Silver mines and prospects in Central and South America will continue to be the primary focus of Pan American Silver (PAA-T), a Vancouver-based junior which produces 2.6 million oz. of the metal per year.
The company reported a loss of $1.8 million on revenue of $27.6 million following the first full year of production at its Quiruvilca mine in northern Peru. The operation was acquired in late 1995. In 1996, the company carried out a program designed to improve operation efficiencies, and production improvements are expected this year.
Cash operating costs in 1996 were $4.68 per oz. Mine production amounted to 2.6 million oz. silver, 20,290 tonnes of zinc, 5,856 tonnes of lead and 1,828 tonnes of copper. This year, the mine is expected to produce 2.8 million oz.
from 504,000 tonnes of ore.
Pan American carried out drilling at seven of its properties in 1996, with encouraging silver values returned from one property in Mexico and from another in Peru. A gold occurrence also was discovered last year at the Tres Cruces property in Peru.
On the acquisition front, Pan American is examining several advanced-stage silver projects in Latin America. The company’s current properties contain silver resources exceeding 313 million oz.
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