May 17, 2020

Great Panther Silver pounces on Peruvian polymetallic mine

Dale Benton
4 min
Great Panther Silver pounces on Peruvian polymetallic mine
Great Panther Silver Limited has announced that it has entered into an agreement with subsidiaries of Nyrstar N.V. ("Nyrstar") to acquire the...

Great Panther Silver Limited has announced that it has entered into an agreement with subsidiaries of Nyrstar N.V. ("Nyrstar") to acquire the Coricancha gold-silver-lead-zinc-copper mine and mill complex (the "CMC"). The CMC is located in the central Andes of Peru, approximately 90 kilometres by paved highway east of the city of Lima.

The acquisition will be structured as a share purchase whereby the Company's wholly owned Peruvian subsidiary ("GP Peru") will acquire all of the shares of Nyrstar Coricancha S.A. ("Coricancha") from subsidiaries of Nyrstar. Coricancha is the owner of a 100percent interest in the CMC.  Closing is subject to customary closing conditions and is expected to take place in the first quarter of 2017.  

"We are very excited about the prospects for the Coricancha Mine," stated Robert Archer, President & CEO. "We have built Great Panther by acquiring past producing mines in Mexico and successfully bringing them back into production. We now hope to replicate this success in Peru, starting with the CMC. The work we completed in 2015 and 2016 during the option term demonstrated substantial upside and we believe that we have the expertise and discipline to capitalize on that. The project has the potential for annual production of approximately 3 million silver equivalent ounces, which would be a significant contribution to our growth. Importantly, with more than US$54 million in cash, the Company is fully financed to bring the mine back into production." 

The CMC is a fully permitted polymetallic mine that includes an operational 600 tonne per day flotation and gold BIOX® bio-leach plant along with supporting mining infrastructure. The CMC has been on care and maintenance since August 2013 when it was closed due to falling commodity prices.  The CMC property comprises more than 3,700 hectares in the prolific Central Polymetallic Belt and production at the mine dates back to 1906. Gold-silver-lead-zinc-copper mineralization (approximately 80percent gold-silver by value) occurs as massive sulphide veins that have been mined underground by cut and fill methods. 

The execution of the agreement follows on the option agreement entered into between Great Panther and Nyrstar in May 2015. Great Panther undertook significant exploration and evaluation work on the CMC in 2015 and 2016 that led to continued negotiations with Nyrstar following the termination of the option agreement. 

Under the terms of the purchase agreement, Great Panther will acquire Coricancha from Nyrstar for a purchase price comprising (i) US$0.1 million to be paid on closing, (ii) an amount equal to cash on hand in Coricancha at completion, and (iii) earn-out consideration of up to US$10.0 million.  Under the earn-out, Nyrstar will be paid 15percent of the free cash-flow generated by the CMC during the 5-year period after which the CMC is cumulative free cash-flow positive from closing. 

Great Panther is continuing with its engineering and technical evaluation for the reactivation of the CMC, with the objective of further refining the costs and timing for start-up. At this time, it is expected that it will take approximately 12 to 18 months to bring the mine back into production, based on the engineering studies completed to date, and that the costs to reactivate the mine will be in the order of US$25 million. However, these estimates are subject to further review and refinement of the start-up plans. The Company expects to announce further details closer to closing, and to commence the program to restart the mine shortly thereafter, including underground drilling, surface drilling (once permits are obtained), mine development, plant upgrades and other start-up evaluations and undertakings.  In addition, an ongoing compilation of underground sampling data will be combined with the data obtained from the Company's 2015 - 2016 drilling programs, during the option phase, to update the resource base.   

Nyrstar has agreed to be responsible for certain reclamation work and outstanding fines related to legacy tailings facilities at the CMC that Coricancha will undertake following closing, subject to agreed maximum amounts. In addition, Nyrstar will maintain the existing CMC mine closure bond for 3 years.  

The technical information contained in this news release has been reviewed and approved by Robert F. Brown, P. Eng. and Vice President of Exploration for the Company. Aspects relating to mining and metallurgy are overseen by Ali Soltani, Chief Operating Officer for Great Panther.

 

The December issue of Mining Global is live!

Follow @MiningGlobal

Get in touch with our editor Dale Benton at [email protected]

Share article

Jun 2, 2021

Ericsson Private 5G to transform secure on-site connectivity

Ericsson
Boliden
5G
Smart Mining
3 min
Ericsson Private 5G is a next-gen private cellular 4G & 5G network tailored to drive Industry 4.0 and the digital transformation of industries like mining

Ericsson has launched Ericsson Private 5G. It offers secure and simple 4G LTE and 5G Standalone (SA) connectivity primarily targeting manufacturing, mining and process industries, offshore and power utilities, as well as ports and airports.

 

Ericsson

Ericsson Private 5G optimizes and simplifies business operations with cloud-based network management, keeps sensitive data on-premise, has zero downtime upgrades and guarantees high performance through Service-Level Agreements (SLAs).

It is easily installed within hours at any facility and can be scaled to support larger coverage areas, more devices and higher capacity when needed. The product is designed to be flexible and will support a range of deployment sizes, depending on requirements, to suit varied needs. Businesses can manage their networks and integrate with IT/OT systems via an open API.

5G

Ericsson Private 5G builds upon Ericsson’s 4G/5G radio and dual mode core technology, enabling a wide variety of use cases for both indoor and outdoor environments while integrating well with business operations, devices and applications. As a result, companies can improve productivity, give their customers more value and provide better working environments for employees.

Innovative use cases include tracking assets and real-time automation to improve productivity in warehouses, and a digital twin that can help to optimize manufacturing operations. Efficient quality inspections can also be performed via augmented reality or smart surveillance drones to increase worker safety, particularly in potentially hazardous environments such as ports and mines.

Boliden

Ericsson already has a significant track record of operational 4G and 5G private network deployments with customers worldwide. Ericsson Private 5G builds on the success of that solution portfolio and deployment insights, as well as insights from projects such as 5G-Industry Campus Europe.

Peter Burman, Program Manager Mine Automation, at Swedish mining company Boliden, commented: “Automation, and safety through automation in our mining operations is an absolute must for us. Ericsson Private 5G is exactly what Boliden needs to bring high quality, fast and secure connectivity into potentially hazardous environments allowing us to mobilize efficiency and safety improving use cases.

Niels König, Coordinator 5G-Industry Campus Europe, Fraunhofer Institute for Production Technology IPT added: “Private 5G networks are highly attractive for producing companies because of the uncompromised performance that 5G can bring, allowing them to tackle the challenges of production. Efficiently deploying and using network solutions in enterprises requires simplicity in installation, flexibility in connecting to existing production IT and lean operations while at the same time being able to scale the network to meet future challenges. Ericsson Private 5G delivers exactly these capabilities.”

Ericsson

Enterprise Networks

Leo Gergs, Senior Analyst, ABI Research, noted: “With this new offering, Ericsson will be able to address key trends in the enterprise cellular market.  The value proposition will appeal to operators and service providers as the solution hides technology complexity and therefore reduces the barrier of entry to deployment for many different flavors of enterprise networks.”

Thomas Noren, Head of Dedicated Networks, Business Area Technologies and New Businesses, Ericsson, revealed: “With Ericsson Private 5G, we take the best of Ericsson’s current portfolio and top it up with the best of our new technology. We do this to give businesses what they need to improve productivity, enable new offerings and give employees a better working environment. With Ericsson Private 5G, we also give operators a better way to serve business customers and leverage their assets - in short, to grow beyond mobile broadband.”

Ericsson recently joined a three-year initiative to develop autonomous, carbon-neutral mining processes supported by 5G connectivity. Funded by the EU’s Horizon 2020 research and innovation program, the $16mn Next-Generation Carbon-Neutral Pilots for Smart Intelligent Mining Systems (NEXGEN SIMS) project is being coordinated by Swedish mining and infrastructure equipment manufacturer, Epiroc, in cooperation with a range of industry-diverse partners, including: Ericsson, K+S, Boliden, Agnico Eagle Finland, KGHM Polska and Luleå University of Technology.

Share article