VANCOUVER, July 13, 2016 /PRNewswire/ - Pan American
Silver Corp. (NASDAQ: PAAS) (TSX: PAA) (the "Company", or "Pan
American") today announced that it has achieved a significant
milestone in the expansion of its La
Colorada mine in Mexico,
with the successful commissioning of the new sulphide ore
processing plant. The new plant began processing sulphide ore on
July 1, 2016, achieving production
throughput rates of over 1,400 tonnes per day ("tpd") and over
14,000 tonnes treated by July 10.
Throughput rates will be slightly reduced until the mine shaft and
additional underground development have been completed to provide
higher ore supply.
As well, in July 2016, Cámara
Minera de México ("Camimex") awarded Pan American's La Colorada mine with the prestigious "Casco
de Plata" award for the safest underground mine in Mexico in 2015 with more than 500
employees.
"I am proud of our team's ability to safely and successfully
complete the new sulphide plant ahead of schedule and on budget
without incurring a single lost-time accident," said Michael Steinmann, President and CEO of Pan
American. "The expansion at La
Colorada together with the expansion of our Dolores mine
form our core areas of growth in Mexico, and should lead to lower-cost,
higher-margin silver production for Pan American."
In addition to the new sulphide ore processing plant, the
expansion at La Colorada includes
construction of a new 618-metre-deep mine shaft, additional
underground development to sustain production at 1,800 tpd, and the
installation of a new 115 kV power line.
Construction of the new mine shaft is progressing well, with
commissioning expected to occur late in the third quarter of 2016.
All surface work for the new shaft, including headframe and hoist,
is fully functioning and the shaft construction is
complete, with the exception of the underground loading
station. Mining and processing rates are expected to increase
following completion of the mine shaft, ramping up to full
processing rates of 1,800 tpd of ore by the end of 2017 once the
expansion is complete. La
Colorada's annual production is expected to reach
approximately 7.7 million ounces of silver in 2018, a 44 percent
increase from 2015 levels.
The La Colorada expansion is
proceeding on time and on budget, while being funded entirely from
the Company's internal resources. Capital spending at La Colorada over the period 2014 to 2017 is
estimated to total about $163.8
million, which includes sustaining capital and about
$80 million related to the
expansion.
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 in
Mexico, Peru, Argentina and Bolivia. Pan American also owns several
development projects in the USA,
Mexico, Peru and Argentina. Our 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 is headquartered in Vancouver, B.C. and our shares trade on NASDAQ
(PAAS) and the Toronto Stock Exchange (PAA).
For more information, visit our website at:
www.panamericansilver.com
TECHNICAL
INFORMATION
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TECHNICAL INFORMATION
CONTAINED IN THIS NEWS RELEASE WITH RESPECT TO PAN AMERICAN HAS
BEEN REVIEWED AND APPROVED BY MARTIN WAFFORN, P.ENG., VP TECHNICAL
SERVICES WHO IS A QUALIFIED PERSON FOR THE PURPOSES OF NATIONAL
INSTRUMENT 43-101 - STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS
(''NI 43-101''). FOR FURTHER TECHNICAL INFORMATION RELATING TO THE
PROJECT, PLEASE REFER THE NI 43-101 TECHNICAL REPORT ENTITLED
"TECHNICAL REPORT – PRELIMINARY ECONOMIC ANALYSIS FOR THE EXPANSION
OF THE LA COLORADA MINE, ZACATECAS, MEXICO," WITH AN EFFECTIVE DATE
OF DECEMBER 31, 2013, FILED ON SEDAR AT
WWW.SEDAR.COM.
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CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS AND
INFORMATION
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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. SUCH FORWARD-LOOKING
STATEMENTS AND INFORMATION INCLUDE, BUT ARE NOT LIMITED TO: THE
SUCCESSFUL COMPLETION OF THE LA COLORADA EXPANSION PROJECT;
EXPECTATIONS WITH RESPECT TO TIMING FOR COMPLETION OF THE
EXPANSION, OR SPECIFIC PARTS THEREOF, SUCH AS THE COMPLETION AND
COMMISSIONING OF THE MINE SHAFT; THE COMPANY'S ABILITY TO ACHIEVE
BUDGET EXPECTATIONS AND TO FUND THE EXPANSION WITH INTERNAL
RESOURCES; ANTICIPATED PRODUCTION RATES; AND ANY ANTICIPATED MINING
AND PROCESSING
RATES.
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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 METALS 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 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; 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 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 AND
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 AND
INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, CHANGES IN
ASSUMPTIONS, FUTURE EVENTS OR OTHERWISE, EXCEPT TO THE EXTENT
REQUIRED BY APPLICABLE
LAW.
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SOURCE Pan American Silver Corp.