Great Panther Silver Limited

Fastest growing primary silver producer in Mexico.

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Message: Great Panther Silver halts mining at Guanajuato after more break-ins

Great Panther Silver halts mining at Guanajuato after more break-ins

Mon 9:34 am by Deborah Bacal

Great Panther Silver said Monday that tensions continue to rise at its Guanajuato Mine Complex in Mexico, with around 60 people unlawfully breaking into the company's main administration building and plant facility at the site, halting operations at the mine.

The news follows the death of an illegal miner at the mine last week during a violent clash with the company's armed security forces, which it was forced to hire to deal with intruders. Great Panther told investors this morning that people continue to illegally occupy its facilities, with all of its employees and contractors safe offsite.

So far, the company said there have been no reports of any further violence, but mining, plant and administration services have been shut down until the situation has been resolved.

The precious metals producer added that though authorities have been notified, they have not yet taken any action.

"It appears that a few members of the mining cooperative who sold the mine to Great Panther in 2005, when they were facing bankruptcy, are behind this illegal occupation of our facilities," said president and CEO of Great Panther, Robert Archer, in a release Monday.

"It is unknown at this time whether these members of the cooperative have been involved with recent activities of illegal miners. We will work with municipal, state and federal authorities to find a peaceful and expedient resolution to this situation, however, we are currently reviewing all options to regain custody of our facility and ensure the security of our operations and our people."

The company said that it will keep the public informed as events continue to unfold at the Mexican mine, one of Great Panther's two producing mines.

Great Panther reported in January metal production in 2013 that topped its own guidance by 14%, with record annual figures for both silver and gold as total production came in at 2.84 million silver equivalent ounces last year, increasing 19% from 2012. The Mexico-focused precious metals company has been engaged in a program of wide-ranging cost cutting and grade control initiatives that took place throughout all of last year, navigating its way through a more challenging environment for silver and gold producers.

The company's overall metal production this year was expected to increase gradually as its San Ignacio project comes on stream. Total output, according to guidance in January, is expected to rise by about 10% this year, to a range of 3.1 to 3.2 million silver equivalent ounces.

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