All amounts are expressed in US$ unless otherwise indicated.
This news release contains forward-looking information about
expected future events and financial and operating performance of
the Company. Readers should refer to the risks and assumptions set
out in the "Cautionary Note Regarding Forward-Looking Statements
and Information" at the end of this news release.
VANCOUVER, Feb. 14, 2017 /CNW/ - Pan American Silver
Corp. (NASDAQ: PAAS; TSX: PAAS) ("Pan American", or the
"Company") today reported on its mineral reserves and resources as
at December 31, 2016. Pan American's
mineral reserves are estimated to contain approximately 286 million
ounces of silver and 2.0 million ounces of gold compared with 280
million ounces of silver and 2.1 million ounces of gold at
December 31, 2015.
The following table illustrates the changes in Pan American's
estimated silver reserves year-over-year:
|
|
Millions of
ounces
|
|
Silver mineral
reserves as of Dec. 31, 2015(1)
|
280.1
|
|
Less: contained
ounces mined during 2016
|
(32.4)
|
|
Plus: contained
ounces replaced during 2016
|
38.1
|
Silver mineral
reserves as of Dec. 31, 2016(2)(3)
|
285.8
|
|
|
(1)
|
Prices used to
estimate mineral reserves for 2015 were $17.00 per ounce of silver
and $1,180 per ounce of gold, except: at Manantial Espejo, where
$14.50 per ounce of silver and $1,100 per ounce of gold was used
for planned 2016 production, reverting to $17.00 per ounce of
silver and $1,180 per ounce of gold thereafter; and Alamo Dorado
stockpiles, where metal prices of $15.00 per ounce of silver and
$1,100 per ounce of gold were used due to their planned processing
in the short term.
|
(2)
|
Prices used to
estimate mineral reserves for 2016 were $18.50 per ounce of silver
and $1,300 per ounce of gold, except at Manantial Espejo where
$17.00 per ounce of silver and $1,200 per ounce of gold were used
for planned 2017 production, reverting to $18.50 per ounce of
silver and $1,300 per ounce of gold thereafter.
|
"In 2016 we added 38.1 million ounces of new silver mineral
reserves, more than replacing the 32.4 million ounces depleted
through mining," said Christopher
Emerson, Pan American's Vice President Business Development
and Geology. "We increased our exploration budget mid-year,
investing a total of $14 million
during 2016, and completed 136,000 metres of drilling on mine and
near-site exploration, as well as 7,000 metres on regional
projects."
Added Mr. Emerson: "Pan American's history of replacing silver
ounces mined reflects our ability to invest in mine and near-site
exploration programs throughout the silver price cycle and the
exploration potential of our asset portfolio. We are planning a
more aggressive exploration program in 2017, investing about
$21 million, to complete about
137 kilometres of diamond drilling at our operating mines and
another 22 kilometres of drilling at selected regional exploration
projects. Following our recent purchase of the Joaquin project in
southern Argentina, we are working
on technical studies to determine how much of the high-grade
portion of Joaquin's mineralized material can be economically
treated at our Manantial Espejo mine."
2016 Exploration Highlights:
La Colorada - added a total of 13.3 million
ounces of new reserves bringing the total silver reserves to over
98 million ounces while maintaining the silver grades around 400
grams per tonne. The 8% year-over-year increase in reserves
at La Colorada was achieved without deep-drill access, as
development crews were occupied with development work for the mine
expansion.
San Vicente - more than replaced silver ounces
mined, increasing the total silver ounces contained in the reserves
by 3% to 40.6 million ounces. High-grade ore shoots
discovered on the Vanessa and Rampa veins helped to increase the
overall reserve grade to 478 grams of silver per tonne, the highest
reserve grades of all our assets.
In 2016, we drilled a total of 19,000 metres in near-site
exploration at San Vicente. For 2017, Pan American is increasing
the exploration drill program to 33,000 metres.
Pan American also achieved successful exploration results at its
Morococha, Manantial Espejo and Dolores mines. Silver reserves were
replaced 100% at Manantial Espejo, increased by 7% at Morococha,
and increased by 2% at Dolores, including the conversion of some
underground resources to reserves. The Huaron mine experienced a
slight reduction in silver reserves, declining by about 2 million
ounces of silver; however, exploration efforts resulted in an
increase of 4.2 million ounces of silver in Measured and Indicated
resources below 180 level, which are currently awaiting engineering
studies.
Complete silver and gold mineral reserve and resource
information at December 31, 2016 is
shown in the following tables:
|
Pan American
Silver Corp. Mineral Reserves as of December 31, 2016
(1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained Ag
(Moz)
|
Au
(g/t)
|
Contained
Au (koz)
|
Huaron
|
Peru
|
Proven
|
5.7
|
169
|
30.8
|
N/A
|
N/A
|
|
|
Probable
|
3.8
|
167
|
20.6
|
N/A
|
N/A
|
Morococha
(92.3%) (3)
|
Peru
|
Proven
|
2.6
|
173
|
14.6
|
N/A
|
N/A
|
|
|
Probable
|
2.2
|
181
|
12.8
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Proven
|
3.7
|
432
|
51.3
|
0.33
|
39.1
|
|
|
Probable
|
4.0
|
362
|
46.8
|
0.32
|
41.2
|
Dolores
|
Mexico
|
Proven
|
41.6
|
27
|
36.1
|
0.77
|
1,034.9
|
|
|
Probable
|
22.5
|
25
|
17.9
|
0.65
|
472.4
|
La Bolsa
|
Mexico
|
Proven
|
9.5
|
10
|
3.1
|
0.67
|
203.0
|
|
|
Probable
|
6.2
|
7
|
1.4
|
0.57
|
113.1
|
Manantial
Espejo
|
Argentina
|
Proven
|
2.2
|
111
|
8.0
|
1.17
|
84.4
|
|
|
Probable
|
0.5
|
244
|
3.8
|
3.32
|
52.2
|
San Vicente
(95%) (3)
|
Bolivia
|
Proven
|
2.0
|
464
|
29.4
|
N/A
|
N/A
|
|
|
Probable
|
0.5
|
531
|
9.2
|
N/A
|
N/A
|
Totals
(4)
|
|
Proven +
Probable
|
107.0
|
83
|
285.8
|
0.70
|
2,040.3
|
|
|
(1)
|
Prices used to
estimate mineral reserves for 2016 were: $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,200 per tonne of zinc, $2,000
per tonne of lead, and $5,000 per tonne of copper; except at
Manantial Espejo where $17.00 per ounce of silver and $1,200 per
ounce of gold were used for planned 2017 production, reverting to
$18.50 per ounce of silver and $1,300 per ounce of gold thereafter.
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. Measured and Indicated Mineral Resources as of
December 31, 2016 (1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained Ag
(Moz)
|
Au
(g/t)
|
Contained Au
(koz)
|
Huaron
|
Peru
|
Measured
|
2.2
|
165
|
11.8
|
N/A
|
N/A
|
|
|
Indicated
|
1.7
|
164
|
9.1
|
N/A
|
N/A
|
Morococha
(92.3%) (3)
|
Peru
|
Measured
|
0.4
|
161
|
2.0
|
N/A
|
N/A
|
|
|
Indicated
|
1.1
|
127
|
4.6
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Measured
|
0.5
|
206
|
3.1
|
0.31
|
4.7
|
|
|
Indicated
|
2.0
|
200
|
12.7
|
0.18
|
11.5
|
Dolores
|
Mexico
|
Measured
|
1.9
|
13
|
0.8
|
0.22
|
13.8
|
|
|
Indicated
|
3.2
|
24
|
2.5
|
0.43
|
44.0
|
La Bolsa
|
Mexico
|
Measured
|
1.4
|
11
|
0.3
|
0.90
|
31.4
|
|
|
Indicated
|
4.5
|
9
|
1.1
|
0.50
|
59.8
|
Manantial
Espejo
|
Argentina
|
Measured
|
0.1
|
125
|
0.5
|
1.65
|
6.7
|
|
|
Indicated
|
0.4
|
207
|
2.6
|
2.04
|
25.4
|
San Vicente
(95%) (3)
|
Bolivia
|
Measured
|
0.8
|
202
|
5.0
|
N/A
|
N/A
|
|
|
Indicated
|
0.1
|
194
|
0.5
|
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
|
Calcatreu
|
Argentina
|
Indicated
|
8.0
|
26
|
6.6
|
2.63
|
676.0
|
Totals
(4)
|
|
Measured +
Indicated
|
194.0
|
118
|
695.5
|
1.11
|
1,137.9
|
|
|
(1)
|
Prices used to
estimate mineral resources for 2016 were: $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,200 per tonne of zinc, $2,000
per tonne of lead, and $5,000 per tonne of copper; except at
Dolores and Manantial Espejo, where $25.00 per ounce of silver and
$1,400 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. Metal
prices for Navidad were $12.52 per ounce of silver and $1,100 per
tonne of lead. Metal prices used for Calcatreu were $12.50 per
ounce of silver and $650 per ounce of gold.
|
(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. Inferred Mineral Resources as of December 31, 2016
(1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained
Ag (Moz)
|
Au
(g/t)
|
Contained
Au (koz)
|
Huaron
|
Peru
|
Inferred
|
6.2
|
164
|
32.7
|
N/A
|
N/A
|
Morococha
(92.3%) (3)
|
Peru
|
Inferred
|
3.9
|
214
|
26.6
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Inferred
|
1.8
|
313
|
17.8
|
0.35
|
19.7
|
Dolores
|
Mexico
|
Inferred
|
1.7
|
37
|
2.0
|
1.01
|
54.6
|
La Bolsa
|
Mexico
|
Inferred
|
13.7
|
8
|
3.3
|
0.51
|
222.4
|
Manantial
Espejo
|
Argentina
|
Inferred
|
0.5
|
211
|
3.5
|
2.60
|
42.6
|
San Vicente
(95%) (3)
|
Bolivia
|
Inferred
|
2.8
|
330
|
29.7
|
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
|
Calcatreu
|
Argentina
|
Inferred
|
3.4
|
17
|
1.8
|
2.06
|
226.0
|
Totals
(4)
|
|
Inferred
|
103.7
|
92
|
236.9
|
0.70
|
1,011.1
|
|
|
(1)
|
Prices used to
estimate mineral resources for 2016 were $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,200 per tonne of zinc, $2,000
per tonne of lead, and $5,000 per tonne of copper, except at
Dolores and Manantial Espejo, where $25.00 per ounce of silver and
$1,400 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. Metal
prices for Navidad were $12.52 per ounce of silver and $1,100 per
tonne of lead. Metal prices used for Calcatreu were $12.50 per
ounce of silver and $650 per ounce of gold.
|
(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.
|
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 24, 2016, available at www.sedar.com for
further information on the Company's 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.
Grades are shown as contained metal before mill recoveries are
applied.
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.
About Pan American Silver
Pan American Silver Corp. is
one of the largest primary silver producers in the world. We own
and operate seven mines located in Mexico, Peru,
Argentina and Bolivia. Pan
American also owns several development projects in the USA, Mexico,
Peru and Argentina. Our vision is to be the world's
pre-eminent silver producer, with a reputation for excellence in
discovery, engineering, innovation and sustainable
development. 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.
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 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; and the expenditures and success related to any future
exploration or development programs.
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: ore
grades and recoveries; prices for silver, gold and base metals
remaining as estimated; capital, decommissioning and reclamation
estimates; the assumptions upon which mineral reserves and mineral
resources are based; 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 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; 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 Concerning Estimates of
Mineral Reserves and Resources
This presentation 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
presentation have been prepared 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 classification system. 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 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 presentation 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.
SOURCE Pan American Silver Corp.