summary Q1 2018 Q1 2017 Change Q1 2018 Q4 2017 Change
Ore processed (tonnes milled) 78,919 82,456 -4% 78,919 80,896 -2%
Silver equivalent ounce production1 695,909 727,372 -4% 695,909 724,643 -4%
Silver ounce production 304,863 364,995 -16% 304,863 332,203 -8%
Gold ounce production 5,586 5,177 8% 5,586 5,606 0%
Ag grade (g/t) 135 155 -13% 135 144 -6%
Au grade (g/t) 2.50 2.30 9% 2.50 2.48 1%
Ag recovery (%) 88.8% 88.8% 0% 88.8% 88.5% 0%
Au recovery (%) 88.0% 85.0% 4% 88.0% 87.0% 1%

(1) Silver equivalent ounces were calculated using a 70:1 Ag:Au ratio.

The San Ignacio mine accounted for 65% of the total ore processed at the GMC in Q1 2018, compared to 57% in Q1 2017 and 62% in Q4 2017.  The increase in tonnes milled from the San Ignacio mine and, to a lesser degree, higher gold grades from the Guanajuato mines, are the main contributors to the increased gold grades.

Q1 2018 saw an increase in exploration development and underground drilling at the Guanajuato mine, aimed at increasing definition in the mineral resources mainly near and adjacent to areas currently being mined.

Topia Mine

Total metal production during Q1 2018 from the Topia Mine was 336,027 Ag eq oz.  There was no production from Topiaduring Q1 2017 due to the planned processing plant suspension for plant upgrades along with the installation of a dry tailings handling facility.

Compared to Q4 2017, metal production was slightly lower, reflecting a decrease in gold grades due to variability in the ore and ground conditions, partially offset by higher mill throughput.

Topia Operations Summary Q1 2018 Q1 20171 Change Q1 2018 Q4 2017 Change
Ore processed (tonnes milled) 17,950 n/a 17,950 17,500 3%
Silver equivalent ounce production2 336,027 n/a 336,027 341,129 -1%
Silver ounce production 186,201 n/a 186,201 182,015 2%
Gold ounce production 244 n/a 244 325 -25%
Lead production (tonnes) 433 n/a 433 441 -2%
Zinc production (tonnes) 533 n/a 533