Pan American extends skarn footprint in Mexico
Pan American Silver Corp. [PAAS-TSX, NASDAQ] said drilling has extended mineralization outside the existing footprint at its La Colorada skarn (polymetallic) project in Zacatecas, Mexico.
The update comes after Pan American reported results of 15 new infill and exploration drill holes covering 14,122 metres. Highlights include 64 metres at 391 g/t silver, 10.83% lead, and 8.50% zinc, including 23 metres at 914 g/t silver, 25.19% lead, and 16.73% zinc in hole 96-10-22.
The latest results were released after the close of trading on May 2, 2023, when Pan American shares closed at $24.77. The shares are currently trading at $33.38 and $18.14.
Pan American was founded in 1994 by financier Ross Beaty. Since then, the company has grown from a start-up to become the world’s second largest primary silver producer with the world’s largest silver reserves and resources, while also becoming a significant gold producer.
Pan American and Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) recently completed the acquisition of Yamana Gold Inc. [YRI-TSX, AUY-NYSE], a US$4.8 billion deal, which ensured that Canada’s largest gold mine – The Canadian Malartic – remains under Canadian ownership.
The Yamana transaction has established Pan American as a major precious metals producer in Latin America, with approximately 28.5 to 30 million ounces of annual silver production and approximately 1.1 to 1.2 million ounces of annual gold production,
Prior to the deal, Pan American, already owned and operated mines in Mexico, Peru, Canada, Argentina and Bolivia, and Guatemala. In Canada, the portfolio includes the Timmins West and Bell Creek (together Timmins) operations.
Pan American owns 100% of the large (La Colorada Skarn) polymetallic deposit discovered in 2018 through brownfield exploration near its La Colorada mine. According to a recently updated estimate, the indicated resource now stands a 95.9 million tonnes, containing 94.4 million ounces of silver, 2.7 million tonnes of zinc, and 1.2 million tonnes of lead. On top of that is an inferred resource of 147.8 million tonnes, containing 132.9 million ounces of silver, 3.4 million tonnes of zinc, and 1.5 million tonnes of lead.
The updated mineral resource estimate marked a significant increase relative to an earlier mineral resource estimate released on August 4, 2020.
Notably, the company said high grade intercepts announced in July, 2022 were not included in the latest estimate and the deposit remains open in nearly all directions for further resource expansion.
The prospect of an extensive polymetallic deposit located blow our largest and highest grade silver mine is very promising and could provide production for many decades, the company has said.
In its latest press release, Pan American noted that drilling has extended the 902 zone and confirmed multiple zones of higher grade within the limestone and skarn area. A 28,000-metre infill and exploration program from surface and underground is currently under way.