🕐11.02.10 - 18:18 Uhr
Pan American Silvers Proven and Probable Reserves Increase to 234 Million Ounces
PAN AMERICAN SILVERS PROVEN AND PROBABLE RESERVES INCREASE TO 234
MILLION OUNCES
Measured and Indicated Silver Resources Climb to 711 Million Ounces
(All amounts in US dollars unless otherwise stated and all production
figures are approximate)
Vancouver, British Columbia - February 11, 2010 - Pan American Silver
Corp.
(PAAS: NASDAQ; PAA: TSX) ("Pan American" or the "Company") is
pleased to announce the results of its 2009 year end silver reserves and
resources update.
In 2009, the Companys successful exploration programs added 36.8
million contained ounces of proven and probable silver reserves at its
operating mines.
The new reserves were more than sufficient to replace
the 26.6 million contained silver ounces mined during the year.
The net
result: Pan American increased its proven and probable silver reserves
by approximately 5% to 234 million ounces as at December 31, 2009.
The largest reserve increase was at the La Colorada mine, where the
Company added over 16 million ounces of silver from the discovery of an
extension of the NC2 vein, the mines main source of sulphide ore.
At
December 31, 2009, La Coloradas reserves had grown by 67% to 30.4
million ounces (net of 2009 production) from 18.2 million ounces at the
end of 2008.
The NC2 vein, which remains open at depth and to the east,
and the newly discovered NC3 vein and high-grade mantos, will continue
to be the focus of extensive drilling planned for 2010.
The Company also managed to more than replace the silver mined during
the year at its Peruvian operations.
Silver reserves at the Morococha
mine, increased by 8% to 38 million ounces at year-end.
Exploration
activities at Huaron yielded an increase of 4% or 6.7 million ounces of
silver net of the 4.5 million ounces mined during the year.
Huaron
continues to have the largest proven and probable silver reserve in the
Companys portfolio.
Last years fourth quarter acquisition of Aquiline Resources Inc.
with
its Navidad project in Argentina, had an enormous positive impact on the
Companys resources.
The Companys aggregate measured and indicated
silver resources soared to 711 million ounces, from the 82 million
ounces the Company carried at the end of 2008, while inferred silver
resources more than doubled to 229 million ounces.
These resource
numbers do not include the La Preciosa joint venture project.
Commenting on the results, Michael Steinmann, Executive VP Geology and
Exploration said, "2009 was an exceptional year.
Between new
exploration discoveries and the acquisition of Aquiline, our measured
and indicated silver resources, plus proven and probable silver
reserves, increased to almost one billion ounces.
Adding value through
brownfield exploration is one of our core strengths and we proved that
again in 2009 with a solid reserve increase.
Brownfield exploration
activities during 2010 will focus on reserve replacement at our
operations, where we expect to invest approximately $8.2 million for
89,000 meters of diamond drilling.
However, our main focus will be on
resource conversion and new discoveries at the Navidad and La Preciosa
projects.
Consequently, we have stepped up our greenfield exploration
budget to a record of $15.4 million including over 94,000 meters of
drilling planned for 2010."
The following table illustrates the changes in Pan Americans estimated
silver reserves, year over year:
Proven and probable silver reserves, as of December 31, 2008 223.7
million ounces
Less mined ounces (contained) during 2009
(26.6) million ounces
Additions due to exploration drilling during 2009
36.8 million ounces
-----------------------------------------------------------------------
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Proven and probable silver reserves, as of December 31, 2009 233.9
million ounces
Complete reserves and resource information for all metals, including
tonnage and ore grades is available at www.panamericansilver.com
.
Complete silver and gold reserves and resource information at December
31, 2009 is as follows:
MINERAL RESERVES - PROVEN AND PROBABLE
Location
Type
Classification
Tonnes
(000s)
Ag
(g/mt)
Ag Cont.
(000s oz)
Au
(g/mt)
Au Cont
(oz)
Huaron
Peru
Vein
Proven
6,471
185
38,385
N/A
N/A
Vein
Probable
4,371
184
25,845
N/A
N/A
Morococha (92.2%)
Peru
Vein/Mantos
Proven
4,079
166
21,709
N/A
N/A
Vein /Mantos
Probable
2,707
187
16,267
N/A
N/A
La Colorada
Mexico
Vein
Proven
1,106
400
14,236
0.55
19,496
Vein
Probable
1,176
429
16,199
0.47
17,935
Quiruvilca
Peru
Vein
Proven
407
168
2,201
0.77
10,103
Vein
Probable
363
148
1,725
0.56
6,503
Silver Stockpiles
Peru
Flux Material
Proven
189
318
1,935
N/A
N/A
Alamo Dorado
Mexico
Disseminated
Proven
6,468
100
20,779
0.34
70,491
Disseminated
Probable
3,678
86
10,116
0.31
36,656
Manantial Espejo
Argentina
Vein
Proven
4,308
163
22,631
2.33
322,749
Vein
Probable
3,033
138
13,501
2.00
195,032
San Vicente (95%)
Bolivia
Vein
Proven
1,548
423
21,059
N/A
N/A
Vein
Probable
706
323
7,329
N/A
N/A
TOTALS
Proven +
Probable
40,609
179
233,916
--
678,966
MINERAL RESOURCES - MEASURED AND INDICATED
Location
Type
Classification
Tonnes
(000s)
Ag
(g/mt)
Ag Cont.
(000s oz)
Au
(g/mt)
Au Cont
(oz)
Huaron
Peru
Vein
Measured
819
159
4,179
N/A
N/A
Vein
Indicated
521
157
2,638
N/A
N/A
Morococha (92.2%)
Peru
Vein/Mantos
Measured
1,091
145
5,098
N/A
N/A
Vein /Mantos
Indicated
1,409
213
9,667
N/A
N/A
La Colorada
Mexico
Vein
Measured
129
232
960
0.26
1,088
Vein
Indicated
1,259
215
8,700
0.19
7,839
Quiruvilca
Peru
Vein
Measured
2,386
135
10,392
0.76
58,163
Vein
Indicated
986
124
3,923
0.80
25,381
Alamo Dorado
Mexico
Disseminated
Measured
1,468
73
3,466
0.36
17,138
Disseminated
Indicated
2,229
59
4,203
0.52
37,550
Manantial Espejo
Argentina
Vein
Measured
815
100
2,618
1.02
26,723
Vein
Indicated
2,154
103
7,099
0.98
67,866
San Vicente (95%)
Bolivia
Vein
Measured
1,048
156
5,256
N/A
N/A
Vein
Indicated
569
187
3,422
N/A
N/A
Navidad
Argentina
Mantos, Diss.
Measured
15,400
137
67,832
N/A
N/A
Mantos, Diss.
Indicated
139,800
126
564,531
N/A
N/A
Pico Machay
Peru
Disseminated
Measured
4,700
N/A
N/A
0.91
137,509
Disseminated
Indicated
5,900
N/A
N/A
0.67
127,092
Calcatreu
Argentina
Vein
Indicated
7,995
26
6,606
2.63
676,028
TOTALS
Measured +
Indicated
190,678
116
710,590
--
1,182,377
MINERAL RESOURCES - INFERRED
Location
Type
Classification
Tonnes
(000s)
Ag
(g/mt)
Ag Cont.
(000s oz)
Au
(g/mt)
Au Cont
(oz)
Huaron
Peru
Vein
Inferred
5,416
177
30,754
N/A
N/A
Morococha (92.2%)
Peru
Vein/Mantos
Inferred
6,260
177
35,621
N/A
N/A
La Colorada
Mexico
Vein
Inferred
2,750
308
27,245
0.35
31,113
Quiruvilca
Peru
Vein
Inferred
923
113
3,368
0.44
12,951
Alamo Dorado
Mexico
Disseminated
Inferred
1,146
44
1,622
0.59
21,885
Manantial Espejo
Argentina
Vein
Inferred
1,410
103
4,685
1.09
49,419
San Vicente (95%)
Bolivia
Vein
Inferred
513
302
4,977
N/A
N/A
Navidad
Argentina
Mantos, Diss.
Inferred
45,900
81
119,386
N/A
N/A
Pico Machay
Peru
Disseminated
Inferred
23,900
N/A
NA
0.58
445,673
Calcatreu
Argentina
Vein
Inferred
3,413
17
1,822
2.06
226,045
TOTALS
Inferred
91,631
78
229,479
--
787,086
HISTORICAL ESTIMATES
Location
Unclassified
Tonnes
(000s)
Ag
(g/mt)
Ag Cont.
(000s oz)
Au
(g/mt)
Pb
(%)
Au Cont
(oz)
Hog Heaven (iii)
USA
Historical (iii) (iv)
2,705
167
14,550
0.62
N/A
N/A
Hog Heaven (iii)
USA
Historical (ii) (v)
7,639
133
32,730
0.70
N/A
N/A
Waterloo (iv)
USA
Historical
33,758
93
100,937
N/A
N/A
N/A
TOTAL
Historical
44,102
104
148,217
Notes: Mineral resources are in addition to reserves.
Mineral
reserves and resources are as defined by the CIM Definiton Standards on
Mineral Resources and Mineral Reserves.
Mineral resources do not have demonstrated economic
viability.
This table illustrates Pan American Silver Corps share of mineral
reserves and resources.
Properties in which Pan American has less than
100% interest are noted next to the property name.
Environmental, permitting, legal, title, taxation, socio-economic,
political, marketing or other issues are not expected to materially
affect the above estimates of mineral reserves.
Prices used to calculate December 31, 2009 ore reserves for all mines
were Ag: $13.00/oz, Au: $875/oz, Pb: $1,600/tonne, Cu: $5,000/tonne, Zn:
$1,600/tonne.
Prices used for Navidad were Ag: $12.52/oz and Pb: $1,100/tonne.
Prices used for Calcatreu were Ag: $12.50/oz and Au: $650/oz.
(ii) The historical estimate for Hog Heaven was calculated 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 calculated
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 calculation).
Michael Steinmann, P.Geo., Qualified Person ("QP") for the Company, has
reviewed the available data, including drill sections, surface maps, and
additional supporting information sources, and believes that the
historic calculation was conducted in a professional and competent
manner and is relevant for the purposes of the Companys 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 NI 43-101 compliant categories of mineral
resources based on information prepared by or under the supervision of a
QP.
These historical estimates should not be relied upon.
(iii) The Company believes that the historical estimate category of
"proven reserves" for Hog Heaven most closely corresponds to 2,705,000
tonnes in the NI 43-101 category of "indicated resources".
(iv) 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 NI 43-101 category of "inferred resources."
(v) The historical estimate for Waterloo was initially calculated 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 calculated using a silver price of $5.00 per
ounce (the relevant price at the time of the calculation).
Michael
Steinmann, P.Geo., QP for the Company, has reviewed the Technical
Evaluation Report and believes the historic calculation was conducted in
a professional and competent manner and is relevant for purposes of the
Companys 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 correspond to 33,758,000 tonnes in the NI 43-101 category of
"indicated 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 NI 43-101 compliant categories
of 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, Quiruvilca, San
Vicente, La Colorada, Manantial Espejo, Alamo Dorado and Morococha were
prepared under the supervision of Michael Steinmann, P.
Geo., Executive
Vice-President Geology & Exploration and Martin G.
Wafforn, P.
Eng.,
Vice-President Technical Services as Qualified Persons as that term is
defined in NI 43-101.
Navidad resource estimates were prepared by
Snowden under the supervision of Pamela De Mark, P.
Geo., Sr.
Consultant
Snowden Mining Industry Consultants, John J.
Chulick, P.
Geo., Dean K.
Williams, Licensed Professional Geologist, Damian Spring, Mining
Engineer, and John.
A.
Wells, Independent Metallurgical Consultant.
Mineral resource estimates for Hog Heaven and Waterloo are based on
historical third party estimates.
About Pan American Silver
Pan American Silvers mission is to be the worlds largest and lowest
cost primary silver mining company by increasing its low-cost silver
production and silver reserves.
The Company has eight mining operations
in Mexico, Peru, Argentina and Bolivia.
Pan American also owns the
Navidad project in Chubut, Argentina and is the operator of the La
Preciosa project in Durango, Mexico.
Michael Steinmann, P.
Geo., Executive VP Geology & Exploration, and
Martin Wafforn, P.
Eng., VP Technical Services, each of whom are
Qualified Persons, as the term is defined in National Instrument 43-101
"NI 43-101", have reviewed and approved the contents of this press
release.
Information Contact
Kettina Cordero
Coordinator, Investor Relations
(604) 684-1175
www.panamericansilver.com
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.
Statements containing forward-looking
information express, as at the date of this NEWS RELEASE, the Companys
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 statements containing the
forward-looking information.
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, and FORECAST future Precious metal
prices.
AND EXPECTATIONS THAT Environmental, permitting, legal, title,
taxation, socio-economic, political, marketing or other issues WILL NOT
materially affect estimates of mineral reserves.
These statements
reflect the Companys 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.
These statements reflect the Companys 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 Companys 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); 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; 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; diminishing quantities or grades of
mineral reserves as properties are mined; global financial conditions;
business opportunities that may be presented to, or pursued by, the
Company; the Companys ability to complete and successfully integrate
acquisitions AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS;
challenges to, OR DIFFICULTY IN MAINTAINING, the Companys 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 Americans
Business" in the Companys 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 MEASURED AND
INDICATED 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.
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.
The requirements of NI 43-101 for identification of
"reserves" are also not the same as those of the SEC, and reserves
reported by the Company in compliance with NI 43-101 may not qualify as
"reserves" under SEC standards.
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.