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 2012 program. The Cerro Porphyry is the focus of the initial 3,500 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 3 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.