Pan American Silver Reports Mineral Reserves of 280 Million Ounces and Continued Success at the La Colorada Skarn Discovery
Suite 1500 - 625 Howe St.
Vancouver, BC Canada, V6C 2T6
604-684-1175
www.panamericansilver.com
PAN AMERICAN SILVER CORP.
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Pan American Silver Reports Mineral Reserves of 280 Million Ounces and Continued Success
at the La Colorada Skarn Discovery
All financial figures are expressed in US$ unless otherwise indicated.
The reserve and resource information provided in this news release is only for Pan American's operations and do
not reflect the plan of arrangement (the "Arrangement") whereby Pan American will acquire all of the issued and
outstanding common shares of Tahoe Resources Inc. ("Tahoe"), announced on November 14, 2018. Pan American
currently expects the Arrangement to be completed on or about February 22, 2019.
Vancouver, B.C. - Feb. 20, 2019 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) (“Pan
American”, or the “Company”) today reported its mineral reserves and resources as at December 31,
2018. Pan American’s mineral reserves are estimated to contain approximately 280 million ounces of
silver and 1.7 million ounces of gold.
The following table provides the changes in Pan American's estimated silver reserves year-over-year:
Millions of ounces
Proven and probable silver mineral reserves as of Dec. 31, 2017(1) 288.4
Less: contained ounces mined during 2018 (29.7)
Plus: contained ounces discovered by exploration during 2018 21.1
Proven and probable silver mineral reserves as of Dec. 31, 2018(2)(3) 279.8
(1) Prices used to estimate mineral reserves for 2017 were $18.50 per ounce of silver, except at Manantial Espejo where $16.50 per ounce of
silver was used for planned 2018 production, reverting to $18.50 per ounce of silver thereafter.
(2) Prices used to estimate mineral reserves for 2018 were $18.50 per ounce of silver, except at Manantial Espejo where $16.50 per ounce of
silver was used.
(3) Please refer to the complete mineral reserves and mineral resources table at the end of this news release for more detailed information.
“2018 was a very successful year for near-site mine exploration with the replacement of over 21 million
ounces of silver and the major skarn discovery at La Colorada, which is not yet reflected in our proven
and probable reserves or resources," said Christopher Emerson, Pan American's Vice President Business
Development and Geology. “Drill hole U-68-18 with 308 metres of polymetallic mineralization is another
impressive result of this major discovery”.
2018 Exploration Results
Pan American spent $18.8 million on exploration drilling in 2018, of which $11.3 million was included in
capital for mine and near site drilling, and the remainder was expensed under exploration and project
development costs. Drilling for mine and near site exploration totaled 106,000 metres, with La Colorada
and Morococha accounting for over 65% of the metres drilled. An additional 10,000 metres was drilled
for regional exploration.
La Colorada (Mexico) - added 11.1 million ounces of new silver reserves with approximately 14,000
metres drilled to further define the main vein continuity laterally and at depth. The Company also drilled
approximately 6,800 metres to further define the manto and skarn mineralization discovery announced
on October 23, 2018.
PAN AMERICAN SILVER CORP.
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Exploration drilling of the skarn mineralization at depth, approximately 500 to 800 metres below the drill
stations, indicates wide intercepts with high-grade, polymetallic mineralization. In particular, drillhole
U-87-18, which was drilled 200 metres south of drillhole U-39-18 (reported in Pan American’s news
release dated October 23, 2018, with 223 metres of polymetallic mineralization), is located in previously
untested areas of the mine concession. Visit panamericansilver.com to view cross sections, plan and
images of the mineralized core.
Recent drill highlights include:
• U-60-18: 44.5 m at 40 g/t Ag, 0.10% Cu, 1.97% Pb, 4.71% Zn;
• and 48.8 m at 29 g/t Ag, 0.17% Cu, 1.39% Pb, 4.33% Zn;
• and 67.9 m at 18 g/t Ag, 0.07% Cu, 0.57% Pb, 4.67% Zn
• U-68-18: 308.1 m at 46 g/t Ag, 0.20% Cu, 1.93% Pb, 4.56% Zn,
• including 65.7 m at 80 g/t Ag, 0.40% Cu, 2.34% Pb, 5.73% Zn;
• including 75.0 m at 70 g/t Ag, 0.23% Cu, 3.01% Pb, 6.02% Zn;
• including 90.4 m at 38 g/t Ag, 0.19% Cu, 2.25% Pb, 6.15% Zn
• U-87-18: 64.7 m at 33 g/t Ag, 0.16% Cu, 1.99% Pb, 2.93% Zn,
• including 11.5 m at 71 g/t Ag, 0.31% Cu, 4.47% Pb, 4.57% Zn
A summary of the drill results from the recently completed 6,800 metres of drilling is provided at the end
of this news release.
Morococha (Peru) - added 7.7 million ounces of new silver reserves, in addition to an increase of 76,000
tonnes of zinc and 21,000 tonnes of lead, which is associated with the increase in polymetallic
mineralization at depth. The continued exploration drilling success at Morococha underlines the
potential of this district, especially in the eastern portion of the mine.
Huaron (Peru) - added 4.9 million ounces of silver, primarily through the conversion of resources on the
principal structures to reserves due to the 100 level deepening project.
Manantial Espejo/Joaquin/COSE (Argentina) - 3.5 million ounces of silver reserves were depleted from
the low grade stockpile and underground mine at Manantial Espejo. The Company is focused on the
development of the high-grade Joaquin and COSE deposits to supplement ore from Manantial Espejo.
Exploration drilling at Manantial Espejo continued to define mineralized shoots along the Maria vein.
2019 Exploration Program
In 2019, Pan American plans to invest approximately $20 million in exploration, and complete about
122,000 metres of diamond drilling; about 42,000 meters of drilling will be directed towards the skarn
discovery at La Colorada in order to release an initial mineral resource estimation later in 2019.
Future Mineral Reserve and Resource Updates
Pan American intends to provide future mineral reserve and resource updates as at the period ending
June 30th of each year, rather than at the period ending December 31st of each year, in order to optimally
align mineral reserves updates, mine plans and budgets. This change will take effect on June 30, 2019,
and the updated mineral reserve and resource estimates are expected to include the Tahoe assets that
will be added to the Company's portfolio following completion of the Arrangement.
PAN AMERICAN SILVER CORP.
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A summary of the silver and gold mineral reserve and resource information at December 31, 2018 is
provided in the following tables:
Pan American Silver Corp. Mineral Reserves as of December 31, 2018 (1,2)
Property Location Classification Tonnes
(Mt) Ag (g/t) Contained
Ag (Moz) Au (g/t) Contained
Au (koz)
Huaron Peru Proven 6.3 156 31.4 N/A N/A
Probable 4.1 163 21.7 N/A N/A
Morococha (92.3%)(3) Peru Proven 3.7 160 19.0 N/A N/A
Probable 3.1 150 15.1 N/A N/A
La Colorada Mexico Proven 4.3 387 53.5 0.31 42.9
Probable 4.3 346 47.5 0.27 36.6
Dolores Mexico Proven 35.8 27 31.3 0.86 990.8
Probable 8.7 27 7.7 0.79 220.4
La Bolsa Mexico Proven 9.5 10 3.1 0.67 202.9
Probable 6.2 7 1.4 0.57 113.1
Manantial Espejo Argentina Proven 1.2 156 5.9 1.26 47.3
Probable 0.1 204 0.9 3.64 16.0
San Vicente (95%)(3) Bolivia Proven 1.5 396 19.3 N/A N/A
Probable 0.7 383 8.9 N/A N/A
Joaquin Argentina Probable 0.5 721 11.0 0.41 6.2
COSE Argentina Probable 0.1 918 2.2 17.7 43.3
Totals (4) Proven +
Probable 90.0 97 279.8 0.76 1,719.5
(1) Prices used to estimate mineral reserves for 2018 were: $18.50 per ounce of silver, $1,300 per ounce of gold,
$2,400 per tonne of zinc, $2,100 per tonne of lead, and $6,000 per tonne of copper; except at Manantial Espejo
where $16.50 per ounce of silver and $1,250 per ounce of gold were used. Metal prices used for La Bolsa were
$14.00 per ounce of silver and $825 per ounce of gold.
(2) Mineral reserve estimates were prepared under the supervision of, or were 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 are Qualified Persons as that term is defined in
National Instrument 43-101 (“NI 43-101").
(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership
interest in the operating entity as indicated.
(4) Totals may not add up due to rounding.
PAN AMERICAN SILVER CORP.
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Pan American Silver Corp. Measured and Indicated Mineral Resources as of December 31, 2018 (1,2)
Property Location Classification Tonnes
(Mt) Ag (g/t) Contained
Ag (Moz) Au (g/t) Contained
Au (koz)
Huaron Peru Measured 2.1 155 10.4 N/A N/A
Indicated 1.7 151 8.3 N/A N/A
Morococha (92.3%)(3) Peru Measured 0.3 145 1.4 N/A N/A
Indicated 0.5 151 2.4 N/A N/A
La Colorada Mexico Measured 0.6 193 3.7 0.22 4.2
Indicated 2.0 156 9.9 0.15 9.4
Dolores Mexico Measured 4.5 20 2.8 0.25 36.4
Indicated 1.6 27 1.4 0.53 27.4
La Bolsa Mexico Measured 1.4 11 0.5 0.90 39.9
Indicated 4.5 9 1.3 0.50 71.2
Manantial Espejo Argentina Measured 0.1 169 0.8 1.66 7.8
Indicated 0.2 241 1.4 2.86 16.5
San Vicente (95%)(3) Bolivia Measured 0.8 154 4.0 N/A N/A
Indicated 0.2 148 0.9 N/A N/A
Navidad Argentina Measured 15.4 137 67.8 N/A N/A
Indicated 139.8 126 564.5 N/A N/A
Pico Machay Peru Measured 4.7 N/A N/A 0.91 137.5
Indicated 5.9 N/A N/A 0.67 127.1
Joaquin Argentina Indicated 0.1 385 0.7 0.58 1.1
Totals (4) Measured +
Indicated 186.3 121 682.1 0.58 478.5
(1) Prices used to estimate mineral resources for 2018 were: $18.50 per ounce of silver, $1,300 per ounce of gold,
$2,400 per tonne of zinc, $2,100 per tonne of lead, and $6,000 per tonne of copper; except at the following
properties: Dolores and Manantial Espejo used $24.00 per ounce of silver and $1,400 per ounce of gold; Joaquin
used $25.00 per ounce of silver and $1,400 per ounce of gold; La Bolsa used $14.00 per ounce of silver and $825
per ounce of gold; and Navidad used $12.52 per ounce of silver and $1,100 per tonne of lead.
(2) Mineral resource estimates were prepared under the supervision of, or were 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 are Qualified Persons as that term is defined in NI
43-101.
(3) This information represents the portion of mineral resources attributable to Pan American based on its
ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding.
PAN AMERICAN SILVER CORP.
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Pan American Silver Corp. Inferred Mineral Resources as of December 31, 2018 (1,2)
Property Location Classification Tonnes
(Mt) Ag (g/t) Contained
Ag (Moz) Au (g/t) Contained
Au (koz)
Huaron Peru Inferred 6.2 157 31.0 N/A N/A
Morococha (92.3%)(3) Peru Inferred 4.7 140 21.4 N/A N/A
La Colorada Mexico Inferred 6.2 185 37.1 0.20 40.8
Dolores Mexico Inferred 4.3 45 6.2 1.15 158.5
La Bolsa Mexico Inferred 13.7 8 3.3 0.51 224.6
Manantial Espejo Argentina Inferred 0.5 194 3.0 2.71 41.4
San Vicente (95%)(3) Bolivia Inferred 2.5 322 26.3 N/A N/A
Navidad Argentina Inferred 45.9 81 119.4 N/A N/A
Pico Machay Peru Inferred 23.9 N/A N/A 0.58 445.7
Joaquin Argentina Inferred 0.01 389 0.1 1.29 0.2
COSE Argentina Inferred 0.03 382 0.3 7.10 6.3
Totals (4) Inferred 108.0 92 248.0 0.59 917.5
(1) Prices used to estimate mineral resources for 2018 were: $18.50 per ounce of silver, $1,300 per ounce of gold,
$2,400 per tonne of zinc, $2,100 per tonne of lead, and $6,000 per tonne of copper; except at the following
properties: Dolores and Manantial Espejo used $24.00 per ounce of silver and $1,400 per ounce of gold; Joaquin
used $25.00 per ounce of silver and $1,400 per ounce of gold; La Bolsa used $14.00 per ounce of silver and $825
per ounce of gold; and Navidad used $12.52 per ounce of silver and $1,100 per tonne of lead.
(2) Mineral resource estimates were prepared under the supervision of, or were 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 are Qualified Persons as that term is defined in NI
43-101.
(3) This information represents the portion of mineral resources attributable to Pan American based on its
ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding.
PAN AMERICAN SILVER CORP.
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General Notes with Respect to Technical Information
Mineral reserves and resources are as defined by the Canadian Institute of Mining, Metallurgy and
Petroleum.
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.
Pan American does not expect these mineral reserve and resource estimates to be materially affected by
metallurgical, environmental, permitting, legal, taxation, socio-economic, political, and marketing or
other relevant issues.
See the Company’s Annual Information Form dated March 22, 2018, available at www.sedar.com for
further information on the Company’s material mineral properties, other than the Joaquin property,
including information concerning associated QA/QC 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. For information on the Joaquin property, please refer to the Company's news release dated
December 21, 2017.
Grades are shown as contained metal before mill recoveries are applied. Samples from the first 16
drillholes in the new manto/skarn discovery (holes U-01-18 to U-57-18) were analyzed at the La
Colorada mine laboratory, which is operated by our employees, using fire assay with gravimetric finish
for gold and silver, and by acid digestion with atomic absorption finish for lead, zinc, and copper. The
majority of the samples from the subsequent drillholes (hole U-60-18 onwards) were prepared and
analyzed by Activation Laboratories Ltd (“Actlabs”) of Zacatecas, Mexico, using fire assay with gravimetric
finish for gold and silver, and by acid digestion with atomic absorption finish for lead, zinc, and copper.
Pan American Silver implements a quality assurance and quality control ("QAQC") program including the
submission of certified standards, blanks, and duplicate samples to the laboratory. As a result of some
blank and standard failures associated with analyses conducted at the La Colorada mine laboratory, as
reported in Pan American's news release dated October 23, 2018, the failed batches were re-submitted
to the laboratory for re-analysis and the primary laboratory was switched to Actlabs. The results of the
QAQC samples submitted to Actlabs demonstrates acceptable accuracy and precision, and that no
significant contamination is occurring at the laboratory. The Qualified Person is of the opinion that the
sample preparation, analytical, and security procedures followed for the samples will be sufficient and
reliable for the purpose of any future mineral resource and mineral reserve estimates.
Complete mineral reserve and resource information for all metals, including tonnage and grades, is
available at www.panamericansilver.com.
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, who are
each Qualified Persons for the purposes of National Instrument 43-101.
PAN AMERICAN SILVER CORP.
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A summary of the La Colorada drill results is provided in the following table(1)(2):
Drill Hole ID From (m) To (m) Interval (m) Ag g/t Cu % Pb % Zn %
U-42-18 89.4 94.9 5.6 145 0.44 5.27 10.39
and 210.2 214.2 4.0 34 0.10 2.05 3.29
U-53-18 209.3 211.7 2.4 114 0.25 2.22 6.61
and 307.5 312.3 4.8 45 0.12 2.29 10.97
U-57-18 125.5 126.6 1.2 4665 0.76 4.30 7.33
and 423.7 428.6 4.9 90 0.07 5.88 6.86
and 462.3 469.8 7.6 47 2.37 0.87 3.16
U-60-18 82.5 85.2 2.7 84 0.31 4.66 16.70
and 86.3 88.4 2.1 31 0.16 2.05 7.48
and 231.0 275.5 44.5 40 0.10 1.97 4.71
incl. 231.0 238.4 7.4 89 0.28 2.77 9.55
and 362.5 378.1 15.6 222 0.56 4.11 5.82
incl. 371.0 375.0 4.0 581 0.91 7.18 7.45
and 473.6 485.0 11.5 246 0.05 3.67 3.07
incl. 482.5 485.0 2.5 716 0.06 13.92 9.98
and 612.8 661.5 48.8 29 0.17 1.39 4.33
incl. 657.4 660.9 3.5 70 0.36 4.00 15.07
and 768.6 836.4 67.9 18 0.07 0.57 4.67
incl. 793.7 798.5 4.8 70 0.13 4.09 18.60
U-68-18 328.9 637.0 308.1 46 0.20 1.93 4.56
incl. 328.9 394.6 65.7 80 0.40 2.34 5.73
incl. 338.1 346.4 8.3 126 0.59 4.51 12.42
incl. 351.7 363.9 12.3 133 0.98 3.37 9.62
incl. 376.1 393.2 17.1 116 0.28 2.95 5.52
incl. 446.1 521.1 75.0 70 0.23 3.01 6.02
incl. 546.7 637.0 90.4 38 0.19 2.25 6.15
incl. 600.7 624.7 24.0 55 0.33 3.43 11.16
U-71-18 625.7 630.6 4.9 157 1.85 0.46 0.10
U-85-18 267.3 272.8 5.5 117 0.22 5.38 12.73
U-87-18 857.1 922.0 64.7 33 0.16 1.99 2.93
incl. 857.1 868.6 11.5 71 0.31 4.47 4.57
(1) The exploration drilling, sampling, and analytical data have been reviewed, verified, and compiled by Pan
American’s geology staff under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice
President Business Development and Geology, who is a Qualified Persons as that term is defined in National
Instrument 43-101 (“NI 43-101").
(2) True widths of the mineralized intervals are unknown at this time.
PAN AMERICAN SILVER CORP.
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About Pan American Silver
Pan American Silver Corp. 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
six mines in Mexico, Peru, Argentina and Bolivia. Pan American Silver maintains a strong balance sheet, has an
established management team with proven operating expertise, and is committed to responsible
development. Founded in 1994, the Company is headquartered in Vancouver, B.C. and our shares trade on
NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".
For more information, visit: www.panamericansilver.com.
For more information contact:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: [email protected]
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 completion date of the Arrangement; the disclosure of
future mineral reserve and resource information, including disclosure of mineral reserve and resource estimates of
the Tahoe assets, and timing of any such disclosure; the expenditures, extent of, and success related to any future
exploration or development programs; the accuracy of estimated mineral reserves and mineral resources;
expectations with respect to potential growth of mineral reserves and mineral resources; expectations that
metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues
will not materially affect estimates of mineral reserves and mineral resources.
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; prices for silver, gold, 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 our operations are received in a timely manner; 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, gold 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); risks relating to the credit worthiness or financial condition of suppliers, refiners and
other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to
cover these risks and hazards; 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