Pan American Silver Reports Drill Results from the La Colorada Skarn Discovery with Intercepts up to 379 Metres

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Overig advies 30/10/2019 14:46
Preliminary metallurgical test results are positive

VANCOUVER, Oct. 30, 2019 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) today announced results from 14,300 metres of drilling completed during the third quarter of 2019 on the La Colorada skarn discovery in Mexico. Preliminary metallurgical testing of samples indicates high recoveries across all metals can be expected.

"The most recent drill results feature some of the highest grade intercepts we have seen to date, with widths up to 379 metres. Stand-out drill holes include U-66-19 with 253 metres grading at 67 grams per tonne of silver, 3.84% lead and 6.56% zinc," said Christopher Emerson, Pan American's Vice President Business Development and Geology. "We have now completed over 52,400 metres of drilling on the skarn target, allowing us to substantially expand the mineralized footprint and to identify a high-grade core zone."

Drill highlights include:
•D-57-01-19: 250.9 m at 40 g/t Ag, 0.08% Cu, 2.57% Pb and 3.43% Zn
including 78.9 m at 60 g/t Ag, 0.09% Cu, 3.90% Pb and 4.84% Zn
•D-57-02-19: 72.3 m at 37 g/t Ag, 0.16% Cu, 3.80% Pb and 6.25% Zn
and 56.6 m at 39 g/t Ag, 0.10% Cu, 3.31% Pb and 6.64% Zn
•S-57-19: 124.8 m at 42 g/t Ag, 0.08% Cu, 2.41% Pb and 3.14% Zn
•U-66-19: 252.9 m at 67 g/t Ag, 0.19% Cu, 3.84% Pb and 6.56% Zn
including 27.3 m at 108 g/t Ag, 0.20% Cu, 8.14% Pb and 13.70% Zn
and 148.6 m at 81 g/t Ag, 0.23% Cu, 4.43% Pb and 7.66% Zn
•U-72-19: 132.5 m at 56 g/t Ag, 0.19% Cu, 3.81% Pb and 6.32% Zn
including 57.9 m at 80 g/t Ag, 0.24% Cu, 5.46% Pb and 9.42% Zn
and 139.2 m at 54 g/t Ag, 0.15% Cu, 1.80% Pb and 5.87% Zn
•U-73-19: 278.0 m at 26 g/t Ag, 0.08% Cu, 1.56% Pb and 3.98% Zn
•U-79-19: 379.0 m at 54 g/t Ag, 0.50% Cu, 1.96% Pb and 3.73% Zn
including 57.9 m at 47 g/t Ag, 0.37% Cu, 2.83% Pb and 6.35% Zn
and 66.7 m at 154 g/t Ag, 2.07% Cu, 0.97% Pb and 1.58% Zn

The drilling continues to define a polymetallic mineralized skarn system and cross-cutting veins starting 300 metres below and adjacent to the current lowest production level of the La Colorada mine. Drill holes D- 57-01-19 and D-57-02-19 were drilled 200 metres to the southwest of a mineralized hydrothermal breccia zone, indicating the potential to extend mineralization further to the southwest. Drill results for the hydrothermal breccia zone were previously announced in Pan American's news release dated August 1, 2019.

Pan American expects to complete over 50,000 metres of drilling in 2019, and provide an initial resource estimate of the skarn discovery by the end of 2019. An intensive exploration program and further metallurgical testing will continue in 2020. Given that the skarn deposit is more massive than the existing vein structures, pending technical studies, future development would conceptually require new mining, processing and other facilities.

In addition to the drilling program, Pan American has advanced initial metallurgical testing at the independent ALS Metallurgy laboratory in Kamloops, Canada. To date, flotation tests and mineral liberalization analysis on three composites samples have been performed. Positive flotation recovery results for silver, lead, zinc and copper were obtained, with the preliminary bulk rougher flotation recovery ranges and averages provided in the table below. Preliminary open cleaner tests show that good concentrate qualities can be obtained, ranging from 50% to 70% Pb in the lead cleaner concentrate, 55% to 63% Zn in the zinc cleaner concentrate and 20% to 31% Cu in the copper cleaner concentrate. Minor element analysis results in concentrates are pending. Pan American plans to prepare additional composite samples, as we get more information on the resource, and to conduct additional flotation tests.

Bulk Rougher Flotation Recovery Results
Element Range (%)Average (%)
Ag 93 - 99 95
Pb 92 - 96 95
Zn 80 - 85 83
Cu 75 - 86 80

Summary of Drill results for the Third Quarter of 2019
Previous drill results disclosed in Pan American's news releases dated October 23, 2018, February 21, 2019, May 8, 2019 and August 1, 2019, are not included in this table.
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