| San Vicente Mine, Bolivia (95%)
The San Vicente silver-zinc mine is located in the Potosí Department of the Bolivian Andes. More than 20 bonanza type silver-zinc veins are known to occur over an area of 1.5 km on surface and extend to at least 200 m in depth. The project consists fo 15 mining concessions, totaling 8,159 hectares.
History:
San Vicente was operated by COMIBOL, the Bolivian state mining company, from 1972 until 1993 when mining was suspended, pending privatization. Pan American optioned the San Vicente project from COMIBOL in 1999 and became operator, advancing the project through drilling, underground sampling and metallurgical test work. Mine infrastructure at the site includes a flotation mill, tailings facility, power and water supplies, and worker housing. In late 2001 Pan American and COMIBOL entered into a two-year toll milling agreement with EMUSA, a well-established Bolivian mining company, to process up to 250 tonnes per day of San Vicente's ore at EMUSA's nearby mill. This arrangement generated sufficient revenue to offset the property's holding costs and generated valuable information on the mining and milling characteristics of San Vicente's ore. In early 2006, Pan American signed a joint-venture agreement with EMUSA granting a 40 percent interest in the project. In mid-2006, Pan American entered into another toll milling arrangement with EMUSA to continue processing at its Chilcobija mill.
In 2007, Pan American Silver increased its ownership interest from 55% to 95%. During 2007 San Vicente contributed 0.6 Million ounces of silver.
Operating Statistics:
|
2007 |
2006 |
2005 |
Tonnes Milled |
82,855 |
29,618 |
10,109 |
|
|
|
Silver ounces |
619,000 |
264,573 |
80,991 |
Zinc tonnes |
1,701 |
805 |
334 |
Copper tonnes |
99 |
52 |
10 |
| Cash cost per ounce |
$5.41 |
$3.49 |
$1.24 |
Mineral Reserves:
| As of Dec. 31, 2007 |
Tonnes |
Silver Grade
(g/tonne) |
Contained Silver
(ounces) |
Proven |
1,741,000 |
369 |
20,674,000 |
Probable |
648,000 |
463 |
9,644,000 |
Total |
2,389,000 |
416 |
30,318,000 |
Calculated as at December 31, 2007 using the silver price of US$11.00 /ounce.
Mineral reserve estimates for San Vicente were prepared under the supervision of, or were reviewed by Michael Steinmann, P.Geo., Sr. VP Geology & Exploration, who is a Qualified Person as that term is defined in NI 43-101.
Tonnes are shown for 100% of the San Vicente Property. Pan American has a 95% interest in Pan American Silver Bolivia.
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