Pan American Silver increases silver mineral reserves to 286 million ounces
Wednesday, Feb 15, 2017
Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAAS) ("Pan American", or the "Company") 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.
"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.
For more information, please visit: https://www.panamericansilver.com/