Finding and Producing Precious Metals
Pan American's Cieneguita discovery consists of a 43-101 compliant measured and indicated resource of 509,800 ounces of gold and 37.6 million ounces of silver. The company's focus is the initiation of a feasibility study for the expansion of current production. A Preliminary Economic Assessment (PEA) to establish the potential for a much larger operation is expected to be completed in May 2013.
As the PEA is completed there is significant potential to expand the size of the discovery. A new production and development agreement signed in September 2012 with the pilot mine operator, Minera Rio Tinto (MRT), to continue production through 2013, increases Pan American's share of net profits to 35%.