Pan American Silver buys remaining 50% stake in Manantial Espejo Silver Project
March 22 2006 - 7:01AM
PR Newswire (US)
VANCOUVER, March 22 /PRNewswire-FirstCall/ -- Pan American Silver
Corp. (PAAS: NASDAQ; PAA: TSX) is pleased to announce that it has
entered into an agreement to acquire the remaining 50% interest in
the Manantial Espejo silver project in Argentina from Silver
Standard Resources Inc. (SSRI: NASDAQ, SSO: TSX) for 1.95 million
common shares of Pan American. The closing of the transaction is
subject to regulatory approval and all shares issued will be
subject to a four month hold period. Manantial Espejo contains 34.8
million ounces of silver and 509,000 ounces of gold in proven and
probable reserves and a further 10.6 million ounces of silver and
113,000 ounces of gold in measured and indicated resources(x). Pan
American completed a feasibility study for the development of
Manantial Espejo in February of this year and expects to make a
construction decision as soon as it has received clearance from the
Province of Santa Cruz on the Environmental Impact Assessment that
it filed in November of 2005. The Company expects this clearance in
a matter of days. According to Pan American President and CEO Geoff
Burns: "This is a good transaction for Pan American. It gives us a
100% interest in Manantial Espejo and full control over the timing,
cost and blueprint for mine development. In addition to the
acquisition of new silver reserves and resources, we will also
profit from increased low cost silver production when the new mine
is developed and we retain 100% of the benefits of any future
exploration discoveries." For Further Information Contact: Pan
American Silver Corp, (604) 684-1175 or visit the Company's website
at http://www.panamericansilver.com/. (x) Michael Steinmann,
P.Geo., Senior Vice-President Geology and Exploration for Pan
American Silver, has estimated the mineral resources and is the
Qualified Person for the resources. Martin Wafforn, P.Eng, Director
of Mine Engineering for Pan American Silver is the Qualified Person
for the proven/probable mineral reserves. CAUTIONARY NOTE Some of
the statements in this news release are forward-looking statements
and as such are based on an assumed set of economic conditions and
courses of action. These include estimates of future production
levels, expectations regarding mine production costs, expected
trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. There is a
significant risk that actual results will vary, perhaps materially,
from results projected depending on such factors as changes in
general economic conditions and financial markets, changes in
prices for silver and other metals, technological and operational
hazards in Pan American's mining and mine development activities,
uncertainties inherent in the calculation of mineral reserves,
mineral resources and metal recoveries, the timing and availability
of financing, governmental and other approvals, political unrest or
instability in countries where Pan American is active, labor
relations and other risk factors listed from time to time in Pan
American's Form 40-F. DATASOURCE: Pan American Silver Corp.
CONTACT: Pan American Silver Corp, (604) 684-1175 or visit the
Company's website at http://www.panamericansilver.com/
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