(All amounts in US dollars unless otherwise stated and all
production figures are approximate)
VANCOUVER, Feb. 18, 2015 /PRNewswire/ - Pan American
Silver Corp. (PAAS: NASDAQ; PAA: TSX) ("Pan American" or the
"Company") today reported on its December
31, 2014 mineral reserves and resources. Pan American's
mineral reserves are estimated to contain 300 million ounces of
silver and 2.32 million ounces of gold, down from the 323.5 million
ounces of silver and 2.49 million ounces of gold reported a year
ago. The Company used long term metal prices assumptions of
$18.50 per ounce of silver and
$1,250 per ounce of gold to estimate
its current reserves, both lower than the long term prices used at
the end of 2013. At the same time, the Company reported that its
measured and indicated silver mineral resources increased 2% to 731
million ounces, while measured and indicated gold mineral resources
increased 13% to 1.8 million ounces.
The following table illustrates the changes in Pan American's
estimated silver mineral reserves, year-over-year:
Silver mineral
reserves as of December 31, 2013(1)
|
323.5 million
ounces
|
Less: Contained
silver ounces mined during 2014
|
(32.9) million
ounces
|
Less: Contained
silver ounces recategorized
|
(20.1) million
ounces
|
Plus: Contained
silver ounces discovered by exploration during 2014
|
29.4 million
ounces
|
Proven &
probable silver mineral reserves as of December 31,
2014(2)
|
299.9 million
ounces
|
(1)
|
Prices used to
estimate mineral reserves for 2013 were $22.00 per ounce of silver,
$1,300 per ounce of gold, $1,950 per tonne of lead, $1,850 per
tonne of zinc, and $6,800 per tonne of copper.
|
(2)
|
Prices used to
estimate mineral reserves for 2014 were $18.50 per ounce of silver,
$1,250 per ounce of gold, $2,000 per tonne of lead, $2,000 per
tonne of zinc, and $6,800 per tonne of copper, except for at Alamo
Dorado due to its limited remaining mine life, where metal prices
of $17.00 per ounce of silver and $1,200 per ounce of gold were
used.
|
Commenting on last year's exploration results,
Michael Steinmann, Executive Vice
President Corporate Development and Geology said, "2014 was another
successful exploration year as Pan American spent $16.62 million on mine-site exploration and
completed over 152.5 kilometers of diamond drilling. Through these
exploration activities, the Company discovered approximately
29.6 million ounces of new silver mineral reserves, while at
the same time depleting 32.9 million ounces of contained
silver through production and re-categorizing 20.1 million
ounces of silver, primarily due to lower prices. Steinmann
continued, "It is worth noting that while reserves declined
modestly, the average reserve silver grade increased by 4.1% and
average reserve gold grade rose by 5.5%."
During the last 11 years, our mine-site
exploration efforts have been highly successful having added over
279 million ounces of silver to our mineral reserves, excluding
acquisitions, more than replacing the 257.5 million ounces of
silver mined in that same period.
The La Colorada mine, which holds Pan American's
largest reserves, once again returned outstanding exploration
results in 2014 with a net addition of 5.5 million ounces to finish
the year with a record of 86 million ounces of silver mineral
reserves, a 6% increase year-on-year.
Exploration activities were restricted in certain areas at
La Colorada due to the development work for the mine
expansion. These restrictions will continue through 2017. Once
development work is completed, it is expected that exploration
efforts at La Colorada will return to higher yields. In the
past six years, Pan American has discovered approximately 100
million ounces of new silver mineral reserves at La Colorada,
mainly in the sulphide mineralization of the NC2 and Amolillo
veins. Widely spaced, deep drilling indicates that both structures
potentially extend far beyond the current mineral reserves and
these zones will continue to be targeted in the Company's
exploration plans after the mine expansion is completed.
The San Vicente mine replaced all of the 4.5 million ounces of
silver mined during 2014 and added another 0.9 million ounces of
new reserves. As expected, lower precious metal price assumptions
and depletion from 2014 production more than offset reserve
additions at Dolores, Huaron, and Morococha. Net of 2014 production
and exploration additions, reserves at Dolores declined by 0.8
million ounces of silver and increased by 52,000 ounces of gold,
due to pit optimization. At Huaron, mineral reserves declined by
0.9 million ounces of silver and at Morococha reserves declined by
a modest 0.2 million ounces.
The largest change was at Manantial Espejo, where silver
reserves declined by 3.4 million ounces and gold diminished by
44,000 ounces. These ounces have been moved from mineral reserves
to mineral resources due to lower metal prices and may be
re-classified should metal prices or cost environment improve.
In 2015, Pan American expects to invest $10.0 million to complete approximately 83
kilometers of diamond drilling at its seven operating mines. In
addition, the Company also plans to spend $2.1 million on greenfield exploration activities
at selected projects.
Complete mineral reserve and resource information for all
metals, including tonnage and grades is available at
www.panamericansilver.com.
Complete silver and gold mineral reserve and resource
information at December 31, 2014 is
shown in the following tables:
MINERAL RESERVES –
PROVEN AND PROBABLE
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag (g/t)
|
Contained
Ag (Moz)
|
Au g/t)
|
Contained Au
(000's oz)
|
Huaron
|
Peru
|
Proven
|
6.5
|
165
|
34.4
|
N/A
|
N/A
|
|
|
Probable
|
4.2
|
166
|
22.6
|
N/A
|
N/A
|
Morococha (92.3%)
(1)
|
Peru
|
Proven
|
2.4
|
181
|
13.9
|
N/A
|
N/A
|
|
|
Probable
|
2.7
|
202
|
17.3
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Proven
|
3.0
|
427
|
41.0
|
0.33
|
31.9
|
|
|
Probable
|
3.8
|
364
|
45.0
|
0.37
|
45.9
|
Dolores
|
Mexico
|
Proven
|
28.1
|
32
|
28.5
|
0.91
|
820.8
|
|
|
Probable
|
31.8
|
35
|
35.6
|
0.88
|
897.3
|
Alamo
Dorado
|
Mexico
|
Proven
|
2.8
|
60
|
5.4
|
0.25
|
22.6
|
|
|
Probable
|
0.6
|
84
|
1.5
|
0.61
|
11.0
|
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
|
2.4
|
123
|
9.5
|
1.82
|
141.5
|
|
|
Probable
|
0.4
|
193
|
2.2
|
3.08
|
35.5
|
San Vicente (95%)
(1)
|
Bolivia
|
Proven
|
1.9
|
460
|
28.4
|
N/A
|
N/A
|
|
|
Probable
|
0.7
|
425
|
9.9
|
N/A
|
N/A
|
TOTALS
(2)
|
|
Proven +
Probable
|
106.9
|
87
|
299.9
|
0.82
|
2,322.5
|
MINERAL RESOURCES
– MEASURED AND INDICATED
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag (g/t)
|
Contained
Ag (Moz)
|
Au (g/t)
|
Contained Au
(000's oz)
|
Huaron
|
Peru
|
Measured
|
2.1
|
155
|
10.3
|
N/A
|
N/A
|
|
|
Indicated
|
1.5
|
161
|
7.8
|
N/A
|
N/A
|
Morococha (92.3%)
(1)
|
Peru
|
Measured
|
0.5
|
125
|
2.1
|
N/A
|
N/A
|
|
|
Indicated
|
1.0
|
163
|
5.0
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Measured
|
0.3
|
153
|
1.7
|
0.13
|
1.5
|
|
|
Indicated
|
2.3
|
222
|
16.2
|
0.23
|
16.9
|
Dolores
|
Mexico
|
Measured
|
13.4
|
17
|
7.3
|
0.27
|
116.8
|
|
|
Indicated
|
21.9
|
26
|
18.4
|
0.63
|
445.4
|
Alamo
Dorado
|
Mexico
|
Measured
|
1.2
|
50
|
1.9
|
0.23
|
8.7
|
|
|
Indicated
|
1.0
|
79
|
2.5
|
0.39
|
12.0
|
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
|
2.8
|
66
|
5.9
|
0.79
|
70.5
|
|
|
Indicated
|
2.0
|
113
|
7.3
|
1.50
|
97.0
|
San Vicente (95%)
(1)
|
Bolivia
|
Measured
|
0.6
|
169
|
3.4
|
N/A
|
N/A
|
|
|
Indicated
|
0.3
|
156
|
1.3
|
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
(2)
|
|
Measured +
Indicated
|
230.4
|
104
|
731.5
|
0.82
|
1,800.6
|
MINERAL RESOURCES
– INFERRED
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag (g/t)
|
Contained
Ag (Moz)
|
Au (g/t)
|
Contained Au
(000's oz)
|
Huaron
|
Peru
|
Inferred
|
8.4
|
154
|
41.5
|
N/A
|
N/A
|
Morococha (92.3%)
(1)
|
Peru
|
Inferred
|
6.5
|
247
|
51.7
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Inferred
|
3.4
|
251
|
27.5
|
0.51
|
55.4
|
Dolores
|
Mexico
|
Inferred
|
4.9
|
28
|
4.4
|
1.05
|
164.4
|
Alamo
Dorado
|
Mexico
|
Inferred
|
0.0
|
41
|
0.0
|
0.65
|
0.0
|
La Bolsa
|
Mexico
|
Inferred
|
13.7
|
8
|
3.3
|
0.51
|
222.4
|
Manantial
Espejo
|
Argentina
|
Inferred
|
0.3
|
129
|
1.1
|
1.98
|
16.8
|
San Vicente (95%)
(1)
|
Bolivia
|
Inferred
|
3.0
|
366
|
34.8
|
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
(2)
|
|
Inferred
|
113.3
|
99
|
285.5
|
0.71
|
1,130.8
|
HISTORICAL
ESTIMATES
|
Property
|
Location
|
Unclassified
|
Tonnes
(Mt)
|
Ag (g/t)
|
Contained
Ag (Moz)
|
Au (g/t)
|
Contained
Au
(000's oz)
|
Hog Heaven
(3)
|
USA
|
Historical
(3)
|
2.7
|
167
|
14.6
|
0.62
|
53.9
|
Hog Heaven
(3)
|
USA
|
Historical
(3)
|
7.6
|
133
|
32.7
|
0.70
|
171.9
|
Waterloo
(4)
|
USA
|
Historical
|
33.8
|
93
|
100.9
|
N/A
|
N/A
|
TOTALS
(2)
|
|
Historical
|
44.1
|
104
|
148.2
|
0.68
|
225.8
|
Notes:
|
Mineral reserves and
resources are as defined by the Canadian Institute of Mining,
Metallurgy and Petroleum.
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 28, 2014 for
more 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.
Pan American reports mineral resources and mineral reserves
separately. Reported mineral resources do not include amounts
identified as mineral reserves.
|
|
|
|
Metal prices used for
reserves at all mines were: $18.50 per ounce of silver, $1,250 per
ounce of gold, $2,000 per tonne of lead, $2,000 per tonne of zinc,
and $6,800 per tonne of copper., except at Alamo Dorado due to its
limited remaining mine life, where metal prices of $17.00 per ounce
of silver and $1,200 per ounce of gold were used.
Metal prices for Dolores and Alamo Dorado resources were $30 per
ounce of silver and $1,400 per ounce of gold.
Metal prices for Manantial Espejo mineral resources were $30.00 per
ounce of silver and $1,800 per ounce of gold.
Metal prices used 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
Metal prices used for La Bolsa were $14.00 per ounce of silver and
$825 per ounce of gold.
|
|
|
1
|
This information
represents the portion of mineral reserves and resources
attributable to Pan American based on its ownership interest in the
operating entity as indicated.
|
|
|
2
|
Totals may not add-up
due to rounding.
|
|
|
3
|
The historical
estimate for Hog Heaven was prepared by Gregory Hahn, Chief
Geological Engineer for CoCa Mines Inc., a previous owner of the
property, in a report titled "Hog Heaven Project Optimization
Study" dated May 1989, prior to implementation of NI 43-101. The
historical estimate was based on extensive diamond drilling, and
was estimated using a silver price of $6.50 per ounce and a gold
price of $400 per ounce (these were relevant prices at the time of
the estimate). Michael Steinmann, P.Geo, has reviewed the available
data, including drill sections, surface maps, and additional
supporting information sources, and believes that the historic
estimate was conducted in a professional and competent manner and
is relevant for the purposes of the Company's decision to maintain
its interest in this property. In the study, the historic estimate
was sub-categorized as follows:
|
|
|
|
|
Category
|
Tons
|
oz/ton Ag
|
oz/ton Au
|
|
|
|
|
Proven
Reserves
|
2,981,690
|
4.88
|
0.018
|
|
|
|
|
Probable &
Possible Reserves
|
904,200
|
10.40
|
0.020
|
|
|
|
|
Heap leach
ore
|
316,100
|
1.56
|
0.014
|
|
|
|
|
Possible
Resources
|
4,500,000
|
2.41
|
0.020
|
|
|
|
|
Inferred
Resources
|
2,700,000
|
4.44
|
0.022
|
|
|
|
|
|
|
|
However, the Company
has not completed the work necessary to verify the historical
estimate. Accordingly, the Company is not treating the historical
estimate as current, NI 43-101-compliant mineral resources based on
information prepared by or under the supervision of a QP. These
historical estimates should not be relied upon.
|
|
|
|
|
|
|
|
The Company believes
that the historical estimate category of "proven reserves" for Hog
Heaven most closely corresponds to 2,705,000 tonnes in the CIM
definition category of "indicated mineral resources".
|
|
|
|
|
|
|
|
The Company believes
that the historical estimate categories of "proven & possible
reserves", "heap leach ore stockpile", "possible resources" and
"inferred resources" most closely correspond to 7,639,000 tonnes in
the CIM definition category of "inferred mineral
resources".
|
|
|
|
|
|
|
4
|
The historical
estimate for Waterloo was initially prepared by Asarco Inc. in
1968. In September 1994 Robert J. Rodger, P.Eng., reviewed the
Asarco reports and prepared a Technical Evaluation Report on the
Waterloo property, prior to the implementation of NI 43-101. The
Technical Evaluation Report confirmed that the historical estimate
was based on reverse circulation drilling and underground sampling,
and concluded the estimate was based on sound methodology. The
historical estimate at Waterloo was prepared using a silver price
of $5.00 per ounce (the relevant price at the time of the
estimate). Michael Steinmann, P.Geo., has reviewed the Technical
Evaluation Report and believes the historic estimate was conducted
in a professional and competent manner and is relevant for purposes
of the Company's decision to maintain its interest in the property.
The Company believes that the historical estimate category of
37,235,000 tons (at 2.71 ounces per ton silver) of "measured and
indicated reserves" most closely corresponds to 33,758,000 tonnes
in the CIM definition category of "indicated mineral resource".
However, the Company has not completed the work necessary to verify
the historical estimate. Accordingly, the Company is not treating
the historical estimate as current, NI 43-101 compliant mineral
resources based on information prepared by or under the supervision
of a QP. These historical estimates should not be relied
upon.
|
Mineral resource and reserve estimates for Huaron, Morococha, La
Colorada, Dolores, Alamo Dorado, Manantial Espejo, San Vicente, La
Bolsa, Pico Machay, and Calcatreu
were prepared under the supervision of, or were reviewed by
Michael Steinmann, P. Geo.,
Executive Vice-President Corporate Development and Geology and
Martin G. Wafforn, P. Eng., Vice-President Technical Services, each
of whom are Qualified Persons as that term is defined in National
Instrument 43-101 ("NI 43-101"). Navidad mineral resource estimates were
prepared by Pamela De Mark, P. Geo.,
Director, Resources, formerly Sr. Consultant of Snowden Mining
Industry Consultants, also a Qualified Person as that term is
defined in NI 43-101. Mineral resource estimates for Hog Heaven and
Waterloo are based on historical third party estimates.
Michael Steinmann and Martin
Wafforn, each of whom are Qualified Persons, as the term is defined
in NI 43-101, have reviewed and approved the contents of this press
release.
About Pan American Silver
Pan American Silver's mission is to be the world's pre-eminent
silver producer, with a reputation for excellence in discovery,
engineering, innovation and sustainable development. The Company
has seven operating mines in Mexico, Peru,
Argentina and Bolivia. Pan American also owns several
development projects in the USA,
Mexico, Peru and Argentina.
THIS NEWS RELEASE CONTAINS "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 SECURITIES LEGISLATION.WHEN USED IN THIS NEWS RELEASE, THE
WORDS "BELIEVES", "EXPECTS", "INTENDS", "PLANS", "TARGETS",
"POTENTIAL", AND OTHER SIMILAR WORDS AND EXPRESSIONS IDENTIFY
FORWARD-LOOKING STATEMENTS OR INFORMATION. FORWARD-LOOKING
STATEMENTS AND INFORMATION EXPRESS, AS AT THE DATE OF THIS NEWS
RELEASE, THE COMPANY'S PLANS, ESTIMATES, FORECASTS, PROJECTIONS,
EXPECTATIONS, OR BELIEFS AS TO FUTURE EVENTS OR RESULTS AND THE
COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION TO,
UPDATE SUCH FORWARD-LOOKING STATEMENTS OR INFORMATION, OTHER THAN
AS REQUIRED BY APPLICABLE LAW. SUCH FORWARD-LOOKING STATEMENTS AND
INFORMATION INCLUDE, BUT ARE NOT LIMITED TO STATEMENTS AS TO: THE
ACCURACY OF ESTIMATED MINERAL RESERVES AND RESOURCES, ANTICIPATED
RESULTS OF FUTURE EXPLORATION; FORECAST FUTURE PRECIOUS METAL
PRICES; AND EXPECTATIONS THAT METALLURGICAL, ENVIRONMENTAL,
PERMITTING, LEGAL, TITLE, TAXATION, SOCIO-ECONOMIC, POLITICAL,
MARKETING OR OTHER ISSUES WILL NOT MATERIALLY AFFECT ESTIMATES OF
MINERAL RESERVES.
THESE STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH
RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF
ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE
COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC,
COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND
CONTINGENCIES.MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE
ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY
DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR
MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS
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 SPOT AND
FORWARD MARKETS FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER
COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY);
FLUCTUATIONS IN CURRENCY MARKETS (SUCH AS THE PERUVIAN SOL, MEXICAN
PESO, ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S.
DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL AND OPERATIONAL NATURE
OF THE COMPANY'S BUSINESS; CHANGES IN NATIONAL AND LOCAL
GOVERNMENT, LEGISLATION, TAXATION, CONTROLS OR REGULATIONS AND
POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED
STATES, MEXICO,
PERU, ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY
MAY CARRY ON BUSINESS IN THE FUTURE; RISKS AND HAZARDS ASSOCIATED
WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING
(INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR
UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS, PRESSURES, CAVE-INS
AND FLOODING); EMPLOYEE RELATIONS; RELATIONSHIPS WITH AND CLAIMS BY
LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS; AVAILABILITY AND
INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE
SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT,
INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND
THE PRESENCE OF LAWS AND REGULATIONS THAT MAY IMPOSE RESTRICTIONS
ON MINING, INCLUDING THOSE CURRENTLY IN THE PROVINCE OF CHUBUT,
ARGENTINA, WHICH DO NOT CURRENTLY
ALLOW FOR THE DEVELOPMENT OF THE NAVIDAD PROJECT; DIMINISHING QUANTITIES OR
GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL
FINANCIAL CONDITIONS; CHALLENGES TO, OR DIFFICULTY IN MAINTAINING,
THE COMPANY'S TITLE TO PROPERTIES AND CONTINUED OWNERSHIP THEREOF;
THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES, CONCLUSIONS
OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT PARAMETERS TO DEAL
WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; INCREASED COMPETITION
IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED
PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED UNDER THE
CAPTION "RISKS RELATED TO PAN AMERICAN'S BUSINESS" IN THE COMPANY'S
MOST RECENT FORM 40F AND ANNUAL INFORMATION FORM FILED WITH
THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION AND CANADIAN PROVINCIAL SECURITIES REGULATORY
AUTHORITIES.INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE
CERTAINTY OR RELIANCE ON FORWARD-LOOKING STATEMENTS.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. THE COMPANY DOES NOT INTEND, AND DOES NOT
ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS
OR INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN
CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR
INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.
CAUTIONARY NOTE TO US INVESTORS CONCERNING ESTIMATES OF
MINERAL RESERVES AND RESOURCES
THIS NEWS RELEASE HAS BEEN PREPARED IN ACCORDANCE WITH THE
REQUIREMENTS OF CANADIAN PROVINCIAL 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 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 PRESS 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.
SOURCE Pan American Silver Corp.