Pan American Silver provides drill results and a project update for the La Colorada Skarn deposit

VANCOUVER, BC, May 12, 2021 /CNW/ – Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) («Pan American», or the «Company») today provided results for 28 additional holes drilled at the La Colorada skarn deposit and an update of the project development.

«Definition drilling continues to add confidence and scope to the skarn deposit, confirming wide, high-grade zones with intercepts up to 277 metre drill widths. Geological and resource modeling are currently underway to provide the foundation for a preliminary economic assessment,» said Christopher Emerson, Pan American’s Vice President Business Development and Geology.  «The 65,000 metre annual drill program prioritizes infill drilling during the first half of 2021, moving to step-out and exploration drilling in the second half of the year.»

Pan American is advancing the La Colorada skarn project, targeting to complete a preliminary economic assessment («PEA») technical report by the end of 2021.  In addition to surface and underground infill diamond drilling, Pan American is commencing geotechnical, ventilation, backfill, geochemistry, and hydro geology field evaluations along with mine, plant and infrastructure design studies with a number of specialized engineering firms. Metallurgical tests continue to demonstrate favourable flotation results and environmental baseline studies are ongoing.

Pan American has submitted permit applications for certain site infrastructure projects that will assist in advancing the skarn project beyond the PEA which, in some cases, will also simultaneously benefit the existing La Colorada mine operations.  These include projects such as camp expansions, access road upgrades, potential underground access ramp and shaft excavation entrances, ventilation systems and mine cooling to address the rock temperatures that increase with depth.

Drill highlights include:

• D-30-08-20: 115.25 m at 60 g/t Ag, 0.22% Cu, 3.37% Pb and 6.57% Zn
• D-30-09-20: 189.75 m at 60 g/t Ag, 0.14% Cu, 2.97% Pb and 6.29% Zn
• including 38.30 m at 92 g/t Ag, 0.21% Cu, 4.80% Pb and 7.26% Zn
• including 52.15 m at 82 g/t Ag, 0.16% Cu, 4.25% Pb and 11.81% Zn
• D-30-12-20: 45.20 m at 48 g/t Ag, 0.18% Cu, 3.12% Pb and 5.83% Zn
• D-30-13-21: 52.10 m at 40 g/t Ag, 0.27% Cu, 1.06% Pb and 4.09% Zn
• D-30-14-21: 57.75 m at 93 g/t Ag, 0.28% Cu, 6.87% Pb and 10.72% Zn
• U-40-20: 98.05 m at 84 g/t Ag, 0.16% Cu, 4.85% Pb and 6.16% Zn
• including 70.25 m at 109 g/t Ag, 0.18% Cu, 5.96% Pb and 7.24% Zn
• S-01-21: 145.30 m at 55 g/t Ag, 0.23% Cu, 3.51% Pb and 5.95% Zn
• D-81-04-20: 109.20 m at 70 g/t Ag, 0.20% Cu, 1.58% Pb and 5.64% Zn
• U-34-20: 218.30 m at 41 g/t Ag, 0.26% Cu, 1.49% Pb and 2.99% Zn
• including 32.50 m at 57 g/t Ag, 0.38% Cu, 2.20% Pb and 4.24% Zn
• D-57-08-20: 137.45 m at 31 g/t Ag, 0.10% Cu, 1.92% Pb and 3.55% Zn
• including 38.75 m at 81 g/t Ag, 0.22% Cu, 4.58% Pb and 7.91% Zn
• D-107-03-20: 98.10 m at 79 g/t Ag, 0.15% Cu, 0.29% Pb and 2.96% Zn
• S-65-20: 206.10 m at 28 g/t Ag, 0.10% Cu, 1.45% Pb and 3.13% Zn
• S-67-A-20: 277.15 m at 26 g/t Ag, 0.14% Cu, 1.86% Pb and 3.76% Zn

Highlights of recent drilling:

• 22,567 metres drilled over the last seven months; 80% of drilling focused on infill definition and 20% on exploration testing the skarn limits.
• Several holes in the northern and western part of the skarn, such as D-107-03-20 or U-40-20, have returned significantly higher-grade silver than the average inferred resource silver grade.
• Hole D-81-04-20 is a 100 metre step-out, which extends the northern portion of the skarn resource that remains open for further expansions.
• Seven surface infill holes (D-30-08/09/10/11A/12/13 and 14) confirm continuity of the high-grade core of the skarn.
• Underground drillhole U-40-20 extends mineralization to the west and to depth with a high-grade massive sulphide intercept of 70.25 metres at 109 g/t Ag, 0.18% Cu, 5.96% Pb and 7.24% Zn.
• Infill hole D-57-08-20 located 80 metres east of U-40-20 extends mineralization to depth in the west portion of the resource.
• Infill hole S-01-21 increases potential to the east with massive sulphide mineralization of 145 metres at 55 g/t Ag, 3.51% Pb and 5.95% Zn.