The mineral resource estimate is based on a
"Our exploration team has done a remarkable job of delineating a large resource with notable growth potential in only four years. Our confidence in the geology has also improved, resulting in a large portion of the deposit now being classified as indicated resources," said
"Our next steps to advance the project involve incorporating the most recent drill results and high-grade intersects into the resource model, and continuing the development of preliminary project engineering studies. Our aim is to release an updated Technical Report on the
Estimated Mineral Resource
Classification | Cut-off Value (US$/tonne) | Tonnes (millions) | Zn (%) | Pb (%) | Ag (g/t) |
Indicated | 45 | 95.9 | 2.77 | 1.28 | 31 |
Inferred | 45 | 147.8 | 2.29 | 1.04 | 28 |
Notes:
- Estimation and reporting of mineral resources were carried out in accordance with CIM guidelines.
- Mineral resources have reasonable prospects for eventual economic extraction demonstrating sufficient spatial continuity of mineralisation constrained within a potentially mineable shape. No mineral reserves are reported at this time.
- Prices used to report mineral resources were:
US$22 per ounce of silver,US$2,800 per tonne of zinc andUS$2,200 per tonne of lead. - An estimate of mineral value per tonne was calculated using metallurgical recoveries of 87.4% Ag, 88% Pb and 93% Zn with mineral concentrate qualities of 67% Pb in lead concentrate and 60% Zn in zinc concentrate, obtained from metallurgical testing. Estimates for transport, payability and refining/selling costs, based on experience and long-term views of the marketing, treatment and refining of these types of mineral concentrates, were included.
- Reasonable prospects for eventual economic extraction were assessed by determining the total in-situ tonnes and grade constrained inside volumes that are based on a bulk style sub-level caving underground mining method. The tonnes and grades are inclusive of the must-take low grade material within the volume, as per CIM best practice guidelines. No other mining dilution or mineral losses have been accounted for. A
US$45 per tonne operating cost has been assumed, which includes estimates of mining, processing and G&A operating costs. - This mineral resource estimate was prepared under the supervision of, or was reviewed by,
Christopher Emerson , FAusIMM, Vice President Business Development and Geology, andMartin G. Wafforn ,P.Eng ., Senior Vice President Technical Services and Process Optimization, each of whom is a Qualified Person as that term is defined in National Instrument 43-101 ("NI 43-101"). - The effective date of the mineral resources estimate is
September 13, 2022 .
The La Colorada Skarn is a large underground mineral deposit, and a range of mining methods is being considered for its extraction. The mineral resource estimate provided in this news release considers using the bulk SLC method throughout the deposit. However, the table below is provided for comparison purposes only to highlight how the mineral resource estimate would change using potentially mineable shapes and cut-off value estimates specific to two alternative mining methods. Applying some combination of these mining methods to the mineral resource may prove economically and technically optimal, depending on geometric, geographic and geotechnical factors specific to different areas of the deposit.
Mineral Resource Estimate at Different Cut-off Values and Mining Methods
Cut-off Value (US$/tonne) | Classification | Tonnes (millions) | Zn (%) | Pb (%) | Ag (g/t) | Zn (Mt) | Pb (Mt) | Ag (Moz) | |
Sub-level | 45 | Indicated | 95.9 | 2.77 | 1.28 | 31 | 2.66 | 1.23 | 94.4 |
Inferred | 147.8 | 2.29 | 1.04 | 28 | 3.39 | 1.54 | 132.9 | ||
Sub-level | 45 | Indicated | 101.5 | 2.66 | 1.22 | 30 | 2.70 | 1.24 | 96.3 |
Inferred | 153.2 | 2.03 | 0.88 | 25 | 3.12 | 1.34 | 125.1 | ||
65 | Indicated | 67.3 | 3.08 | 1.46 | 33 | 2.07 | 0.98 | 72.1 | |
Inferred | 60.8 | 2.59 | 1.13 | 30 | 1.60 | 0.68 | 59.8 | ||
Long-hole | 60 | Indicated | 65.4 | 3.39 | 1.62 | 36 | 2.22 | 1.06 | 75.6 |
Inferred | 113.8 | 2.91 | 1.32 | 34 | 3.31 | 1.50 | 124.6 | ||
70 | Indicated | 56.3 | 3.62 | 1.76 | 38 | 2.03 | 0.99 | 68.0 | |
Inferred | 88.5 | 3.17 | 1.46 | 37 | 2.80 | 1.29 | 104.5 |
Notes:
- Prices used to report mineral resources were:
US$22 per ounce of silver,US$2,800 per tonne of zinc andUS$2,200 per tonne of lead. - An estimate of mineral value per tonne was calculated using metallurgical recoveries of 87.4% Ag, 88% Pb and 93% Zn with mineral concentrate qualities of 67% Pb in lead concentrate and 60% Zn in zinc concentrate, obtained from metallurgical testing. Estimates for transport, payability and refining/selling costs, based on experience and long-term views of the marketing, treating and refining of these types of mineral concentrates, were included.
- This table has been included to reflect the sensitivity of the mineral resource to mining method, potential mineable shapes and costs rather than applying variable cut-off values within a non-selective mining shape.
- The inventories in the table are for sensitivity comparisons to the SLC mineral resource estimate stated above; they do not represent mineral resource estimates in themselves.
- All inventories are in-situ tonnes and metal contents.
Mineral Resource Highlights:
- The current mineral resource estimate is based on 190,000 metres of drilling to a drill cut-off date of
April 30, 2022 . An additional 44,000 metres of drilling has been completed since the resource cut-off date. The extensions and high-grade results that were reported in our news release datedJuly 21, 2022 have not been included in this mineral resource estimate. - The initial discovery of the La Colorada Skarn deposit was announced on
October 23, 2018 , and a total of 234,000 metres of exploration drilling has been completed on the deposit to date. - The polymetallic skarn mineralisation is concentrated in three zones, which cover an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface. The deposit is oriented in a north-northwest to south-southeast direction and is below the currently active Candelaria mine workings. See Figures 1 and 2 that accompany this news release.
- The geological model used for the resource estimate is based on 235 diamond drillholes with drill spacing ranging from 50 metres to 80 metres. The mineral resource classification has been based on geological criteria, estimation confidence and density of data for the indicated and inferred mineral resource categories.
- Geological interpretation, resource modeling and mineral resource estimation were carried out using Leapfrog Geo and
Datamine software. The block model and mineral resource estimation methodology were validated by third party consultants.Deswik mine planning software was used to define the SLC mining shapes, in particular the "Deswik.Caving" and "Pseudoflow" functions were integral in defining the constraining shapes. Deswik.Caving utilizes PGCA (Power Geotechnical Cellular Automata) particle-based flow modelling techniques and software. - Comminution, selective flotation (rougher, cleaners, kinetics and locked cycle tests), mineralogical analysis, sedimentation and filtration testing have shown the mineral to be amenable to conventional crushing, grinding, flotation, thickening and filtration unit processing. The projected Zn and Pb contents of the flotation concentrates that could be produced are expected to be readily marketable. Further geo-metallurgical sample collection and testing is in progress, as the deposit size continues to expand and as mining methods are being considered that affect the expected plant head grade, and therefore potentially impact metallurgical recovery and concentrate quality estimates.
- The SLC mining method was chosen to develop mining shapes that constrain the mineral resource volume. The reported mineral resource is the in-situ tonnage and metals contained within a mining shape developed at a
$45 per tonne operating cost, and honours practical cavability geometry and layouts that are at a suitable level of detail for mineral resource estimation purposes. The mineral resource inventory does not have mining recovery or dilution factors applied beyond the mining shape. - Geotechnical drilling, laboratory testing and studies have been conducted with the assistance of internal and third-party geotechnical experts to make an initial positive caveability assessment in support of the SLC mining method.
- The Qualified Persons, as identified in the "General Notes with Respect to Technical Information" section below, are satisfied that applying SLC parameters is practical and satisfies the test of reasonable prospects of eventual economic extraction. It is acknowledged that additional resource definition drilling, geotechnical studies and metallurgical testing may change the mining approach as the project progresses and further extents of the mineralisation are defined.
General Notes with Respect to Technical Information
A total of 235 diamond drillholes with a total length of 190,000 metres were used in the geological interpretation and resource estimate. Several old historic drillholes were included in the modeling. Drilling of the La Colorada Skarn deposit has been completed from both surface and underground drill platforms.
All drill hole samples used in the mineral resource have been previously reported in news releases dated
The drill hole samples were prepared by the internal
Actlabs, SGS and ALS Global all used fire assay with gravimetric finish for gold, and acid digestion with ICP finish for silver, lead, zinc, and copper. Samples delivered to ALS Global were prepared in
The results of the QAQC samples submitted to SGS, Actlabs, Bureau Veritas, ALS Global and the
The Qualified Persons are of the opinion that the sample preparation, analytical, and security procedures followed for the samples are sufficient and reliable for the purpose of mineral resource and mineral reserve estimates. Pan American is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data reported herein.
Mineral reserves and mineral resources are as defined by the
Pan American reports mineral resources and mineral reserves separately. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability. No mineral reserves have yet been estimated for the La Colorada Skarn deposit.
The Qualified Persons do not expect these mineral resource estimates to be materially affected by any known legal, political, environmental or other risks.
See the Company's Annual Information Form dated
Technical information contained in this news release with respect to Pan American has been reviewed and approved by
About
Pan American owns and operates silver and gold mines located in
Learn more at panamericansilver.com.
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: estimates mineral resources; the expectation of the Company to complete a technical report, including preliminary economic assessment relating to the La Colorada Skarn mineral resources in 2023, and the timing and results of any such assessment; the prospects of any future production from the La Colorada Skarn deposit; the extent of, and success related to any future exploration or development programs with respect to the La Colorada Skarn; expectations with respect to future anticipated size of the La Colorada Skarn deposit; the selection of the ultimate mining method, if any, and in particular, whether the SLC mining method will be utilized or used in combination with other mining methods; expectations that legal, political, environmental, or other risks or issues will not materially affect estimates of mineral resources.
These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the accuracy of our mineral reserve and mineral resource estimates and the assumptions upon which they are based, including operating costs and mining methods; ore grades and recoveries are as anticipated; prices for lead, zinc, silver, gold, and other metals remaining as estimated; our continued ownership and rights to the
The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in lead, zinc, silver, gold and other metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian dollar, Peruvian sol, Mexican peso, Argentine peso and Bolivian boliviano versus the
Cautionary Note to US Investors Regarding References to Mineral Reserves and Mineral Resources
Unless otherwise indicated, all mineral resource estimates included in this news release have been prepared and disclosed in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the
The
U.S. investors should not assume that any part or all of an "inferred mineral resource", a "measured mineral resource" or an "indicated mineral resource" will ever be converted into a higher category of mineral resources or into mineral reserves or that it will ever be economically or legally mineable. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as a mineral reserve. Further, "inferred mineral resources" have an even greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of "inferred mineral resources" exist. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases.
View original content to download multimedia:https://www.prnewswire.com/news-releases/pan-american-silver-reports-large-increase-to-the-mineral-resource-estimate-for-its-la-colorada-skarn-deposit-301624779.html
SOURCE
© Canada Newswire, source