Make Kitco Your Homepage

Great Panther halts mining at Tucano’s UCS pit due to slope stability concerns

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Great Panther Mining (TSX:GPR; NYSE-A:GPL), a growing gold and silver producer focused on the Americas, reported Tuesday that wall movements have been detected in the west wall of the south-central portion of the Urucum Central South ("UCS") open pit at Tucano, the company's wholly-owned mining operation in Brazil.

According to the company’s statement, heavy rainfall, well above seasonal average, triggered higher phreatic levels in the west wall impacting slope stability. In order to ensure health and safety for workers, mining activities in UCS were temporarily halted. The mill will continue to receive ore from the Urucum North open pit and from stockpiles.

The company said that as a consequence, 2021 consolidated guidance is being reduced by 10,000 ounces to 125,000 to 140,000 gold equivalent ounces. All-in-sustaining costs are expected to increase to $1,450 – $1,550 per Au oz sold from budgeted $1,350 – $1,450.

Activities are underway to improve wall stability, including unloading additional waste material and improving drainage from the upper benches. The company expects this additional waste movement will impact ore mining in UCS throughout Q2 and Q3 2021.

"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," stated president and CEO Rob Henderson.

Great Panther is a growing gold and silver producer focused on the Americas. The company owns a diversified portfolio of assets in Brazil, Mexico and Peru that includes three operating gold and silver mines, four exploration projects, and an advanced development project.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.