Coricancha

Coricancha is located in the Province of Huarochirí, approximately 90 km east of Lima and is accessed by the Central National Highway connecting Lima to La Oroya. The operation is located in an area of significant relief, and elevations at the property range between 3,000 and 3,920m above sea level.

Coricancha holds many of the licenses and permits necessary to re-start operations; all valid and in good standing. The project includes an operational 600 tonne per day flotation and gold BIOX® bio-leach plant along with supporting mining infrastructure. Coricancha is a past producing mine with a land package covering more than 3,700 hectares in the prolific Central Polymetallic Belt. Production at the mine dates back to 1906. Gold-silver-lead-zinc-copper mineralization (approximately 80% gold-silver by value) occurs as massive sulphide veins that have been mined underground by cut and fill methods including resue mining in the narrower veins.

Coricancha is a Cordilleran polymetallic ore deposit, comprising a system of massive sulphide veins and replacement bodies formed at epithermal to mesothermal conditions. The regional geology comprises a package of andesitic volcanic rocks and sedimentary rocks intruded by monzonite stocks. The area has been exposed to extreme structural compression, which has produced a strong fracturing pattern on a regional scale and allowed the intrusion of polymetallic mineralization in the form of quartz-galena-sphalerite-chalcopyrite veins with gold and silver.

The property is underlain by a sequence of the andesitic volcanics of the Rimac Formation, consisting of brecciated volcanics at the bottom of the stratigraphic sequence topped by andesitic flows, agglomerate, and tuff in the upper part of the Huamanjune Mountain, at 4,500m elevation. The veins can be described as an anastomosing system where most of the secondary and tertiary veins branch off from a main vein or secondary veins, respectively. At the local structural level, the veins are extensive and are known to extend more than 3,800m along strike and more than 1,500m down dip. The veins show pinch-and-swell behaviour with a thickness of up to 2m and averaging 40-70cm.

Under previous operators, the principal mining method for the near-vertical veins was overhand cut-and-fill, with backfill mainly obtained from development waste. More recently, other mining methods such as longhole were tried in the wider vein areas. Mining was semi-mechanized with ore haulage principally undertaken by LHD haulage trucks to a central ore chute where locomotives, and ore carts are primarily used to deliver ore into a secondary ore chute delivering ore directly to the crushing facility. . Some drilling was conducted with an electro-hydraulic drill jumbo, but development and production drilling were principally accomplished with hand-held jackleg drills.

The crusher and mill are located at the mine portal (3,140m above sea level). The concentrator, flotation circuit and BIOX® facility are located at a lower elevation, along the main highway near the Rimac River. The concentrator has produced zinc, lead and copper concentrates, and a gold-rich concentrate which is treated in the BIOX® facility. Tailings from the processing plant are hauled by trucks to the Chinchán dry-stack tailings storage facility, approximately 35 km from the plant.

Following the announcement of the Company’s Preliminary Economic Assessment (“PEA”) on May 31, 2018, Great Panther initiated a trial stope and bulk sample program which was completed in June 2019 and supported the key operating parameters in the PEA.

Coricancha – Bulk Sample Program Update - September 2018

While the Measured & Indicated categories were comparable with the historical estimate, the latter was prepared to JORC standards and the difference in various parameters with NI 43-101 led to a reduction in the Inferred category. This does not mean that the resources are not there; simply that the categorization is different, and more drilling will be required to increase this category again. Nonetheless, the resources at Coricancha are significant and imply the potential for a long mine life.

Coricancha Mineral Resource Estimates

The above updated resource estimates were classified per the CIM Definition Standards on Mineral Resources and Mineral Reserves and, as such, are consistent with the requirements of NI 43-101. The Mineral Resource Estimate was constructed under supervision of Ronald Turner, P.Geo. of Golder Associates S.A., the Qualified Person. The Mineral Resource Estimate was completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models.