Pan American tables Timmins exploration update

Pan American Silver Corp. [PAAS-TSX, NASDAQ] has released an update on an extensive exploration program conducted at its Timmins, Ont., operations, which has identified a new resource at its Bell Creek mine and satellite deposits.

Based on the success of this program, Pan American is advancing a conceptual plan for a phased development of these new resources to support potential production growth and extension of mine life at Timmins.

The first phase of the Timmins Camp Project has commenced following approval by the company’s board of directors for a $625 million shaft extension project at the Bell Creek mine, an 814-metre drift to access the Vogel deposit, and a 1.3-kilometre exploration drift to access the Samson deposit, with a total investment of $146 million.

The initial spending on the first phase was included in the company 2026 guidance of $40 to $43 million of project capital at Timmins, and there are no changes to the company’s 2026 annual guidance. “With significant installed processing capacity and infrastructure already in place, projects such as the Bell Creek shaft extension and Vogel and Samson access drifts allow the development of new mineral resources and position Timmins for future production growth and extended mine life,’’ said Pan American President and CEO Michael Steinmann. “The potential phased development and integration of the satellite deposits would transform Timmins into a long-life Canadian production platform,’’ he said.

Pan American shares were lower Monday, easing 3.9% or $3.14 to $75.59. The shares trade in a 52-week range of $95.39 and $32.86.

The Timmins operations are currently comprised of two underground gold mines located 34 kilometres apart. They are the Timmins West mine and the Bell Creek mine, which both supply ore to the Bell Creek processing plant. The plant has a design capacity of approximately 5,600 tonnes per day with the current throughput of approximately 4,400 tonnes per day. The Timmins Camp Project is aimed at increasing infrastructure utilization to support sustained production from the Timmins operations over time. The company is advancing the Timmins Camp Project via further engineering studies, mine planning, metallurgical evaluation, underground development, and mineral resource conversion programs.

In 2026, the company is planning to drill approximately 118,000 metres at Timmins, focused on near-mine exploration and mineral resource conversion. Pan American anticipates publishing an update to the estimated mineral reserves and mineral resources for Timmins, Vogel, and Gold River, as of June 30, 2026, with a corporate-wide update in the third quarter of 2026.

The Bell Creek mine and mill complex is located approximately 14 kilometres northeast of Timmins. The Vogel Project is located about 1.5 kilometres east-southeast of the Bell Creek complex and was previously assessed as an open pit with an underground mine below the pit. In 2025, Vogel was remodeled and assessed solely for underground mining potential. The Samson Project (previously known as the 144 south) is located 3.3 kilometres south of the Timmins West mine shaft and forms part of Pan American’s broader mineral resource base. Samson is estimated to contain 118,000 ounces of inferred gold resources (1.7 million tonnes of grade 2.20 g/t).