Finding and Producing Precious Metals
Cieneguita Discovery:
Pan American's Cieneguita discovery consists of a 43-101 compliant drill indicated and inferred resource of 33.4 million ounces of silver and 474,000 ounces of gold. The company's focus is the initiation of a feasibility study for the expansion of current production. A scoping study to establish the potential for a much larger operation is expected to commence imminently. As this is completed there is significant potential to expand the size of the discovery.
Cerro Delta Project:
The Cerro Delta Project has drilling and environmental permits for its planned 2011-12 program. The Cerro Porphyry is the focus of the initial 7,000 meter drill program. The mineralization in the porphyry is in a stockwork system of quartz and sulphide veinlets mainly in the potassic alteration zone, with gold contents in rock samples at surface grading up to 0.8 g/t. The Cerro Delta is on the same structure, and is geologically analogous to one of the largest undeveloped gold deposits in the world -- the Barrick-Kinross 23.2 million oz gold Cerro Casale porphyry deposit, located 12 miles west.