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Great Panther Releases Results from First Year as Silver Producer
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GREAT PANTHER RESOURCES LIMITED (TSX: GPR; the "Company") reports that
it has filed its audited 2006 financials, MD&A and AIF (20-F).
The Company is pleased to report revenue of $7,069,442 for the fiscal
year 2006, which marked the Company's successful transition from
explorer and developer to a primary silver producer, placing its two
wholly owned historic mines back into production. Total cost of sales
was $7,119,047 including one-time startup costs of $1,976,722, such
that direct production costs came to $5,142,325. With total production
of 638,860 silver equivalent ounces, this translates to an overall cash
production cost of US$6.91/oz Ag Eq. (All figures are in Canadian
dollars unless otherwise stated).
Highlights for the period include:
- First shipment and revenues from sales of concentrates from 100%
owned Topia Silver-Lead-Zinc Mine in Durango, Mexico.
- Commenced production and sales at 100% owned Guanajuato Silver-Gold
Mine in Guanajuato, Mexico; throughput increased to 700 tonnes per day
("tpd") at yearend. Finalized payment of its US$7.25 million
acquisition of Guanajuato Mine Complex.
- Total production for both mines for the year was 638,860 ounces of
Silver Equivalent (oz of Ag Eq), including 313,484 oz Ag; 1,394 oz Au;
1,381,637 lbs Pb and 1,636,139 lbs Zn.
- $7,069,442 in revenues attributed to production at Topia and
Guanajuato Mines.
- Raised $15 million in over-subscribed financing underwritten by
Jennings Capital Inc.
- Working capital as of December 31, 2006 was $12,533,156.
- Surface and underground drilling campaign expanded mineralized zones
and identified new targets at Topia; National Instrument ("NI") 43-101
compliant resource estimate filed.
- Surface drilling at Guanajuato identified new zones of high grade
mineralization.
- Signed Option Agreement to acquire 100% interest in Mapimi
Silver-Lead-Zinc Project (formerly Km66), an advanced-stage open pit
target in eastern Durango State, Mexico.
- Filed NI 43-101 compliant inferred resource estimate at Mapimi of
22.3 million ounces of silver equivalent.
- Graduated to the Toronto Stock Exchange from the TSX Venture
Exchange. The symbol "GPR" remained unchanged.
Bringing two historic mines back into production in one year was a
major achievement for the Company. Great Panther's 2006 revenue rose
quarter-by-quarter as production volumes steadily increased at both
operations. Revenue grew from $405,000 in the first quarter to
approximately $3.9 million by the fourth quarter as set out in the
chart below:
http://www.greatpanther.com/i/misc/great_05_01_07.gif
Revenue from operations is expected to increase further in 2007 with
increased capacity at both sites.
One-time start-up costs, accelerated depreciation, and other costs of
exploration and overhead (including non-cash stock-based compensation
of $4,672,774 due to a significant increase in the number of employees,
particularly in Mexico) resulted in an overall accounting loss for the
year of $15,084,437 or $0.25 per share.
At the Guanajuato Mine, higher grade stopes did not contribute to
production in 2006 due to longer than expected lead times required for
their development. This effectively lowered the overall output for the
year at Guanajuato, such that the Company produced a total of 638,860
silver equivalent ounces from the two operations combined. Total
production costs were kept under control, however, and declined
throughout the year. As expected, the higher grades and greater
production from Topia resulted in a lower cost per ounce (US$3.62/oz Ag
Eq) than at Guanajuato (US$17.17/oz Ag Eq), which only started in June
2006 with low grade ore. Unit costs at both mines are expected to
decrease through 2007. The aforementioned unit costs differ somewhat
from previously reported cost estimates (Feb. 1, 2007 news release) due
to the reclassification of certain expenses.
The Company spent $3,968,083 in exploration in 2006, primarily at Topia
and Guanajuato, and was highly successful in discovering and defining
new mineralized zones close to surface that can be developed quickly
for near term production. Surface diamond drilling at Mapimi commenced
in December 2006. The Company has set a goal of doubling existing NI
43-101 resources at both Topia and Mapimi by the end of 2007.
Great Panther is continuing the development of long term mine plans for
both Topia and Guanajuato. Lower levels of the Guanajuato Mine are
being prepared for a program of deep diamond drilling and at Topia, the
Argentina Vein is being readied for increased production. Great Panther
looks forward to a steady rise in production through 2007.
For further information, please contact Robert Archer or Kaare Foy at
604-608-1766.
ON BEHALF OF THE BOARD
"Robert A. Archer"
Robert A. Archer,
President & CEO
"Kaare G. Foy"
Kaare G. Foy
Chairman and CFO
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, 2005 and reports on Form 6-K filed with the
Securities and Exchange Commission and available at www.sec.gov and
Material Change Reports filed with the Canadian Securities
Administrators and available at www.sedar.com.
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Copyright (c) 2007 GREAT PANTHER RESOURCES LIMITED (GPR) All rights
reserved. For more information visit our website at
http://www.greatpanther.com/ or send mailto:info@greatpanther.com
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