Projects

Overview

This 822 hectare site has a substantial history of gold production, having been in operation for four years by Mineral Glamis La Cieneguita S. De R.L. De C.V., a subsidiary of Glamis Gold Ltd. Pan American has completed a 100 hole drill program and from this commissioned an independent 43-101 compliant report which estimated, based on the first 50 holes, an inferred resource of 1.28 million ounces gold equivalent. The results from remaining 50 holes are being assayed and will be added to the resource calculations as they are received. Initial production is projected to be approximately 30,000 ounces gold equivalent in 2010.

Given the considerable activity in this region over the past 50 years, and the numerous small and medium-sized mines with recent finds, there is extensive geological evidence for deposits on this site.

Capitalizing on Existing Infrastructure

Located 375 km from Chihuahua City in canyons called the Baja Tarahumara in southwest Chihuahua, this site is only 20 kilometers from El Sauzal, which is among Gold Corp's larger gold producers. It produced 274,200 ounces of gold in 2008, its fourth year of production.

Accessible by road, rail or air, La Cieneguita was, prior to the recent start of production also an operational mine from 1995 to 1998. As a consequence its infrastructure makes further development easier and cheaper. This includes:

• Existing mine equipment
• Town site including health center and elementary school
• Local work force
• Phone service and radio communication
• Power
• Water
• Complete environmental study and necessary permits

Major Exploration Activity

Given the now established potential of the Cieneguita mine the considerable activity in this region over the past 50 years, and the numerous small and medium-sized mines with recent finds in the immediate vicinity, the geological evidence for additional precious metals discoveries on the concession on is compelling.

From 1995 to 1998, Glamis Gold mined and processed 198,000 metric tonnes with a grade of 2.33 grams gold per tonne. This major gold company stopped production on this site at that time due to low gold prices and without drill testing the western strike of the Cieneguita.

History Of Geological Surveys

• Drilling program by Glamis Gold in 1991-1992 with total of 51 diamond drill holes (6,700 meters) defined an auriferous zone approximately 1000 meters by 200 meters.
• This programs established the presence of two mineralized zones.
• From 1994 to 1997, a second drilling program by Glamis confirmed initial findings.
• Two representative ore samples processed for cyanide leach tests. Results for gold recovery were considerably higher than expected.
• The CMX and T2 duplicate tests yielded 80-90% recovery of the total gold.

Strategy For Exploitation

For more information on Cieneguita please review the Company's Business Plan.

Cieneguita Gold Project Drilling Results

Click here to view April 3, 2008 Assay Results CI-07 to CI-12 [50 KB]
Click here to view detailed drill results CI-01 to CI-06 March 10, 2008 [122 KB]

New Areas of Mineralization Discovered at Cieneguita Project

Pan American Goldfields is pleased to announce that it has discovered new mineralized and altered zones inside the group of concessions of its Cieneguita project, Urique District, Chihuahua.

In addition to the vigorous core drilling program being undertaken at the Cieneguita project several other exploration activities are in progress within the group of concessions integrating the project. These activities are contributing to increase our knowledge about the Cieneguita mineralization system and expand our GIS database as a foundation for ongoing work. The exploration program that is currently underway is focused mainly to the south of the known mineralization zone in Cieneguita along a well defined north-south to southwest semi-circular structural trend.

The field follow-up through a mapping and sampling process at 1:1,000 has delineated three new highly mineralized and intensively altered areas including: (1) Piedras Blancas, an area 500 meters to the south of the main Cieneguita project inside Pan American Goldfields' concessions; and (2) two areas just on the south of the known Cieneguita mineralization limit. A brief description for the new areas identified is provided below:

1. Piedras Blancas is a new identified area 500 meters to the South of the known limits of Cieneguita's Pit 1 and Pit 2. Piedras Blancas is exhibiting an intense alteration characterized by quartz-sericite-pyrite assemblages where pyrite has been partially and/or completely oxidized. Areas with intense fracturing and stockworking where limonites are dominated by goethite and hematite are also common. Assays results from surface sampling have returned values ranging from trace to 1.98 g/t Au. The mineralized and altered area dimension is at least 700 x 300 meters and is located in the intersection of main structures to the south of the concessions group.
2. Gold mineralization identified in two areas immediately to the south of the Cieneguita's known limits of mineralization are mainly structurally controlled exhibiting quartz-sericite-pyrite and small and localized area with clay content. Limonites are dominated by goethite (±hematite ± jarosite). Sampling of the two mineralized zones has returned values varying from trace to 6.38 g/t Au.

The results and information gathered from this latest mapping and sampling campaign have provided significant evidence that increases the current known limits of the mineralization further south and the possibility to have another mineralized system at Cieneguita only 500 meters away from the main project.
The mapping and sampling program will continue in the south part of our concessions aimed to fully evaluate the potential and identify drilling targets at Piedras Blancas, the new mineralized area.

Click to enlarge

Piedras Blancas Area

Figure 2 is showing photos of the different mineralization and alteration characteristics of the newly found Piedras Blancas Area. (A) Pyrite veinlets partially oxidized hosted by a sedimentary sequence. (B) Area with intense fracturing exhibiting an oxidized cap dominated by goethite and jarosite. (C) Intense fracturing and stockworking area shoeing a limonite capping dominated by hematite ± goethite. (D) Intense fracturing and stockworking area with hematite and goethite filling fractures.