Pan American Silver Reports Mineral Reserves of 557 Million Ounces of Silver and 5.1 Million Ounces of Gold
Pan American Silver Reports Mineral Reserves of 557 Million Ounces of
Silver and 5.1 Million Ounces of Gold
All financial figures are expressed in US$ unless otherwise indicated.
VANCOUVER
,
Sept. 4, 2019
/CNW/ -
Pan American Silver Corp.
(NASDAQ: PAAS) (TSX: PAAS) ("Pan American", or the "Company") today reported that, as
of
June 30, 2019
, its proven and probable mineral reserves are estimated to contain approximately 557 million ounces of silver and 5.1 million ounces of gold.
Measured and indicated mineral resources (excluding proven and probable reserves), as of
June 30, 2019
, are estimated to total approximately 797 million
ounces of silver and 10.6 million ounces of gold. These figures include mineral reserves and resources from the assets acquired with the Tahoe Resources Inc.
("Tahoe") transaction completed on
February 22, 2019
.
"Our silver reserves doubled while gold reserves tripled from reserves reported at
December 31, 2018
, primarily due to the additional reserves acquired from
Tahoe. We now hold one of the largest silver reserves and resources in the mining industry along with substantial gold reserves," said
Christopher Emerson
, Pan
American's Vice President of Business Development and Geology. "During the first six months of 2019, we completed 40% of the annual drilling planned for our
mine sites. We are accelerating our exploration drilling in the second half the year, and plan to complete 130,000 metres of drilling".
As of June 30, 2019, inferred resources totaled approximately 303 million ounces of silver and 9.6 million ounces of gold. The majority of the increase in inferred
gold resources from our
December 31, 2018
update came from the acquired Tahoe assets, a significant portion of which are attributable to the
Timmins
exploration portfolio, which include the Juby and Fenn Gib projects.
The mineral reserve and mineral resource estimates as of
June 30, 2019
do not include the polymetallic skarn discovery at the
La Colorada
mine. We are
currently drilling with seven machines at
La Colorada
, and expect to release an initial resource estimate relating to the skarn at the end of 2019.
Beginning with this update, Pan American intends to report mineral reserves and mineral resources updates as of
June 30
of each year, rather than as of
December 31
, in order to align mineral reserve and mineral resource updates with our annual mine plans and budgets.
A summary of the silver and gold mineral reserves and mineral resources as of
June 30, 2019
is provided in the following tables. Complete mineral reserve and
resource information for all metals, including tonnage and grades, is available at
www.panamericansilver.com
.
Pan American Silver Corporation Mineral Reserves as of
June 30, 2019
(1,2)
Property
Location
Classification
Tonnes (Mt)
Ag (g/t)
Contained
Ag (Moz)
Au (g/t)
Contained
Au (koz)
Silver
Segment
Huaron
Peru
Proven
6.2
168
33.5
--
--
Probable
3.7
170
20.1
--
--
Morococha
(92.3%)
(3)
Peru
Proven
4.1
147
19.5
--
--
Probable
2.2
173
12.3
--
--
La Colorada
Mexico
Proven
4.0
395
50.8
0.33
42.0
Probable
5.4
287
49.6
0.26
44.4
Dolores
Mexico
Proven
35.9
26
29.8
0.84
967.4
Probable
7.8
28
6.9
0.84
210.7
Manantial Espejo
Argentina
Proven
0.8
170
4.6
1.35
36.2
Probable
0.1
204
0.9
3.64
16.0
San Vicente
(95%)
(3)
Bolivia
Proven
1.4
414
18.6
--
--
Probable
0.5
345
6.0
--
--
Joaquin
Argentina
Probable
0.5
721
11.0
0.41
6.2
COSE
Argentina
Probable
0.1
918
2.2
17.7
43.3
Escobal
Guatemala
Proven
2.5
486
39.5
0.42
34.2
Probable
22.1
316
225.0
0.34
243.8
Total Silver
Segment
(4)
97.5
169
530.4
0.64
1,644.1
Gold
Segment
La Arena
Peru
Proven
27.4
--
--
0.36
319.4
Probable
9.5
--
--
0.30
90.9
Shahuindo
Peru
Proven
69.8
6
14.4
0.51
1,133.2
Probable
42.8
6
7.8
0.46
629.9
Timmins
Canada
Proven
2.7
--
--
3.06
269.1
Probable
7.2
--
--
3.10
718.6
La Bolsa
Mexico
Proven
9.5
10
3.1
0.67
202.9
Probable
6.2
7
1.4
0.57
113.1
Total Gold
Segment
(4)
175.0
6
26.8
0.62
3,476.9
Total Gold
and Silver
Segments
(4)
Proven +
Probable
272.5
77
557.2
0.63
5,121.1
(1)
See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2019".
(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 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. Total average grades of each element are with respect to those mines that produce the element.
Pan American Silver Corporation Measured and Indicated Mineral Resources as of
June 30, 2019
(1,2)
Property
Location
Classification
Tonnes (Mt)
Ag (g/t)
Contained
Ag (Moz)
Au (g/t)
Contained
Au (koz)
Silver Segment
Huaron
Peru
Measured
2.2
157
11.0
--
--
Indicated
2.4
155
12.0
--
--
Morococha
(92.3%)
(3)
Peru
Measured
0.3
138
1.2
--
--
Indicated
0.3
143
1.6
--
--
La Colorada
Mexico
Measured
0.5
229
3.8
0.24
4.0
Indicated
1.6
185
9.6
0.15
7.8
Dolores
Mexico
Measured
2.0
21
1.3
0.35
22.0
Indicated
1.5
28
1.4
0.56
27.1
Manantial Espejo
Argentina
Measured
0.1
164
0.7
1.65
7.1
Indicated
0.2
241
1.4
2.86
16.5
San Vicente
(95%)
(3)
Bolivia
Measured
0.9
161
4.4
--
--
Indicated
0.3
158
1.4
--
--
Navidad
Argentina
Measured
15.4
137
67.8
--
--
Indicated
139.8
126
564.5
--
--
Joaquin
Argentina
Indicated
0.1
385
0.7
0.58
1.1
Escobal
Guatemala
Measured
2.3
251
18.6
0.23
16.7
Indicated
14.2
201
91.6
0.20
93.0
Total Silver
Segment
(4)
184.0
134
792.9
0.27
195.3
Gold
Segment
La Bolsa
Mexico
Measured
1.4
11
0.5
0.90
39.9
Indicated
4.5
9
1.3
0.50
71.2
Pico Machay
Peru
Measured
4.7
--
--
0.91
137.5
Indicated
5.9
--
--
0.67
127.1
La Arena
Peru
Measured
1.3
--
--
0.41
17.5
Indicated
1.7
--
--
0.38
20.6
Shahuindo
Peru
Measured
3.7
7
0.8
0.53
63.2
Indicated
8.4
5
1.5
0.46
123.6
Timmins
Canada
Measured
1.7
--
--
3.89
212.4
Indicated
5.4
--
--
3.41
587.8
La Arena II
Peru
Measured
155.7
--
--
0.25
1,265.2
Indicated
586.7
--
--
0.23
4,371.9
Fenn-Gib
Canada
Indicated
40.8
--
--
0.99
1,298.6
Whitney
Canada
Measured
1.0
--
--
7.02
218.1
Indicated
2.3
--
--
6.77
490.5
Gold River
Canada
Indicated
0.7
--
--
5.29
117.4
Juby
Canada
Indicated
26.6
--
--
1.28
1,094.7
Marlhill
Canada
Indicated
0.4
--
--
4.52
57.4
Vogel
Canada
Indicated
2.2
--
--
1.75
125.0
Total Gold
Segment
(4)
854.9
7
4.1
0.38
10,439.6
Total Gold
and Silver
Segments
(4)
Measured +
Indicated
1,038.8
123
797.0
0.38
10,634.9
(1)
See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2019".
(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. Total average grades of each element are with respect to those mines that produce the element.
Pan American Silver Corporation Inferred Mineral Resources as of
June 30, 2019
(1,2)
Property
Location
Classification
Tonnes (Mt)
Ag (g/t)
Contained
Ag (Moz)
Au (g/t)
Contained
Au (koz)
Silver Segment
Huaron
Peru
Inferred
6.2
155
30.8
--
--
Morococha
(92.3%)
(3)
Peru
Inferred
4.5
138
19.9
--
--
La Colorada
Mexico
Inferred
8.1
133
34.5
0.12
31.6
Dolores
Mexico
Inferred
4.0
47
6.0
1.22
156.3
Manantial Espejo
Argentina
Inferred
0.5
194
3.0
2.71
41.4
San Vicente
(95%)
(3)
Bolivia
Inferred
3.0
289
27.9
--
--
Navidad
Argentina
Inferred
45.9
81
119.4
--
--
Joaquin
Argentina
Inferred
0.01
389
0.1
1.29
0.2
COSE
Argentina
Inferred
0.03
382
0.3
7.10
6.3
Escobal
Guatemala
Inferred
1.9
180
10.7
0.90
53.7
Total Silver
Segment
(4)
74.0
106
252.5
0.62
289.5
Gold
Segment
La Bolsa
Mexico
Inferred
13.7
8
3.3
0.51
224.6
Pico Machay
Peru
Inferred
23.9
--
--
0.58
445.7
La Arena
Peru
Inferred
1.1
--
--
0.30
10.7
Shahuindo
Peru
Inferred
10.0
5
1.6
0.44
140.6
Shahuindo
Sulphide
Peru
Inferred
97.4
14
45.1
0.74
2,323.3
Timmins
Canada
Inferred
3.7
--
--
3.74
443.8
La Arena II
Canada
Inferred
91.6
--
0.23
683.1
Fenn-Gib
Canada
Inferred
24.5
--
0.95
750.0
Whitney
Canada
Inferred
1.0
--
5.34
170.7
Gold River
Canada
Inferred
5.3
--
6.06
1,027.4
Juby
Canada
Inferred
96.2
--
0.94
2,908.8
Vogel
Canada
Inferred
1.5
--
3.60
168.8
Total Gold
Segment
(4)
369.8
13
50.0
0.78
9,297.6
Total Gold
and Silver
Segments
(4)
Inferred
443.8
48
302.5
0.78
9,587.1
(1)
See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2019".
(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. Total average grades of each element are with respect to those mines that produce the element.
Metal price assumptions used to estimate mineral reserves and mineral resources as of
June 30, 2019
Mine
Category
Ag US$/oz
Au US$/oz
Cu US$/t
Pb US$/t
Zn US$/t
Huaron
All categories
17.00
1,300
6,000
2,100
2,500
Morococha
All categories
17.00
1,300
6,000
2,100
2,500
La Colorada
All categories
17.00
1,300
6,000
2,100
2,500
Dolores
Reserves
17.00
1,300
Resources
22.00
1,400
La Bolsa
All categories
14.00
825
Manantial
Espejo
All categories
16.00
1,300
San Vicente
All categories
17.00
1,300
6,000
2,100
2,500
Navidad
All categories
12.52
1,100
Pico Machay
All categories
700
Joaquin
All categories
16.00
1,300
COSE
All categories
16.00
1,300
Escobal
All categories
20.00
1,300
2,204
2,424
Shahuindo
Reserves
17.00
1,300
Resources
22.00
1,400
Shahuindo Sulphide
Inferred Resource
15.00
1,400
La Arena
Reserves
17.00
1,400
Resources
22.00
1,500
La Arena II
All categories
1,500
8,816
Timmins - Bell Creek
All categories
1,300
Fenn-Gib
Inside pit
1,190
Below pit
1,190
Whitney
All categories
1,200
Gold River
All categories
1,200
Juby
(1)
All categories
Marlhill
All categories
1,125
Vogel
Inside pit
1,150
Below pit
1,150
(1)
Estimation used a cut off grade of 0.40% g/t Au
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 mineral 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 12, 2019
, available at
www.sedar.com
for further information on the Company's pre-Tahoe acquisition
material mineral properties, 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 further information on the material mineral properties acquired from Tahoe, please refer to the Company's management information circular dated
December
4, 2018
, including additional information contained in Tahoe's disclosure incorporated by reference therein, available at
www.sedar.com
.
Complete mineral reserve and resource information for all metals, including tonnage and grades, is available at
www.panamericansilver.com
. Quantities of
contained metal are shown before metallurgical recoveries.
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.
About Pan American Silver
Pan American Silver 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 disclosure of future mineral reserve and resource information, including disclosure of mineral resource estimates relating to the
La Colorada
polymetallic skarn, and timing of any such disclosure; the extent of, and success related to any future exploration or development programs, including with respect
to the
La Colorada
polymetallic skarn; the accuracy of estimated 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); 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, including in Chubut,
Argentina
, and in
Guatemala
; risks relating to expropriation; diminishing quantities or grades of mineral reserves as
properties are mined; 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 Regarding References to Mineral Reserves and Mineral Resources
This news release has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws.
Unless otherwise indicated, all mineral reserve and resource estimates included in this news release have been disclosed in accordance with 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. 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.
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%SEDAR: 00002432E
For further information:
Siren Fisekci, VP, Investor Relations & Corporate Communications, Ph: 604-806-3191, Email: [email protected]
CO: Pan American Silver Corp.
CNW 08:00e 04-SEP-19