- an American Silver Reports Mineral Reserves Estimate of 550 Million Ounces of Silver and 5.2 Million Ounces of Gold
- All financial figures are expressed in US$ unless otherwise indicated.

VANCOUVER, BC, Aug. 5, 2020 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American", or the "Company") today reported its estimated mineral reserves and resources as of June 30, 2020. Proven and probable mineral reserves are estimated to contain approximately 550 million ounces of silver and 5.2 million ounces of gold. Measured and indicated mineral resources (excluding proven and probable reserves) are estimated to total approximately 806 million ounces of silver and 9.4 million ounces of gold. In addition, inferred resources, including the La Colorada polymetallic skarn deposit, total 458 million ounces of silver and 6.9 million ounces of gold.

"Pan American holds one of the world's largest silver mineral resources and reserves base. Over the past year, we have replaced 76% of the silver and 107% of the gold mined for the 12-month period ended June 30, 2020. Particularly significant gains were realized at La Colorada, La Arena and Shahuindo," said Christopher Emerson, Pan American's Vice President of Business Development and Geology. "Through 200,000 metres of drilling from July 2019 to June 2020, we were able to add 22.1 million ounces of silver and 719 thousand ounces of gold to our proven and probable mineral reserves."

Summary of Pan American total mineral reserves and resources for the silver and gold segments

Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Contained Au (koz)
Proven and Probable Reserves 283 63 55 0.61 5.2
Measured and Indicated Resources 1035 110 806 0.33 9.4
Inferred Resources 461 46 458 0.71 6.9

(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2020".

(2) Please refer to the complete mineral reserve and resource table at the end of this news release for more information.


Notable achievements during the year include:

At La Colorada, exploration drilling led to an increased inferred mineral resource estimate for the skarn deposit of 100.4 million tonnes, containing an estimated 141.0 million ounces of silver, as disclosed on August 4, 2020. In the producing area of the La Colorada mine, we discovered an estimated 10.0 million ounces of silver in proven and probable mineral reserves, more than replacing the 7.2 million ounces mined during the year.
At Shahuindo, infill drilling led to the discovery of an estimated 406 thousand ounces of gold mineral reserves and 7.2 million ounces of silver mineral reserves, nearly twice the ounces mined over the 12-month period ended June 30, 2020.
At La Arena, we successfully replaced all of the production and increased the year on year mineral reserves by an estimated 37 thousand ounces of gold, extending mine life by more than one year.
At Timmins, the Bell Creek mine succeeded in replacing 100% of production, primarily through tightly spaced definition drilling, while Timmins West replaced 70% of production. Exploration drilling laterally and to depth at Bell Creek extended known veins and increased inferred mineral resources by an estimated 104 thousand ounces of gold.
At Huaron, drilling of the major vein structures added an estimated 5.9 million ounces of silver mineral reserves.
The La Colorada skarn and Navidad deposits are estimated to contain 141 and 119 million ounces of inferred silver resources, respectively. The sale of the Juby exploration property was completed in June 2020, which led to a subsequent reduction in the indicated and inferred gold mineral resources.

A summary of the silver and gold mineral reserves and mineral resources as of June 30, 2020 is provided in the following tables.

Pan American Mineral Reserves as of June 30, 2020 (1,2)
Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Contained Au (koz)
Silver Segment
Huaron Peru
Proven 6.9 164 36.3 -- --
Probable 3.6 169 19.8 -- --
Morococha (92.3%) (3)
Peru Proven 3.3 158 16.6 -- --
Probable 2.4 187 14.6 -- --
La Colorada
Mexico
Proven 4.4 339 48.2 0.25 35.3
Probable 5.7 301 55.1 0.20 36.3
Dolores Mexico
Proven 30.1 23 21.9 0.88 853.7
Probable 6.8 26 5.7 0.81 177.4
Manantial Espejo
Argentina
Proven 0.4 240 3.2 1.87 24.7
Probable 0.5 276 4.1 2.89 42.4
San Vicente (95%) (3)
Bolivia
Proven 1.1 453 16.5 -- --
Probable 0.3 366 3.9 -- --
Joaquin Argentina
Proven 0.0 591 0.9 0.15 0.2
Probable 0.3 54 5.8 0.35 3.8
COSE Argentina
Probable 0.1 903 2.2 17.61 41.9
Escobal Guatemala
Proven 2.5 486 39.5 0.42 34.2
Probable 22.1 316 225.0 0.34 243.8
Total Silver Segment(4) 90.7 178 519.2 0.64 1493.8

Gold Segment
La Arena Peru
Proven 26.9 -- -- 0.36 311.3
Probable 15.6 -- -- 0.27 135.5
Shahuindo
Peru
Proven 74.8 7 16.1 0.50 1201.4
Probable 49.6 7 10.4 0.47 750.6
Timmins
Canada Proven 3 -- -- 3.05 295.8
Probable 7.1 -- -- 2.93 665.5
La Bolsa
Mexico
Proven 9.5 10 3.1 0.67 202.9
Probable 6.2 7 1.4 0.57 113.1
Total Gold
Segment(4) 192.5 5 31.0 0.59 3676.0
Total Gold and Silver Segments(4)
Proven + Probable 283.2 63 550.2 0.61 5169.8

(1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2020".

(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology, and Martin G. Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in NI 43-101.

(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.

(4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element.

Pan American Silver Measured and Indicated Mineral Resources as of June 30, 2020 (1,2)

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General Notes with Respect to Technical Information

Mineral reserves and mineral resources are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum.

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.

Pan American does not expect these mineral reserve and mineral resource estimates to be materially affected by metallurgical, environmental, permitting, legal, taxation, socio-economic, political, and marketing or other relevant issues.

The Company's Qualified Persons have undertaken a verification process with respect to the data disclosed in this news release, including sampling, analytical, and test data underlying the estimates.

See the Company's Annual Information Form dated March 12, 2020, available at www.sedar.com for further information on the Company's material mineral properties, including information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Company to estimate mineral reserves and mineral resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect the Company's business and the potential development of the Company's mineral reserves and mineral resources.

Quantities of contained metal are shown before metallurgical recoveries.

Technical information contained in this news release with respect to Pan American has been reviewed and approved by Christopher Emerson, FAusIMM., Vice President Business Development and Geology, and Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, who are each Qualified Persons for the purposes of NI 43-101.

About Pan American Silver

Pan American is the world's second largest primary silver producer, providing enhanced exposure to silver through a diversified portfolio of assets, large reserves and growing production. We own and operate mines in Mexico, Peru, Canada, Argentina and Bolivia. In addition, we own the Escobal mine in Guatemala that is currently not operating. Pan American has a 26-year history of operating in Latin America, earning an industry-leading reputation for operational excellence and corporate social responsibility. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".

Learn more at panamericansilver.com