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Wed Mar 27, 2002
Pan American Silver Completes Acquisition Of 50 Percent Interest In Manantial Espejo Project
Vancouver, British Columbia...(All dollar amounts are expressed in U.S. dollars)...Pan American Silver Corp. (NASDAQ: PAAS, TSE: PAA) today closed its acquisition for half of the Manantial Espejo project by purchasing 50 percent of Compania Minera Altovalle S.A. and Minera Triton S.A. from Silver Standard Resources Ltd., which holds the other 50 percent interest. Altovalle and Minera Triton collectively own the Manantial Espejo silver-gold project in southern Argentina. The property has seen over $17 million in historic exploration spending. A new resource estimate is underway and will include results from a 5000-meter drilling program completed in late 2001. Prior to this drilling, a resource estimate calculated by Pincock Allen & Holt in early 2001 (Stew Wallis, P.Geo., Qualified Person) defined measured and indicated resources of 4.39 million tonnes grading 264 g/t silver and 4.51 g/t gold, and inferred resources of 1.59 million tonnes grading 259 g/t silver and 3.65 g/t gold.
Pan American's acquisition cost was $708,750 cash and 231,511 common shares (valued at $1,250,000). Pan American and Silver Standard also shared equally a $200,000 expense to eliminate a 1.2 percent NSR royalty on the property. Silver Standard and Pan American have entered into a joint venture agreement and will equally share on-going exploration costs. Silver Standard will manage the exploration phase and Pan American will manage feasibility and mine construction. During mine production, the companies will form a joint venture committee for operations and all costs will be shared equally. In recognition of Silver Standard's historic exploration expenditures, Pan American will contribute the first $3 million toward mine construction once a production decision is made.
Pan American's Chairman and CEO Ross Beaty said, "Manantial Espejo has good potential to be a significant producing mine in the near future. It is well located, shows excellent metallurgy based on preliminary tests, and covers a region of prime exploration ground. Argentina has been a good place for mining investment in the past decade, and I expect this to continue, despite its current economic difficulties." Pan American and Silver Standard will carry out further drilling and other property exploration in 2002, which is expected to lead to a bankable feasibility study in 2003.
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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