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Mon Jan 15, 2001
Pan American Silver Updates South American Projects
Pan American Silver Corp. (TSE: PAA; NASDAQ: PAAS) announces progress on the following projects:
Quiruvilca Mine, Peru -- Production in 2000 was the highest in the mine's 76 year operating history. Silver production increased to 3.61 million ounces, up 11.4% from 1999's output of 3.24 million ounces and 44% higher than when Pan American acquired the mine in 1995. Zinc production increased to 24,462 tonnes (1999 -- 23,340 tonnes). The mill processed 615,382 tonnes of ore (1999 -- 562,584 tonnes). Production for 2001 is forecast to maintain this rate.
Huaron Mine, Peru -- Mine construction is in full swing. All major contractors are on-site and first production is scheduled for late March. Mine rehabilitation work is complete, tailings dam reconstruction is nearly complete and preproduction mining has begun. Mill renovation will be completed in March. Long term contracts are in place for the sale of all concentrates from the mine. Projected production is 4.3 million ounces of silver and 18,000 tonnes of zinc per year, at cash and total production costs (net of by-product credits) of $3.47 and $3.89 per ounce of silver, respectively.
San Vicente Project, Bolivia -- Pan American has renegotiated its acquisition contract for this silver development project with Comibol, Bolivia's state mining company. Pan American's expenditure commitments to earn a 100% working interest over seven years are significantly reduced for 2001 and 2002 and increased for 2003. In 2000, Pan American completed further drilling, underground sampling, metallurgical testwork and a mineral resource study. This study indicated total mineral resources of 4.1 million tonnes grading 369 g/t silver and 4.77% zinc. (Norman Pitcher, P. Geol., Qualified Person.) A scoping study is underway to evaluate development of a new silver mine at San Vicente. The new spending schedule will allow advancement of San Vicente to the feasibility stage in 2002 or 2003, after the Company completes its new Huaron and La Colorada silver mines.
Ross J. Beaty, Chairman or
Rosie Moore, VP Corporate Relations
(604) 684-1175
www.panamericansilver.com
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from the targeted results. Such risks and uncertainties include those described in the Company's Form 40-F as amended. All amounts are expressed in U.S. dollars. |
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