Pan Am Silver deals Huaron

Pan American Silver (PAA-T) has optioned a portion of its Huaron property in Peru’s Cerro de Pasco district to South African major Anglo American (AAUK-Q).

The agreement covers 30,000 ha of the northern portion of the little-explored property, which is said to have potential for polymetallic mineralization. Anglo American can earn a 51% interest by making annual cash payments to Pan American and spending US$3 million on the project over four years.

Pan American acquired its interest in the 80,000-ha Huaron property in March 2000 and began producing silver and zinc there in April 2001.

Pan American also signed an option agreement on the Ocotlan project in central Mexico, whereby it can acquire a 100% interest by paying US$3 million over 51 months.

The project is at the southern end of an 800-km-long silver belt that includes nearly all of Mexico’s silver mines, including Pan American’s La Colorada mine.

Pan American has already initiated an exploration program designed to generate targets for drilling later in the year.