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Tue Jul 17, 2001
Pan American Silver Completes Property Transactions And Schedules Second Quarter Announcement
Vancouver, British Columbia..(all amounts in U.S. dollars)..Pan American Silver Corp. (NASDAQ symbol PAAS; TSE symbol PAA) has optioned a portion of its Huaron property in Peru to Anglo American Mining Corporation. Pan American acquired its interest in the Huaron property in March 2000 and began silver-zinc production in April 2001. The Huaron property, comprising 80,000 hectares, is one of the largest land packages in the Cerro de Pasco mining district of Peru, which contains the majority of Peru's base metal and silver mines. The Anglo American agreement covers 30,000 hectares of the northern portion of the Huaron property, which has been only sparsely explored and has potential to host major polymetallic mineralization. Anglo American can earn a 51 percent interest by making annual cash payments to Pan American and spending $3 million on the project over a 4-year period.
Pan American Silver also signed an option-to-purchase agreement on the Ocotlan project located in central Mexico. The terms allow Pan American to acquire a 100 percent interest by paying $3 million over a 51-month period. The project is at the southern end of the 800 km long "silver belt" that includes nearly all of Mexico's silver mines, including Pan American's La Colorada silver mine. Several small mines in the Ocotlan area have intermittently produced silver and gold in the last 100 years from high-grade veins. Pan American has initiated an exploration program including surface and underground sampling that will generate targets for drilling later in the year.
Pan American's second quarter 2001 results will be announced on August 13th, followed by a conference call to discuss results and update projects. Details of the conference call will be included in the second quarter results announcement.
Pan American is a leading primary silver producer with three silver mines in operation. Silver output in 2001 should be approximately 7.5 million ounces, up from 3.6 million ounces in 2000, due to initiation of production from two new mines earlier this year. Pan American has strong near-term growth projects and is evaluating other acquisition opportunities.
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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