VANCOUVER, Dec. 11, 2019 /PRNewswire/ - Pan American
Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American",
or the "Company") today announces an initial mineral resource
estimate for the large polymetallic deposit discovered in 2018 at
the Company's La Colorada mine in
Zacatecas, Mexico. The inferred
mineral resource totals 72.5 million tonnes, averaging 44 grams per
tonne of silver, 0.17% copper, 2.02% lead and 4.40% zinc, assuming
a cut off value of US$60 per tonne
after accounting for transportation, smelting and refining costs.
The deposit remains open in nearly all directions for resource
expansions.
"The initial inferred mineral resource estimate containing 102
million ounces of silver and a large volume of base metals
indicates the significance of this new discovery," said
Christopher Emerson, Pan American's
Vice President Business Development and Geology. "In just over a
year since we first announced the discovery, we have completed
54,000 metres of drilling into the deposit and developed the
geological model for this initial resource estimate. An aggressive
drilling program is planned for 2020 to further explore the
deposit's potential."
Highlights
- Initial inferred resource of 72.5 million tonnes with grades
averaging 44 g/t silver, 0.17% copper, 2.02% lead and 4.40% zinc
containing 102 million ounces of silver, 3.2 million tonnes of
zinc, 1.5 million tonnes of lead, and 121 thousand tonnes of copper
using a cut-off value of US$60 per
tonne after accounting for the cost of transportation, smelting and
refining.
- The majority of the mineralization is contained within a larger
polymetallic mineralized skarn covering an area measuring 500
metres by 600 metres. The deposit, as currently defined, is located
between 600 metres to 1,700 metres below surface and east of the
current La Colorada mine
workings.
- 65 diamond drillholes with a total length of 54,000 metres were
used for the geological interpretation and the inferred resource
estimate.
- Initial laboratory bench-scale metallurgical testing of
individual diamond drill core composite samples indicates
encouraging selective polymetallic flotation recoveries generating
high quality silver-rich copper, lead and zinc mineral
concentrates.
- For further information on sample results, see our news release
dated October 30, 2019.
To view cross sections, plan and images of the mineralized core,
please see our website at panamericansilver.com
Michael Steinmann, President and
CEO commented: "This initial resource estimate is a very exciting
development for Pan American Silver and our La Colorada operation. The substantial size
and grades point to a world-class deposit, discovered with our
near-site exploration program. We are planning to continue our
drilling program, advance early stage engineering and complete
further metallurgical testing, with the aim of defining the
potential development of a new, large mine for Pan American
Silver."
In 2020, Pan American plans to invest US$10 million to drill 44,000 metres, focusing on
infill and exploration drilling to further define, expand and add
confidence to the inferred resource.
Mineral Resource Estimate Details
Classification
|
Cut-off
|
Tonnes
|
Ag
|
Cu
|
Pb
|
Zn
|
|
US$/tonne
|
millions
|
g/t
|
%
|
%
|
%
|
Inferred
|
60
|
72.5
|
44
|
0.17
|
2.02
|
4.40
|
Sensitivity of the Mineral Resource Estimate at Different
Cut-off Values
Cut-off
|
Tonnes
|
Ag
|
Cu
|
Pb
|
Zn
|
Ag
|
Cu
|
Pb
|
Zn
|
US$/tonne
|
millions
|
g/t
|
%
|
%
|
%
|
Moz
|
kt
|
Mt
|
Mt
|
50
|
81.5
|
41
|
0.16
|
1.88
|
4.13
|
109
|
130
|
1.5
|
3.4
|
60
|
72.5
|
44
|
0.17
|
2.02
|
4.40
|
102
|
121
|
1.5
|
3.2
|
70
|
63.6
|
46
|
0.17
|
2.18
|
4.70
|
94
|
111
|
1.4
|
3.0
|
80
|
55.0
|
49
|
0.18
|
2.35
|
5.02
|
86
|
100
|
1.3
|
2.8
|
Notes:
- CIM definition standards were followed for the estimation of
mineral resources.
- Mineral resources are not mineral reserves and have no
demonstrated economic viability.
- Prices used to estimate mineral resources were: US$18.50 per ounce of silver, US$2,600 per tonne of zinc, US$2,200 per tonne of lead, and US$6,500 per tonne of copper.
- The mineral value per tonne was estimated using metallurgical
recoveries of 91% Ag, 90% Pb, 85% Zn and 38% Cu, with mineral
concentrate qualities from the testing at 60% Pb in lead
concentrate, 55% Zn in zinc concentrate and 22% Cu in copper
concentrate. The mineral value per tonne also includes estimates
for transport and refining/selling costs based on experience and
long-term views of the marketing, treating and refining of these
types of mineral concentrates.
- The mineral resource estimate is undiluted and mining
parameters have not been applied.
- Three million tonnes from the skarn deposit was included as
inferred resources in Pan American's mineral resource and reserve
estimates effective June 30,
2019.
- Totals may not add up due to rounding.
- This mineral resource estimate was prepared under the
supervision of, or was reviewed by, Christopher Emerson, FAusIMM, Vice President
Business Development and Geology and Martin G. Wafforn, P.Eng.,
Senior Vice President Technical Services and Process Optimization,
each of whom is a Qualified Person as that term is defined in
National Instrument 43-101 ("NI 43-101").
- The effective date of the mineral resources estimate is
December 11, 2019.
General Notes with Respect to Technical Information
A
total of 65 diamond drillholes with a total length of 54,000 metres
were used in the geological interpretation and resource estimate.
Drilling of the skarn deposit has been completed from both surface
and underground drilling.
All drill hole samples used in the mineral resource estimate
have been previously reported in news releases dated October 23, 2018, February
21, 2019, May 8, 2019,
August 1, 2019 and October 30, 2019. The drill hole samples were
prepared by the internal La
Colorada mine laboratory, SGS of Durango, Activation
Laboratories Ltd ("Actlabs") of Zacatecas and Bureau Veritas of
Hermosillo. Pan American implements a quality assurance and
quality control ("QAQC") program, including the submission of
certified standards, blanks, and duplicate samples to the
laboratories.
Both Actlabs and SGS used fire assay with gravimetric finish for
gold, and acid digestion with ICP finish for silver, lead, zinc,
and copper. Bureau Veritas used fire assay with gravimetric
finish for gold and by acid digestion with ICP finish for silver,
lead, zinc, and copper in their Vancouver, Canada laboratory. The La Colorada mine laboratory, which is operated
by our employees, used fire assay with gravimetric finish for gold
and silver, and acid digestion with atomic absorption finish for
lead, zinc, and copper.
The results of the QAQC samples submitted to SGS, Actlabs,
Bureau Veritas, and the La
Colorada mine laboratory all demonstrate acceptable accuracy
and precision. Some standards, blanks and duplicate failures were
associated with analysis conducted at the La Colorada mine laboratory, as reported in
the news releases dated October 23,
2018 and May 8, 2019. These
failed batches were re-submitted to SGS or Actlabs for
analysis.
The Qualified Person is of the opinion that the sample
preparation, analytical, and security procedures followed for the
samples are sufficient and reliable for the purpose of mineral
resource and mineral reserve estimates.
Mineral reserves and resources are as defined by the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM").
Pan American reports mineral resources and mineral reserves
separately. Reported mineral resources do not include amounts
identified as mineral reserves. Mineral resources that are not
mineral reserves have no demonstrated economic viability. No
mineral reserves have yet been estimated for the skarn deposit.
The Qualified Persons do not expect these mineral resource
estimates to be materially affected by any known legal, political,
environmental or other risks.
See the Company's Annual Information Form dated March 12, 2019, available at www.sedar.com for
further information concerning QAQC and data verification matters,
the key assumptions, parameters and methods used by the Company to
estimate mineral reserves and mineral resources, and for a detailed
description of known legal, political, environmental, and other
risks that could materially affect the Company's business and the
potential development of the Company's mineral reserves and
resources.
Technical information contained in this news release with
respect to Pan American has been reviewed and approved by
Christopher Emerson, FAusIMM, Vice
President Business Development and Geology, and Martin Wafforn,
P.Eng., Senior Vice President Technical Services and Process
Optimization, each of whom is a Qualified Person for the purposes
of NI 43-101.
About Pan American Silver
Pan American is the world's
second largest primary silver producer, providing enhanced exposure
to silver through a diversified portfolio of assets, large reserves
and growing production. We own and operate mines in Mexico, Peru,
Canada, Argentina and Bolivia. In addition, we own the Escobal mine
in Guatemala that is currently not
operating. In 2019, we celebrate our silver anniversary: 25 years
of operating in Latin America,
earning an industry-leading reputation for operational excellence
and corporate social responsibility. We are headquartered in
Vancouver, B.C. and our shares
trade on NASDAQ and the Toronto Stock Exchange under the symbol
"PAAS".
Learn more at panamericansilver.com.
Cautionary Note Regarding Forward-Looking Statements and
Information
Certain of the statements and information in
this news release constitute "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 applicable Canadian provincial securities laws. All
statements, other than statements of historical fact, are
forward-looking statements or information. Forward-looking
statements or information in this news release relate to, among
other things: the anticipated exploration and other development
programs at the Company's La
Colorada properties, together with the nature,
implementation and timing thereof, and the exploration and
metallurgical results of such programs; our expectation and timing
of establishing additional resource information based on such
programs; the ability of the Company to further define, expand or
add confidence to the inferred resource, or to convert the inferred
resource to another category of resource or reserve at any point in
the future; and possible future development of a new mine at La
Colorada.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: our
mineral reserve and mineral resource estimates and the assumptions
upon which they are based; ore grades and recoveries; our success
in completing exploration and engineering programs relating to the
La Colorada skarn deposit; prices
for silver and base metals remaining as estimated; currency
exchange rates remaining as estimated; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); all necessary
permits, licenses and regulatory approvals for the La Colorada mine are received in a timely
manner; our ability to secure and maintain the surface rights
necessary for our operations; and our ability to comply with
environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements
and information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include, without
limitation: fluctuations in silver and base metal prices;
fluctuations in prices for energy inputs, labour, materials,
supplies and services (including transportation); fluctuations in
currency markets (such as the Canadian dollar, Peruvian sol,
Mexican peso, Argentine peso and Bolivian boliviano versus the U.S.
dollar); operational risks and hazards inherent with the business
of mining (including environmental accidents and hazards,
industrial accidents, equipment breakdown, unusual or unexpected
geological or structural formations, cave-ins, flooding and severe
weather); employee relations; relationships with, and claims by,
local communities and indigenous populations; our ability to obtain
all necessary permits, licenses and regulatory approvals in a
timely manner; changes in laws, regulations and government
practices in the jurisdictions where we operate, including
environmental, export and import laws and regulations; legal
restrictions relating to mining; risks relating to expropriation;
increased competition in the mining industry for equipment and
qualified personnel; and those factors identified under the caption
"Risks Related to Pan American's Business" in the Company's most
recent form 40-F and Annual Information Form filed with the United
States Securities and Exchange Commission and Canadian provincial
securities regulatory authorities, respectively. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended. Investors are cautioned against undue
reliance on forward-looking statements or information.
Forward-looking statements and information are designed to help
readers understand management's current views of our near and
longer term prospects and may not be appropriate for other
purposes. The Company does not intend, nor does it assume any
obligation to update or revise forward-looking statements or
information, whether as a result of new information, changes in
assumptions, future events or otherwise, except to the extent
required by applicable law.
Cautionary Note to US Investors
This news release has
been prepared in accordance with the requirements of Canadian
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects (''NI 43-101'') and the Canadian Institute of Mining,
Metallurgy and Petroleum Definition Standards, which differ from
the requirements of U.S. securities laws. NI 43-101 is a rule
developed by the Canadian Securities Administrators that
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral
projects.
Canadian public disclosure standards, including NI 43-101,
differ significantly from the requirements of the United States
Securities and Exchange Commission (the "SEC"), and information
concerning mineralization, deposits, mineral reserve and resource
information contained or referred to herein may not be comparable
to similar information disclosed by U.S. companies. In particular,
and without limiting the generality of the foregoing, this news
release uses the terms ''measured resources'', ''indicated
resources'', and ''inferred resources''. U.S. investors are advised
that, while such terms are recognized and required by Canadian
securities laws, the SEC does not recognize them. The requirements
of NI 43-101 for identification of ''reserves'' are not the same as
those of the SEC, and reserves reported by Pan American in
compliance with NI 43-101 may not qualify as ''reserves'' under SEC
standards. Under U.S. standards, mineralization may not be
classified as a ''reserve'' unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. U.S.
investors are cautioned not to assume that any part of a "measured
resource" or "indicated resource" will ever be converted into a
"reserve". U.S. investors should also understand that "inferred
resources" have a great amount of uncertainty as to their existence
and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of "inferred resources"
exist, are economically or legally mineable or will ever be
upgraded to a higher category. Under Canadian securities laws,
estimated "inferred resources" may not form the basis of
feasibility or pre-feasibility studies except in rare cases.
Disclosure of "contained ounces" in a mineral resource is permitted
disclosure under Canadian securities laws. However, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade, without reference to unit measures. Accordingly, information
concerning mineral deposits set forth herein may not be comparable
with information made public by companies that report in accordance
with U.S. standards.
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SOURCE Pan American Silver Corp.