Navidad Project

Navidad Project

Navidad is a development stage silver property located in Chubut, Argentina.


  • Location: Chubut, Argentina
Navidad Project Map

Pan American acquired the project in 2010 through the acquisition of Aquiline Resources Inc. Silver, lead, and minor amounts of copper mineralization are present as epithermal, stratiform veins and disseminations

Project Update

A preliminary economic assessment completed in 2011 anticipated a daily production rate of 15,000 tonnes per day from open pit mines at Navidad’s eight known deposits using shovels and trucks. The mine schedule, based on the mineral resources, was anticipated to last nearly 15 years after a pre-production and construction period, with an additional 18 months of re-handling ore from a low grade stockpile for plant feed after mining is completed. The anticipated processing plant design includes a 15,000 tonne per day capacity mill with flotation and concentrate filtration, producing a copper-silver concentrate and a lead-silver concentrate.

The Navidad project remains on care and maintenance since the fourth quarter of 2013. In 2015, we spent a total of $6.8 million at Navidad on holding and maintenance costs.

The Province of Chubut passed a law in 2003 (Law 5001) that prohibits open pit mining and the use of cyanide in mineral processing in the entire province, effectively preventing the development of Navidad. To date, this law remains in place.

The Navidad Technical Report, on which the foregoing is based, is a preliminary economic assessment. The results of this preliminary economic assessment are preliminary in nature, in that it includes inferred mineral resources that are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the assessment will be realized. Mineral resources that are not mineral reserves have no demonstrated economic viability.

For a more detailed discussion of cash costs and AISCSOS and their calculations, readers should refer to the “Alternative Performance (non-GAAP) Measures”, section of the Company’s Management’s Discussion & Analysis for the year ended December 31, 2015.

2016 Forecast

The Navidad project budget assumes that the law in the Province of Chubut would not be amended in a manner which encourages further investment at this stage and hence, our activities at Navidad are guided by an investment plan which focuses primarily on satisfying the legal requirements necessary to maintain our property interests under the current mining law. We plan to continue with such maintenance requirements and remain committed to Navidad and to contributing to the positive economic and social development of Chubut, should a favourable legislative framework be adopted.

Mineral Resources

Management estimates that mineral resources at the Navidad property, as at April, 2009, are as follows:

Navidad Mineral Resources1,2

Resource CategoryTonnes (Mt)Grams of Silver per tonne% Lead% Copper


  1. Estimated and reported above a 50 g/t AgEQ using a silver equivalence formula of AgEQ = Ag + (Pb × 10,000/365) and a price of $12.52 per ounce of silver and $1,100 per tonne of lead. The most likely cut-off grade for these deposits is not known at this time and must be confirmed by the appropriate economic studies. The estimated metal content does not include any consideration of mining, mineral processing, or metallurgical recoveries.
  2. Mineral resource estimates for Navidad were prepared by Pamela De Mark, P. Geo., who is a Qualified Person as that term is defined in NI 43-101.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Navidad property does not currently have any mineral reserves. There are material governmental and legal factors that affect the mineral resources at Navidad and the conversion of the mineral resources to mineral reserves. Legislation in place in Chubut, prohibits open pit mining and the use of cyanide in the entire province. No cyanide will be used to process the material anticipated to be mined at Navidad, but given the depth and orientation of the deposits, the economic mine plan involves open pit mining. No amendments to the law have yet been instituted and even if the law were to be changed, it is unclear whether it would be amended in a manner which would encourage further investment. Because of these governmental and legal factors, the otherwise economically viable portions of the deposit cannot be estimated as mineral reserves at this time.

Click here to see Pan American’s full mineral reserves and resources at December 31, 2015
Mineral reserves and resources are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum.
Mineral resources that are not mineral reserves have no demonstrated economic viability.
Cautionary Note to US Investors

Technical Report

Navidad Technical Report