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Pan American Silver Reports Mineral Reserves Estimate of 550 Million Ounces of Silver and 5.2 Million Ounces of Gold

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PR Newswire

All financial figures are expressed in US$ unless otherwise indicated.

VANCOUVER, BC, Aug. 5, 2020 /PRNewswire/ - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American", or the "Company") today reported its estimated mineral reserves and resources as of June 30, 2020. Proven and probable mineral reserves are estimated to contain approximately 550 million ounces of silver and 5.2 million ounces of gold. Measured and indicated mineral resources (excluding proven and probable reserves) are estimated to total approximately 806 million ounces of silver and 9.4 million ounces of gold. In addition, inferred resources, including the La Colorada polymetallic skarn deposit, total 458 million ounces of silver and 6.9 million ounces of gold.

"Pan American holds one of the world's largest silver mineral resources and reserves base. Over the past year, we have replaced 76% of the silver and 107% of the gold mined for the 12-month period ended June 30, 2020. Particularly significant gains were realized at La Colorada, La Arena and Shahuindo," said Christopher Emerson, Pan American's Vice President of Business Development and Geology. "Through 200,000 metres of drilling from July 2019 to June 2020, we were able to add 22.1 million ounces of silver and 719 thousand ounces of gold to our proven and probable mineral reserves."

Summary of Pan American total mineral reserves and resources for the silver and gold segments


Tonnes (Mt)

Ag (g/t)

Contained
Ag (Moz)


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Au (g/t)

Contained
Au (koz)

Proven and Probable Reserves

283

63

550

0.61

5.2

Measured and Indicated Resources

1035

110

806

0.33

9.4

Inferred Resources

461

46

458

0.71

6.9

(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2020".

(2) Please refer to the complete mineral reserve and resource table at the end of this news release for more information.

Notable achievements during the year include:

  • At La Colorada, exploration drilling led to an increased inferred mineral resource estimate for the skarn deposit of 100.4 million tonnes, containing an estimated 141.0 million ounces of silver, as disclosed on August 4, 2020. In the producing area of the La Colorada mine, we discovered an estimated 10.0 million ounces of silver in proven and probable mineral reserves, more than replacing the 7.2 million ounces mined during the year.
  • At Shahuindo, infill drilling led to the discovery of an estimated 406 thousand ounces of gold mineral reserves and 7.2 million ounces of silver mineral reserves, nearly twice the ounces mined over the 12-month period ended June 30, 2020.
  • At La Arena, we successfully replaced all of the production and increased the year on year mineral reserves by an estimated 37 thousand ounces of gold, extending mine life by more than one year.
  • At Timmins, the Bell Creek mine succeeded in replacing 100% of production, primarily through tightly spaced definition drilling, while Timmins West replaced 70% of production. Exploration drilling laterally and to depth at Bell Creek extended known veins and increased inferred mineral resources by an estimated 104 thousand ounces of gold.
  • At Huaron, drilling of the major vein structures added an estimated 5.9 million ounces of silver mineral reserves.

The La Colorada skarn and Navidad deposits are estimated to contain 141 and 119 million ounces of inferred silver resources, respectively. The sale of the Juby exploration property was completed in June 2020, which led to a subsequent reduction in the indicated and inferred gold mineral resources.

A summary of the silver and gold mineral reserves and mineral resources as of June 30, 2020 is provided in the following tables.

Pan American Mineral Reserves as of June 30, 2020 (1,2)

Property

Location

Classification

Tonnes (Mt)

Ag (g/t)

Contained
Ag (Moz)

Au (g/t)

Contained
Au (koz)

Silver
Segment








Huaron

Peru

Proven

6.9

164

36.3

--

--



Probable

3.6

169

19.8

--

--

Morococha
(92.3%) (3)

Peru

Proven

3.3

158

16.6

--

--



Probable

2.4

187

14.6

--

--

La Colorada

Mexico

Proven

4.4

339

48.2

0.25

35.3



Probable

5.7

301

55.1

0.20

36.3

Dolores

Mexico

Proven

30.1

23

21.9

0.88

853.7



Probable

6.8

26

5.7

0.81

177.4

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