All financial figures are expressed in US$ unless otherwise
indicated.
VANCOUVER, Feb. 20, 2018 /PRNewswire/ - Pan American
Silver Corp. (NASDAQ: PAAS; TSX: PAAS) ("Pan American", or the
"Company") today reported its mineral reserves and resources as at
December 31, 2017. Pan American's
mineral reserves are estimated to contain approximately 288 million
ounces of silver and 1.9 million ounces of gold compared with 286
million ounces of silver and 2.0 million ounces of gold at
December 31, 2016.
The following table provides the changes in Pan American's
estimated silver reserves year-over-year:
|
|
|
Millions of
ounces
|
Silver mineral
reserves as of Dec. 31, 2016(1)
|
285.8
|
|
Less: contained
ounces mined during 2017
|
(30.6)
|
|
Plus: contained
ounces replaced during 2017
|
33.2
|
Silver mineral
reserves as of Dec. 31, 2017(2)(3)
|
288.4
|
(1)
|
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.
|
(2)
|
Prices used to
estimate mineral reserves for 2017 were $18.50 per ounce of silver
and $1,300 per ounce of gold, except at Manantial Espejo where
$16.50 per ounce of silver and $1,250 per ounce of gold were used
for planned 2018 production, reverting to $18.50 per ounce of
silver and $1,300 per ounce of gold thereafter.
|
(3)
|
Please refer to the
complete mineral reserves and mineral resources table at the end of
this news release for more detailed information.
|
"Our geology teams achieved another year of successful reserve
replacement and resource additions, as exemplified by the newly
discovered mineral reserves at our Morococha and Huaron mines in
2017," said Christopher Emerson, Pan
American's Vice President Business Development and Geology. "We
added about 33 million ounces of new silver mineral reserves in
2017, more than replacing ounces depleted through mining. The
silver grade of the mineral reserves increased by 13% to 94 grams
per tonne, in part reflecting the additions of the new high-grade
properties in Argentina."
2017 Exploration Results
Pan American spent approximately $18
million on exploration drilling in 2017, efficiently
achieving 100% of our planned drill metres. We completed 158
kilometres of mine and near site exploration drilling and eight
kilometres of regional exploration drilling.
Morococha - added 5.8 million ounces of new silver
reserves. A successful exploration drilling program was
conducted in the Manuelita area of the mine that added reserves in
the vicinity of the recent shaft deepening and demonstrated the
potential continuity of the vein structures at depth. The minimum
mining width was increased for all structures to reflect the fully
mechanized mining methods applied at Morococha, which contributed
to an increase in mineral reserve tonnes and reduction in silver
grade.
Huaron - added 5.5 million ounces of silver for a
net increase of 1.2 million contained silver ounces and 11,000
tonnes of copper in new reserves. The reserve replacement
success is attributable to the continuity of the Travieso and
Tapada veins, as mining progresses deeper on these structures.
La Colorada - exploration success continued,
especially in the secondary NC structures, adding 7.8 million
silver ounces. Reserve replacement was successful despite a reduced
2017 drill program in order to prioritize mine development work
over the expansion project. With the mine expansion completed, the
2018 exploration program will focus on depth extension of the
major structures.
Dolores - while the underground reserves remained
stable, overall reserves were reduced by 7.9 million ounces due to
open pit mining depletion and re-categorizing in situ and stock
piled low-grade reserves to resources, partly offset by gains from
unclassified economic material mined during 2017.
Joaquin and COSE - 7,100 metres of diamond
drilling was completed, focused on the La Morocha deposit.
Our preliminary feasibility study on the La Morocha deposit
estimates 474 thousand tonnes of ore to be delivered to Manantial
Espejo for processing, at 721 grams per tonne of silver. A total of
11.0 million ounces of silver was converted from mineral resources
to mineral reserves. COSE will contribute an additional 2.2 million
ounces of silver and 43 thousand ounces of gold.
Manantial Espejo - replaced 50% of mined silver
ounces with the development underground to the east and at depth in
the Maria East Vein.
San Vicente - in addition to 3.9 million silver
reserve ounces depleted from mining, reserves were reduced by
another 0.9 million ounces due to geological re-interpretation of
the Union vein.
2018 Exploration Program
In 2018, Pan American plans to invest approximately $19 million in exploration drilling directed
towards approximately 89 kilometres of mine and near site
exploration and approximately 26 kilometres of selective regional
exploration targets.
A summary of the silver and gold mineral reserve and resource
information at December 31, 2017 is
provided in the following tables:
|
Pan American
Silver Corp. Mineral Reserves as of December 31, 2017
(1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained Ag
(Moz)
|
Au
(g/t)
|
Contained
Au (koz)
|
Huaron
|
Peru
|
Proven
|
5.7
|
167
|
30.8
|
N/A
|
N/A
|
|
|
Probable
|
4.0
|
169
|
21.7
|
N/A
|
N/A
|
Morococha (92.3%)
(3)
|
Peru
|
Proven
|
3.0
|
160
|
15.3
|
N/A
|
N/A
|
Probable
|
2.9
|
159
|
14.9
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Proven
|
3.7
|
413
|
48.9
|
0.33
|
38.8
|
|
|
Probable
|
4.1
|
378
|
49.3
|
0.31
|
39.8
|
Dolores
|
Mexico
|
Proven
|
34.7
|
30
|
33.0
|
0.93
|
1,040.8
|
|
|
Probable
|
16.3
|
25
|
13.1
|
0.69
|
360.3
|
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
|
1.5
|
91
|
4.4
|
0.77
|
37.5
|
|
|
Probable
|
0.6
|
305
|
5.6
|
3.37
|
61.6
|
San Vicente (95%)
(3)
|
Bolivia
|
Proven
|
1.9
|
416
|
25.6
|
N/A
|
N/A
|
Probable
|
0.6
|
449
|
8.1
|
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
|
95.1
|
94
|
288.4
|
0.79
|
1,944.4
|
(1)
|
Prices used to
estimate mineral reserves for 2017 were: $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,600 per tonne of zinc, $2,200
per tonne of lead, and $5,500 per tonne of copper; except
at Manantial Espejo where $16.50 per ounce of silver and
$1,250 per ounce of gold were used for planned 2018 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, 2017 (1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained Ag
(Moz)
|
Au
(g/t)
|
Contained Au
(koz)
|
Huaron
|
Peru
|
Measured
|
2.2
|
162
|
11.3
|
N/A
|
N/A
|
|
|
Indicated
|
1.5
|
167
|
7.9
|
N/A
|
N/A
|
Morococha
(92.3%) (3)
|
Peru
|
Measured
|
0.3
|
153
|
1.4
|
N/A
|
N/A
|
|
|
Indicated
|
0.5
|
152
|
2.3
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Measured
|
0.5
|
220
|
3.4
|
0.22
|
3.5
|
|
|
Indicated
|
1.8
|
221
|
12.9
|
0.19
|
11.0
|
Dolores
|
Mexico
|
Measured
|
4.8
|
18
|
2.8
|
0.28
|
43.1
|
|
|
Indicated
|
3.5
|
21
|
2.3
|
0.50
|
56.2
|
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
|
145
|
0.4
|
1.89
|
4.7
|
|
|
Indicated
|
0.4
|
192
|
2.4
|
1.91
|
24.2
|
San Vicente
(95%) (3)
|
Bolivia
|
Measured
|
0.8
|
148
|
3.8
|
N/A
|
N/A
|
|
|
Indicated
|
0.1
|
177
|
0.4
|
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
|
188.0
|
120
|
686.2
|
0.59
|
519.6
|
(1)
|
Prices used to
estimate mineral resources for 2017 were: $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,600 per tonne of zinc, $2,200
per tonne of lead, and $5,500 per tonne of copper; except at
Dolores, Manantial Espejo, and Joaquin, 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.
|
(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, 2017
(1,2)
|
Property
|
Location
|
Classification
|
Tonnes
(Mt)
|
Ag
(g/t)
|
Contained
Ag (Moz)
|
Au
(g/t)
|
Contained
Au (koz)
|
Huaron
|
Peru
|
Inferred
|
6.6
|
163
|
34.5
|
N/A
|
N/A
|
Morococha (92.3%)
(3)
|
Peru
|
Inferred
|
4.4
|
148
|
21.0
|
N/A
|
N/A
|
La
Colorada
|
Mexico
|
Inferred
|
3.7
|
247
|
29.4
|
0.25
|
30.3
|
Dolores
|
Mexico
|
Inferred
|
1.7
|
60
|
3.3
|
1.44
|
79.6
|
La Bolsa
|
Mexico
|
Inferred
|
13.7
|
8
|
3.3
|
0.51
|
224.6
|
Manantial
Espejo
|
Argentina
|
Inferred
|
0.4
|
187
|
2.3
|
2.69
|
33.4
|
San Vicente (95%)
(3)
|
Bolivia
|
Inferred
|
3.3
|
295
|
31.6
|
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
|
0.0
|
389
|
0.1
|
1.29
|
0.2
|
COSE
|
Argentina
|
Inferred
|
0.0
|
382
|
0.3
|
7.10
|
6.3
|
Totals
(4)
|
|
Inferred
|
103.7
|
96
|
245.3
|
0.59
|
820.2
|
|
|
|
|
|
|
|
|
(1)
|
Prices used to
estimate mineral resources for 2017 were $18.50 per ounce of
silver, $1,300 per ounce of gold, $2,600 per tonne of zinc, $2,200
per tonne of lead, and $5,500 per tonne of copper, except at
Dolores, Manantial Espejo, and Joaquin 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.
|
(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 22, 2017, 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. 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 world's largest primary silver producers, providing
investors with enhanced exposure to silver through low-cost
operations. Founded in 1994, Pan American is recognized for its
operating expertise, prudent financial management and commitment to
responsible development. The Company is headquartered in
Vancouver, B.C. and owns and
operates six mines in Mexico,
Peru, Argentina and Bolivia. 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 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 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 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.
SOURCE Pan American Silver Corp.