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Mon Nov 5, 2001
Mining To Begin At Pan American's San Vicente Project, Bolivia
Pan American Silver Corp. (NASDAQ symbol PAAS; TSE symbol PAA) has signed a two-year contract to allow a Bolivian company to extract, at its cost, up to 250 tonnes per day from the San Vicente silver mine in southern Bolivia. Pan American holds an option to earn a 100 percent working interest in San Vicente. Mine permitting is now in progress and, when completed, the new small-scale operation will mine high-grade ore for processing at an existing nearby facility to produce approximately 1 million ounces of silver per year.
Pan American's proceeds from this small-scale operation will be derived from a gross revenue royalty and are expected to more than offset the project's holding costs until the next phase of project development is initiated. In the meantime, the operation employs many local Bolivians and stimulates the regional economy while generating valuable information on mining and milling characteristics of the ore. In June, Pan American completed a positive study on future production at San Vicente. Pan American plans to begin the next phase of project development when metal prices improve from their current record lows. Future work will include further drilling and engineering studies, which could lead to a full feasibility study.
Pan American is a leading primary silver producer currently operating three wholly owned silver mines - Quiruvilca and Huaron in Peru, and La Colorada in Mexico. Pan American's silver output in 2001 is forecast at 7.5 million ounces with excellent potential to increase in the near term.
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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