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Pan American Silver Announces Positive Results for Dolores' Preliminary Economic Assessment
VANCOUVER , June 23, 2014 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (...
About this update from Pan American Silver Corp.
[{"type":"text","content":"\n\n\nVANCOUVER, June 23, 2014 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (\"Pan American\" or the \"Company\") is pleased\n to announce the positive results of a preliminary economic assessment\n (the \"PEA\" or the \"Assessment\") of expanding its Dolores mine in\n Chihuahua, Mexico by adding a milling and pulp agglomeration circuit to\n the processing flow sheet to enhance silver and gold recoveries of\n higher grade mineralization, as well as by developing an underground\n mine to extract mineral resources that exist beneath and to the south\n of the ultimate open pit floor (the \"Project\"). The preliminary results\n indicate that the Project has the potential to generate excellent\n after-tax economic returns using the Company's current reserve metal\n prices of $22 per ounce of silver and $1,300 per ounce of gold. The\n Project economics also remain robust at long term metal prices of $19\n per ounce of silver and $1,200 per ounce of gold. The Project will\n increase average annual silver production from 3.65 million ounces to\n 5.04 million ounces, while average annual gold production will increase\n from an estimated 111,000 ounces to 148,000 ounces. The PEA\n contemplates an incremental capital investment of $105 million for the\n expansion. Pan American has decided to defer making a construction\n decision for the next 9 to 12 months while it invests a modest amount\n of capital (estimated at $3.0 to $5.0 million) to proceed with\n additional studies, and continue the delineation of the underground\n accessible mineralization, in order to further de-risk the Project.\n\n\nHighlights (1)\n\n\n\n\n\n\nA 38% increase in the estimated average annual silver production during\n the first ten years from 3.65 million to 5.04 million ounces of silver\n per year\n\n\n\nA 33% increase in the estimated annual gold production during the same\n period from 111,000 to 148,000 ounces, subject to ongoing reserve\n reconciliation reviews\n\n\n\nAn increase of the estimated total life of mine metal production to 58.4\n million ounces of silver and 1.62 million ounces of gold, from 44.7\n million ounces of silver and 1.25 million ounces of gold\n\n\n\nConstruction of a 5,600 tonnes per day pulp agglomeration plant to treat\n the high grade portion of the mine production, increasing the overall\n processing rate to 20,000 ...