Pan American Announces Revised PEA for the La Colorada Skarn Project, Positions La Colorada as a Future Top-tier Silver Mine
Pan American Announces Revised PEA for the La Colorada Skarn Project, Positions
La Colorada as a Future Top-tier Silver Mine
(All amounts are in United States Dollars unless otherwise indicated)
Vancouver, B.C. - March 24, 2026 - Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the
"Company") is pleased to announce the results of a revised Preliminary Economic Assessment ("Revised PEA") for
the proposed future development of the 100% owned La Colorada property located in Zacatecas, Mexico.
The Revised PEA includes a portion of the mineral resources from the La Colorada vein mine, mainly comprised of
inferred mineral resources, as well as high-grade portions of the skarn deposit mineral resources. The Revised PEA
envisions combined development to access the newly identified silver mineral resource in the eastern Candelaria
area of the existing La Colorada mine concurrently with the higher grade portions of the skarn deposit using
conventional long-hole open stoping, and the construction of a new, 15,000 tonnes per day ("tpd") plant (the "La
Colorada Skarn Project"). Production from the existing La Colorada vein mineral reserves will continue throughout
construction, commissioning and well into the operation of the La Colorada Skarn Project, resulting in an overall
expansion of La Colorada (collectively, the "Expanded La Colorada Mine"). The Expanded La Colorada Mine is
anticipated to significantly increase silver production and extend mine life, becoming a top-tier silver mine and
reaffirming Pan American as the premier company to provide investors with exposure to the long-term demand for
this critical metal.
"The simultaneous development of newly identified high-grade veins at La Colorada along with high-grade portions
of the skarn deposit is expected to make La Colorada one of the largest and lowest cost silver mines globally, with
silver production averaging 19.1 million ounces annually during the peak five years following construction and ramp-
up," said Michael Steinmann, President and Chief Executive Officer of Pan American. "Further upside potential exists
from newly identified high-grade silver veins not yet in the mineral resource and continued skarn exploration that
could lead to even higher production rates over a longer period into the future, demonstrating that La Colorada is a
rare, world-class asset of exceptional scale and quality."
Added Mr. Steinmann: "The plan to expand the La Colorada mine is the result of our continued exploration efforts,
and we have the technical expertise and financial capacity to advance the development of this large-scale project,
underscoring Pan American’s ability to create long-term value for shareholders. We expect to begin making
preparations in the next few months to advance the construction of a ramp from our existing mine works at the 588
level in order to provide initial access to the skarn mineral resources."
The Revised PEA for the La Colorada Skarn Project is preliminary in nature, it includes inferred mineral resources that
are considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the Revised PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated economic viability.
This news release contains forward-looking statements and information, and readers should refer to the Cautionary
Note Regarding Forward-Looking Statements and Information at the end of this news release.
NEWS RELEASE
PAN AMERICAN SILVER CORP. 1
Expanded La Colorada Mine Production Profile and Key Production Metrics1
Notes:
1. Includes assumed production from mineral resources, including inferred mineral resources. The Revised PEA for the La Colorada
Skarn Project is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no
certainty that the Revised PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic
viability.
KEY PRODUCTION METRICS (BY SOURCE)
EXPANDED LA COLORADA MINE1
LA COLORADA VEIN
MINE
LA COLORADA SKARN
PROJECT2
Vein Mineral Reserves3 Vein Mineral Resources Skarn Mineral Resources
Production period 2027 - 2049 2027 - 2052 2032 - 2068
Production life - years 23 26 37
Tonnes Processed (Life-of-mine ("LOM"))4 - Mt 8.4 7.7 154.6
Annual silver production (initial 5 yr. avg.)4 - Moz 3.3 4.0 11.8
Annual zinc production (initial 5 yr. avg.)4 - kt 6.3 6.8 232.6
Annual lead production (initial 5 yr. avg.)4 - kt 3.8 4.0 146.2
Total silver production (LOM) - Moz 75.1 72.4 201.3
Total zinc production (LOM) - kt 171.1 243.4 5,331.1
Total lead production (LOM) - kt 93.4 122.3 2,420.0
Notes:
1. All figures are rounded.
2. Based on the Revised PEA. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
3. Mineral reserves do not include mineral resources.
4. Average annual production over the initial 5-year period includes years 2034 to 2038 (the "Initial Five Year Period"), following the
La Colorada Skarn Project processing plant commissioning and ramp-up. "Mt" refers to millions of tonnes, "kt" to thousands of
tonnes and "Moz" to millions of ounces.
LA COLORADA SKARN PROJECT HIGHLIGHTS
The existing La Colorada vein mine will continue operating during the construction, commissioning and well into the
operation of the La Colorada Skarn Project; however, its associated mineral reserves scheduled to be mined during
PAN AMERICAN SILVER CORP. 2
the life-of-mine were excluded from the Revised PEA mine plan and economics for the La Colorada Skarn Project and
therefore do not contribute to the following highlights for the La Colorada Skarn Project.
• Large, long-life silver production: annual average silver production of 15.8 million ounces from the La
Colorada Skarn Project over the Initial Five Year Period, incremental to the anticipated average silver
production of 3.3 million ounces from the existing La Colorada mine mineral reserves during the same
period. Total estimated mine life following completion of the construction of the new 15,000 tpd processing
plant is 37 years.
• Low-cost production: average silver all-in sustaining costs ("AISC")(1) of negative $22.67 per ounce over the
Initial Five Year Period, reflecting the contribution of zinc and lead by-product credits.
• Attractive project returns: after-tax net present value ("NPV") (5%) of $2.6 billion with an after-tax internal
rate of return ("IRR") of 17% (the "Base Case Scenario"), which is incremental to the current La Colorada
mine mineral reserve economics, and using long-term metal prices of $45.00 per ounce of silver, $2,800 per
tonne of zinc and $2,000 per tonne of lead (the "Base Case Prices"). At increased prices of $75.00 per ounce
of silver, $3,400 per tonne of zinc, and $2,000 per tonne of lead (the "Upside Price Scenario"), the La
Colorada Skarn Project after-tax NPV (5%) is $5.2 billion and the after-tax IRR is 25%.
• Leveraged to silver revenue: at the Base Case Prices, the Initial Five Year Period revenue contribution is
approximately 42% silver, 39% zinc and 19% lead, while at the Upside Price Scenario, the Initial Five Year
Period revenue contribution is approximately 51% silver, 35% zinc and 14% lead.
• Strong incremental free cash flow: average incremental annual free cash flow(1) of $653 million over the
Initial Five Year Period at the Base Case Prices, increasing to $988 million annually at the Upside Price
Scenario, attributable to the La Colorada Skarn Project and excluding any additional free cash flow
generated by the La Colorada mine mineral reserves.
• Funded growth: Pan American currently expects to fully fund the La Colorada Skarn Project through cash
flow generated by Pan American's operating mines, with spending to occur over 6 years and peak spending
in the last 3 years while the processing plant is being constructed. The payback period of the initial
investment of $1.9 billion on a standalone basis is 4 years using Base Case Prices and 3 years at the Upside
Price Scenario.
• Improved grades: the La Colorada Skarn Project grades under the Revised PEA are 84%, 45% and 54% higher
for silver, zinc and lead, respectively, compared to the 2023 PEA(2) plan grades, driven by the shift from bulk
caving to more selective long-hole open stope mining of high grade portions of the skarn deposit and the
inclusion of additional high-grade mineralization from the vein mineral resources.
• De-risked development: The mining method to be employed is conventional long-hole open stoping with
tailings paste backfill. A sub-level caving or block caving mining method is not envisioned in the Revised PEA,
but potential opportunities remain to consider caving in a future expansion. No additional permitting is
required for the 588 level ramp decline to provide initial access to the skarn deposit. Requests for permits
will be submitted for other aspects of the La Colorada Skarn Project, including mine shafts, a new processing
plant and tailings facilities expansions.
• Significant potential for mineral resource expansion: exploration drilling continues to intersect
mineralization outside of the current resource models, with more than 45,700 metres of recent skarn drilling
and 48,000 metres of recent vein mine drilling not included in the current mineral resource estimate used
for the Revised PEA. Please refer to Pan American's news release dated March 5, 2026 for the most recent
exploration drill results at La Colorada. Ongoing exploration investments and geological potential suggest
that mineral resources could continue to grow, possibly increasing and extending the mine's production.
This may allow peak silver output to extend further.
• Further optionality to extend mine life: an option exists for a future phase of mine expansion through
adoption of a combination of block caving and sub-level caving mining methods over the coming decades to
PAN AMERICAN SILVER CORP. 3
extract lower grade mineralization, particularly considering on-going exploration results (mineral resource
expansion) or possible increased metal prices.
(1) Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further
information on these measures.
(2) For details on the 2023 PEA, please refer to the NI 43-101 Technical Report for the La Colorada property dated January 31, 2024, as
amended.
An updated technical report prepared in accordance with NI 43-101 on the La Colorada property will be filed with
Canadian securities regulators within 45 days of this news release, and will include the Revised PEA. The technical
report will be available under the Company’s profile on SEDAR+ (www.sedarplus.ca) and at
www.panamericansilver.com.
The Revised PEA for the La Colorada Skarn Project was prepared in accordance with NI 43-101 standards. The Base
Case Scenario economic analysis was completed at the following Base Case Prices: $45.00/oz of silver, $2,800/t of
zinc and $2,000/t of lead. The mineral resource estimate reported effective as at June 30, 2025 and mine plan were
completed at metal prices of $22.00/oz of silver, $2,800/t of zinc and $2,200/t of lead for the skarn deposit, and for
the La Colorada vein mine at $24.00/oz of silver, $2,800/t of zinc and $2,200/t of lead. The considerably lower silver
prices used provides an opportunity to further enhance overall La Colorada Skarn Project economics at the higher
long-term silver price assumption.
The Revised PEA for the La Colorada Skarn Project is preliminary in nature; it includes inferred mineral resources that
are considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the Revised PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated economic viability.
CONFERENCE CALL AND WEBCAST
Pan American will host a conference call and webcast to discuss the La Colorada Skarn Project.
Date: March 25, 2026
Time: 11:00 am ET (8:00 am PT)
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=JvlQ9YAf
Participants can register for the conference at: https://dpregister.com
Upon registration, dial-in details will be displayed on screen and emailed as a calendar booking.
Those unable to register may join the call by dialing:
1-833-752-3507 (toll-free in Canada and the U.S.)
1-647-846-7282 (International Participants)
Web Phone https://hd.choruscall.com
The live webcast and presentation slides will be available at https://panamericansilver.com/invest/financial-reports-
and-filings/. An archive of the webcast will also be available for three months.
LA COLORADA SKARN PROJECT OVERVIEW
The La Colorada Skarn Project considers continued mining and processing of the existing La Colorada vein mine
mineral reserves using the current mine facilities and infrastructure while developing access to the newly discovered
high-grade silver veins and replacement mineralization in the eastern part of the Candelaria mine as well as the
higher-grade zones of the skarn mineralization. The Revised PEA contemplates the development of a decline from
the existing 588 level to access the skarn deposit, and the Company anticipates beginning preparatory work related
to the decline in 2026 in order to maintain the anticipated project timeline. Soon after this development begins,
activities would start to conventionally sink a production shaft and a ventilation shaft from surface. The production
shaft is expected to be circular, concrete lined, 7.4m in diameter and extend to 1,480m below surface. The
ventilation shaft is expected to be concrete lined, 7.4m in diameter and extend to 1,400m below surface. When
completed, these shafts will provide access, hoisting capacity and ventilation to the skarn and the newly discovered
PAN AMERICAN SILVER CORP. 4
veins and will eventually connect with the decline being developed from the 588 level. As well, a new exploration
crosscut at the 588 level, planned for a total of 570 metres, had advanced 212 metres to the south as of the end of
February 2026. A second crosscut at the 448 level was initiated in the first quarter of 2026 to improve zone access
and drill coverage.
As development of the underground mine progresses, and as described in the Revised PEA, the construction of a
new 15,000 tpd conventional selective flotation plant would be timed to match the expected initial production from
the La Colorada Skarn Project. The new process plant is expected to process all the production from the Expanded La
Colorada Mine, commingling vein (2,000 tpd) and high-grade skarn mineralization (13,000 tpd). Ramp-up to full
13,000 tpd skarn mining rates is anticipated 2 years following completion of the plant construction. The tailings not
required for the backfilling process are expected to be stored in a new conventional tailings storage facility that will
be constructed on the Company’s property.
The advantages of the development approach defined in the Revised PEA relative to the 2023 PEA, as described in
the NI 43-101 Technical Report for the La Colorada property dated January 31, 2024 (as amended), include: (i)
improved economics by extracting maximum value from the newly identified silver mineral resource in the eastern
Candelaria area and more selective high-grade silver zones of the skarn deposit, (ii) lower initial capital investment,
and (iii) reduced technical risk using a conventional long hole open stoping mining method.
The Revised PEA also concluded that, as exploration drilling continues to intersect additional mineralization outside
of the current resource models, a long-term option exists for a future mine expansion considering a change of the
mining methods to a combination of block caving and sub-level caving to include lower grade mineralization of the
skarn deposit.
PAN AMERICAN SILVER CORP. 5
Expanded La Colorada Mine Production Profile
Period 2027 -
2031
2032 -
2033 2034 2035 2036 2037 2038 2039 -
2052
2053 -
2068 Total LOM
Tonnes Processed (Mt)
La Colorada Vein Mine (Mineral Reserves) 3.1 1.0 0.5 0.5 0.3 0.3 0.2 2.4 — 8.4
La Colorada Skarn Project (Mineral Resources) 0.2 5.4 5.3 5.1 5.0 5.1 5.1 72.8 58.3 162.3
Silver Grade (g/t)
La Colorada Vein Mine (Mineral Reserves) 325.8 261.7 305.5 254.0 277.1 303.6 369.0 280.2 — 298.0
La Colorada Skarn Project (Mineral Resources) 477.5 96.7 93.2 96.8 117.5 108.7 100.7 57.7 34.4 58.5
Zinc Grade (%)
La Colorada Vein Mine (Mineral Reserves) 2.39 2.51 1.63 1.90 1.78 2.28 1.56 2.34 — 2.27
La Colorada Skarn Project (Mineral Resources) 2.21 4.70 5.02 4.79 5.12 4.83 5.05 3.55 3.17 3.68
Lead Grade (%)
La Colorada Vein Mine (Mineral Reserves) 1.30 1.47 1.19 1.25 1.13 1.21 0.88 1.17 — 1.25
La Colorada Skarn Project (Mineral Resources) 1.15 2.50 3.20 3.13 3.52 3.16 3.20 1.49 1.45 1.79
Silver Recovery (%)
La Colorada Vein Mine (Mineral Reserves) 93.8 94.1 93.1 93.0 94.0 93.6 93.2 90.1 — 92.8
La Colorada Skarn Project (Mineral Resources) 93.8 92.3 92.0 92.3 93.4 93.0 92.5 89.2 86.0 89.7
Zinc Recovery (%)
La Colorada Vein Mine (Mineral Reserves) 82.5 93.7 93.9 93.8 93.9 93.9 93.9 93.4 — 89.2
La Colorada Skarn Project (Mineral Resources) 82.5 93.9 94.0 93.9 94.0 93.9 94.0 93.4 93.1 93.4
Lead Recovery (%)
La Colorada Vein Mine (Mineral Reserves) 88.6 88.4 90.0 89.9 90.5 90.0 90.1 86.3 — 88.2
La Colorada Skarn Project (Mineral Resources) 88.6 89.1 90.2 90.1 90.7 90.2 90.2 86.6 86.4 87.7
Silver Production (Moz)
La Colorada Vein Mine (Mineral Reserves) 30.9 8.0 4.4 3.6 2.9 2.8 2.5 19.9 — 75.1
La Colorada Skarn Project (Mineral Resources) 3.5 15.4 14.6 14.7 17.6 16.7 15.3 120.4 55.4 273.7
Zinc Production (kt)
La Colorada Vein Mine (Mineral Reserves) 62.1 23.9 7.4 8.5 5.8 6.7 3.3 53.4 — 171.1
La Colorada Skarn Project (Mineral Resources) 4.4 236.5 249.1 231.1 240.5 233.0 243.2 2,414.6 1,722.2 5,574.6
Lead Production (kt)
La Colorada Vein Mine (Mineral Reserves) 36.4 13.2 5.2 5.4 3.5 3.4 1.8 24.6 — 93.4
La Colorada Skarn Project (Mineral Resources) 2.5 119.5 152.4 144.8 159.2 146.6 148.0 939.5 729.9 2,542.4
PAN AMERICAN SILVER CORP. 6
La Colorada Skarn Project Incremental Economics
The existing La Colorada vein mine will continue operating during the construction, commissioning and well into the
operation of the La Colorada Skarn Project; however, its associated mineral reserves scheduled to be mined during
the life-of-mine were excluded from this mine plan and from the incremental economics from the Revised PEA for
the La Colorada Skarn Project.
LA COLORADA SKARN PROJECT ECONOMICS
Operating Costs1
Mining cost ($/tonne mined) $54.5
Processing cost ($/tonne processed) $8.5
G&A cost ($/tonne processed) $7.4
Cash cost per payable silver ounce (initial 5 yr. avg.)2 $(26.34)
Cash cost per payable silver ounce (LOM) $(15.89)
All-in sustaining cost per payable silver ounce (initial 5 yr. avg.) $(22.67)
All-in sustaining cost per payable silver ounce (LOM) $(10.50)
Capital Costs1
Initial capital in billions $1.9
Sustaining capital3 in billions $1.2
Total capital expenditures (LOM) in billions $3.2
Economic Analysis (Base Case Prices)4
Annual after-tax incremental cash flow (initial 5 yr. avg.) in millions $653
Cumulative after-tax incremental cash flow in billions $7.1
Incremental NPV(5%) (After-tax) in billions $2.6
IRR (After-tax) 17%
Pay-back period (After-tax, undiscounted) in years 4
Notes:
1. Cash costs and all-in sustaining costs are non-GAAP measures; please refer to the "Alternative Performance (non-GAAP) Measures"
section of this news release for further information on these measures.
2. Costs for the initial 5-year average include years 2034 to 2038, which follows the commissioning and ramp-up of the new processing
facility.
3. Sustaining capital includes capital leases.
4. Assumes metal prices of $45.00 per ounce of silver, $2,800 per tonne of zinc and $2,000 per tonne of lead.
The Revised PEA is preliminary in nature, includes inferred mineral resources that would be considered too
speculative geologically to have the economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the Revised PEA will be realized. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
PAN AMERICAN SILVER CORP. 7
Initial Capital Estimate
The La Colorada Skarn Project entails an approximately 6 year capital development and construction timeline, from
2026 to 2031, followed by a 2 year commissioning and ramp-up period. Total initial capital is estimated at $1.9
billion.
Initial Capital Cost Estimate (in $ millions)
Surface Infrastructure 135
Processing Plant 277
Paste Backfill Plant 66
Initial Tailings Storage Facility ("TSF") Works 42
Power 34
Underground Access and Development1 622
Mining Equipment 100
Dewatering 19
Underground Infrastructure 153
Subtotal Direct Costs 1,448
Indirect Costs 176
Subtotal Direct and Indirect Costs 1,625
Contingency 323
Total 1,947
1. Contingency for "Underground Access and Development" is included in the $622 million.
Sensitivity Analysis
The following tables provide La Colorada Skarn Project economic sensitivities for incremental NPV (5%) and IRR at
various silver and zinc prices.
Incremental NPV(5%) (After-tax)
($ billions)
Ag prices ($/oz)
30.00 45.00 60.00 75.00
Zn prices ($/t)
2,200 0.9 1.8 2.8 3.7
2,500 1.2 2.2 3.1 4.1
2,800 1.6 2.6 3.5 4.5
3,100 2.0 2.9 3.9 4.8
3,400 2.3 3.3 4.2 5.2
IRR (After-tax)
(%)
Ag prices ($/oz)
30.00 45.00 60.00 75.00
Zn prices ($/t)
2,200 10 14 18 21
2,500 12 16 19 22
2,800 13 17 20 23
3,100 14 18 21 24
3,400 16 19 22 25
Notes:
1. Assumes a lead metal price of $2,000 per tonne.
PAN AMERICAN SILVER CORP. 8