All amounts in US$ unless otherwise indicated
VANCOUVER, Sept. 8, 2016 /CNW/ - Pan American Silver
Corp. (NASDAQ: PAAS) (TSX: PAA) (the "Company", or "Pan
American") today announced that it has achieved important
milestones at its two mine expansion projects currently underway in
Mexico. At the Company's
La Colorada mine, the new
618-metre deep shaft was commissioned in fully automatic mode in
early September, ahead of schedule. The shaft was constructed with
a world-class safety performance of zero lost-time accidents
incurred and using industry-leading raise boring and shaft
automation technologies. The work remaining to complete the
La Colorada expansion project
includes a new filter plant, power line and underground
development. The project is now expected to be completed
approximately 5 to 10 percent under budget.
At the Company's Dolores mine, the new 98 kilometre, 115 kV
power line that connects the mine to the national power grid was
energized in early September. The new power line was completed on
budget and is expected to result in annual savings of about
$9 million.
"We successfully achieved these milestones on or under budget
and funded them entirely from internal resources," said
Michael Steinmann, President and
CEO. "These expansion projects will contribute to higher production
rates and lower costs at both operations, and as silver prices
rise, our shareholders are positioned to benefit from widening
profit margins."
The La Colorada expansion
project commenced in 2014 with an original capital investment
estimate of about $163.8 million,
including sustaining capital. By the end of 2017 when the project
is expected to be completed, processing rates are expected to
increase to 1,800 tonnes per day, resulting in a 69 percent
increase in annual silver production to approximately 7.7 million
ounces.
The Dolores expansion project has an estimated capital
investment of approximately $112.4
million. By the end of 2017, this project is expected to
increase annual silver production by about 40 percent to 6.3
million ounces and gold production by about 52 percent to over
205,000 ounces.
About Pan American Silver
Pan American Silver Corp. is one of the largest primary silver
producers in the world. We own and operate seven mines in
Mexico, Peru, Argentina and Bolivia. Pan American also owns several
development projects in the USA,
Mexico, Peru and Argentina. Our mission is to be the world's
pre-eminent silver producer, with a reputation for excellence in
discovery, engineering, innovation and sustainable
development. The Company is headquartered in Vancouver, B.C. and our shares trade on NASDAQ
(PAAS) and the Toronto Stock Exchange (PAA).
For more information, visit our website at:
www.panamericansilver.com
Technical Information
Technical information contained in this news release with
respect to Pan American has been reviewed and approved by Martin
Wafforn, P. Eng., Senior VP Technical Services and Process
Optimization who is a qualified person for the purposes of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
(''NI 43-101''). For further technical information relating to the
La Colorada project, please refer
the NI 43-101 technical report entitled "Technical Report –
Preliminary Economic Analysis for the Expansion of the La Colorada mine, Zacatecas, Mexico," with an effective date of
December 31, 2013. For further
technical information relating to the Dolores project, please refer
to the NI 43-101 technical report entitled "Technical Report for
the Dolores Property, Chihuahua,
Mexico - Preliminary Economic Assessment of a Pulp
Agglomeration Treatment and Underground Option", with an effective
date of May 31, 2014. Both are filed
on Sedar at www.sedar.com.
Cautionary Note Regarding Forward-looking Statements and
Information
This news release contains "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 securities legislation.
Such forward-looking statements and information include, but are
not limited to: the successful completion of the La Colorada expansion project and the Dolores
expansion project; expectations with respect to timing for
completion of the expansion, or specific parts thereof; the
Company's ability to achieve budget expectations and to fund the
expansion with internal resources; anticipated production rates;
anticipated annual savings as a result of the power line project at
the Dolores mine; expectations with respect the effects of the
expansion projects on costs and profit margins; and any anticipated
mining and processing rates.
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 silver, gold and base metals
prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation);
operational risks and hazards inherent with the business of mining
(including environmental accidents and hazards, industrial
accidents, equipment breakdown, unusual or unexpected geological or
structural formations, cave-ins, flooding and severe weather);
inadequate insurance, or inability to obtain insurance, to cover
these risks and hazards; our ability to obtain all necessary
permits, licenses and regulatory approvals in a timely manner;
changes in laws, regulations and government practices in the
jurisdictions where we operate, including environmental laws and
regulations; increased competition in the mining industry for
equipment and qualified personnel; and those factors identified
under the caption "Risks Related to Pan American's Business" in the
Company's most recent Form 40-F and Annual Information Form filed
with the United States Securities and Exchange Commission and
Canadian securities regulatory authorities, respectively. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated,
described or intended. Investors are cautioned against undue
reliance on forward-looking statements and information.
Forward-looking statements and information are designed to help
readers understand management's current views of our near and
longer term prospects and may not be appropriate for other
purposes. The Company does not intend, nor does it assume any
obligation to update or revise forward-looking statements and
information, whether as a result of new information, changes in
assumptions, future events or otherwise, except to the extent
required by applicable law.
SOURCE Pan American Silver Corp.