La Colorada Mine, Mexico (100%)

The La Colorada mine is Pan American Silver's purest silver mine.

The La Colorada property is located approximately midway between the cities of Zacatecas and Durango in the Chalchihuites district in Zacatecas State. The project lies within a geologic belt known as the "faja de plata" (silver belt) that extends for approximately 800 km along the Sierra Madre Mountains and is defined by great silver deposits that make Mexico the largest silver producing country in the world. La Colorada contains mineralization styles of both the Fresnillo mine, the world's second largest primary silver mine, and the San Martin/Sabinas mine complex, also a significant silver and base metal producer. At La Colorada the potential for extending reserves through discovery and additional development is considered to be excellent.

La Colorada consists of six contiguous blocks of exploration permits and exploitation claims totalling approximately 2,230 hectares.

History
The production history of the Chalchihuites district began during pre-colonial times as artesanal mining for silver malachite. In 1929, the Dorado family operated mines at two locations on the La Colorada property and, since then, mining operations have been conducted on the property by various companies. Pan American Silver acquired La Colorada in March of 1998.

Operating Statistics

Mineral Reserves

Calculated as at December 31, 2007 using the silver price of US$11.00 /ounce.
Mineral reserves for La Colorada have been prepared under the supervision or were reviewed by Michael Steinmann, P.Geo., Sr. VP Geology & Exploration, and Martin Wafforn, P.Eng., VP of Mine Engineering, as Qualified Persons as that term is defined in NI 43-101.