New silver-rich zones discovered at Pan American's Morococha mine
July 21 2005 - 3:09PM
PR Newswire (US)
New silver-rich zones discovered at Pan American's Morococha mine
(all amounts in $US unless otherwise stated) VANCOUVER, July 21
/PRNewswire-FirstCall/ -- Pan American Silver Corp. (PAAS: NASDAQ;
PAA: TSX) is pleased to announce that 14,000 meters of exploration
and infill drilling conducted over the past six months at its 87%
owned Morococha mine in Peru has expanded known mineralized systems
and has identified several new silver-rich zones. As a result,
proven and probable reserves, measured and indicated resources and
inferred resources have expanded significantly. Proven and probable
reserves have increased 1.2 million tonnes containing 6.4 million
ounces of silver (100% basis). This increase is net of production
for the first half of this year. Measured and indicated resources
have increased by 1.0 million tonnes, containing an additional 6.1
million ounces of silver, and inferred resources have increased by
1.7 million tonnes at a grade of 241 g/tonne silver. The reserve
and resource increases come primarily from three newly discovered
mantos as well as from the expansion of two others previously
identified. All of these mantos are large mineralized ore deposits
that are significantly thicker and wider than the vein systems that
have been the primary producers on the property. As a result, it is
expected that bulk mechanized mining in these zones will be at a
much lower cost. Given the success of the exploration efforts to
date, another 14,000 meters is scheduled to be drilled through the
remainder of 2005. The Company expects this program to convert
resources into proven and probable reserves and to further add to
the reserve base and mine life. According to Pan American President
and CEO, Geoff Burns, "Morococha is an excellent example of how
value can be added with a focused exploration program properly
executed on a high-potential property. We are adding high- quality
silver reserves and resources for just pennies an ounce. These
discoveries are confirming what we believed when we decided to
purchase Morococha. This mine has the potential to deliver decades
of low-cost silver production." The following table represents the
Morococha mine (100%) reserves and resources as at June 30, 2005.
-------------------------------------------------------------------------
Grade Grade Grade Grade Contained Tonnes (g/t Ag) Zn(%) Pb(%) Cu(%)
Silver (Oz.)
-------------------------------------------------------------------------
Proven Mineral Reserves 2,309,110 201 4.19 1.52 0.41 14,922,151
Probable Mineral Reserves 980,437 220 4.00 1.37 0.74 6,934,787
Total 3,289,547 207 4.13 1.48 0.51 21,892,592
-------------------------------------------------------------------------
Measured Mineral Resources 1,661,942 159 3.10 1.42 0.28 8,495,789
Indicated Mineral Resources 464,343 171 2.84 1.31 0.30 2,552,853
Total 2,126,285 162 3.04 1.40 0.28 11,074,579
-------------------------------------------------------------------------
Inferred Mineral Resources 9,283,418 241 3.94 1.75 0.38 71,930,932
-------------------------------------------------------------------------
(Mineral reserve estimates, measured and indicated resource
estimates and inferred resource estimates were prepared under the
supervision of or were reviewed by Michael Steinmann, P.Geo,
Vice-President Geology - Operations, the Qualified Person as
defined in NI 43-10. Drilling is ongoing and future results, as
well as results to date, will be reviewed and compiled into a new
reserve statement as of December 31, 2005.) Pan American Silver
Corp. will be releasing its 2005 second-quarter results on July 28
before market open and will be hosting a conference call later that
morning. Please note that the time of the conference call has been
changed to 8:30 am Pacific Time. All dial-in and replay numbers
remain the same. North American participants please call toll-free
1-877-825-5811 and international participants call 1-973-582-2767.
The call may also be accessed from the home page of the Company's
website at http://www.panamericansilver.com/ or can be replayed
from July 28 to August 4 by dialing 1-877-519-4471 using access
code 6258416. For Further Information Contact: Brenda Radies, VP
Corporate Relations (604) 684-1175
http://www.panamericansilver.com/ CAUTIONARY NOTE Some of the
statements in this news release are forward-looking statements and
as such are based on an assumed set of economic conditions and
courses of action. These include estimates of future production
levels, expectations regarding mine production costs, expected
trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. There is a
significant risk that actual results will vary, perhaps materially,
from results projected depending on such factors as changes in
general economic conditions and financial markets, changes in
prices for silver and other metals, technological and operational
hazards in Pan American's mining and mine development activities,
uncertainties inherent in the calculation of mineral reserves,
mineral resources and metal recoveries, the timing and availability
of financing, governmental and other approvals, political unrest or
instability in countries where Pan American is active, labor
relations and other risk factors listed from time to time in Pan
American's Form 40-F DATASOURCE: Pan American Silver Corp. CONTACT:
Brenda Radies, VP Corporate Relations, (604) 684-1175,
http://www.panamericansilver.com/
Copyright