Pan American Silver Corp. maintains its interest in an established silver deposit in the United States acquired in 1994 and 1995 to give immediate leverage to silver.
Waterloo is an investment property that features low holding costs and potential to add substantially to Pan American Silver’s production when silver prices trend higher.
The property is not considered to be material to the Company.
|Unclassified||Tonnes||Silver g/t||Contained ounces|
NOTES: Mineral reserves and resources are as defined by the Canadian Institute of Mining Guidelines. Mineral resources do not have a demostrated economic viability.
This table illustrates Pan American Silver Corp’s share of mineral reserves and resources. Properties in which Pan American Silver has less than 100% interest are noted next to the property name.
The historical estimate for Waterloo was initially calculated by Asarco Inc. in 1968. In September 1994 Robert J. Rodger, P.Eng., reviewed the Asarco reports and prepared a Technical Evaluation Report on the Waterloo property, prior to the implementation of NI 43-101. The Technical Evaluation Report confirmed that the historical estimate was based on reverse circulation drilling and underground sampling, and concluded the estimate was based on sound methodology. The historical estimate at Waterloo was calculated using a silver price of $5.00 per ounce (the relevant price at the time of the calculation). Michael Steinmann, P.Geo., QP for the Company, has reviewed the Technical Evaluation Report and believes the historic calculation was conducted in a professional and competent manner and is relevant for purposes of the Company’s decision to maintain its interest in the property.
The Company believes that the historical estimate category of 37,235,000 tons (at 2.71 ounces per ton silver) of “measured and indicated reserves” most closely correspond to 33,758,000 tonnes in the NI 43-101 category of “indicated resource.” However, the Company has not completed the work necessary to verify the historical estimate. Accordingly, the Company is not treating the historical estimate as NI 43-101 compliant categories of mineral resources based on information prepared by or under the supervision of a QP. These historical estimates should not be relied upon.