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Great Panther Silver Reports Record Revenue And Earnings From Mining Operations In Third Quarter

November 10, 2010
GREAT PANTHER SILVER LIMITED (TSX: GPR; the "Company") is pleased to announce the unaudited financial results for the Company's quarter ending September 30, 2010. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at or on SEDAR at

"The third quarter of this year saw new all-time records in both revenue and earnings from mining operations while net income continued to grow," said Kaare Foy, Executive Chairman. "Increased production is expected as the on-going implementation of our three-year growth strategy takes effect."

  • 26% increase in revenue for the three months ended September 30, 2010 to $11.2 million compared to $8.9 million for the three months ended September 30, 2009 due to higher metal prices.

  • 36% increase in earnings from mining operations(1) to $5.8 million in the third quarter of 2010 from $4.2 million in the third quarter of 2009.

  • Increase in net income of $1.4 million to $1.3 million for the three months ended September 30, 2010 from a net loss of $0.1 million for the same period in 2009.

  • Overall metal production of 588,454 Ag eq oz ("silver equivalent ounces") compared to 597,057 Ag eq oz in the third quarter of 2009.

  • Silver production of 382,220 Ag oz compared to 398,811 Ag oz in the third quarter of 2009.

  • 13% increase in gold production to 2,201 Au ("gold") oz from 1,951 Au oz in the third quarter of 2009.

  • 28% increase in metal production at Topia to 210,171 Ag eq oz from 164,262 Ag eq oz in the third quarter of 2009.

  • Record metallurgical gold recovery of 90.5% at Guanajuato.

  • Deep drilling program in the Rayas area of the Guanajuato mine has significantly expanded the size of the gold-rich Santa Margarita vein and has intersected a new zone of high grade silver-gold mineralization at a vertical depth of almost 600 metres.

  • Several new drilling programs initiated at Guanajuato including San Ignacio, Guanajuatito and Valenciana.

  • First surface drill hole of the initial 2,000 metre core drilling program at the San Ignacio Mine property in Guanajuato was successful in intersecting three new well-mineralized zones of silver-gold mineralization. Power is being restored to the original San Ignacio Mine area and the shaft and old workings will be pumped out and rehabilitated while further exploration progresses. All necessary preparations are being initiated, including regulatory permitting, in advance of a development/production decision.

  • Announced final results from the recently completed 8,815 metre surface drill program on the Topia mine veins. The drilling was extremely successful and will guide mine development to continue to expand silver production. Drilling on the recently acquired La Prieta property proved the potential for this to be an additional mine for the Topia operations, with high silver values in the three drill holes of up to 2,500g/t over 0.25 metres.

  • Announced the appointment of Mr. Erick Bertsch to the position of Vice President, Corporate Development.


Fourth quarter production is expected to increase to 610,000 Ag Eq oz with the outlook for 2010 totaling 2.3 million silver equivalent ounces. The forecast for the mines anticipates Topia production remaining steady while Guanajuato production increases. Production from the Los Pozos area is increasing with three fully mechanized cut-and-fill stopes in production from November while gold production from Santa Margarita is expected to keep improving.

While some rescheduling of the mining at Guanajuato has been necessary in order to advance underground development, Great Panther's strategy to accelerate production to 3.8 million Ag eq oz in 2012 remains firmly in place. New equipment has been delivered to the mines, more productive mining methods are being implemented, plant performance continues to excel and exploration drill programs have been expanded and are already indicating very positive results.

Planning for 2011 shows continuing increases at Topia and Guanajuato. Guanajuato planning includes continued production from Los Pozos, (3 stoping areas) and Cata, (Veta Madre and Alto zones), increased production from Santa Margarita, as new levels and multiple veins are developed, increased production from Promontorio plus new production from Guanajuatito, where exploration drilling is already showing positive results. New exploration drilling has begun in the fourth quarter to test the first underground area below old workings of the Valenciana Mine and, new mining may proceed quickly once new resources have been established. At San Ignacio, a potentially large new mining area of 4 kilometres strike length, with at least 3 mineralized vein structures, will be explored throughout 2011. The ability to quickly define and develop any new zones at San Ignacio will be an important factor in achieving our stated production targets and resource growth.

A new NI 43-101 compliant mineral resource/reserve update is being prepared by Scott Wilson Roscoe Postle Associates Ltd. for publication later in the fourth quarter. The previous mineral resource estimate at Guanajuato focused only on the deep Cata zones. The new mineral resource/reserve estimate will include an update of the Cata deep zones plus new estimates for the Los Pozos and Santa Margarita zones. At Topia, the previous mineral resource estimate focused on the Argentina vein, while the new mineral resource/reserve estimate will include an update of the Argentina vein, as well as new estimates for an additional 11 veins. Significant improvements in the mineral resource update are expected. In addition, the Company will publish its first NI 43-101 compliant mineral reserve.

The Company's emphasis will be on maintaining profitability while developing and exploring to continually increase metal production. The Company's production strategy is to increase silver production year-on-year at continually decreasing unit costs.

"Great Panther delivered strong financial results during the third quarter, setting several new records," said Robert Archer, President & CEO. "As we progress through the first year of the Company's 3-year growth strategy, focus continues to be on mine development and exploration drilling. In the first three quarters, more than 19,691 metres of diamond drilling was completed at the two operations. With substantially all of the new equipment ordered now in service and new NI 43-101 resource/reserve calculations expected imminently, Great Panther is well positioned to successfully execute its goal of 3.8 million silver equivalent ounces of production by 2012 at continually decreasing unit costs."

Great Panther Silver Limited is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The Company owns a 100% interest in two operating mines in Mexico. The Company's mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals.

For further information, please visit the Company's website at, contact B&D Capital at telephone 604 685 6465, fax 604 899 4303 or e-mail


"Robert A. Archer"

Robert A. Archer, President & CEO

"Kaare G. Foy"

Kaare G. Foy, Executive Chairman

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Report on Form 20-F for the year ended December 31, 2009 and reports on Form 6-K filed with the Securities and Exchange Commission and available at and Material Change Reports filed with the Canadian Securities Administrators and available at

  1. "Earnings from mining operations" is a non-GAAP measure and is defined as mineral sales less cost of sales (excluding amortization and depletion).

  2. "Adjusted EBITDA" is a non-GAAP measure in which standard EBITDA (earnings before interest expense, taxes, and depreciation and amortization) is adjusted for stock-based compensation expense and non-recurring items.

  3. The non-GAAP measure of cash cost per ounce of silver is used by the Company to manage and evaluate operating performance at each of the Company's mines and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning.

  4. Silver equivalent ounces in 2010 were established using prices of US$1,000/oz Au, US$16/oz Ag, US$0.80/lb Pb and US$0.80/lb Zn.


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