La Colorada Skarn is a large silver-bearing polymetallic deposit discovered in 2018 by Pan American through brownfield exploration.

The Preliminary Economic Assessment (“PEA”) currently envisions a 50,000 tonnes per day sub-level underground cave mining method, a conventional selective zinc and lead flotation processing plan and a dry-stack tailings facility.*

*Please refer to the La Colorada NI 43 101 Technical Report with an effective date of December 18, 2023 for details. Figures are based on the average of the first 10 years.

 

 

  • Ownership
    100%
  • Products
    Zinc, Silver, Lead
  • Type of Mine
    Underground

Advanced Exploration Project

173.6
MT
Indicated mineral resource estimate*

103.6
MT
Inferred mineral resource estimate*

17.2
Moz
Potential Annual Silver Production*

50,000
TPD
Average Plant Throughput

Technical & Resource Information

Name and quantity Grade Contained Metal
Name Tonnes
(Mt)
Ag
(g/t)
Pb
(%)
Zn
(%)
Ag
(Moz)
Pb
(Mt)
Zn
(Mt)
Indicated Resources173.6331.322.791832.34.8
Inferred Resources103.6351.032.471161.12.6

As of June 30, 2023. Please see the Company’s reserves and resources page for more detailed information.

Skarn Geology Video

La Colorada Skarn Presentation

*Notes:

  1. The effective date of the mineral resources estimate is December 15, 2023. The geological model was completed in December 2022 and diamond drilling from 2023 is not included in this estimate.
  2. Estimation and reporting of mineral resources were carried out in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) guidelines.
  3. Mineral resources have been classified into indicated and inferred confidence categories.
  4. Mineral resources have reasonable prospects for eventual economic extraction demonstrating sufficient spatial continuity of mineralisation constrained within a potentially mineable shape. Mineral resources that are not mineral reserves do not have demonstrated economic viability. No mineral reserves are reported at this time for the La Colorada Skarn project.
  5. Prices used to report mineral resources were: $22 per ounce of silver, $2,800 per tonne of zinc and $2,200 per tonne of lead.
  6. An estimated NSR (in US$/t) was calculated using metallurgical recoveries of 87.4% Ag, 88% Pb and 93% Zn with mineral concentrate qualities of 67% Pb in lead concentrate and 60% Zn in zinc concentrate, obtained from metallurgical testing. Estimates for transport, payability and refining/selling costs, based on experience and long-term views of the marketing, treatment and refining of these types of mineral concentrates, were included.
  7. Reasonable prospects for eventual economic extraction were assessed by determining the total in-situ tonnes and metal grades constrained inside volumes that are based on a SLC mining method. To determine the constraining SLC shapes an initial elevated cutoff value of $50/t NSR was applied.  Then geotechnical, geometry and caving rules were applied to ensure practical mining shapes and sequences were achieved. Each level, in each zone, was individually tested for overall economics, and then tested as part of the caving sequence. The resulting constraining shapes were then considered to be practical mining outlines. The tonnes and grades are inclusive of the must-take low grade material within the volume. No other mining recovery, ring recovery, dilution or mineral losses have been applied.
  8. This mineral resource estimate was prepared under the supervision of, or was reviewed by, Christopher Emerson, FAusIMM, Vice President Exploration and Geology, who is a Qualified Person as that term is defined in NI 43-101.
  9. Grades are shown as contained metal before mill recoveries are applied. The Company has undertaken a verification process with respect to the data disclosed in this news release.
  10. A total of 298 diamond drill holes with a total length of 242,000 metres were used in the geological interpretation and resource estimate. Several old historic drill holes were included in the modeling. Drilling of the La Colorada Skarn deposit has been completed from both surface and underground drill platforms. 
  11. All drill hole samples used in the mineral resource estimate have been previously reported  in news releases dated October 23, 2018, February 21, 2019, May 8, 2019, August 1, 2019, October 30, 2019,  February 13, 2020, August 4, 2020, May 12, 2021, November 10, 2021, February 24, 2022, and May 9, 2022.