For
the month of,
|
February
|
2010
|
|
Commission
File Number
|
000-13727
|
||
Pan
American Silver Corp
|
|||
(Translation
of registrant’s name into English)
|
|||
1500-625
Howe Street, Vancouver BC Canada V6C 2T6
|
|||
(Address
of principal executive offices)
|
Form
20-F
|
Form 40-F
|
X
|
Yes
|
No
|
X
|
Document
|
|
1
|
Technical
report entitled "Pan American Silver Corp: Navidad Project, Chubut
Province, Argentina", dated February 4,
2010.
|
Prepared
by
|
Pamela De
Mark
B.Sc.
(App.Geo) Hons, P. Geo., MAusIMM
Senior
Consultant, Snowden Mining Industry Consultants
John J.
Chulick
B.Sc. (Geo.
Eng.) Hons, MBA, SEG, Licensed Professional Geologist
Vice
President Exploration, Aquiline Resources Inc.
Dean K.
Williams
B.Sc. (Geo.)
Hons, MBA, SEG, Licensed Professional Geologist
Chief
Geologist, Aquiline Resources Inc.
Damian
Spring
B.E.
(Mining), MAusIMM
Chief Mining
Engineer, Aquiline Resources Inc.
John A.
Wells
B.Sc. Hons,
MBA, MCIMM, FSAIMM
Independent
Metallurgical Consultant
|
Office
Locations
Perth
87 Colin
Street
West
Perth WA 6005
PO Box
77
West
Perth WA 6872
AUSTRALIA
Tel: +61
8 9213 9213
Fax: +61
8 9322 2576
ABN 99 085
319 562
perth@snowdengroup.com
Brisbane
Level 15, 300
Adelaide Street
Brisbane QLD 4000
PO Box
2207
Brisbane QLD 4001
AUSTRALIA
Tel: +61
7 3231 3800
Fax: +61
7 3211 9815
ABN 99 085
319 562
brisbane@snowdengroup.com
Vancouver
Suite
600
1090 West
Pender Street
Vancouver BC
V6E 2N7
CANADA
Tel: +1
604 683 7645
Fax: +1
604 683 7929
Reg No.
557150
vancouver@snowdengroup.com
Johannesburg
Technology
House
Greenacres
Office Park
Cnr. Victory
and Rustenburg Roads
Victory
Park
Johannesburg
2195
SOUTH
AFRICA
PO Box
2613
Parklands
2121
SOUTH
AFRICA
Tel: +
27 11 782 2379
Fax: +
27 11 782 2396
Reg No.
1998/023556/07
johannesburg@snowdengroup.com
London
Abbey
House
Wellington
Way
Weybridge
Surrey KT13
0TT, UK
Tel: +
44 (0) 1932 268 701
Fax: +
44 (0) 1932 268 702
london@snowdengroup.com
Website
www.snowdengroup.com
Subsidiary of
Downer EDI Ltd
|
IMPORTANT
NOTICE
This report
was prepared as a National Instrument 43-101 Technical Report, in
accordance with Form 43-101F1, for Pan American Silver Corp. by Snowden.
The quality of information, conclusions, and estimates contained herein is
consistent with the level of effort involved in Snowden’s services, based
on: i) information available at the time of preparation, ii) data supplied
by outside sources, and iii) the assumptions, conditions, and
qualifications set forth in this report. This report is
intended to be used by Pan American Silver Corp., subject to the terms and
conditions of its contract with Snowden. That contract permits Pan
American Silver Corp. to file this report as a Technical Report with
Canadian Securities Regulatory Authorities pursuant to provincial
securities legislation. Except for the purposes legislated under
provincial securities law, any other use of this report by any third party
is at that party’s sole risk.
|
Issued by:
Vancouver
Office
Doc Ref:
20100203_V685_FINAL_Pan
American_Navidad_TR.doc
|
Pan American
Silver Corp:
|
1
|
Summary
|
11
|
|
2
|
Introduction
|
19
|
|
3
|
Reliance on
other experts
|
21
|
|
4
|
Property
description and location
|
22
|
|
4.1
|
Land
tenure
|
22
|
|
4.2
|
Agreements
and encumbrances
|
27
|
|
4.3
|
Environmental
liabilities
|
27
|
|
4.4
|
Permits
|
28
|
|
5
|
Accessibility,
climate, local resources, infrastructure, and physiography
|
29
|
|
5.1
|
Accessibility
|
29
|
|
5.2
|
Climate
|
29
|
|
5.3
|
Infrastructure
and local resources
|
29
|
|
5.4
|
Land
access
|
30
|
|
5.5
|
Physiography
|
31
|
|
6
|
History
|
32
|
|
7
|
Geological
setting
|
34
|
|
7.1
|
Regional
geology
|
34
|
|
7.2
|
Local
geology
|
35
|
|
7.2.1
|
Lonco Trapial
and Garamilla formations
|
38
|
|
7.2.2
|
Cañadón
Asfalto Formation
|
38
|
|
7.2.3
|
Depositional
setting
|
38
|
|
7.2.4
|
Structure and
control of mineralisation
|
39
|
|
7.3
|
Property
geology
|
39
|
|
7.3.1
|
Lithology
|
39
|
|
7.3.2
|
Structure and
control of mineralisation
|
43
|
|
8
|
Deposit
types
|
45
|
|
9
|
Mineralisation
|
48
|
|
9.1
|
Calcite
NW
|
49
|
|
9.2
|
Calcite
Hill
|
50
|
|
9.3
|
Navidad
Hill
|
52
|
|
9.4
|
Connector
Zone
|
54
|
|
9.5
|
Galena
Hill
|
57
|
|
9.6
|
Barite
Hill
|
60
|
|
9.7
|
Loma de La
Plata
|
61
|
|
9.8
|
Valle
Esperanza
|
65
|
February 2010 |
Pan American
Silver Corp:
|
9.9
|
Additional
prospects
|
68
|
||
9.9.1
|
Navidad
Trend
|
68
|
||
9.9.2
|
Argenta
Trend
|
68
|
||
10
|
Exploration
|
70
|
||
10.1
|
Exploration
by Normandy Mining in 2002
|
70
|
||
10.2
|
Exploration
by IMA from December 2002 to July 2006
|
70
|
||
10.2.1
|
Geological
mapping and topographical surveys
|
70
|
||
10.2.2
|
Geophysical
exploration
|
70
|
||
10.2.3
|
Geochemical
exploration
|
70
|
||
10.2.4
|
Diamond
drilling
|
71
|
||
10.2.5
|
Other
work
|
71
|
||
10.2.6
|
Mineral
Resource estimates
|
71
|
||
10.3
|
Exploration
by Aquiline from October 2006 to June 2009
|
71
|
||
10.3.1
|
Diamond
drilling
|
72
|
||
10.3.2
|
Geophysical
exploration
|
73
|
||
10.3.3
|
Geochemical
exploration
|
75
|
||
10.3.4
|
Geological
mapping
|
75
|
||
10.3.5
|
Mineral
Resource estimates
|
75
|
||
10.3.6
|
Future
exploration work
|
75
|
||
11
|
Drilling
|
77
|
||
11.1
|
Diamond
drilling methods
|
77
|
||
11.2
|
Drillhole
collar surveys
|
77
|
||
11.3
|
Downhole
surveys
|
77
|
||
11.4
|
Drill
intercepts
|
78
|
||
11.4.1
|
Southern
Argenta Trend (Yanquetru)
|
78
|
||
11.4.2
|
Marcasite
Hill
|
78
|
||
11.4.3
|
Bajo del
Plomo and Filo del Plomo
|
79
|
||
11.4.4
|
Tailings
Dam
|
79
|
||
11.4.5
|
Sector Z and
Valle La Plata
|
79
|
||
12
|
Sampling
method and approach
|
80
|
||
12.1
|
Core
logging
|
80
|
||
12.2
|
Sampling
|
80
|
||
12.3
|
Density
determinations
|
81
|
||
12.4
|
Independent
statement on sampling methods
|
81
|
||
12.5
|
Recommendations
|
81
|
||
13
|
Sample
preparation, analyses, and security
|
82
|
||
13.1
|
Sample
preparation, analyses, and security
|
82
|
||
13.1.1
|
Laboratory
|
82
|
February 2010 | 4 of 249 |
Pan American
Silver Corp:
|
13.1.2
|
Sample
preparation
|
82
|
||
13.1.3
|
Sample
analyses
|
82
|
||
13.1.4
|
Sample
security and chain of custody
|
83
|
||
13.1.5
|
Independent
statement on sample preparation, analyses, and security
|
83
|
||
13.2
|
Quality
control measures
|
83
|
||
13.2.1
|
Certified
standard samples
|
83
|
||
13.2.2
|
Blank
samples
|
89
|
||
13.2.3
|
Duplicate
drill core samples (field duplicates)
|
90
|
||
13.2.4
|
Independent
statement of Navidad quality control samples
|
97
|
||
14
|
Data
verification
|
98
|
||
14.1
|
Field and
laboratory quality control data reviews
|
98
|
||
14.2
|
Snowden
independent site visits
|
99
|
||
14.2.1
|
Independent
review and sampling of mineralised intersections
|
99
|
||
14.2.2
|
Independent
review of drillhole collar locations
|
105
|
||
14.2.3
|
Independent
review of original assay certificates
|
108
|
||
15
|
Adjacent
properties
|
111
|
||
15.1
|
Patagonia
Gold
|
111
|
||
15.2
|
Mina
Angela
|
111
|
||
15.3
|
Flamingo
Prospect
|
112
|
||
16
|
Mineral
processing and metallurgical testing
|
113
|
||
16.1
|
Mineral
processing and metallurgical testing by IMA from 2005 to
2006
|
113
|
||
16.1.1
|
Flotation
test work
|
113
|
||
16.1.2
|
Mineralogy
overview
|
117
|
||
16.1.3
|
Modal
analyses
|
119
|
||
16.1.4
|
Sample
grindability
|
119
|
||
16.2
|
Mineral
processing and metallurgical test work by Aquiline in 2007
|
120
|
||
16.2.1
|
Navidad
Hill
|
120
|
||
16.2.2
|
Barite
Hill
|
122
|
||
16.2.3
|
Loma de La
Plata
|
122
|
||
16.2.4
|
Galena
Hill
|
122
|
||
16.2.5
|
Discussion of
G&T results
|
123
|
||
16.2.6
|
Discussion of
XPS results
|
124
|
||
16.3
|
Mineral
processing and metallurgical test work by Aquiline in 2008
|
125
|
||
16.3.1
|
XPS Phase 1
test work on Loma de La Plata samples
|
129
|
||
16.3.2
|
XPS Phase 2
test work on Loma de La Plata samples
|
130
|
||
16.3.3
|
G&T test
work on Loma de La Plata samples
|
133
|
||
16.3.4
|
G&T test
work on Barite Hill samples
|
136
|
||
16.3.5
|
G&T test
work on Valle Esperanza samples
|
138
|
February 2010 | 5 of 249 |
Pan American
Silver Corp:
|
16.3.6
|
Conclusions
and recommendations
|
140
|
||
17
|
Mineral
Resource and Mineral Reserve estimates
|
141
|
||
17.1
|
Disclosure
|
141
|
||
17.1.1
|
Known issues
that materially affect the Mineral Resources
|
141
|
||
17.2
|
Assumptions,
methods and parameters – 2009 Mineral Resource estimates
|
142
|
||
17.3
|
Supplied
data, data preparation, data transformations, and data
validation
|
142
|
||
17.3.1
|
Supplied
data
|
142
|
||
17.3.2
|
Data
preparation
|
142
|
||
17.3.3
|
Data
transformations
|
144
|
||
17.3.4
|
Data
validation
|
144
|
||
17.4
|
Geological
interpretation, modelling, and domaining
|
144
|
||
17.4.1
|
Geological
interpretation and modelling
|
144
|
||
17.4.2
|
Definition of
grade estimation domains
|
145
|
||
17.5
|
Sample
statistics
|
145
|
||
17.5.1
|
Sample
compositing
|
145
|
||
17.5.2
|
Extreme value
treatment
|
145
|
||
17.5.3
|
Data
declustering
|
146
|
||
17.5.4
|
Input sample
statistics
|
147
|
||
17.6
|
Variography
|
148
|
||
17.6.1
|
Continuity
analysis
|
148
|
||
17.6.2
|
Variogram
modelling
|
148
|
||
17.7
|
Estimation
parameters
|
151
|
||
17.7.1
|
Kriging
parameters
|
151
|
||
17.7.2
|
Block size
selection
|
151
|
||
17.7.3
|
Sample search
parameters
|
151
|
||
17.7.4
|
Block model
set up
|
151
|
||
17.7.5
|
Grade
interpolation and boundary conditions
|
152
|
||
17.8
|
Specific
gravity
|
152
|
||
17.9
|
Estimation
validation
|
154
|
||
17.9.1
|
Domain
statistics and visual validation
|
154
|
||
17.9.2
|
Slice
validation plots
|
155
|
||
17.9.3
|
Comparison
with previous estimates
|
155
|
||
17.10
|
Mineral
Resource classification
|
158
|
||
17.10.1
|
Geological
continuity and understanding
|
158
|
||
17.10.2
|
Data density
and orientation
|
158
|
||
17.10.3
|
Data accuracy
and precision
|
158
|
||
17.10.4
|
Spatial grade
continuity
|
158
|
||
17.10.5
|
Estimation
quality
|
159
|
||
17.10.6
|
Classification
process
|
159
|
February 2010 | 6 of 249 |
Pan American
Silver Corp:
|
17.11
|
Mineral
Resource reporting
|
159
|
|
18
|
Other
relevant data and information
|
163
|
|
19
|
Interpretation
and conclusions
|
164
|
|
20
|
Recommendations
|
167
|
|
21
|
References
|
170
|
|
22
|
Date and
signatures
|
173
|
|
23
|
Certificates
|
174
|
Tables
|
||
Table
1.1
|
Navidad April
2009 Mineral Resources reported above a cut-off grade of
50 g/t AgEQ
|
14
|
Table
2.1
|
Responsibilities
of each co-author
|
20
|
Table
4.1
|
Tenement
details in Chubut Province operated as Minera Argenta S.A.
|
22
|
Table
4.2
|
Tenement
details in Chubut Province held in the name of Minera Aquiline Argentina
S.A.
|
24
|
Table
10.1
|
Diamond
drillholes completed by IMA from 2003 to 2006
|
71
|
Table
10.2
|
Diamond
drillholes completed by Aquiline from 2006 to March 2009
|
72
|
Table
11.1
|
Downhole
survey methods at the Navidad Project
|
78
|
Table
13.1
|
Certified
values of standards
|
84
|
Table
13.2
|
Blank sample
results
|
90
|
Table
14.1
|
Key Aquiline
personnel involved in data verification discussions
|
99
|
Table
14.2
|
Snowden
mineralised drill core intersection review
|
100
|
Table
14.3
|
Snowden
independent samples
|
102
|
Table
14.4
|
Snowden
verification of drill collar coordinates
|
106
|
Table
14.5
|
Snowden
review of original assay certificates
|
108
|
Table
16.1
|
Head grades
of composite drillhole samples used for metallurgical test
work
|
114
|
Table
16.2
|
Summary of
flotation tests
|
115
|
Table
16.3
|
Mineral
composition of composite samples
|
117
|
Table
16.4
|
Summary of
fragmentation characteristics
|
119
|
Table
16.5
|
Bond ball
mill work indices values
|
120
|
Table
16.6
|
Loma de La
Plata geo-metallurgical units
|
129
|
Table
16.7
|
Grades of
sample composites used for variability testing
|
129
|
Table
16.8
|
Cleaner
concentrate grades
|
130
|
February 2010 | 7 of 249 |
Pan American
Silver Corp:
|
Table
16.9
|
Grades of
sample composites used for optimisation test work
|
131
|
Table
16.10
|
Grades and
specific gravity of the sample composites used for variability
testing
|
133
|
Table
16.11
|
Locked cycle
test conditions
|
133
|
Table
16.12
|
Summary of
locked cycle test results
|
134
|
Table
16.13
|
Assay grades
of Test 23 locked cycle concentrate
|
134
|
Table
16.14
|
Gravity and
cyanidation test data results
|
135
|
Table
16.15
|
Grades of
Barite Hill sample composites
|
136
|
Table
16.16
|
Locked cycle
test conditions
|
136
|
Table
16.17
|
Summary of
locked cycle test results
|
137
|
Table
16.18
|
Barite Hill,
Valle Esperanza, and Loma de La Plata concentrate grades
|
138
|
Table
16.19
|
Grades of
Valle Esperanza sample composites
|
138
|
Table
16.20
|
Locked cycle
test conditions
|
139
|
Table
16.21
|
Summary of
locked cycle test results
|
139
|
Table
17.1
|
Number of
drillholes used in the Navidad 2009 Mineral Resource
estimates
|
143
|
Table
17.2
|
Loma de La
Plata estimation domains
|
145
|
Table
17.3
|
Declustered
composite sample input statistics for Ag at Loma de La
Plata
|
147
|
Table
17.4
|
Declustered
composite sample input statistics for Pb at Loma de La
Plata
|
147
|
Table
17.5
|
Declustered
composite sample input statistics for Cu at Loma de La
Plata
|
147
|
Table
17.6
|
95th
decile variogram model parameters for Ag
|
149
|
Table
17.7
|
95th
decile variogram model parameters for Pb
|
149
|
Table
17.8
|
95th
decile variogram model parameters for Cu
|
150
|
Table
17.9
|
Navidad block
model parameters
|
151
|
Table
17.10
|
Navidad block
model densities
|
153
|
Table
17.11
|
Comparison of
estimated and input data Ag grades by domain
|
155
|
Table
17.12
|
Comparison of
estimated and input data Pb grades by domain
|
155
|
Table
17.13
|
Comparison of
estimated and input data Cu grades by domain
|
155
|
Table
17.14
|
Additional
drilling information since the November 2007 Mineral Resource
estimates
|
156
|
Table
17.15
|
Superseded
November 2007 Mineral Resource estimates reported above a 50 g/t Ag
equivalent cut-off (AgEQ = Ag + (Pb*10,000/365))
|
157
|
Table
17.16
|
Navidad April
2009 Mineral Resources reported above a cut-off grade of
50 g/t AgEQ
|
161
|
February 2010 | 8 of 249 |
Pan American
Silver Corp:
|
Figures
|
|
Figure
4.1
|
Plan of
tenements held by Pan American in the province of Chubut
|
26
|
|
Figure
5.1
|
Navidad
surface landholders with status of negotiations or
agreements
|
31
|
|
Figure
7.1
|
Regional
geology plan
|
35
|
|
Figure
7.2
|
Local geology
plan from Andolino (1999)
|
37
|
|
Figure
7.3
|
Property
geology plan
|
40
|
|
Figure
7.4
|
Simplified
Navidad Project stratigraphic column
|
41
|
|
Figure
8.1
|
Schematic
reconstruction of Galena Hill from Sillitoe (2007)
|
47
|
|
Figure
8.2
|
Schematic
reconstruction of Loma de La Plata from Sillitoe (2007)
|
47
|
|
Figure
9.1
|
Plan of
Calcite NW
|
50
|
|
Figure
9.2
|
Plan of
Calcite Hill
|
52
|
|
Figure
9.3
|
Plan of
Navidad Hill
|
54
|
|
Figure
9.4
|
Plan and
cross section of Connector Zone
|
56
|
|
Figure
9.5
|
Plan and
cross section of Galena Hill
|
59
|
|
Figure
9.6
|
Plan of
Barite Hill
|
61
|
|
Figure
9.7
|
Plan and
oblique cross section of Loma de La Plata
|
64
|
|
Figure
9.8
|
Plan and
cross section of Valle Esperanza
|
67
|
|
Figure
10.1
|
Plan of
drillholes completed at the Navidad Project
|
73
|
|
Figure
13.1
|
Low grade
standard GMB01 results
|
85
|
|
Figure
13.2
|
Low grade
standard LGH results
|
86
|
|
Figure
13.3
|
Medium grade
standard MGH results
|
87
|
|
Figure
13.4
|
High grade
standard NHBG01 results
|
88
|
|
Figure
13.5
|
Ag field
duplicate samples analysed by FA-GRAV from 2003 until 2009
|
91
|
|
Figure
13.6
|
Pb field
duplicate samples analysed by ICP-OES from 2003 until 2009
|
93
|
|
Figure
13.7
|
Cu field
duplicate samples analysed by ICP-OES from 2003 until 2009
|
95
|
|
Figure
16.1
|
Location plan
of Navidad Hill and Connector Zone drill collars of samples selected for
metallurgical studies
|
121
|
|
Figure
16.2
|
Location plan
of Calcite Hill and Calcite NW drill collars of samples selected for
metallurgical studies
|
123
|
|
Figure
16.3
|
Location plan
of Loma de La Plata drill collars of samples selected for metallurgical
studies
|
126
|
|
Figure
16.4
|
Location plan
of Barite Hill drill collars of samples selected for metallurgical
studies
|
127
|
February 2010 | 9 of 249 |
Pan American
Silver Corp:
|
Figure
16.5
|
Location plan
of Valle Esperanza drill collars of samples selected for metallurgical
studies
|
128
|
|
Figure
17.1
|
Location map
of drillholes available in the April 2009 Navidad database
|
143
|
|
Figure
17.2
|
Log histogram
of Loma de La Plata undeclustered sample composites in Domain
736
|
146
|
Appendices
|
|
||
A
|
Collar
locations of drillholes available in the Navidad 2009 Mineral Resource
estimates
|
||
B
|
Navidad
estimation domains
|
||
C
|
Log
histograms of input sample composites (undeclustered)
|
||
D
|
Declustered
composite sample input statistics for Ag
|
||
E
|
Declustered
composite sample input statistics for Pb
|
||
F
|
Comparison of
estimated and input data Ag grades by domain
|
||
G
|
Comparison of
estimated and input data Pb grades by domain
|
||
H
|
Navidad 2009
Mineral Resource estimates above a 50 g/t AgEQ cut-off using a $10 per oz
Ag and $0.70 per lb Pb price
|
||
I
|
Navidad 2009
Mineral Resource estimates above a 1 oz Ag cut-off
|
||
J
|
Navidad 2009
Mineral Resource estimates above a 50 g/t Ag cut-off
|
||
K
|
Grade tonnage
curves for the Navidad April 2009 Mineral Resource estimates above a range
of Ag equivalent cut-off grades
|
February 2010 | 10 of 249 |
Pan American
Silver Corp:
|
1
|
Summary
|
This Technical Report
refers to the Navidad Project, an advanced stage silver-lead mineral
exploration project located in Chubut Province, Argentina, owned by Pan
American Silver Corp. (Pan American) through its subsidiary Aquiline
Resources Inc. (Aquiline), who in turn conduct business in Argentina
through its subsidiaries Minera Aquiline Argentina S.A. (Minera Aquiline),
and Minera Argenta S. A.. Pan American is a silver mining company based in
Canada and listed on the Toronto Stock Exchange (TSX:PAA) and on NASDAQ
(PAAS).
The Supreme Court of
British Columbia awarded ownership of the Navidad Project to Minera
Aquiline on 14 July 2006 following a court case with IMA Exploration Inc.
(IMA) where IMA was found to have breached a Confidentiality Agreement
with Minera Normandy Argentina S.A. (Minera Normandy), then a subsidiary
of Newmont Mining Corporation. Minera Normandy was subsequently acquired
by Aquiline and its name was changed to Minera Aquiline. IMA appealed the
trial court decision to the Appeal Court of British Columbia which denied
the appeal in reasons for judgment dated 7 June 2007. In
September 2007 IMA submitted an
Application for Leave to Appeal to the Supreme Court of Canada. Sole
ownership rights were granted to Aquiline by the Supreme Court of Canada
on 20 December 2007, subject to Aquiline making payment to IMA which would
reimburse the latter for its accrued exploration expenditures up to the
July 2006 court decision. Aquiline’s final payment to IMA was made on
8 February 2008 giving Aquiline full ownership of the
Project.
On 14
October 2009, Pan American announced a friendly offer to acquire all of
the issued and outstanding securities of Aquiline. On 7 December 2009, Pan
American acquired approximately 85% of the issued and outstanding shares
of Aquiline and extended its bid to 22 December 2009, and on that latter
date, Pan American took up an additional approximately 7% of the issued
and outstanding shares in the capital of Aquiline. Since the offer to
acquire the Aquiline shares was accepted by holders of more than 90% of
the Aquiline shares, on 23 December 2009, Pan American provided notice to
the remaining shareholders of its intention to exercise its right to
acquire the remaining issued and outstanding Aquiline shares pursuant to
the compulsory acquisition provisions of the Business Corporation Act
(Ontario). Pan American was deemed to have acquired the balance of the
Aquiline shares not already owned by it pursuant to the compulsory
acquisition on or about 22 January 2010.
As a
result of its acquisition of Aquiline, Pan American is required to file a
technical report on the Navidad Project pursuant to NI 43-101. This
Technical Report is prepared to fulfil this requirement and is based on
information disclosed in the Technical Report filed on SEDAR by Aquiline
on 2 June 2009, and dated May 2009, amended June 2009 (Snowden, 2009).
There are no other material changes to the Navidad Project to report aside
from the acquisition of Aquiline by Pan American.
The June
2009 Technical Report (Snowden, 2009) disclosed recently updated Mineral
Resources at the Calcite NW, Calcite Hill, Navidad Hill, Connector Zone,
Galena Hill, Barite Hill, and Loma de La Plata, and disclosed the first
Mineral Resource for Valle Esperanza at the Navidad Project. The amended
report dated June 2009 included the assay results of independent samples
selected by Snowden in April 2009, which were not available at the time of
the original filing on SEDAR in May, 2009.
Mineral Resource estimates
were reported at the Navidad Property (Table 1.1) effective April 2009.
Tonnes and grades were reported above a cut-off grade of 50 g/t silver
|
February 2010 | 11 of 249 |
Pan American
Silver Corp:
|
equivalent. To date, no
analysis has been made to determine the economic cut-off grade that will
ultimately be applied to the whole Navidad Project. Silver equivalence was
calculated using three year rolling average prices for silver ($12.52 per
oz) and an approximate ten year rolling average price for lead ($0.50 per
lb). The following formula, which does not include any other factors such
as variable metal recoveries, was applied to reach the silver equivalent
value: AgEQ(g/t) = Ag(g/t) + (Pb(%) ×
10,000/365).
The
deposit areas at Navidad occur within a sedimentary package known as the
Cañadón Asfalto Formation hosting an intermediate volcanic rock identified
as trachyandesite, referred to locally as latite. Lithologies described
as the Cañadón Asfalto may occur both above and below intercalated bodies
of latite. The entire sequence is interpreted to have been deposited
within a lacustrine basin environment.
A group of
eight individual deposits and six prospects have been identified at the
project and seven of these have been the subject of previous Mineral
Resource estimates (Snowden 2006a, Snowden 2006b, and Snowden, 2007). All
of these deposits are either hosted in the latite unit itself or in the
sedimentary sequence proximal to the latite. Base metals, principally lead
and to a lesser extent copper, are typically present but are largely not
significant in quantity except at Galena Hill. There has been virtually no
gold detected to date.
Since the
filing of the November 2007 Technical Report, additional geochemical and
geophysical surveys plus 367 diamond drillholes totalling 92,540 m have
been done on the Project. The geophysical surveys over the core area of
the property have included gravity, deep-array pole-dipole IP, CSAMT, and
a high definition ground magnetometer survey. At Navidad only the latter
technique has shown some continued promise as an exploration guide through
the interpretation of the detailed structural setting in the
district.
The
drilling programme continued to yield significant results during the past
18 months, and of particular significance is the discovery of the Valle
Esperanza deposit which in this estimate contains in the Indicated
category 12.2 Mt at a grade of 172 g/t Ag, above a cut-off grade of 50 g/t
AgEQ. In the Inferred category, the deposit contains 10.8 Mt at a grade of
123 g/t Ag above the same cut-off grade. The grade, geometry, and depth of
this deposit are such that underground mining is a potential
option.
Early
metallurgical testing of Galena Hill has proved that differential
flotation was effective in producing a lead concentrate and silver-rich
concentrate, although it was recommended significant work was required to
increase overall silver recovery and improve the quality of the
concentrate for sale. Subsequent analysis of the pyrite concentrate
mineralogy (XPS, 2007) identified the potential to upgrade the concentrate
by inserting cleaning and entrainment controls into the circuit such as
froth washing and column flotation, that improve concentrate grades by a
factor of 2.5.
Initial
metallurgical testing of Loma de La Plata proved highly successful
especially as recovery of silver exceeded 80% and the concentrate was high
in silver (around 50 kg/t Ag), but low in lead with a combined
base metal (copper plus lead) content of 15% to 25%. Subsequent efforts
were directed at testing the variability of the deposit in support of a
Preliminary Economic Assessment of Loma de La Plata only. The test work at
both G&T and XPS concluded that Loma de La Plata ore responds well to
flotation, with high recoveries and concentrate grades. A simple crushing,
grinding, and single product flotation concentrator was proposed for the
PEA, and the concentrate sold to an offshore copper smelter with minor
penalties for lead.
|
February 2010 | 12 of 249 |
Pan American
Silver Corp:
|
With the
discovery of Valle Esperanza and its similarity in mineralisation style to
Loma de La Plata, metallurgical testing was expanded to incorporate
deposits likely to produce a high-value silver concentrate with low lead
content. Testing of Valle Esperanza and Barite Hill samples yielded
satisfactory results, and as with Loma de La Plata, silver recoveries of
80% or better appear likely. The concentrate grades from Valle Esperanza
are particularly high (over 50 kg/t Ag to 60 kg/t Ag), while those from
Barite Hill are also satisfactory containing 20 kg/t Ag to 25 kg/t Ag.
However, the individual concentrates contain high levels of penalty
elements such as arsenic and antimony. Mr. Wells believes that Loma de La
Plata, Barite Hill, and Valle Esperanza can all be treated in the same,
simple, one-product concentrator.
The
testing of Loma de La Plata is likely to be sufficient to support a
Feasibility Study. A large quantity of core has been kept in sealed bags
and is sufficient for a pilot plant test should this be considered
necessary.
The Preliminary Economic
Assessment of Loma de La Plata (Snowden, 2008), concluded the development
of Loma de La Plata would deliver a pre-tax NPV at 7.5% of US$135.6
million, and internal rate of return (IRR) of 22%, and a 25 month payback
period.
|
February 2010 | 13 of 249 |
Pan
American Silver Corp:
|
Table
1.1
|
Navidad
April 2009 Mineral Resources reported above a cut-off grade of
50 g/t AgEQ
|
Deposit
|
Classification
|
Tonnes
(Mt) |
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Calcite
Hill NW
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
14.8
|
94
|
78
|
0.59
|
-
|
37
|
194
|
-
|
|
Meas.
+ Ind.
|
14.8
|
94
|
78
|
0.59
|
-
|
37
|
194
|
-
|
|
Inferred
|
14.6
|
74
|
52
|
0.82
|
-
|
24
|
265
|
-
|
|
Calcite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
17.5
|
115
|
100
|
0.55
|
-
|
56
|
212
|
-
|
|
Meas.
+ Ind.
|
17.5
|
115
|
100
|
0.55
|
-
|
56
|
212
|
-
|
|
Inferred
|
4.9
|
106
|
96
|
0.36
|
-
|
15
|
39
|
-
|
|
Navidad
Hill
|
Measured
|
8.4
|
122
|
109
|
0.46
|
-
|
29
|
85
|
-
|
Indicated
|
5.6
|
96
|
90
|
0.24
|
-
|
16
|
29
|
-
|
|
Meas.
+ Ind.
|
14
|
112
|
101
|
0.37
|
-
|
45
|
114
|
-
|
|
Inferred
|
1.8
|
81
|
70
|
0.41
|
-
|
4
|
16
|
-
|
|
Connector
Zone
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
8.2
|
102
|
91
|
0.41
|
-
|
24
|
74
|
-
|
|
Meas.
+ Ind.
|
8.2
|
102
|
91
|
0.41
|
-
|
24
|
74
|
-
|
|
Inferred
|
9.9
|
88
|
74
|
0.49
|
-
|
24
|
107
|
-
|
|
Galena
Hill
|
Measured
|
7
|
242
|
170
|
2.62
|
-
|
38
|
404
|
-
|
Indicated
|
44.7
|
166
|
117
|
1.78
|
-
|
168
|
1,754
|
-
|
|
Meas.
+ Ind.
|
51.7
|
176
|
124
|
1.89
|
-
|
206
|
2,158
|
-
|
|
Inferred
|
1.7
|
116
|
80
|
1.35
|
-
|
4
|
50
|
-
|
February 2010 | 14 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt) |
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Barite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
7.7
|
161
|
153
|
0.28
|
-
|
38
|
48
|
-
|
|
Meas.
+ Ind.
|
7.7
|
161
|
153
|
0.28
|
-
|
38
|
48
|
-
|
|
Inferred
|
0.9
|
100
|
81
|
0.69
|
-
|
2
|
13
|
-
|
|
Loma
de La Plata
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
29.1
|
172
|
169
|
0.09
|
0.05
|
158
|
58
|
33
|
|
Meas.
+ Ind.
|
29.1
|
172
|
169
|
0.09
|
0.05
|
158
|
58
|
33
|
|
Inferred
|
1.3
|
82
|
76
|
0.21
|
0.05
|
3
|
6
|
1
|
|
Valle
Esperanza
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
12.2
|
178
|
172
|
0.21
|
-
|
68
|
56
|
-
|
|
Meas.
+ Ind.
|
12.2
|
178
|
172
|
0.21
|
-
|
68
|
56
|
-
|
|
Inferred
|
10.8
|
133
|
123
|
0.35
|
-
|
43
|
84
|
-
|
|
Total
|
Measured
|
15.4
|
177
|
137
|
1.44
|
0
|
67
|
489
|
0
|
Indicated
|
139.8
|
147
|
126
|
0.79
|
0.05
|
565
|
2,425
|
33
|
|
Meas.
+ Ind.
|
155.2
|
150
|
127
|
0.85
|
0.05
|
632
|
2,914
|
33
|
|
Inferred
|
45.9
|
97
|
81
|
0.57
|
0.05
|
119
|
580
|
1
|
|
Notes:
The
most likely cut-off grade for these deposits is not known at this time and
must be confirmed by the appropriate economic studies.
Silver
equivalent grade values are calculated without consideration of variable
metal recoveries for silver and lead. A silver price of US$12.52/oz and
lead price of US$0.50/lb was used to derive an equivalence formula of AgEQ
g/t = Ag g/t + (Pb% × 10,000 / 365). Silver prices are based on a
three-year rolling average and lead prices are based on an approximate
ten-year rolling average.
The
estimated metal content does not include any consideration of mining,
mineral processing, or metallurgical recoveries.
Tonnes,
ounces, and pounds have been rounded and this may have resulted in minor
discrepancies in the totals.
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves have been estimated.
The
estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
|
February 2010 | 15 of 249 |
Pan American
Silver Corp:
|
Measured
and Indicated Mineral Resources silver ounces have increased by 40% since
the November 2007 Mineral Resource estimate. This increase is mainly
contributed by the upgrade of Inferred resources to Indicated resources,
defined during infill drilling at Loma de La Plata. Valle Esperanza is now
estimated to contain the largest Inferred resource of the
Project. With additional infill drilling on 50 m sections at
Valle Esperanza, the conversion rate of Inferred resources to Indicated
resources is anticipated to be as high as that experienced at the other
deposits at the Project.
No
Mineral Reserves have been estimated at this time. Additional studies will
be required to determine technical, economic, legal, environmental,
socio-economic, and governmental factors. These modifying factors are
normally included in a mining feasibility study and are a pre-requisite
for conversion of Mineral Resources to, and reporting of, Mineral
Reserves. The CIM Standards (CIM, 2005) describe completion of a
Preliminary Feasibility Study as the minimum prerequisite for the
conversion of Mineral Resources to Mineral Reserves.
The
following recommendations are made for the further advancement of the
Project:
|
|
·
|
Continue
metallurgical definition of the deposits with particular emphasis on
Galena Hill, which hosts 30% of the Indicated Resource silver ounces as
well as 2,158 Mlb of lead in the Measured and Indicated
categories.
|
|
·
|
Using
the Loma de La Plata Preliminary Economic Assessment study as a model,
develop an expanded model to include Valle Esperanza and Barite Hill as
sources of high-grade silver concentrates with relatively low base metal
content.
|
|
·
|
Develop
a global Preliminary Economic Assessment that takes all deposits into
consideration with emphasis on an optimum extended mine
life.
|
|
·
|
Continue
selective exploration of the best targets in the core project area that
have Loma de La Plata or Valle Esperanza type potential. The continued
exploration in the extended Valle Esperanza Valley is one of the highest
priority areas.
|
|
·
|
Continue
to evaluate and prioritise the various mining concessions that Pan
American controls along the Gastre Fault structural
trend.
|
|
·
|
Continue
to advance the Navidad environmental base line studies in anticipation of
an eventual filing of the appropriate environmental impact statement
(EIS). In the short term Pan American plans to engage an
international-level consultant to conduct a baseline review and plan the
outstanding baseline work to complete the environmental impact assessment
(EIA) for the proposed mine. This consultant would conduct an independent
evaluation and consult with the Chubut Provincial authorities. The
consultant would then assist with baseline studies and ultimately be
responsible for preparation of the mine
EIA.
|
|
·
|
Pan
American should continue and increase efforts to explain and present the
Navidad Project to the authorities in the Chubut Provincial government,
especially stressing the benefits in employment, infrastructure, and tax
revenue that would accrue to the community if the authorities were to
rescind legislation that currently prohibits open pit
mining.
|
Pan American should continue to implement their proposed continuous improvement practices on diamond drilling, QAQC, sampling, density determinations, and resource modelling aspects at the Project, including: |
February 2010 | 16 of 249 |
Pan American
Silver Corp:
|
|
·
|
Survey
all drillholes regardless of their orientation, with the first measurement
taken at the collar of the drillhole, to ensure that the spatial location
of mineralisation is well defined.
|
|
·
|
Continue
to refine the effectiveness of the QAQC database through more accurate
documentation of the QAQC sample type and the analytical method, and by
following the recommendations made by Smee (2008); these recommendations
are being implemented.
|
|
·
|
Determine
the density of drill core prior to splitting with a diamond saw to reduce
the error in the calculation introduced by a small sample size. Samples
should be coated with a material such as wax or varnish to prevent water
retention in the sample from influencing the calculated specific gravity
value. Samples should be selected according to a representative suite of
lithologies, mineralisation, and alteration types, through spatially
representative locations throughout the area covered by drilling. The
representativity can be confirmed by consulting the number of
density determinations tabulated by grade estimation domain for each
deposit in Table 17.10, and increasing the number of density samples in
domains with low sample numbers relative to the number of sample assays in
the domain. Spatial representativity can be confirmed by plotting the
location of specific gravity samples on the drillhole trace in plan and in
section.
|
|
·
|
Further
refine the geological interpretation to incorporate all available
geological information, including surface mapping (including the position
of outcropping mineralisation), geophysical information, structural
information, and core logging detail in digital, three dimensional
format.
|
|
·
|
Continue
the modelling of fault interpretations for use in future resource
estimations.
|
|
·
|
Undertake
a study of the differences between the oxide and sulphide zones for
modelling in future resource
estimations.
|
Snowden
further recommends that Pan American undertake a drillhole spacing study
at Loma de La Plata using conditional simulation to quantify the optimal
drillhole spacing required to achieve a range of estimation qualities.
Some close-spaced drilling should be performed in a representative
mineralised domain to characterise the short-range behaviour of the
mineralisation. Aquiline has already drilled 23 holes at Loma de La Plata
in anticipation of such a drillhole spacing study. The outcome of this
approach would be an understanding of the degree of grade estimation error
associated with particular volumes of mineralisation for a range of
drillhole spacing patterns. The grade estimation error and other important
aspects of the project data, described in Section 17.10, are considered
while assigning Mineral Resource confidence categories.
Pan
American plans to proceed to an expanded Preliminary Economic Assessment
(PEA) of the Navidad Project, using the Loma de La Plata PEA study
published in October 2008 as a basis (Snowden, 2008), focussing on
deposits that are likely to produce a high-value silver concentrate with
low lead content and maximise the operational mine life. The study will
utilise the updated resource models produced as part of this report, in
addition to the metallurgical testing of Valle Esperanza and Barite Hill.
A more detailed evaluation of the market for silver/copper concentrates is
also required. In addition to examining open pit mining methods, those
deposits with likely
|
February 2010 | 17 of 249 |
Pan American
Silver Corp:
|
high
strip ratio cutbacks such as Valle Esperanza, Loma de La Plata, and Barite
Hill will be evaluated for extraction by underground methods.
More
test work with fresh core samples is essential to take Barite Hill and
Valle Esperanza to Feasibility Study level to enable Bond Mill work
indices to be determined, further tailings settling tests and potential
penalty elements including arsenic and antimony.
Further
studies of Galena Hill will focus on developing a programme to test the
metallurgical variability of the deposit including initial modelling of
the geo-metallurgical domains and designing the drill programme for fresh
samples. The design of the metallurgical test programme should incorporate
opportunities for improving concentrate quality already
identified.
Continued
exploration in the company’s land package in the Navidad district will be
directed towards additional Jurassic-age basins in the Gastre structural
corridor with Cañadón Asfalto lithologies. Geochemical sampling techniques
should be effective tools to efficiently explore these basins. The
distribution of associated potassic-style alteration such as adularia
within the regional basins may be detected through the interpretation of
the 2008 airborne radiometric survey.
Approximately
US$500,000 was expended per month in Argentina on the exploration
programme and related activities for the Navidad Property in 2009. Pan
American will continue exploration drilling on several open or new targets
along the mineralised trends. Infill drilling is planned for Loma de la
Plata, Valle Esperanza, Barite Hill, and Galena Hill during 2010. These
drillholes will also provide new samples for metallurgical analysis.
Additional condemnation and geotechnical drilling is planned for potential
future infrastructure sites.
|
February 2010 | 18 of 249 |
Pan American
Silver Corp:
|
2
|
Introduction
|
This
Technical Report has been prepared by Snowden Mining Industry Consultants
Inc. (Snowden) for Pan American Silver Corp. (Pan American), in compliance
with the disclosure requirements of Canadian National Instrument 43-101
(NI 43-101), to disclose relevant information about the Navidad
Project. This information has resulted from the acquisition of
Aquiline Resources Inc. (Aquiline) by Pan American. On 14 October 2009,
Pan American announced a friendly offer to acquire all of the issued and
outstanding securities of Aquiline. On 7 December 2009, Pan American
acquired approximately 85% of the issued and outstanding shares of
Aquiline and extended its bid to 22 December 2009, and on that latter
date, Pan American took up an additional approximately 7% of the issued
and outstanding shares in the capital of Aquiline. Since the offer to
acquire the Aquiline shares was accepted by holders of more than 90% of
the Aquiline shares, on 23 December 2009, Pan American provided notice to
the remaining shareholders of its intention to exercise its right to
acquire the remaining issued and outstanding Aquiline shares pursuant to
the compulsory acquisition provisions of the Business Corporation Act
(Ontario). Pursuant to the compulsory acquisition, Pan American has been
deemed to have acquired the balance of the Aquiline shares not already
owned by it on or about 22 January 2010.
As
a result of its acquisition of Aquiline, Pan American is required to file
a technical report on the Navidad Project pursuant to NI 43-101. This
Technical Report is prepared to fulfil this requirement and is based on
information disclosed in the Technical Report filed on SEDAR by Aquiline
on 2 June 2009, and dated May 2009, amended June 2009 (Snowden, 2009).
There are no other material changes to the Navidad Project to report aside
from the acquisition of Aquiline by Pan American.
The
June 2009 Technical Report (Snowden, 2009) was prepared to disclose
information from additional Mineral Resource delineation drilling, Mineral
Resource estimations, exploration drilling, and metallurgical test work
completed since the previous Technical Reports (Snowden 2006a, Snowden
2006b, and Snowden, 2007). The June 2009 Technical Report was intended to
disclose recently updated Mineral Resources at the Calcite NW, Calcite
Hill, Navidad Hill, Connector Zone, Galena Hill, Barite Hill, Loma de La
Plata, and Valle Esperanza deposits at the Navidad Project. The amended
report dated June 2009 included the assay results of independent samples
selected by Snowden in April 2009, which were not available at the time of
the original filing on SEDAR in May, 2009.
The
Supreme Court of British Columbia awarded ownership of the Navidad Project
to Minera Aquiline on 14 July 2006 following a court case with IMA
Exploration Inc. (IMA) where IMA was found to have breached a
Confidentiality Agreement with Minera Normandy Argentina S.A. (Minera
Normandy), then a subsidiary of Newmont Mining Corporation. Minera
Normandy was subsequently acquired by Aquiline and its name was changed to
Minera Aquiline. IMA appealed the trial court decision to the Appeal Court
of British Columbia which denied the appeal in reasons for judgment dated
7 June 2007. In September 2007 IMA submitted an Application for Leave to Appeal to the Supreme
Court of Canada. Sole ownership rights were granted to Aquiline by the
Supreme Court of Canada on 20 December 2007, subject to Aquiline making
payment to IMA which would reimburse the latter for its accrued
exploration expenditures up to the July 2006 court decision. Aquiline’s
final payment to IMA was made on 8 February 2008 giving Aquiline full
ownership of the Project.
|
February 2010 | 19 of 249 |
Pan American
Silver Corp:
|
Pan
American is a silver mining company based in Canada and listed on the
Toronto Stock Exchange (TSX:PAA) and NASDAQ (PAAS).
Unless
otherwise stated, information and data contained in this report or used in
its preparation has been provided by Aquiline and Pan American. This
Technical Report has been compiled from sources cited in the text by Ms.
Pamela De Mark, P. Geo., Senior Consultant at Snowden, and under the
supervision of Snowden by Mr. John J. Chulick, formerly Vice President of
Exploration at Aquiline, Mr. Dean K. Williams, formerly Chief
Geologist at Aquiline, Mr. Damian Spring, Chief Mining Engineer at
Aquiline, and by John A. Wells, consultant metallurgist.
Ms. De Mark, Mr. Chulick, Mr. Williams, Mr. Spring, and
Mr. Wells are Qualified Persons as defined by NI 43-101.
Ms. De Mark visited the Navidad Project site in September 2007
and in April 2009. The responsibilities of each author are
provided in Table 2.1.
This
report is intended to be used by Pan American subject to the terms and
conditions of its contract with Snowden. That contract permits filing this
report as a Technical Report with Canadian Securities Regulatory
Authorities pursuant to provincial securities legislation. Except for the
purposes legislated under provincial securities laws any other use of this
report by any third party is at that party’s sole risk.
Reliance
on the report may only be assessed and placed after due consideration of
Snowden’s scope of work, as described herein. This report is intended to
be read as a whole, and sections or parts thereof should therefore not be
read or relied upon out of context. Any results or findings presented in
this study, whether in full or excerpted, may not be reproduced or
distributed in any form without Snowden’s written
authorisation.
|
Table
2.1
|
Responsibilities
of each co-author
|
Author
|
Responsible
for section/s
|
|
Dean
K. Williams
|
7:
Geological setting; 8: Deposit types
|
|
John
J. Chulick
|
4:
Property description and location; 6: History; 9: Mineralisation; 10:
Exploration; 11: Drilling; 12: Sampling method and approach; 13: Sample
preparation, analyses, and security; 15: Adjacent
properties
|
|
John
A. Wells
|
16:
Mineral processing and metallurgical testing
|
|
Damian
Spring
|
18:
Other relevant data and information
|
|
Pamela
De Mark
|
All
other sections
|
Unless
otherwise stated, all currencies are expressed in US dollars ($).
Coordinates for the Navidad Project grid, including drill coordinates
referred to in this Technical Report are in the Gauss Kruger projection,
Zone 2, relative to the Campo Inchauspe datum. Mining claims are
registered using the Gauss Kruger projection, Zone 2, relative to the WGS
84 datum.
|
February 2010 | 20 of 249 |
Pan American
Silver Corp:
|
3
|
Reliance
on other experts
|
There
has been no reliance on experts who are not Qualified Persons in the
preparation of this report except for information cited in Section 15
regarding Adjacent Properties, where unverified information has been
obtained from the company website of Patagonia Gold Plc. at
www.patagoniagold.com.
|
February 2010 | 21 of 249 |
Pan American
Silver Corp:
|
4
|
Property
description and location
|
Information
in this section has been sourced from Snowden (2009).
The
Navidad Project is located in Gastre Department in the Province of Chubut,
southern Argentina, at approximately 42°24′54″S and
68°49′12″W.
|
4.1
|
Land
tenure
|
|
The
Navidad Property is divided into four property claims (registration
numbers 14340/04, 14341/04, 14902/06, and 14903/06), each of which is
2,500 ha in area. Additional Aquiline Property claims held or applied for
in the name of Minera Argenta S. A. and Minera Aquiline Argentina S.A. in
Chubut Province are shown in Table 4.1 and Table 4.2. A plan of the
tenements held by Pan American in Chubut Province is shown in Figure
4.1.
In
Argentina, exploration concessions are not physically surveyed or staked
in the field, but are electronically filed using the Gauss Kruger
coordinate system, zone (faja) 2, relative to the WGS 84 datum. There are
three levels of mineral rights (which do not include surface
rights):
|
·
|
Cateo
– an exploration permit granting any mineral discoveries on the cateo to
the applicant. Cateos are measured in units of 500 ha, with a minimum of
one unit (500 ha) and a maximum of 20 units (10,000 ha) granted to
any holder. Cateo units must be reduced over time relative to the number
of units held; the maximum duration for any granted cateo is three years.
The holder may conduct prospecting, mapping, sampling, and geophysical
surveys, and drilling and trenching after notifying the mining office of
the exploration plan.
|
·
|
Manifestacion
de Descubrimiento (MD) – once mineralisation is discovered on a cateo, the
cateo lease expires and the permit is upgraded to a manifestacion. The
maximum area of a manifestacion is 7,000 ha. A basic environmental impact
assessment, a physical survey, and boundary markers are required at this
stage.
|
·
|
Pertenencia
– a lease allowing mining. A physical survey and boundary markers are
required.
|
Snowden
has not reviewed the land tenure situation and has not independently
verified the legal status or ownership of the properties or any agreements
that pertain to the Navidad Project. Land tenure aspects have been
provided by Aquiline; Snowden has reviewed the information and believes it
is reliable.
|
Table
4.1
|
Tenement
details in Chubut Province operated as Minera Argenta
S.A.
|
Registration
number
|
Property
name
|
Area(
ha)
|
Tenement
type*
|
Property
status*
|
|
14340/04
|
Navidad
Este
|
2,500
|
MD
|
GMD;
LL & MC IP
|
|
14341/04
|
Navidad
Oeste
|
2,500
|
MD
|
GMD;
LL & MC IP
|
|
14352/04
|
Pampa
1
|
2,975
|
MD
|
GMD;
LL & MC IP
|
February 2010 | 22 of 249 |
Pan American
Silver Corp:
|
Registration
number
|
Property
name
|
Area(
ha)
|
Tenement
type*
|
Property
status*
|
14367/04
|
Colonia
Este
|
1,596
|
MD
|
GMD;
LL & MC IP
|
|
14368/04
|
Colonia
Oeste
|
2,990
|
MD
|
GMD;
LL & MC IP
|
|
14369/04
|
Sierra
|
3,469
|
MD
|
IP
|
|
14370/04
|
Sierra
1
|
2,856
|
MD
|
GMD
|
|
14446/05
|
Pampa
III
|
2,500
|
MD
|
GMD;
LL & MC IP
|
|
14731/05
|
Sierra
Cacique II
|
3,025
|
MD
|
GMD;
LL & MC IP
|
|
14732/05
|
Sierra
Cacique I
|
3,025
|
MD
|
GMD;
LL & MC IP
|
|
14742/05
|
Carlota
1
|
3,481
|
MD
|
IP
|
|
14830/06
|
Sierra
Cacique III
|
3,484
|
MD
|
IP
|
|
14831/06
|
Sierra
Oeste
|
3,105
|
MD
|
IP
|
|
14832/06
|
Colonia
Este 1
|
1,622
|
MD
|
GMD
|
|
14833/06
|
Colonia
Este 2
|
1,596
|
MD
|
IP
|
|
14834/06
|
Sierra
Sur 1
|
2,840
|
MD
|
IP
|
|
14902/06
|
Navidad
Este 1
|
2,500
|
MD
|
GMD;
LL & MC IP
|
|
14903/06
|
Navidad
Oeste 1
|
2,500
|
MD
|
GMD;
LL & MC IP
|
|
15302/07
|
Trucha
A
|
2,926
|
MD
|
IP
|
|
15303/07
|
Alamo
A
|
2,990
|
MD
|
IP
|
|
15304/07
|
Mara
A
|
2,486
|
MD
|
IP
|
|
15305/07
|
Mara
B
|
2,486
|
MD
|
IP
|
|
15306/07
|
Condor
C
|
2,024
|
MD
|
IP
|
|
15307/07
|
Condor
D
|
1,957
|
MD
|
IP
|
|
15323/07
|
Trucha
B
|
3,001
|
MD
|
IP
|
|
15426/08
|
Alamo
B
|
4,752
|
MD
|
IP
|
|
15439/08
|
Mara
C
|
2,486
|
MD
|
IP
|
|
15455/08
|
Puente
1
|
2,499
|
MD
|
IP
|
|
15456/08
|
Puente
2
|
2,499
|
MD
|
IP
|
|
15488/08
|
Carlota
3
|
3,448
|
MD
|
IP
|
|
15493/08
|
Nina
3
|
3,448
|
MD
|
IP
|
|
15525/08
|
Noelita
|
9,405
|
MD
|
IP
|
|
15528/08
|
Julie
|
3,577
|
MD
|
IP
|
|
15529/08
|
Navidad
3
|
2,968
|
MD
|
IP
|
|
15530/08
|
Navidad
II Oeste
|
2,748
|
MD
|
IP
|
|
15531/08
|
Navidad
II Este
|
2,365
|
MD
|
IP
|
|
15532/08
|
Puente
3
|
6,624
|
MD
|
IP
|
February 2010 | 23 of 249 |
Pan American
Silver Corp:
|
Registration
number
|
Property
name
|
Area(
ha)
|
Tenement
type*
|
Property
status*
|
15545/09
|
Navidad
4
|
7,000
|
MD
|
IP
|
|
15550/09
|
Nuevo
Condor
|
4,800
|
MD
|
GMD
|
|
15555/09
|
Los
Loros
|
8,470
|
CA
|
IP
|
|
*Tenement
type codes:
CA
= Cateo, exploration permit
MD
= Discovery claim (Manifestacion de Descubrimiento), advanced exploration
permit
*Property
status codes:
IP
= In progress. Application submitted
LL
= Labour legal, the legal declaration of work that proves existence of
mineralisation. Initial process prior to sub-division into mining
claims
GMD
= Granted discovery claim (Manifestacion de Descubrimiento)
MC
= Mining claims (Pertenencias)
JV
= Joint venture
|
Table
4.2
|
Tenement
details in Chubut Province held in the name of Minera Aquiline Argentina
S.A.
|
Registration
number
|
Property
name
|
Area(
ha)
|
Tenement
type*
|
Property
status*
|
14170/03
|
Calquitas
1
|
5,165
|
MD
|
GMD;
LL & MC IP
|
|
14171/03
|
Calquitas
2
|
5,150
|
MD
|
GMD;
LL & MC IP
|
|
14728/05
|
Calquitas
3
|
6,472
|
MD
|
GMD
|
|
14729/05
|
Calquitas
4
|
4,111
|
MD
|
IP
|
|
15527/08
|
Flamingo
|
5,635
|
MD
|
IP
|
|
14195/04
|
Regalo
II
|
10,000
|
CA
|
JV
|
|
14399/04
|
Regalo
III
|
7,670
|
CA
|
JV
|
|
14616/05
|
Regalito
1
|
2,500
|
MD
|
JV
|
|
14617/05
|
Regalito
2
|
2,500
|
MD
|
JV
|
|
14642/05
|
Regalo
IV
|
2,350
|
CA
|
JV
|
|
14643/05
|
Regalo
V
|
4,000
|
CA
|
JV
|
|
14644/05
|
Regalo
VI
|
4,200
|
CA
|
JV
|
|
15053/06
|
Regalito
3
|
2,500
|
MD
|
JV
|
|
15054/06
|
Regalito
4
|
2,500
|
MD
|
JV
|
|
*Tenement
Type codes:
CA
= Cateo, exploration permit
MD
= Discovery claim (Manifestacion de Descubrimiento), advanced exploration
permit
*Property
status codes:
IP
= In progress. Application submitted
LL
= Labor legal, the legal declaration of work that proves existence of
mineralisation. Initial process prior to sub-division into mining
claims
GMD
= Granted discovery claim (Manifestacion de
Descubrimiento)
|
February 2010 | 24 of 249 |
Pan American
Silver Corp:
|
Registration
number
|
Property
name
|
Area(
ha)
|
Tenement
type*
|
Property
status*
|
MC
= Mining claims (Pertenencias)
JV
= Joint venture
|
February 2010 | 25 of 249 |
Pan American
Silver Corp:
|
Figure
4.1
|
Plan
of tenements held by Pan American in the province of
Chubut
|
February 2010 | 26 of 249 |
Pan American
Silver Corp:
|
4.2 Agreements
and encumbrances
|
||||
Silverstone
Resources has rights to 12.5% of the eventual silver produced at Loma de
La Plata under a “silver stream” agreement. Pan American has represented
that Navidad is not subject to any other royalties, back-in rights,
payments, agreements, or encumbrances.
|
||||
In
2006 the government of Chubut Province decreed a three year moratorium on
all mining activities, including exploration, in the western part of the
Province. This moratorium is due to expire on 29 June
2009, and the government of Chubut has publicly declared that it intends
to extend the moratorium for another three years. The government asserts
this is to enable the completion of a province-wide map of the mineral
potential. The Navidad Property lies outside of and to the east of these
“no-mining” zones. The government of Chubut Province has also decreed a
Province-wide ban on the use of cyanide for mining purposes and the
development of open pit mines. The law states that the government of
Chubut Province will accept and review mining proposals, including open
pit and cyanide based mining operations, on a case by case basis and
determine at that point whether permits may be issued.
|
||||
4.3 Environmental
liabilities
|
||||
The
Province holds the Property administrator responsible for any potential
environmental damage liabilities that may arise.
|
||||
Navidad
is flanked by the communities of Gastre to the northwest, Gan Gan to the
east and Blancuntre and Lagunita Salada to the southwest. Blancuntre is
the closest recognised indigenous community to the Project, with
approximately 50 indigenous families living within the town and
surrounding area.
|
||||
Pan
American is in the process of completing environmental and social baseline
studies for the Project. The bulk of baseline work done to date has been
contracted to local Argentine consultants working under the supervision of
international firms including Water Management Consultants
(WMC)/Schlumberger Water Services, Ground Water International, On Common
Ground Consultants Inc., and Klohn Crippen Berger Ltd. Pan American is
currently selecting an international consultant that will finalise the
baseline work and prepare the future Environmental Impact Assessment (EIA)
for the Project.
|
||||
Key
studies underway or completed to date include:
|
||||
●
|
Climate
and air quality
|
|||
●
|
Surface
and groundwater
|
|||
●
|
Water
resources
|
|||
●
|
Flora,
fauna, limnology and ecosystem characterisation
|
|||
●
|
Archaeology
and palaeontology
|
|||
●
|
Soils,
geomorphology, and seismic
|
|||
●
|
Toxicology
and ecotoxicology
|
|||
●
|
Noise
|
|||
●
|
Acid
Rock Drainage
|
|||
●
|
Renewable
energy
|
|||
●
|
Socioeconomic
baseline and programs
|
February 2010 | 27 of 249 |
Pan American
Silver Corp:
|
4.4 Permits
|
||
Drilling
at the Navidad Project requires a separate permit for each affected
tenement valid for one year, subject to the approval of an Environmental
Impact Statement (EIS). Pan American is required to submit an EIS which
covers the impacts and mitigation/monitoring procedures for the
exploration activities, in order to obtain environmental permits. The
level of the exploration activity dictates the level of study
required.
|
||
The
Navidad Project is in an advanced exploration stage involving drilling and
trenching activities. Aquiline submitted the most recent EIS
update in 2008 which was approved in January 2010. Until this EIS update
was approved the Project operated under the existing valid permit which
was modified in 2008. As a result of the EIS approval, a new
drilling permit was issued for a one year period and this new permit
allows for the operation of up to eight drill rigs. Rehabilitation of the
drilling platforms and impacted areas is carried out throughout the
year.
|
||
Water
rights are treated separately from environmental permits. Aquiline has
permitted two extraction wells for use in exploration
activities.
|
||
Depending
on overall project timing, Pan American plans to finalise an Environmental
and Social Impact Assessment report for the Project and present it to the
provincial Chubut Government in 2010. While the Government has publicly
indicated its support for the Navidad Project proceeding, the status of a
2003 provincial law banning open pit mining would need to be clarified
before permits for mining can be obtained. Other than the legal/political
matter raised above, Pan American does not identify any specific or unique
environmental or social risks associated with the Navidad site or Project
aspirations.
|
February 2010 | 28 of 249 |
Pan American
Silver Corp:
|
5
|
Accessibility,
climate, local resources, infrastructure, and
physiography
|
||
Information
in this section has been sourced from Snowden (2009).
|
|||
5.1 Accessibility
|
|||
The
nearest towns to the Property are Gastre, with a population of about 500,
40 km to the northwest, and Gan Gan, with a population of about 600,
about 40 km to the east. Both towns are located on Provincial Route
4, a gravel highway that passes just north of the Property. Aquiline
established offices, accommodation, and facilities for core storage and
logging in Gastre and to a lesser degree in Gan Gan. The Property is
accessible year round except in very wet conditions.
|
|||
Daily
scheduled flights are available from the city of San Carlos de Bariloche,
a tourism centre with a population of approximately 100,000, located about
355 km by road to the northwest. Daily flights are also available through
Trelew, located about 390 km by road to the southeast near the coast, with
a population of approximately 90,000. The nearest airport, which has
regularly scheduled flights, is located in Esquel, about four hours drive
to the southwest by gravel road. The provincial capital of Rawson, located
20 km east of Trelew, has a population of approximately 23,000. Aquiline
established an office from which to advance the technical studies of the
Project in Puerto Madryn, a city with a population of approximately
70,000, located 60 km north of Rawson. There are at least three scheduled
flights per week between Puerto Madryn and Buenos Aires. Pan American also
maintains offices in Buenos Aires and in the regional centre of Ingeniero
Jacobacci, which has a population of approximately 8,000, located two
hour’s drive to the north of Gastre.
|
|||
5.2 Climate
|
|||
The
climate is semi-arid with average annual temperatures ranging from 1°C to
20°C. High winds frequently occur from October through
December, but may also occur throughout the year. Annual
precipitation averages between 5 mm to 10 mm per month, but during the
winter months from May to August, higher accumulations ranging from 15 mm
to 20 mm may occur as either rain or snow. Field activities run throughout
the year and are not curtailed by weather conditions.
|
|||
5.3 Infrastructure
and local resources
|
|||
Pan
American’s base of operation for the Navidad Project is in Gastre.
Facilities include offices, modular living facilities, and core-storage
warehouses. Communications are provided by land line telephone service,
national mobile phone operator, and a satellite internet dish. The modular
living facilities provide lodging and meals for up to 20 people. The
warehouses include three drill core storage sheds, a logging and sampling
shed, metal shop, vehicle workshop, and a regional exploration office. In
the logging shed there are four diamond saws used to cut drill
core.
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In
Gan Gan the company has built two core storage facilities as well as an
office on land purchased on the western edge of town in 2007. The office
serves as a base of operation for its social and community relations
personnel, while the warehouses contain older drill core from the Navidad
Property.
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On
the Navidad Property a small camp facility has been installed with
electrical power provided by several small generators. Communication is
provided by a satellite internet uplink. Other infrastructure on site
includes storage areas for drill supplies. There are two water bores
authorised by the Chubut Province Hydrology Department to pump water for
use with diamond drilling. Water pumping is accomplished by one of two
company owned water pumps. To provide access for drilling a total of 26 km
of access roads have been constructed on the Property.
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During
2008, the drilling contractor, Boart Longyear, installed a transportable
60-person camp in the Yanquetru Valley, on company-owned land to the south
of the Project. The company installed a water tank and sewerage facilities
in support of the camp.
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5.4 Land
access
|
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Access
to land for drilling and other exploration activities is allowed through
outright surface ownership as well as through a series of easement
contracts with the remaining surface owners. Aquiline continued land
acquisition to facilitate unimpeded land access to the Navidad Project
through land swap deals and direct land purchases.
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Pan
American reports the current status of its land acquisition process as
follows:
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—
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Santana
Sarmiento Property: Land swap completed
|
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—
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Santana
Horacio Property: Direct purchase of land completed
|
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—
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Montenegro
Succession: Direct purchase of land with agreements signed and title
transfer to occur in July 2009
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—
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Raileff
Succession: Land swap agreements signed, titles to be transferred when the
IAC (Colonisation Office) grants property to the Raileff
family
|
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—
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Llanquetru
Eleuterio Property: In progress
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Figure
5.1 shows a plan of the properties now owned by Pan American shaded in
red, while agreed sales transactions or negotiations continue on the
properties shaded in green. The blue outlines represent the previous
cateos, now re-applied for as Manifestaciones de Discubrimientos (MD),
while the dashed bold blue line represents the MDs covering the main area
of the Project. The properties previously owned by Sarmiento and Horacio
Santana contain the Loma de La Plata Project and the favoured sites for
the associated waste dump, tailings dam, and concentrator (Snowden,
2008).
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Figure
5.1 Navidad
surface landholders with status of negotiations or
agreements
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5.5 Physiography
|
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The
Property is located in the Patagonian Plateau region with steppe
vegetation characterised by low and compact bushes of grass and by stocky
shrubs of less than a metre high. Elevation ranges from 1,060 m to 1,460 m
with gentle topographic relief interrupted by local structurally
controlled ridges.
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6
History
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Information
in this section has been sourced from Snowden (2009), which excerpted and
updated from Cuburu (2007).
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The
first exploration programme that included the Navidad Project area
consisted of a preliminary regional geochemical sampling programme
conducted by Normandy Argentina (Normandy) in mid 2000 to locate
additional deposits to supplement those known at its Calcatreu Property, a
gold and silver deposit located approximately 80 km from Navidad. The
programme consisted of 1,200 bulk leach extractable gold (BLEG) stream
sediment samples taken from drainage systems overlying Jurassic volcanic
rocks in Chubut Province in the general vicinity of Calcatreu, Mina
Angela, Gastre, Lagunita Salada, Gan Gan, and other areas. This programme
took place on what was then considered open exploration ground, and
resulted in the identification by Normandy of various anomalies, including
the Flamingo Prospect and Sacanana, which is today known as
Navidad.
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In
January and February 2002, Newmont Mining (Newmont) purchased Normandy’s
worldwide mining interests, and in March 2002, Newmont decided to sell all
of its interests in Argentina. In September 2002, IMA signed a
confidentiality agreement (Confidentiality Agreement) in order to obtain a
copy of the Information Brochure and technical data related to Newmont's
Argentinean interests, which included the Calcatreu Project. In December
2002, IMA applied for an exploration concession (cateo) over the area
formerly known as Sacanana and now known as Navidad, utilising and relying
upon the Normandy BLEG data (known as BLEG A), and began undertaking a
regional exploration programme over the Navidad area, including regional
mapping and sampling. From December 2002 to July 2006, IMA conducted
diamond drilling, geochemical sampling, geophysical exploration, and
Mineral Resource estimates at Navidad.
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In
January 2003 Aquiline entered into an agreement with Newmont, which was
completed in July 2003, to purchase all of the shares of Normandy and
Newmont’s 100% interest in Calcatreu, and acquired all of Newmont’s assets
including the BLEG A data. In May 2003 Aquiline reviewed the BLEG A data
and found that the ground covered by the BLEG A data had already been
claimed by IMA. After failure to receive a credible response from IMA as
to how they could otherwise have made a legitimate discovery at Navidad
without having breached the terms of the Confidentiality Agreement,
Aquiline went on to file suit in the Supreme Court of British Columbia in
March 2004.
|
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The
Supreme Court of British Columbia awarded ownership of the Navidad Project
to Aquiline on 14 July 2006 following a court case with IMA where IMA was
found to have breached the Confidentiality Agreement. IMA subsequently
appealed to the Court of Appeal for British Columbia, but lost the appeal
by unanimous decision in June 2007. An
Application for Leave to Appeal to the Supreme Court of Canada was filed
by IMA in September 2007. Sole ownership rights were granted to Aquiline
by the Supreme Court of Canada on 20 December 2007, subject to Aquiline
making payment to IMA which would reimburse the latter for its accrued
exploration expenditures up to the July 2006 court decision. Aquiline’s
final payment to IMA was made on 8 February 2008, giving Aquiline full
ownership of the Project.
|
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Since
October 2006, Aquiline undertook diamond drilling, geophysical and
geochemical exploration, metallurgical test work, resource estimates
(Snowden, 2007), including the
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2009
Mineral Resource estimate, and a Preliminary Economic Assessment for Loma
de La Plata (Snowden, 2008).
|
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On
14 October 2009, Pan American announced a friendly offer to acquire all of
the issued and outstanding securities of Aquiline. On 7 December 2009, Pan
American acquired approximately 85% of the issued and outstanding shares
of Aquiline and extended its bid to 22 December 2009, and on that latter
date, Pan American took up an additional approximately 7% of the issued
and outstanding shares in the capital of Aquiline. Since the offer to
acquire the Aquiline shares was accepted by holders of more than 90% of
the Aquiline shares, on 23 December 2009, Pan American provided notice to
the remaining shareholders of its intention to exercise its right to
acquire the remaining issued and outstanding Aquiline shares pursuant to
the compulsory acquisition provisions of the Business Corporation Act
(Ontario). Pursuant to the compulsory acquisition, Pan American has been
deemed to have acquired the balance of the Aquiline shares not already
owned by it on or about 22 January
2010.
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7 Geological
setting
|
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Information
in this section has been sourced from Snowden (2009).
|
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7.1
Regional geology
|
||
The
Navidad Project is located on the southwest edge of the Northern Patagonia
Massif in southern Argentina. This boundary of the massif is coincident
with the “Gastre Fault System”, which was originally interpreted as a
large-scale dextral shear zone (Figure 7.1). This mega-structural feature
is now believed to be the result of continental-scale northeast to
southwest extension that produced through down-faulting a series of
northwest to southeast trending half grabens and tectonic basins. (von
Gosen et. al. 2004)
|
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Granitoid
rocks of the basement in northern Chubut Province belong to the Palaeozoic
age Mamil Choique and Lipetren formations. Locally these rocks are exposed
at surface in windows through the overlying Mesozoic age volcanic and
sedimentary rocks. At Navidad the Mesozoic sequence consists of the Lonco
Trapial Formation and overlying Cañadón Asfalto Formation. The latter of
these formations hosts the Navidad mineralisation.
|
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Chubut
Province was tectonically active during the Jurassic with abundant
evidence of syn-sedimentary faulting observed in the Cañadón Asfalto
Formation. Continued post- sediment tectonic activity resulted in the
faulting, tilting, and local folding of the Lonco Trapial and Cañadón
Asfalto formation stratigraphies. This resulted in the formation of a
series of northwest trending half and full horsts and
grabens.
|
||
Overlying
these tilted Jurassic age volcanics and sediments are the generally flat
lying sediments and pyroclastic rocks of the Cretaceous age Chubut Group
Formation. To the east and south these are covered by Tertiary age plateau
basalts.
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Figure
7.1 Regional
geology plan
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7.2
Local geology
|
||
The
local geology as shown in Figure 7.2 consists of exposures of the
Palaeozoic age Mamil Choique Formation along the western side of the map
area. This unit is composed of red and grey granitoids and aplite dykes
with quartz-rich pegmatites.
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These
crystalline basement rocks are overlain by Jurassic age rocks of the Lonco
Trapial and Cañadón Asfalto formations. These formations are unconformably
overlain by the Cretaceous age Chubut Group of the Cerro Barcino Formation
of continental sandstones, conglomerates and tuffs and by plateau basalts
of the Miocene age Pire Mahuida Volcanic Complex.
|
||
The
contact between the Mamil Choique Formation basement rocks and the
volcanic rocks of the Lonco Trapial Formation is located 6.5 km southwest
of the Navidad Trend.
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Figure
7.2 Local geology plan from Andolino
(1999)
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7.2.1
Lonco Trapial and Garamilla
formations
|
||
The
Lonco Trapial Formation is the oldest Jurassic age unit located in the
vicinity of the Navidad Project area. It forms the northeast contact with
the exposed batholithic rocks of the Mamil Choique Formation. The unit is
characterised by lavas and volcanic breccias of intermediate composition.
Locally it may become intercalated with the typically more felsic and
pyroclastic rocks of the Garamilla Formation. This latter unit
consists of multiple pyroclastic flow events and reworked
volcaniclastics.
|
||
7.2.2
Cañadón Asfalto Formation
|
||
This
unit stratigraphically overlies the Lonco Trapial and Garamilla
formations. Within the portion of the government geologic map shown in
Figure 7.2, the spatial distribution of this unit is restricted to the
area immediately surrounding the Navidad Project and an area on strike to
the southeast in the lower right hand corner of the map. The
formation consists of lacustrine sedimentary rocks, which grade laterally
and vertically from lower arkose basal conglomerates and sandstones to
greywacke that give way to mudstones at higher stratigraphic levels.
Interbedded with both the arkose, greywacke and shales are thin horizons
of carbonaceous marls and limestone, some of which contain
stromatolites.
|
||
Within
the sedimentary sequence are three distinguishable volcanic lava flows.
These appear conformable to the sedimentary stratigraphy and are believed
to have been emplaced in sub-areal to sub-aqueous environments.
Pyroclastic and phreatic-magmatic events precede the extrusion of the
latter two lavas. Evidence of these events is preserved as pyroclastic
horizons within the volcanic-sedimentary sequence and what is interpreted
to be a maar – diatreme complex. The lavas consist of an intermediate
composition rock referred to as andesite and two trachyandesite units
referred to as the Lower and Upper latite units. The lower of these units
is distinguishable from the upper by the ubiquitous presence of monolithic
xenoliths in the former.
|
||
No
obvious intrusive rocks are identified within the Project area with the
exception of feeder dikes of the Lower Latite unit. The present
interpretation is that the latite units are the product of volcanic lava
flows and flow breccias, though at Navidad Hill, the base of the latite
has so far not been found by drilling, leaving open the possibility of a
dome in this area.
|
||
7.2.3
Depositional setting
|
||
The
rocks of the Lonco Trapial and Cañadón Asfalto formations were deposited
into an actively subsiding tectonic basin. Sub-basins control the
distribution of lacustrine sediments resulting in rapid facies changes.
Source areas for the sediments appear to have changed over time. Early
arkoses are believed to have been derived from highlands of the
crystalline basement rocks to the southwest. The greywacke sediments of
intermediate composition are believed to been sourced from the north.
There is evidence the sedimentary cycles may have been interrupted by
block faulting and tilting with erosion and re-sedimentation. The
environment during the deposition of the volcanics of the Cañadón Asfalto
Formation appears to have varied over time
from
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place
to place as exhibited by textures and characteristics for both sub-areal
and submarine emplacement.
|
|||
7.2.4
Structure and control of mineralisation
|
|||
At
the regional scale the main structural orientations within the Navidad
District are northwest to southeast, east-northeast to west-southwest, and
north-northwest to south-southeast. The depositional basin containing
rocks of the Cañadón Asfalto Formation is approximately 55 km long and 10
km wide with the long axis trending northwest to southeast. Ground gravity
surveys show a linear northwest to southeast boundary between high and low
Bouguer anomalies, which are interpreted to represent structures affecting
the crystalline basement rocks. The Navidad Project is
located at the northwestern end of the basin. Mineralisation along the
Navidad Trend from Marcasite Hill to Calcite NW exhibits a strongly linear
northwest to southeast affinity. The Arco Iris Fault at Loma de La Plata
is also orientated northwest to southeast.
|
|||
The
Navidad depositional basin is terminated to the northwest by an
east-northeast to west-southwest trending structure that juxtaposes the
volcanic-sedimentary sequences against rocks of the Lonco Trapial and
Mamil Choique formations. To the southeast the Cañadón Asfalto facies are
presumed buried beneath Quaternary cover in a large east-northeast to
west-southwest trending depression.
|
|||
The
entire Navidad Project area is crossed by north-northwest to
south-southeast structures that define the limits of many of the bedrock
exposures and are believed to have offset stratigraphy with a dextral
sense of relative movement. Observed displacements on these structures
range from several metres to over a kilometre.
|
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7.3 Property geology | |||
7.3.1
Lithology
|
|||
A
simplified version of the Navidad Project geology is shown in Figure 7.3.
The corresponding stratigraphic column for the Project area is shown in
Figure 7.4. The oldest rocks are the crystalline basement rocks of the
Mamil Choique Formation located in the southwest corner of the map area.
These basement rocks are overlain by a sequence of pyroclastics, volcanic
agglomerates and lavas of the Lonco Trapial Formation. These rocks are
exposed along a northwest to southeast trending strip in the southwest
quadrant of the map area and in the valley northeast of the Sauzal Fault
along the Navidad Trend. They are also exposed on the southeast projection
of the Esperanza Trend at the Fold
Zone.
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Figure
7.3 Property
geology plan
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Figure
7.4 Simplified
Navidad Project stratigraphic
column
|
The
welded pyroclastics of the Lonco Trapial Formation exposed to the
southwest of the map area are also found directly north of Calcite Hill
and in deep drilling along the Navidad Trend below the Sauzal Fault. Here
they are interbedded with juvenile volcaniclastics derived from the same
flows. A drill hole northeast of Navidad Hill crossed in excess of 500 m
of this volcaniclastic/pyroclastic sequence without encountering the
underlying agglomerates or basement rocks. This thick sequence of rock is
generally oxidised as denoted by its characteristic red colour and in
Section 8 of this report are likened to “Red
Beds”.
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Stratigraphically
above the Lonco Trapial volcanic sequence and forming the base of the
Cañadón Asfalto Formation are coarse clastic sediments of arkosic
composition. Basal conglomerates of the arkoses may contain boulders up to
2 m in diameter. They are composed almost exclusively of angular grains of
quartz and feldspar derived from the Mamil Choique Formation. Locally the
arkoses contain horizons of limestone, some with stromatolites. Coarser
beds include pebble to cobble size clasts of granite and metamorphic
rocks. These beds may locally exhibit cross-bedding sedimentary textures.
These sediments extend from the valley floor southwest of the Argenta
Trend to the Esperanza Trend. Intersections from drillholes southeast of
Loma de La Plata and further south on the Argenta Trend indicate the
arkoses are interbedded with thick sequences of argillaceous shales. At
surface the coarser arkoses horizons are resistive and form extensive
exposures. The shales are erosionally recessive and are rarely if ever
exposed at surface.
|
||
At
Loma de La Plata and between the Esperanza and Navidad trends there are no
arkose sediments. In their place intercalated with the argillaceous black
shales are mature greywackes of intermediate volcanic composition. These
are deposited in rhythmic sequences consisting of pebble conglomerates
that grade normally into coarse muddy sandstones. The greywackes locally
contain thin carbonaceous horizons.
|
||
Above
the greywackes from Loma de La Plata to Sector Z and between Esperanza and
Navidad trends southeast of Calcite NW are argillaceous black shales.
These sediments contain limestone horizons and zones with intercalations
of coarser grained muddy sediments. They are rich in organic carbon and
locally may contain thin coal seams. In the northwest to central portions
of the Esperanza Valley the shales may also contain horizons of
pyroclastics with varying degrees of re-working with thicknesses that
range from 1 m up to 10 m. At Galena Hill the shales host massive sulphide
replacement bodies at their lower contact with the latite lavas. At
several of the Project deposits these shales contain Pb and Zn
mineralisation distal to the higher grade silver zones.
|
||
Contemporaneous
with the deposition of the sediments within the Project area, there were a
minimum of three distinct extrusive lava and multiple pyroclastic volcanic
events. The oldest of the lavas are fine-grained and of intermediate to
mafic composition. These are referred to at the Project as andesite. These
rocks are believed to been extruded sub-aerially as the auto-brecciated
tops of the flows show the effects of thermal oxidation. These lavas were
either simultaneously deposited within two separate basins, one dominated
by arkoses and the other by black argillaceous shales, or there were
multiple andesite eruptive events. On the Argenta Trend the andesites are
inter-bedded with arkoses and on the southern end of the Navidad Trend
they are inter-bedded with black shales. At the northwestern end of the
Navidad Trend and north of Provincial Route No. 4 they are overlain by
pyroclastics and other latite lava flows with no intervening sediments.
The andesite lavas are generally not mineralised; however, locally they
can host Ag-Cu mineralisation. The best known mineralisation hosted in
andesite is located at the southern limit of the Connector Zone. Here the
tectonically brecciated and hydrothermally altered andesite return grades
of up to 11 kg/t Ag in surface rock chip samples. There are also
mineralised showings in andesites south of Loma de La Plata on the Argenta
Trend and at the Fold Zone at the southeast end of the Esperanza
Trend.
|
||
The
next extrusive lava event produced what is referred to on the Project as
the Lower Latite unit. It is actually a hybrid consisting of a
trachyandesite contaminated by quartz, which appears as rounded 1 mm to 3
mm quartz phenocrysts with reaction rings in quantities ranging from 1% to
5%. The Lower Latite also contains cognate clasts 0.5 cm to 3 cm in size
of fine-grained material of the same composition without
quartz
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phenocrysts.
On the Project these are referred to as “xenoliths”. The Lower Latite was
preceded by a pyroclastic eruption that produced pumice bearing ash tuff.
At Navidad Hill and Galena Hill the exposed volcanic sequence is andesite,
pumice tuff followed by the Lower Latite with no intercalated sediments.
The Lower Latite lava is restricted in distribution to the northern end of
the Argenta Trend and the northern half of the Esperanza and Navidad
trends. These lavas host high grade mineralisation at Calcite Hill, where
the Upper Latite lavas are believed to have been removed by erosion prior
to the deposition of the black shales. The Lower Latites also host
mineralisation together with the Upper Latites at Galena
Hill.
|
|||
The
last extrusive volcanic event produced the Upper Latite lava flows. These
rocks are macroscopically identical to the Lower Latite except they do not
contain cognate clasts. Potentially these autoclasts were completely
reabsorbed by the magma before their extrusion. It is believed the initial
eruption of the Upper Latite encountered sufficient ground water to create
a maar – diatreme complex located at Calcite NW. Evidence supporting this
hypothesis is a 2 km wide zone of milled matrix breccia containing rounded
clasts of the welded pyroclastic flows and Lower Latite lavas. Horizons of
reworked pyroclastics observed within the sediment sequences at the
northern end of the Navidad Trend may represent surge deposits. Continued
eruption of the Upper Latite lavas led to its distribution over an area
minimally 60 km2
in size including the entire length of the Argenta, Esperanza and Navidad
trends and north of the Provincial Route No. 4. At the southeast end of
the trend the groundmass of the lava is glassy and has devitrified to form
spherulites. At the northwest end of the Argenta Trend and on the
Esperanza and Navidad trends the lava is interbedded with greywackes and
shales. The Upper Latite lava hosts practically all of the
Ag-Cu mineralisation at the Loma de La Plata and Esperanza Valley deposits
and a larger portion of the mineralisation at the Navidad Hill and Galena
Hill deposits
|
|||
7.3.2
Structure and control of mineralisation
|
|||
Collectively
the individual mineralised deposits along the Navidad Trend exhibit a
strong northwest to southeast lineation. A few observed small mineralised
veins and breccia dikes located along the trend also exhibit northwest to
southeast to north-northwest to south-southeast orientations. No large
potential feeder structure common to all the deposits has yet been
discovered. If such a structure exists, it is likely that post-mineral
movement on the Sauzal Fault laterally displaced it from beneath the known
mineralised bodies.
|
|||
At
the individual deposit scale the mineralisation is clearly controlled by
zones of primary or secondary porosity. Examples of this are the upper
latite lavas at Esperanza Valley and Loma de La Plata and volcaniclastic
horizons at the Connector Zone and Calcite NW. These zones are often
capped by impermeable horizons. These aquitards effectively capped the
ascending hydrothermal fluids and forced lateral migration outward from
the plumes. The result was the formation of mineralised bodies with
strataform geometries.
|
|||
Almost
all the Project mineralised deposits are contained within structural
blocks separated from each other by three major structures. These
structures are believed to be pre-mineralisation in some cases and are
definitely post-mineralisation in others as evidenced by these structures
truncating mineralisation. The most influential of these post-mineral
structures are the Sauzal, Esperanza and Arco Iris faults. The Sauzal
Fault is located along the northeast side of the Navidad Trend and dips
shallowly to the southwest. This structure truncates the mineralisation at
depth on the Galena Hill, Connector Zone, Navidad Hill and Calcite Hill
deposits. The Esperanza Fault
located
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along
the Esperanza Trend has resulted in the drag folding of the host
lithologies of the Valle Esperanza deposit. The Arco Iris Fault is located
in the northern end of the Argenta Trend. This steeply northeast dipping
fault limits the Loma de La Plata mineralised deposit to the southwest
where it juxtaposes it against unmineralised andesite. The Barite Hill
deposit is also interpreted to be affected by post-mineral low angle
faulting, potentially analogous to the interpreted movement on the nearby
and similarly orientated Sauzal
Fault.
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8
Deposit types
|
||
Information
in this section has been sourced from Snowden (2009), which incorporated
contributions from Sillitoe (2007).
|
||
Navidad
mineralisation is clearly epithermal in nature as demonstrated by widely
observed open space filling by crustiform and cockade textures of the
carbonate, barite and sulphide mineral assemblages. The abundance of base
metals combined with gangue mineralogy of carbonate and barite dominate
over silica, indicates the deposit should most appropriately be
categorised as an intermediate – rather than a low sulphidation epithermal
deposit. The alteration and sulphide mineral assemblages are incongruent
with high sulphidation epithermal style of mineralisation, although
late-stage kaolinite and reported minor hydrothermal alunite could imply
the late ingress of a hypogene acidic fluid.
|
||
The
Navidad deposits formed post-deposition and lithification of the
containing greywacke and shale sedimentary sequences of the Cañadón
Asfalto Formation. Evidence supporting this is open fractures filled by
calcite and barite within the sediments overlaying zones of
mineralisation. The depth of formation is believed to be moderately
shallow, potentially on the order of 400 m to 500 m below the
paleosurface. This is consistent with findings from calcite fluid
inclusion studies by Lang (2003) that indicated the hydrothermal fluid was
vapour dominated with a temperature of homogenisation below 200°C. Despite
being formed near the paleosurface, no concrete evidence has ever been
observed to indicate an exhalative facies to the mineralisation. The
semi-massive sulphides at Galena Hill are clearly replacement in origin.
The finely laminated carbonates postulated to represent exhalative
products are in fact stromatolitic limestone. Hence, Navidad is not
analogous to shallow-water volcanogenic massive sulphide (VMS) deposits
like Eskay Creek in British Columbia as has been suggested by previous
investigators.
|
||
The ore deposit model presented in Figure
8.1 is a schematic reconstruction at the
time of emplacement for either Galena Hill or Navidad Hill. Vein and
veinlet stockworks grade upwards into hydrothermal breccias believed to
have been created by over pressuring of the ascending hydrothermal fluids
within the latites. Breccia textures range from crackle to rotated and
commonly contain a high component of fine sediments in their matrix. The
breccias locally contain displaced banded carbonate and mineralised clasts
indicating multiple inter-mineralisation brecciation events. The breccias
are cemented by carbonate and barite gangue and sulphide minerals. At
Galena Hill, the breccia clasts become progressively more intensely
replaced upwards by the sulphide cement, resulting in irregular bodies of
semi-massive sulphide. The breccia and related semi-massive sulphide
bodies at Galena Hill terminate abruptly upwards against a finely
laminated limestone bed of stromatolitic origin. The overlying
carbonaceous mudstone contains Zn mineralisation and can be massively
silicified for up to 5 m above the upper limit of the high grade Ag-Pb
mineralisation.
|
||
Figure
8.2 is a schematic drawing of lateral-flow style mineralisation away from
the main ascending plume centres based upon observation made at the Loma
de La Plata deposit. Here relatively thin horizons of latite lavas are
interbedded with sediments. The silver plus minor copper mineralisation is
preferentially localised along the top of the upper latite flow unit in
either flow-top auto breccias or in crackle breccias. These breccias are
likely to have resulted from even minor tectonic deformation due to the
sharp rheology contrast between the brittle latite and the overlying
sediments. Disseminated Zn
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mineralisation
in the sediments forms halos both above and below the main Ag horizon of
mineralisation.
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The
preferred hypothesis for the transport of the metals and their deposition
is dependent upon the redox state of the underlying red bed and ignimbrite
units and the reducing state of the overlaying carbonaceous sediments. The
transport mechanism further requires physical fluid-flow conditions of
structural conduits and the primary or secondarily induced permeability of
the breccias pipes and latite flow units. Ascending hydrothermal fluids
passing through the underlying red beds would rapidly become buffered and
oxidised, thus resulting in oxidation of sulphide sulphur in solution to
sulphate. These fluids would be capable of precipitating carbonate, barite
and specular hematite in the veins and veinlets within the red beds, but
not Fe, Ag or base metal sulphides. The content of these metals could
simply have been transported to higher levels within the hydrothermal
system. Upon entry to the overlying relatively reduced rock package, the
fluids became more reduced, allowing sulphide formation to commence,
presumably as a result of admixture with sulphide-bearing groundwater from
the organic carbon-rich, upper sedimentary unit. Interestingly, the Ag
mineralisation in the basal grey sedimentary unit, immediately above the
red beds, at Barite Hill is rich in native Ag, a mineral that could form
after only relatively minor reduction of the ascendant fluids and without
the need for reduced sulphur.
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This
model for Navidad, with mineralisation control by a district-wide redox
interface, is reminiscent of red bed Cu and Ag deposits, where fluids
ascending through thick red bed sequences leach Cu and/or Ag, along with
other metals, and deposit them on contact with reduced horizons. The red
bed silver deposits, such as Nacimiento in New Mexico in the United
States, are also characterised by sulphur-poor mineral species, such as
native Ag and acanthite. The difference is that at Navidad the
mineralising fluid was epithermal in origin rather than being basinal
brine as in the case of the red bed deposits.
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The
broadly strataform nature of the Navidad mineralisation is rather uncommon
for an intermediate-sulphidation epithermal silver deposit, most of which
tend to be of vein type (e.g. Fresnillo in Mexico, Arcata in Peru, Martha
in Santa Cruz province, Argentina). Potential analogous deposits include
the Jardin Cu-Ag deposit of northern Chile. Here strata-bound cupriferous
sulphide mineralisation is associated with the upper brecciated and
unwelded portion of a pyroclastic flow overlain by organic-rich tuffaceous
lacustrine sedimentary rocks (Lortie, 1987). Another example of a broadly
strataform deposit is San Cristóbal in Bolivia. Although the feeders for
the San Cristóbal deposit are largely confined to a dacite dome complex,
the bulk of the silver-zinc-lead mineralisation is hosted by lacustrine
sedimentary rocks rather than by lava as at
Navidad.
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Figure
8.1 Schematic
reconstruction of Galena Hill from Sillitoe
(2007)
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Figure
8.2 Schematic
reconstruction of Loma de La Plata from Sillitoe
(2007)
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9
Mineralisation
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Information
in this section has been sourced from Snowden (2009), which excerpted and
updated from Kain (2007) and Allo, Paolini, and Williams
(2009).
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In
all of the deposits and mineral showings the gangue minerals are
principally calcite with or without barite and a much lower proportion of
silica. Visibly recognisable ore minerals are native silver, grains and
clots of black sulphides containing argentite\acanthite and discrete
grains of sphalerite, galena, chalcopyrite, cuprite, bornite, native
copper and copper carbonates. Distinct styles of mineralisation are
reflected in the differences in ore minerals and proportion of gangue
between the deposits. Various pulses of mineralisation are observed,
principally at Galena Hill. With the exception of the latter, pyrite and
sulphides in general are relatively scarce.
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The
principal mineral association of interest is Ag-Pb. Other associations of
interest are Ag-Pb-Cu and Cu-Ag or more rarely Ag-Zn. Occasionally there
is Ag only, or Cu-Pb-Zn or simply isolated occurrences of these base
metals. This further suggests that deposition occurred through successive
pulses of mineralisation. So far as it is known to date, gold is totally
absent from the system.
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Mineralisation
is preferentially hosted in lavas with the upper latite containing the
dominant proportion, followed by the lower latite and then rarely by the
andesite. Deposits with the dominate portion of mineralisation within
lavas include Loma de La Plata, Valle Esperanza, Calcite Hill, and Galena
Hill. Sedimentary rocks and volcaniclastics can also contain significant
mineralisation. Deposits where the mineralisation is dominantly hosted by
these rock types include Calcite NW, Navidad Hill, Barite Hill, and the
Connector Zone.
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High
grade mineralisation is nearly always correlative with either primary or
induced secondary porosity of the host rocks. Examples of primary porosity
include coarse volcaniclastic horizons and auto-brecciated lava flow tops.
Secondary porosity occurs as crackle brecciation of the brittle lava
flows, hydrothermal eruption breccias, and tectonic breccias. At both
Valle Esperanza and Loma de La Plata the crackle brecciated upper latites
are believed to have acted as aquifers bounded upward by what are
interpreted as bedding plane faults with the overlaying sediments. The
capping lutitic sediments created effective aquitards that would have
greatly promoted the lateral migration of the ascending hydrothermal
fluids. Mixing of the reduced formation waters within the
aquifers with the oxidised and metal-laden hydrothermal fluids is
hypothesised to have been a principal triggering mechanism for the
precipitation of ore minerals. Locally the argillaceous mudstones above
the upper latite are fractured and infilled by calcite. This indicates
that the host rocks were buried and the sedimentary rocks lithified prior
to the mineralising event.
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To
date the general Navidad Project is comprised of eight individual mineral
deposits in three separate mineralised trends referred to as the Navidad
Trend, the Esperanza Trend, and the Argenta Trend. The six deposits in the
Navidad Trend are essentially contiguous and include, in a 5.8 km
alignment from northwest to southeast, Calcite NW, Calcite Hill, Navidad,
Connector Zone, Galena Hill, and Barite Hill. The Valle Esperanza deposit
occurs on the east flank of the Esperanza Trend and is found approximately
370 m to the south-southwest of Galena Hill. The Loma de La Plata deposit
occurs along the northern portion of the Argenta Trend and lies
approximately 2.2 km southwest from the centre of Calcite
Hill.
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9.1
Calcite NW
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A
plan of Calcite NW is shown in Figure 9.1. Calcite NW is located
stratigraphically in the upper sedimentary package found directly above
the latite unit. This package is comprised of mudstone, sandy volcanic
tuffs, tuffaceous sandstones, lapilli tuffs, and volcaniclastic intervals.
In general the layers with a significant tuffaceous component exhibit a
strong argillic alteration.
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Mineralisation
occurs disseminated in the sediments where it is observed as galena with
occasional scarce chalcopyrite. Facies with high permeability, such as the
tuffaceous sandstones and volcanic tuffs, are preferentially
mineralised. Towards the northwest the mineralisation is
characterised by Pb with low Ag and is hosted mainly by tuffs and
pyroclastic units. In the central to southwest area of Calcite NW, Ag and
Pb mineralisation with low grade Cu and occasional Zn mineralisation are
hosted by sandy mudstones and tuffaceous sandstones.
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The
main mass of mineralisation is located along the axis of the general
Navidad Trend. There is a strong stratigraphic control. The wacke and
tuffaceous units host the mineralisation within the inter-grain pore
space. Mineralisation is interpreted to have been channelled through the
migration of hydrothermal fluids between the nearly impermeable mudstone
units.
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There
are two marker units within the deposit. One of these is a green lapilli
tuff which is generally only weakly mineralised, and the second marker is
generally taken as the base of mineralisation. The green lapilli tuff,
between 5 m to 10 m thick, is found near the top of the deposit in a
relatively lead-free zone. The second marker, known as the Galena Marker,
is approximately 80 cm thick and is comprised of a type of massive dark
mudstone with disseminated crystalline and irregular micro-veinlets of
galena with high lead values and silver. Lead mineralisation with scarce
to absent silver mineralisation is occasionally encountered up to 1 m
below these units in a volcaniclastic layer or in a coarse detrital
facies.
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Mineralisation
at Calcite NW takes the form of three long and tabular to slightly
synformal bodies. The main body lies from the surface to a depth of 130 m
below surface and has an average overburden thickness of approximately 60
m. It has a strike length of 1,825 m towards the northwest, a width
between 350 m to 500 m, and a thickness between 10 m and 80 m. The
mineralised body plunges gently to the northeast with a dip between 1º to
5º. The base of the main body is normally identified by the Galena
Marker.
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Towards
the south-eastern end of the deposit, a smaller lens lies close to the
surface parallel to the main body and about 80 m above it. It has a
regular shape 275 m long, up to 250 m wide and between 20 m and 40 m
thick.
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Another
elongated lens of mineralisation lies between 15 m to 50 m below and
parallel to the northern end of the main body. The body is 1,000 m long,
between 200 m and 350 m wide, and ranges between 10 m and 30 m in
thickness.
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Figure
9.1 Plan of Calcite
NW
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9.2
Calcite Hill
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A
plan of Calcite Hill is shown in Error! Reference source not found.. The
mineralisation is hosted principally in the latite with xenoliths unit
(lower latite) and occurs upwards for a few metres above the contact with
the overlying upper sedimentary or pyroclastic package depending on the
sequence. The style of mineralisation is typically banded epithermal vein
filling and stockworks in breccias developed in the brittle massive
portions of the flow. Where present in the upper sedimentary package,
mineralisation occurs as disseminations infilling the primary porosity as
well as micro-veinlets that are comprised of argentiferous Pb and Zn
sulphides along with interstratified galena.
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Gangue
mineralisation is comprised of calcite, minor silica, and barite either
white in colour or as a caramel-coloured variety that occurs almost
exclusively at Calcite Hill although it has been occasionally identified
on nearby Navidad Hill. High grade mineralisation is comprised of galena,
black sulphides, native silver, and occasional chalcopyrite. The overlying
geochemical signature is Ag-Pb with minor Cu.
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A
zonation of the mineralisation hosted in the latite unit is exhibited in
the sequence of the three principal zones which in descending depth order
are:
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—
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An
upper zone with principally Pb mineralisation with minor Ag, and minor to
absent Cu
|
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—
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An
intermediate zone with high grade Ag mineralisation and proportionally
less Pb and moderate Cu
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—
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A
lower zone with primarily silica fracture filling, low in sulphides and Ag
mineralisation
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Similar
to the Galena Hill deposit, the mineralisation at Calcite Hill terminates
abruptly at the lower contact of the latite unit with the reddish basal
sedimentary unit, which exhibits poor to no permeability. An
interpretation is that the latite, being confined as well on the upper
contact with the mudstones which frequently act as fluid barriers, served
as a unit with secondary permeability (in this case due to fracturing)
which favoured the migration of mineralising fluids.
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On
the north flank of Calcite Hill the mineralisation is hosted in
volcaniclastic rocks and in the lower portion of the overlying calcareous
mudstone unit, and in the contact between the same volcaniclastic unit
with the lower latite with xenoliths. The entire sequence
exhibits structural disturbance. This is attributed to a possible
low-angle fault at the base of the sequence which has underlying it the
reddish-coloured volcaniclastic basal unit.
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The
mineralisation occurs principally as veinlets and as matrix filling in the
breccia, at times with silica and iron oxides, with minor galena, copper
oxides, and scarce pyrite. The upper sedimentary units as well as the
volcanic and volcaniclastic units host Ag, Pb, and scarce Cu and Zn
mineralisation.
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Mineralisation at Calcite Hill forms an irregular body with a narrow upper portion outcropping towards the western end of Calcite Hill, which merges with a larger mineralised lens. Mineralisation outcrops and extends to a depth of around 250 m below surface. It forms a relatively flat surface 600 m long, ranging from 270 m to 600 m in width. The lower portion of the body has an irregular shape resulting from two nearly separate lenses that merge into one lens having a variable thickness between 150 m to 20 m. The body plunges to the southwest with a -5º dip. |
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Figure
9.2 Plan of
Calcite Hill
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9.3
Navidad Hill
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A
plan of Navidad Hill is shown in Figure 9.3. The Navidad Hill deposit
exhibits two different types of mineralisation and control. The first of
these outcrops along the crest of the hill where mineralisation related to
structural control is most evidently displayed compared to elsewhere on
the Project. Here outcropping vein structures exhibit breccias comprised
of finely banded crystalline calcite gangue, barite, and finely
crystalline to chalcedonic silica. Visually identifiable ore grade
minerals include galena, black sulphides, copper and manganese oxides, and
lesser quantities of pyrite, chalcopyrite, and rare native copper and
silver.
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The
high grade brecciated vein structures occur in a belt approximately 100 m
in width with discontinuous sub-vertical extensions, striking generally at
an oblique angle to the main Navidad Trend in the range of 310º to 345º.
Vein thicknesses are 1 m or less with Ag values in the 1,000 g/t to 10,000
g/t range. Vein development discontinuity is also evidenced by “rosario”
outcrops along strike and by changes in mineralogical composition along
strike as well as at depth. The latite wall rock adjacent to the breccia
veins is also found mineralised with the development of veinlets,
stockworks, and breccia zones. As indicated so far by drilling, the
outcropping breccia veins do not
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extend
to a depth exceeding 80 m where the vein integrity tends to break down
into a zone of veinlets comprised principally of chalcedonic silica that
increases at depth. To date the base of the latite has not been
encountered by drilling at Navidad Hill which leaves open the possibility
of a dome structure in this area.
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The
second main type of mineralisation at Navidad Hill is found emplaced on
the southwest flank of the hill where it is hosted in and above the
contact between the latite unit and an overlying volcaniclastic breccia.
It has a well-developed stratigraphic control with a gentle southerly dip
of some 20º to 30º. Moving away from the possible dome, the stratiform
body changes its composition from a heterolithic latite breccia to a
breccia with remobilised sedimentary clasts. This breccia exhibits gangue
mineral matrix fillings of calcite, barite, and lesser silica, accompanied
by black sulphides, minor galena, copper oxides, and relatively frequent
native silver.
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A
third sub-set of mineralisation is found to the northwest of Navidad Hill
where there is found a multi-phase heterolithic breccia with
characteristics that indicate an explosive origin. The gangue is
principally calcite and barite with ore minerals of galena, possible black
sulphides, copper oxides, and contains moderate concentrations of Ag on
the order of 100 g/t.
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Mineralisation
at Navidad Hill trends for 520 m towards the northwest and forms an
irregular globular shape ranging from 270 m to 470 m wide and 10 m to 175
m thick. The mineralised zone has a shallow dip to the southwest and lies
at the subsurface along the ridge crest to around 50 m depth along the
southern flank.
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Figure
9.3 Plan of Navidad
Hill
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9.4
Connector Zone
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A
plan and cross section of the Connector Zone is shown in Figure 9.. The
mineralisation occurs as disseminations and replacement of the matrix in
the volcaniclastic rocks. Locally the volcaniclastic rock is crackle
brecciated with a matrix of hydrothermal minerals, sulphides and rare
native silver. The volcaniclastic rock can exhibit a wide range of
textures ranging from conglomeratic horizons to thinly bedded strata. The
volcaniclastic unit contains sub-rounded to very angular clasts of latite
derived from the uplift and erosion of the latite lavas. Lesser, and
generally lower grade mineralisation can also be hosted in the underlying
greywacke and the overlaying mudstones.
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The
Connector Zone is structurally complex. It shares some of the same
structural trends found at Galena Hill located immediately to the
southeast. At Connector the principal structural trends
are:
|
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—
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North-northeast
to south-southwest trending steeply dipping structures that are
responsible for radical changes in the stratigraphy across the generalised
northwest trending strike of the mineralisation. It is interpreted that
displacements along these structures are responsible for changes in
thickness of the host volcaniclastic unit of up to 170 m in only 50 m
along strike with
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similar
changes in thickness in adjoining units. Synchronous erosion is a possible
cause of the local removal of both the lower and upper latite lavas that
allowed the volcaniclastic and mudstone units to be deposited directly on
the lower andesites.
|
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—
|
Northwest
to southeast to east-west oriented sub-vertical faulting is interpreted to
have followed the deposition of the mudstones and produced a series of
horst and graben structures by block faulting similar to those described
at Galena Hill. Also similar to Galena Hill are the spatial coincidence of
the higher grade values with these structures. It is believed movement on
these northwest to southeast structures is synchronous‐ to post-mineral in
age.
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—
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The
post-mineral, northwest to southeast trending, southwest shallow dipping
Sauzal Fault. This structure truncated the host lithologies and
mineralisation at Connector Zone in a similar fashion as described at
Galena Hill.
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—
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Possible
re-activated faulting on the north-northwest to south-southeast trend:
Crossing the central portion of the Connector Zone there is some evidence
to suggest the presence of a north-northwest to south-southeast trending
structural corridor that may have cut and displaced the Sauzal Fault
trace.
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The
mineralisation at Connector forms two intersecting, but distinct bodies,
which combined, are 670 m in strike length, and between 240 m and 590 m
wide. The mineralisation lies from the surface to a depth of 330 m. The
deposits are hosted in a sedimentary sequence comprised of sandstones and
fine conglomerates with minor mudstones, interbedded with volcaniclastic
layers which are mostly formed by sub-rounded to angular latite fragments
derived from the erosion of the latite lavas. Locally the host rocks
exhibit micro-veinlets up to 1 cm thick and poorly developed stockwork
texture. The intensity of the brecciation is weak to moderate and the
gangue infilling is comprised of calcite and silica. Alteration is weak
and is manifested by a moderate bleaching of the rock due to the presence
of low-temperature illitic-smectitic clays.
|
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Sulphide
mineralisation occurs as galena, black and grey presumably Ag-bearing
sulphides, as chalcopyrite and bornite disseminated in the sediments, in
veinlets, and in replacements in the matrix of the volcaniclastic unit.
Native silver is also present in trace amounts.
|
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Of
less importance and restricted to the east of the Connector Zone, the
mineralisation is hosted by the brittle upper latite and andesite units.
Disseminated sulphides occur in hydrothermal crackle breccias with a
matrix of calcite and barite with minor laumontite and
silica.
|
||||
In
the upper portion of the volcaniclastic unit the geochemical signature is
Ag-Pb with minor Cu, and in the lower portion of the sedimentary units Ag
is present with practically no lead.
|
||||
The
geometry of the mineralisation suggests the north-northeast to
south-southwest structures could be feeder zones for the ascending
hydrothermal fluids. The fluids are postulated to have ascended the steep
north-northeast structures, and then preceded up dip along the porous
volcaniclastic unit where they are intersected by the west-northwest to
east-southeast trending block
faults.
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Figure
9.4 Plan and cross section
of Connector Zone
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9.5 Galena
Hill
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A
plan and cross section of Galena Hill is shown in Figure 9..
Mineralisation at Galena Hill is hosted in a variety of distinct
fragmental rock types. These include hyaloclastites at the margins and
ends of lava flows and crackle breccias within the massive cores of the
flows. Also present are dikes and pipes of hydrothermal breccia. The
predominant style of mineralisation is the selective replacement of
breccia matrix, or as open space filling. Locally the mineralisation
pervasively replaces the matrix of the host lithologies including the
mudstones. Where the mudstones are mineralised, they can form massive
sulphide-rich stratiform lenses containing galena and
marcasite.
|
||
The
lithology that hosts mineralisation varies within the different portions
of the deposit. At the far northwest end of the deposit the mineralisation
is primarily hosted within the lower latite with minor mineralisation in
the overlaying mudstones and underlying volcaniclastics. Towards the
southeast end of the deposit the mineralisation is hosted in both the
lower latite unit and the upper latite unit and locally in the overlaying
mudstones. To the far southeast end of the deposit all of the
mineralisation is contained within the upper latite with only trace
mineralisation contained in the overlaying mudstones.
|
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At
Galena Hill both the upper and lower latite lavas are believed to have
been emplaced as submarine flows. Evidence supporting this interpretation
is the lack of thermal
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oxidation,
which is common in other zones such as Loma de La Plata, and the abundance
of very angular fragmental portions of the latite interpreted to represent
in situ the reworked hyaloclastite. These fragmental portions of the lava
flows are often the preferred location of mineral
deposition.
|
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Galena
Hill is structurally complex. It is believed to be located at the vertices
of several intersecting structural trends. From the reconstruction of the
geology it appears that the earliest faults were syn- to post-
mineralisation northwest to southeast block faults. Movement on these
structures resulted in the formation of a horst and graben geometry. This
movement is post-sedimentation, potentially in part syn-mineralisation and
definitely part post-mineralisation. The continued movement of these
structures post-mineralisation resulted in the uplift and erosion of part
of the mineralisation and the preservation of those parts that were
down-dropped.
|
||
The
northwest to southeast trending block faults are truncated by the shallow
dipping, northwest to southeast trending Sauzal Fault. The trace of this
fault is coincident with the break in slope along the lower northeast
flank of the Navidad Trend. The fault juxtaposes all the upper lithologies
and mineralisation against the lower “red bed” volcaniclastics. Movement
on this structure is considered post-mineralisation. No evidence has been
observed to indicate that this fault served in any way as a channel for
the ascending hydrothermal fluids.
|
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The
last interpreted faulting at Galena Hill occurred along steeply dipping
north-northwest to south-southeast trending structures. These structures
form a structural corridor roughly 100 m to 150 m wide that crosses the
central portion of the mineralisation. These structures are interpreted
from surface mapping, ground magnetic and construction of drill sections.
These structures are believed to have off-set the Sauzal Fault plane in
places.
|
||
Alteration
is variable from trace to locally strongly argillic. In general alteration
is limited to bleaching of the host volcanic rock in close proximity to
the mineralisation.
|
||
Sulphide
minerals are galena, marcasite, lesser pyrite, scarce chalcopyrite, and
occasional bornite. According to a preliminary report by Xstrata Process
Support (2007), 85% of the Ag is contained in solid solution within a
combination of marcasite and pyrite with 15% in acanthite (Ag2S).
The lead occurs as galena (PbS). The mineralisation appears to all occur
as sulphides with little oxidation observed as evidenced by fresh galena
occurrences found at surface. Gangue mineralogy consists chiefly of
calcite and barite with lesser silica.
|
||
The
extent of mineralisation is long and wide with a strike length of roughly
900 m and a width of between 250 m and 700 m. In section views orientated
at 030° to 210°, the mineralised body as defined by values approaching 50
g/t AgEQ forms a roughly strataform body with a slight dip to the
southwest. This body resembles an inverted shield with a flat top and a
thicker central portion that thins to the margins. On nearly every section
the mineralisation is affected by post-mineralisation movement on the
northwest to southeast trending block faults resulting is displacements of
roughly 10 m to 50 m. Those portions of the mineralisation located above
the horst are partly eroded whilst those portions to either side are
preserved in their entirety. The mineralised zone ranges from a few metres
thick at the extreme margins to over 200 m thick in the central portions
of the deposit.
|
||
Mineralisation
outcrops in several locations including the upper northwest flank and
within the window through the mudstones in the area of the structural
horst. The top
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of
mineralisation ranges from surface to 200 m below surface with an average
depth less than 40 m.
|
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There
are 12 drill holes in the Galena Hill sector of the Project that are being
monitored on a regular basis for determining the level of the water table.
Across the area the top of the water table is at approximately 1,137 m
elevation, and is indicated on the cross section in Figure 9.. The
majority of the Mineral Resource at Galena Hill lies beneath this
level.
|
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Figure
9.5 Plan and cross
section of Galena Hill
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9.6 Barite
Hill
|
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A
plan of Barite Hill is shown in Figure 9.. At Barite Hill two styles of
mineralisation are present in distinct stratigraphic units. The first
occurrence from surface to depth is a relatively weak Ag-Pb mineralisation
with minor Cu and Zn hosted in calcite and lesser barite gangue filling
veinlets and breccia matrix within the upper latite
unit.
|
||
The
second style of mineralisation is found in two clastic units below the
upper latite flow that is normally found mineralised at the Navidad
Project. The units are a sedimentary unit comprised of sandstone and
mudstone, and a volcaniclastic unit derived from latite. Mineralisation is
interpreted to have been emplaced through the migration of hydrothermal
fluids across zones of primary permeability in the sandstones or through
zones of secondary permeability through fracturing. This lithology package
is bounded on top by a greywacke unit and underneath by fine-grained
clastic sediments (mudstones), both of which are interpreted to have
relatively low permeability.
|
||
Observed
mineralisation occurs as a matrix gangue filling of calcite, barite and
clays that contains sparse chalcopyrite, black sulphides, and native
silver. It is deposited in fine fractures, stockworks and breccias in the
mudstones and volcaniclastic rocks, and occurs as disseminations of black
sulphides in the sandstones. In areas reporting high Ag assay values,
native silver is very common and occurs as pure veinlet fillings up
to
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5 mm
in thickness. The principal geochemical association is Ag with low Cu; in
general Pb is scarce.
|
||
Mineralisation
at Barite Hill forms three lenses. The northern lens is about 230 m long
along strike, between 170 m and 430 m wide in the dip direction and
between 5 m and 30 m thick. The southwest dip varies between 3° where the
body outcrops in the north to 25° in the southwest where the body lies
approximately 120 m below surface. The second lens is found towards the
southern end of Barite Hill. Its dimensions are approximately 300 m long
by 350 m wide with thicknesses ranging from 4 m to 32 m. It occurs at the
subsurface on the crest of the ridge and plunges to the
southwest.
|
||
The
third mineralised body, characterised by high Ag values, forms an
irregularly shaped mass around 350 m long, between 100 m and 400 m wide,
and between 7 m to 100 m thick. It lies between 50 m and 200 m
below the second lens in southern Barite Hill and has a dip of 30° to the
west-southwest.
|
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Figure
9.6 Plan of Barite
Hill
|
9.7 Loma
de La Plata
|
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A
plan and cross section for Loma de La Plata is shown in Figure 9.. At Loma
de La Plata the stratigraphy consists of basal andesites overlain by
greywackes and sandy
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conglomerates
that change laterally to mudstones and arkoses. Autoclastic breccias lay
between the lower sedimentary sequence and the volcanic flow units
comprised by the two latite units, with and without xenoliths, which are
separated by an interbedded sedimentary layer. The sequence is completed
by mudstones and fine to very fine sandstones that vary to limestones
laterally to the east.
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||
In
the west to southwest the sedimentary units are thin or missing due to
erosion and the lithology is typically comprised by the latites with and
without xenoliths that overlay the andesites. Towards the east the
sequence is complete due to down–dropped blocks that are the product of
normal faulting with an approximate north-south strike presumably
resulting from northwest to southeast orientated
compression.
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The
entire sequence has a 325º strike and dips -20° to -30° to the northeast;
the dip tends to flatten somewhat along strike to the
northwest.
|
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Mineralisation
is hosted primarily in the upper latite unit which outcrops in the
southwest part of the deposit area and dips towards the northeast where it
has been intercepted up to 300 m below the surface. Drilling in 2008
demonstrated that the mineralisation tends to be enriched in breccia zones
associated with north-south normal faults that have a spacing on the order
of 70 m to 90 m.
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The
style of mineralisation is characterised by hydrothermal veinlets up to 3
cm thick and tectonic and crackle breccias developed in the brittle
massive portions of the lava flow. Gangue mineralisation is comprised of
calcite, laumontite, barite and silica present as a white quartz and
occasional amethyst. Textures are massive to crustiform and occasionally
botryoidal; bladed calcite replacement textures have been
observed.
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Mineralisation
is comprised of acanthite, native silver, argentite, stromeyerite, silver
sulphosalts, galena, chalcopyrite and bornite disseminated in the matrix
of the breccias and as rims in veinlets. Chalcopyrite is the only mineral
that is also disseminated in the host rock. The acanthite and lesser
stromeyerite are the principal silver-bearing sulphide minerals that
contain approximately 80% of the reported silver. QEMSCAN
analyses performed by Xstrata Process Support (2008) report an average Ag
grain size in the range of 6 µm to 20 µm.
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Geochemical
data indicates a good correlation between Ag and Cu and a moderate
correlation between Ag and Pb. Arsenic tends to be concentrated in the
upper portion of the main mineralised body in the upper latite as well as
in the upper non-mineralised sedimentary package. Antimony is present as
isolated occurrences in the upper part of the deposit where it exhibits a
low correlation with Ag and Cu. For the most part Zn is concentrated in
the sedimentary unit beneath the upper latite where it largely occurs in
limestone lenses within the mudstone.
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Up
to three events of brecciation and veinlet formation have been detected
during core logging. The brecciation intensity is moderate to strong in
the high grade mineralised zone. Mineralisation is interpreted to have
been emplaced by the migration of epithermal fluids through zones of
previously formed tectonic and crackle breccias. Alteration is weak and is
represented by low temperature clays in the proximity of the
mineralisation areas. The alteration clay mineral assemblage indicates the
presence of low temperature hydrothermal fluids, and the banded textures,
bladed calcite, barite and quartz in-fill, along with the presence of
abundant base metals, is characteristic of an intermediate
low-sulphidation system.
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Two
distinct mineralised bodies are present at Loma de La
Plata. The main deposit is 850 m long with a north-south
strike, between 600 m to 1,200 m wide and 40 m to 50 m thick. It
covers a surface area of 74 ha. The second body is considerably lower
in
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grade
and is located approximately 60 m beneath the main deposit. It has
approximately the same surface area as the upper main body but with an
average thickness of only 5 m.
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The
area with the highest grade mineralisation is located in the central and
western side of the upper Loma de La Plata deposit; overburden thickness
varies from 0 m to 50 m. The dimensions of the high grade zone are
500 m north-south by 170 m east-west.
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The
principal objectives of the 2008 drilling programme at Loma de La Plata
were to upgrade the Inferred resources to Indicated and to define the
limits of potential economic mineralisation. Concerning this latter
objective, the deposit was defined in the western and southern sectors,
where the outcropping andesite forms a footwall to the deposit, without
appreciable change in the 2007 resource perimeter. Here the outcropping
mineralised upper latite exhibits crackle breccias that are hydrothermally
in-filled by calcite with the presence of malachite, azurite and iron
oxides.
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To
the southeast of the deposit the latite lava flow continues towards the
Bajo del Plomo area but with greatly diminished Ag and relatively high Pb
values. To the east the deposit was expanded by some 400 m where the
mineralised portion of the latite becomes progressively thinner with
diminishing Ag values and higher lead. Towards the northeast drilling has
confirmed that the deposit is cut off by the Esperanza Fault. Towards the
north the 2007 perimeter was expanded 200 m where generally no further
significant Ag mineralisation has been encountered despite the presence of
the host unit.
|
||
In
summary, the total mineralised footprint has been increased by 100% with
respect to the area defined in 2007. The deposit still has limited
potential to expand towards the northwest where the latite as well as the
mineralisation continues to Valle La Plata sector, and there remain some
restricted possibilities for expansion to the
east-southeast.
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Figure
9.7 Plan and oblique cross
section of Loma de La Plata
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9.8
Valle Esperanza
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A
plan and cross section of Valle Esperanza is shown in Figure 9.8. At Valle
Esperanza the main mineralised deposit is emplaced in the upper latite
volcanic unit without xenoliths immediately below the contact with the
upper carbon-rich sedimentary package comprised of mudstone, sandstone,
and greywacke. The latite varies from massive to autobrecciated in the
flow top depending on the number of lava flows. The unit is brecciated
with a matrix of calcite, with minor laumontite, barite and silica that
are present as massive in-filling, sometimes as banded textures. In the
brittle massive portions of the flows, the breccias occur as tectonic or
crackle breccias that were hydrothermally in-filled. In the autobrecciated
zones with abundant amygdaloids, the hydrothermal fluids used the primary
porosity in the contacts between fragments to generate the
breccia. The intensity of brecciation is moderate and at least
two events of brecciation are recognised.
|
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Of
less importance, a lower grade mineralisation is hosted in the underlying
lower latite with xenoliths that is below the upper latite and overlain by
another sedimentary package comprised of mudstones, greywacke and
volcaniclastic rocks.
|
||
Alteration
is weak to locally strongly argillic in breccias. In general alteration is
limited to a gentle bleaching of the host volcanic rock in close proximity
to the mineralisation.
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The
predominate style of mineralisation is the disseminated occurrence of
black sulphides, native silver, chalcopyrite, malachite, pyrite and galena
in the breccia matrix and in veinlets up to 1 cm thick. Locally the
mineralisation of chalcopyrite and galena pervasively replaces both the
matrix and the host lithologies. The silver shows a very good
correlation with copper and low correlation with lead.
|
||
QEMSCAN
analyses of the float concentrate performed by G&T (2009) determined
that almost 90 percent of the silver occurs as acanthite/argentite and
about 2% occurs as native silver and alloy.
|
||
The
same volcanic rocks are exposed at surface along both the Esperanza and
Navidad Trends. Valle Esperanza is located in a graben structure and the
variation in elevation of the latite is the result of block faulting. The
mineralisation has been preserved on the down-dropped
blocks.
|
||
The
graben adjoins the northwest-southeast trending Esperanza Fault that has
been interpreted from ground magnetic, surface mapping and drill
sections. At Valle Esperanza, there are no outcrops or surface
evidence of mineralisation. No evidence has been observed to
indicate that the Esperanza Fault served as a channel for the ascending
hydrothermal fluids.
|
||
Drillhole
intersections have traced the two mineralised zones from surface to
approximately 400 m below surface. The upper body is about
1,100 m long and between 130 m and 700 m wide. The lower body lies
approximately 50 m below the upper deposit, and is 800 m long and between
140 m and 500 m wide. Both bodies range in thickness between 5 m to 30
m.
|
||
The
mineralised horizon strikes approximately to 290° with a variable
northeast dip between -70° to -10°. The dip appears to flatten
towards the northeast.
|
||
The
Valle Esperanza deposit is not fully defined as yet and future work will
include drilling along strike to the north-west and south-east and down
dip to the north of the presently defined
deposit.
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Figure
9.8 Plan and cross
section of Valle Esperanza
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9.9
Additional prospects
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9.9.1 Navidad Trend | ||||
Marcasite
Hill
|
||||
The
Marcasite Hill prospect occurs along the southern extension of the Navidad
Trend approximately 1 km southeast of Barite Hill; it was originally
identified and drill tested during 2007 based on a strong induced
polarisation (IP) and resistivity anomaly. The stratigraphic setting is
similar to Barite Hill, but with a thickening of the pelitic sediments
below the latite. Structural complexity and widespread fracturing is
attributed to a northwest trending regional fault that passes to the east
of the hill.
|
||||
9.9.2
Argenta Trend
|
||||
The Sector Z, Bajo del Plomo, Filo del Plomo, Ginger, and Yanquetru zones are located along the northwest trending contact between the latite and the overlying upper sedimentary package in the Argenta Trend. Mineralisation is characterised by veinlets and discontinuous breccias in the latite with open-space fillings of calcite, minor barite, and locally important quantities of galena with moderate accompanying Ag. | ||||
To date limited drilling has been done at Ginger and at Bajo del Plomo. In the latter area Pb values appear to diminish rapidly at depth below outcrop, suggesting the |
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development
of near-surface supergene enrichment. At Ginger, where only one drillhole
has been completed, low values in Pb and Ag have been detected in
brecciated portions of the latite which may occur only as a lens in this
area. At Sector Z, which occurs approximately 2 km to the northwest of
Loma de La Plata, copper oxides are observed with only minor Pb present in
samples; the geochemical association suggests Ag-Cu. Greater structural
complexity, as observed though faulting and folding, is indicated in the
Sector Z area.
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10
Exploration
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Information
in this section has been sourced from Snowden (2009), which was excerpted
and updated from Williams (2007).
|
||
10.1 |
Exploration
by Normandy Mining in 2002
|
|
The
first exploration programme on the Navidad Project area consisted of a
preliminary regional geochemical sampling programme conducted by Normandy
in mid 2000 to locate additional deposits to supplement those known at its
Calcatreu Project, a gold and silver deposit located approximately 90 km
from Navidad. The programme consisted of 1,200 BLEG stream sediment
samples taken from drainage systems overlying Jurassic age volcanic rocks
in Chubut Province in the general vicinity of Calcatreu, Mina Angela,
Gastre, Lagunita Salada, Gan Gan, and other areas. This programme took
place on what was then considered open exploration ground, and resulted in
the identification of various anomalies, including the Flamingo Prospect
and Sacanana, which is today known as Navidad.
|
||
10.2 |
Exploration by IMA from
December 2002 to July 2006
|
|
10.2.1 Geological
mapping and topographical surveys
|
||
IMA
commenced the initial detailed outcrop mapping of the Navidad Project
along the Navidad Trend in 2003 at both 1:500 and 1:5,000 map scales.
During 2004 this mapping was expanded to cover a wider portion of the
mineral tenement at 1:5,000 and 1:10,000 map scales.
|
||
In
2003 IMA produced a 2 m contour map over the central portion of the
Navidad Project using a differential GPS. The coverage of this topography
is 2.5 km by 4.5 km. Outside this core zone 10 m contour lines
were produced from satellite radar data. In 2004 IMA commissioned high
resolution air photo coverage of the Navidad Project
area. These photos were used to produce an orthophoto of the
Project area and to create 2 m contour lines covering an area of 14.4 km
by 5.5 km.
|
||
10.2.2 Geophysical
exploration
|
||
In
2003 IMA contracted Proingeo S.A. to conduct a limited ground gravimetric
survey over Galena Hill, Connector Zone and the southeast part of Navidad
Hill. The survey consisted of ten lines of roughly 2 km each at
200 m line spacing.
|
||
In
2005 IMA commissioned Quantec Geoscience Argentina S.A. (Quantec) to
conduct pole-dipole and gradient array IP and ground magnetometer surveys
over the Navidad Trend. These surveys covered roughly an area of 6.9 km by
4.6 km. A large open spaced survey of IP covered strike extensions of the
main trend for a total coverage of 14.4 km by 5.5 km. The data from these
surveys was reprocessed in 2007 by Aquiline. The results of these surveys
were mixed, probably in great part due to the distinct physical
characteristics of the various deposits and their varying degree of
oxidation.
|
||
10.2.3 Geochemical
exploration
|
||
Commencing
in 2002 and continuing through 2006, IMA collected soil, rock chip and
stream silt samples over the Navidad Project. A total of 1,852 rock, 6,411
soil and 63 stream sediment geochemical samples are listed in the IMA
database spatially related to the Project area. This work led to the
identification of nearly all mineralised bedrock exposures known on the
Property. The best example of soil geochemistry leading
to the
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identification
of a mineralised zone is that of Loma de La Plata. Collectively the
anomalous rock chip samples clearly delineate the Navidad, Esperanza and
Argenta trends as does the soil geochemistry.
|
||
10.2.4 Diamond
drilling
|
||
A
list of the drillholes completed by IMA between November 2003 and July
2006 is shown in Table 10.1.
|
||
Table
10.1 Diamond
drillholes completed by IMA from 2003 to 2006
|
||
Deposit
|
Number
of drillholes
|
Metres
drilled
|
|
Calcite
NW
|
45
|
7,788
|
|
Calcite
Hill
|
71
|
13,949
|
|
Navidad
Hill
|
96
|
11,289
|
|
Connector
Zone
|
37
|
4,712
|
|
Galena
Hill
|
66
|
12,862
|
|
Barite
Hill
|
8
|
1,315
|
|
Loma
de La Plata
|
12
|
1,615
|
|
Exploration
drillholes elsewhere on the Property
|
32
|
7,391
|
|
Total
|
367
|
60,921
|
10.2.5 Other
work
|
||
Metallurgical
samples were also collected during IMA’s second field season running from
November 2003 to March 2004, the results of this test work is summarised
in Section 16.
|
||
In
2005 Peter Lewis, a consulting structural geologist, studied the Project
area including the Esperanza and Navidad trends. He concluded the
Esperanza Fault formed part of the larger Gastre Fault system and was
active at the time of mineralisation. He postulated that there could be a
splay to this fault that was as yet unrecognised coincident with the
Navidad Trend and that mineralisation was related to dilatational zones
formed by dextral strike-slip movement on these northwest-southeast
structures. He further concluded that post mineral tectonic activity
resulted in deformation of the host rock units. This manifested in the
formation of folds and southwest dipping thrust
faulting.
|
||
10.2.6 Mineral
Resource estimates
|
||
In
February 2006 and updated in May 2006, Snowden prepared Mineral Resource
estimates for IMA on the Navidad Project deposits including Calcite NW,
Calcite Hill, Navidad Hill, Connector Zone, and Galena Hill (Snowden,
2006a). In September 2006, Snowden prepared an updated Mineral
Resource estimate and drill spacing study at Galena Hill for IMA (Snowden,
2006b).
|
||
10.3
Exploration by Aquiline from October 2006 to June 2009
|
||
The
Qualified Person for exploration at the Navidad Project is Mr. John J.
Chulick, who is a registered geologist in the State of
California.
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Aquiline
focussed exploration efforts on identifying new exploration targets with
diamond drilling, with delineation and infill drilling at the Loma de La
Plata deposit, and with minor infill drilling of other previously
identified mineralised zones. Exploration for additional deposits through
the use of fence drilling across prospective covered areas is feasible,
since as is so far known, the occurrence of the latite unit hosting
mineralisation is generally of relatively large areal extent that can be
measured in units of tens of hectares. Mineralisation is frequently
stratiform with relatively shallow dips, and most of the known deposits
occur as large roughly tabular bodies.
|
|||
Geophysical
and geochemical methods have proved useful in mapping the distribution of
the latite unit and potassic-style alteration, in detecting Galena Hill
style sulphide-rich mineralisation, and in interpreting the Project-scale
structural regime. The characteristics of the host rock and wall rock
units are favourable for diamond drilling, and extensive areas can be
rapidly explored by drilling at relatively low cost. As was demonstrated
during the 2007 diamond drilling programme, additional Resources can be
delineated by extension drilling laterally away from known deposit
areas.
|
|||
10.3.1 Diamond
drilling
|
|||
A
list of the drillholes completed by Aquiline from November 2006 to March
2009 is shown in Table 10.2. A plan of the drillholes completed at the
Navidad Project at the time of the April 2009 Mineral Resource estimate is
shown in Figure 10.1.
|
|||
Table
10.2 Diamond
drillholes completed by Aquiline from 2006 to March
2009
|
|||
Deposit
|
Number
of drillholes
|
Metres
drilled
|
|
Calcite
NW
|
68
|
9,144
|
|
Calcite
Hill
|
10
|
1,024
|
|
Navidad
Hill
|
8
|
909
|
|
Connector
Zone
|
36
|
6,994
|
|
Galena
Hill
|
26
|
4,359
|
|
Barite
Hill
|
48
|
11,518
|
|
Loma
de La Plata
|
226
|
46,867
|
|
Valle
Esperanza
|
53
|
20,399
|
|
Bajo
and Filo del Plomo
|
22
|
2,798
|
|
Marcasite
Hill
|
14
|
2,616
|
|
Exploration
holes elsewhere on the Property
|
47
|
12,715
|
|
Condemnation
holes for tailing dam
|
25
|
8,617
|
|
Total
|
583
|
127,960
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Figure
10.1 Plan of
drillholes completed at the Navidad
Project
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10.3.2 Geophysical
exploration
|
||
Gravity
and resistivity geophysical techniques may be valuable tools to map the
distribution of the latite unit in the sub-surface or beneath covered
areas. IP is an effective geophysical method to detect Galena Hill style
sulphide-rich mineralisation even to a considerable depth below the
surface. Ground magnetic, and by inference, aeromagnetic geophysical data
is seen by staff geologists as an effective technique to aid in the
interpretation of the Project-scale structural regime.
|
||
Structural
interpretation will aid in understanding the distribution of the latite
unit as affected by half-graben type faulting and possible thrust fault
displacements.
|
||
Gravity
surveys
|
||
Between
March and May 2007 Quantec conducted a gravimetric survey over an area
measuring approximately 10 km by 8.5 km in the area referred to as the
core Navidad Project area. Measurements were recorded at 150 m stations
along 82 parallel lines trending 030º located at 200 m intervals. A total
of 2,998 grid stations were read in the survey area. Station locations
were surveyed with a differential global positioning system (DGPS),
ensuring accuracies of ±5 cm. The objective of the survey was to map
out
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density
variations that potentially coincide with mineralisation and to provide
data for structural interpretation.
|
||
Raw
data for this survey has been interpreted by geophysical consultant Robert
Ellis who has produced a residual Bouguer gravity model over the tested
area. In this model the earlier acquired Proingeo data (2003) demonstrates
a gravity high in the area of Galena Hill. Other gravity anomalies within
the survey area remain to be tested by drilling.
|
||
Ground TEM
survey
|
||
Between
January and February 2007 Quantec ran a transient electromagnetic (TEM)
survey on three test lines. The tests were performed to determine if a
recognisable TEM response could be observed across areas of known
mineralisation and in particular across massive sulphide mineralisation
beneath Galena Hill. Each line was surveyed with transmitter 200 m by 200
m loops advanced at 50 m intervals, and then repeated with 100 m by 100 m
loops advanced at 25 m intervals. The reading instrument was a Zonge
GDP-16 receiver. Results were “flat” and no meaningful TEM response was
detected.
|
||
Ground SP
survey
|
||
A
self-potential (SP) test was carried out during the same period as the TEM
survey. The purpose of the SP test was to map naturally occurring voltage
patterns produced by the oxidation of sulphides. Three 4,200 m test lines
were selected to transverse known mineralised areas. Three averaged
measurements were taken at 25 m intervals along the test lines. Results
were considered to be too ambiguous to justify continuing with this method
as a geophysical prospecting technique at Navidad.
|
||
Ground
radiometric surveys
|
||
Ground
radiometric testing was done with an Exploranium Gamma Ray Spectrometer GR
256 during the same period as the TEM survey and across the same three
lines used for the SP test. The purpose was to determine if alteration
related to mineral occurrence, particularly the introduction of potassium
in the form of adularia, gives a coherent radiometric signature.
Thirty-second measurements were taken at 25 m intervals on the test lines.
Results for potassium were considered to be sufficiently correlative with
areas of known mineralisation to justify radiometric measurements in the
fixed-wing geophysical survey conducted in 2008.
|
||
Fixed-wing
magnetometer and radiometric surveys
|
||
In
2008 a 9,700 line-km fixed-wing geophysical survey collected magnetic and
radiometric data over 1,935 km2
of selected Aquiline controlled mineral tenements in Chubut province. The
survey was flown using 200 m line spacing and 2 km tie-lines spacing. The
survey consisted of a northern and southern block. The northern block
covered 1,670 km2
and was designed to include all of the Cañadón Asfalto Formation on strike
with the Navidad Project. The southern survey block covered 265 km2
including a basin containing Cañadón Asfalto Formation sediments. These
surveys are helping build ongoing regional exploration
activities.
|
||
High
resolution ground magnetometer surveys
|
||
During
the last quarter of 2008 a 2,153 line-km high definition ground
magnetometer survey was conducted over the entire Navidad Project area.
The survey covered a surface area of 10,750 ha. Five roving magnetometers
on 50 m line spacing were used to collect readings at one second
intervals. Line orientation of the main survey was 030˚. Two smaller
surveys using 300˚ line orientations were conducted over the
Navidad
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Trend
and Loma de La Plata. Combined these surveys greatly aided in the
definition of boundaries of magnetic rock units and identify structures
that juxtapose rocks of different magnetic
susceptibilities.
|
|||
Ground 200 m
dipole and CSAMT surveys
|
|||
During
2008 seven test lines for a total of 53 line-km of deep looking IP and
CSAMT were conducted by Quantec over the Navidad Project area. The
objective of these surveys was to provide information from depth for both
the extension of mineralisation and to better understand the structural
architecture of the geology.
|
|||
10.3.3 Geochemical
exploration
|
|||
A
series of orientation geochemical surveys were conducted by Aquiline over
known mineralised zones on the Navidad Project in early 2007. These
included soil, stream silt and biogeochemical surveys. As a result new
sampling protocols were established that markedly improved the geochemical
response in both ore and path finder elements. The biogeochemical study
provided distinct and complementary information to that of the soil
geochemistry. This has led to the protocol of collecting twin
biogeochemistry and soil geochemistry samples. The greater sensitivity of
the new sampling protocols has allowed the initial phase of sampling to
utilise a wider spacing on grids while maintaining good line to line
correlation.
|
|||
From
the end of 2007 and into 2008 a large combined soil and biogeochemical
survey was conducted over the Navidad Project area and the projected
on-strike extensions of the zone under Quaternary cover. A total of 3,316
soil and 4,297 biogeochemical samples were collected. Results of the
surveys have identified new zones of precious and path finder base metals
that are being followed up by reconnaissance drill programs. The
geochemical data is also being incorporated into the environmental base
line studies.
|
|||
10.3.4 Geological
mapping
|
|||
Beginning
at the end of 2007 Aquiline geologists have conducted a programme of
re-mapping and expanding the coverage of geologic mapping of the Navidad
district. Currently 240 km2
are mapped covering the entire Navidad Project and surrounding area. The
main objective of this work is to improve the geological understanding of
the geology and controls to mineralisation. This is being done by refining
the Project stratigraphy and establishing the location, relative sense of
movement and timing of the complex structural elements. This work has led
to an updated deposit model as discussed in detail under Section 8 of this
report.
|
|||
10.3.5 Mineral
Resource estimates
|
|||
In
November 2007, Snowden prepared an updated Mineral Resource estimate for
Aquiline for the Barite Hill, Galena Hill, Connector Zone, Navidad Hill,
Calcite Hill, Calcite NW, and Loma de La Plata deposits. The November 2007
Mineral Resource estimates have been superseded by the April 2009
estimate.
|
|||
10.3.6 Future
exploration work
|
|||
Continued
exploration in the company’s land package in the Navidad district will be
directed towards additional Jurassic-age basins in the Gastre structural
corridor with Cañadón Asfalto lithologies. Geochemical sampling techniques
should be effective tools to efficiently explore these basins. The
distribution of associated potassic-style alteration such as adularia
within the regional basins may be detected through the interpretation of
the 2008 airborne radiometric
survey.
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Approximately
US$500,000 was expended per month in Argentina on the exploration
programme and related activities for the Navidad Property in 2009. Pan
American will continue exploration drilling on several open or new targets
along the mineralised trends. Infill drilling is planned for Loma de la
Plata, Valle Esperanza, Barite Hill, and Galena Hill during 2010. These
drillholes will also provide new samples for metallurgical analysis.
Additional condemnation and geotechnical drilling is planned for potential
future infrastructure sites.
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11 Drilling
|
||
Information
in this section has been sourced from Snowden (2009), which was excerpted
and updated from Kain (2007). The Qualified Person for drilling at the
Navidad Project is Mr. John J. Chulick.
|
||
11.1
Diamond drilling methods
|
||
All
diamond drilling on the Navidad Project since the first drillhole in
November 2003 has been completed by Boart Longyear Connors Argentina S.A.
of Mendoza, Argentina (subsequently taken over by Boart Longyear in 2007).
One rig is employed on a discontinuous basis and is capable of drilling
deeper than 400 m with HQ sized rods. Nearly all holes have been drilled
at HQ3 diameter (61 mm) with 3 m long rods, except for rare instances
where the drillhole was collared at HQ size diameter and subsequently
reduced to NQ diameter down the drillhole. No liners or split-tube core
barrels have been used in the drilling process. Frequently used drilling
additives include Polyplus, Platinum Lube, and G-Stop. Common rod grease
may be used for exceptionally deep holes. Drilling conditions are very
good with drilling rates of approximately 120 m per day per machine.
During 2008, up to three additional drill rigs operated on the Project:
one continued with exploration drilling; the other two rigs were dedicated
to a programme of in-fill and extensional drilling and orientated-core
drilling in support of a geotechnical study of the Loma de La Plata
deposit. One of the Loma de La Plata drill rigs was swapped for a period
of time with a rig capable of drilling PQ3 diameter (83 mm) drill
core for metallurgical sampling. The holes for metallurgical sampling
doubled as in-fill drillholes. Split-tube core barrels were used during
the orientated core drilling of Loma de La Plata for geotechnical
analysis.
|
||
11.2
Drillhole collar surveys
|
||
Staff
geologists set up drill collars in the field by locating the planned
collar coordinates with a GPS unit or occasionally by tape measure from a
nearby drillhole. The geologist aligns the azimuth of the rig by setting
out a row of stakes oriented on the desired azimuth, frequently 030°, with
a Brunton compass. The edge of the drill rig, such as the Nodwell track or
the outer wall of the mounted housing unit, is aligned with the stakes.
Drillhole inclination is set by placing the inclinometer of the Brunton
compass directly on the drill rod.
|
||
After
drilling the hole, collar coordinates are periodically surveyed by a
professional contract surveyor using total station methods or more
recently with a differential GPS. The survey point of reference is a
federal government geocentric reference frame (POSGAR) point. Coordinates
are expressed in the Gauss Kruger Zone II system, relative to the Campo
Inchauspe datum. Drillhole azimuths at the Navidad Project have
historically used a magnetic declination correction of 08°E, but beginning
in 2009 drillholes from number NV-949 onwards will use an updated
correction of 06.5°E.
|
||
11.3
Downhole surveys
|
||
A
number of different instruments have been employed at the Project to
define the drillhole trace down the hole (Table 11.1). Aquiline previously
used a system of taking downhole surveys either halfway downhole, or every
third of the hole, or every quarter of the hole, depending on hole length.
In October 2008 Aquiline implemented a system of standardising downhole
surveys every 50 m, and beginning in 2009, in
deposits
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where resources have previously been estimated, downhole readings are now taken at 30 m intervals. Currently no downhole survey of the bearing and dip is taken at the collar, but the first measurement is now taken not lower than 10 m below the drill collar. No surveys are taken of vertical holes. Snowden recommends that Pan American survey all drill holes regardless of their orientation with the first measurement taken at the collar of the hole. | |||
The
average distance between downhole surveys is 84 m between surveys, with a
maximum distance of 232 m. Beginning with drillhole 616, survey
measurements have averaged 52 m between readings. No serious drillhole
deviation problems have been encountered in the drilling to date. Azimuth
swing between downhole surveys ranges between 0° and 10°, with lifts of
between 0° and 3°.
|
|||
Table
11.1 Downhole survey
methods at the Navidad Project
|
Date
|
Drillhole
numbers
|
Method
|
|
November
2003 to June 2004
|
1
to 72
|
Tropari
|
|
July
2004 to April 2007
|
73
to 445
|
Sperry
Sun
|
|
April
2007 to present
|
446
onwards
|
Reflex
EZ-shot
|
11.4
Drill intercepts
|
||
Drill
intercepts are given for prospects at the Navidad Project which are not
included as part of the 2009 Mineral Resources.
|
||
11.4.1 Southern
Argenta Trend (Yanquetru)
|
||
Several
holes were drilled in the Yanquetru area to test at depth the Pb
mineralisation observed in soil anomalies. Drillhole NV07-409 intersected
a zone within the sediments from 106.3 m to 166.3 m that averaged 0.5% Zn
over 57 m. From 187.3 m to 193.3 m, the drillhole intercepted 6 m
averaging 21 g/t Ag and 0.2% Pb in the rhythmically bedded turbidite-like
greywacke below a 7 m thick horizon of latite. This mineralisation is
interpreted to represent a lower grade, relatively zinc-rich distal zone
of mineralisation lateral to the higher grade core
deposits.
|
||
11.4.2 Marcasite
Hill
|
||
Marcasite
Hill is located at the southeast end of the Navidad Trend as it is
presently known, approximately 1 km to the southeast of Barite Hill. It
initially attracted attention due to a sharp IP response, and outcrop
examination revealed veinlets and breccia with calcite, galena, and
marcasite mineralisation, hosted in the upper latite unit. To date
Marcasite Hill has been tested by 14 drill holes, NV07-435 through
NV07-600, which are located in an irregular area of approximately 850 m by
450 m though the majority of the holes have been drilled in an area
measuring 300 m by 200 m.
|
||
Beneath
the latite, sedimentary units are encountered comprised principally by
mudstone and lesser sandstones and sandy conglomerates that are similarly
mineralised by calcite, galena, and marcasite/pyrite occurring in breccia
and veinlets. The most noteworthy hole drilled in this sequence is
NV07-596 with an intercept of 104 m at 0.42% Pb, 0.55% Zn, and low grade
anomalies in Ag to 12 g/t with an average of
3 g/t Ag.
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11.4.3
Bajo del Plomo and Filo del Plomo
|
||
To
date 20 holes have been drilled in the Bajo del Plomo and Filo del Plomo
prospects along the Argenta Trend for a strike length of 1,400 m and down
dip from the crest for approximately 400 m. It is believed that the total
down-dip extension could be on the order of 600 m or more based on the
continuation of this mineralisation in the so-called Tailings Dam area.
The mineralisation is hosted in the upper latite, with an attitude of
azimuth 315º dipping 20° northeast, and along the contact with the
overlying sedimentary units where these are preserved. The mineralisation
in the latite unit is found as irregular breccia fillings or in veinlets
and typically consists of calcite, galena, and lesser barite. In general
analytical results report high lead values with low silver. The most
significant intercepts are found in hole NV07-486 for 13.15 m at 97 g/t Ag
and 7.10% Pb, hole NV07-494 for 12.5 m at 72 g/t Ag and 1.30% Pb, and in
hole NV07-644 for 13.4 m at 40 g/t Ag and 2.53% Pb.
|
||
11.4.4
Tailings Dam
|
||
In
this area 26 holes were completed to evaluate the area proposed in the
Preliminary Economic Assessment study as a site for a future tailings dam,
hence this was in large measure a condemnation drilling programme. The
holes were typically drilled to a depth of 300 m. They frequently
terminated in mudstone, but several holes managed to intercept the upper
latite unit which in several cases reported mineralisation of the style
encountered at Filo del Plomo. The most noteworthy intercepts were found
in hole NV08-695 for 4.80 m at 25 g/t Ag and 2.70% Pb, hole NV08-796 for
9.0m at 18 g/t Ag and 1.18% Pb, and in hole NV08-842 for 22.0 m
at 32 g/t Ag and 0.63% Pb, with values up to 149 g/t
Ag.
|
||
11.4.5
Sector Z and Valle La Plata
|
||
Sector
Z is a hilly and structurally complex area at the northwest extreme of the
Argenta Trend; to date it has been tested with 11 drill holes in two
sub-areas. At Valle La Plata, between the Loma de La Plata deposit and
Sector Z, seven holes have been drilled with generally wide spacing of 200
m to 300 m between collars. To date neither zone
has demonstrated continuous significant mineralisation though several
individual intercepts have been noteworthy. The most significant
intercepts in Sector Z include hole NV08-670 for 14.70 m at 73 g/t Ag and
0.34% Pb, hole NV08-742 for 10.97m at 47 g/t Ag and 0.24%
Pb.
|
||
The
majority of the holes drilled in the Valle La Plata zone have cut short
intervals with anomalous to moderately significant Ag mineralisation in
the upper latite unit. The most noteworthy intercepts include hole
NV08-751 for 6.82 m at 105 g/t Ag and 0% Pb and hole NV08-760 for 4.0 m at
80 g/t Ag and 0% Pb.
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12 Sampling
method and approach
|
||
The
sampling method at the Navidad Project has followed similar protocols for
the life of the Project. The Qualified Person for the sampling method and
approach at the Navidad Project is Mr. John. J.
Chulick.
|
||
12.1
Core logging
|
||
Aquiline
followed the same sampling methodology for diamond drill core sampling at
Navidad since acquiring the Project from IMA, with a few refinements.
Approximately five staff geologists are responsible for logging drill
core, which takes place at the core logging facilities in Gastre. Drill
core from NV07-459 onwards are stored in Gastre, along with core selected
as representative of each deposit (NV05-241 to NV05-245, NV06-278,
NV06-324, NV06-343, NV06-363, NV06-372, NV06-379, NV06-403, NV07-442, and
NV07-449). Drill core up to NV07-458 is stored in Gan Gan, except the
representative drillholes stored in Gastre.
|
||
Drill
core is stored and well maintained in wooden core boxes with a nominal
capacity of approximately 3 m. The drillhole number, box number, and
downhole interval are marked in felt tip marker on the side of the box.
Wooden downhole core depth markers are placed in the core box by the
driller indicating the drillhole number and end of run
depth.
|
||
Staff
geologists log the drill core in detail using standardised logging sheets
on handheld computers for: lithology; alteration type, style, and
intensity; mineralisation type, style, and intensity; and structural
information. The entire drillhole is photographed prior to cutting.
Geotechnical information including drill core recovery, RQD, weathering,
texture, fracture frequency, type, roughness, infill, shape and angle,
hardness, and other notes are recorded on a drill-run
basis.
|
||
12.2
Sampling
|
||
Samples
are taken continuously downhole within the prospective lithologies, along
geological boundaries rather than by a pre-determined length, which
represents best practice. Samples within geological similar units are
selected at 3 m intervals. Samples are marked for cutting by indicating
the sample interval with a yellow paint marker and stapling a waterproof
sample number tag on the core box. The drill core is cut in half with a
diamond bladed core saw, using recycled water decanted from a settling
tank. There is evidence that core samples are not always cleaned
subsequent to cutting. Wherever the drill core is too broken for cutting,
samples are selected by hand or with a spatula, and very rarely a
mechanical splitter is used for core intervals too small for cutting with
the saw.
|
||
Samples
are collected by staff, placed into a previously numbered plastic bag
along with a waterproof sample number tag indicating the sample depth
interval and the sample number corresponding to the tag stapled to the
core box. The plastic sample bag and tag are then sealed with a
tamper-proof plastic tie embossed with the sample
number.
|
||
Several
sample bags are then placed into larger poly-woven plastic bags, weighed,
and transported to the Alex Stewart Mendoza sample preparation facility by
drivers from the Gastre community or by staff.
|
||
The
remaining drill core is stored under cover at Pan American’s core storage
facilities in Gastre and Gan Gan.
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12.3
Density determinations
|
||||
Density
determinations are made on a box by box basis for the entire drillhole.
Technicians record the downhole interval marked on the box and the length
of the sample contained within the box to obtain the recovery percentage.
The volume of the sample is calculated by multiplying the core diameter
(6.1 cm) by the recovered core length. The density is then calculated by
weighing the core box, subtracting the weight of the wooden core box
(previously set at 3,580 g, but now set at the average weight of each new
shipment of boxes), and dividing by the volume of the recovered sample.
Boxes with more than 15% core loss are excluded from the
database.
|
||||
There
are a number of potential sources of error when determining density values
using this method, including the accuracy of the scale in use, the
accuracy of the drill core recovery estimation, using a set weight for a
wooden core box, and the crossing of lithological and/or mineralisation
boundaries within the core box. Snowden (2007) made recommendations for
more reliable methods for determining density values.
|
||||
Since
October 2008 drillholes numbered NV08-876 and above have had their density
determined using the water displacement method, in addition to the box
method. Older drillholes under examination have also had density
determinations made using the water displacement method. An approximately
20 cm long piece of competent core is selected, quartered with a saw,
washed, and dried on a hot plate for between five and ten minutes. The
weight of the dry sample is recorded, and the sample is suspended on a
length of string and completely submerged into a 1,000 ml capacity
cylinder containing 600 ml of water. The displaced water volume is
recorded, and the density is calculated by dividing the volume of the
displaced water by the weight of the dry sample.
|
||||
Snowden
considers that this methodology may also introduce error in the density
determination due to the relatively small size of the sample and the
potential introduction of water in porous samples. Snowden recommends that
Pan American select whole core samples and coat the entire sample with wax
or varnish to prevent the sample from retaining water.
|
||||
12.4
Independent statement on sampling methods
|
||||
Snowden
are of the opinion that drillhole logging and sampling procedures used by
Pan American could conform to standard industry practice by following the
recommendations outlined in Section 12.5.
|
||||
Snowden
was not able to verify historical drilling and sampling
practices.
|
||||
12.5
Recommendations
|
||||
Snowden
recommends the implementation of the following practices to improve the
quality of the sampling data:
|
||||
—
|
Determine
the density of drill core prior to splitting with the diamond saw. Samples
should be coated to prevent water retention. Specific gravity samples
should be selected according to a representative suite of lithologies,
mineralisation, and alteration types, through spatially representative
locations throughout the area covered by drilling.
|
|||
—
|
Discontinue
the practice of using recycled water during core cutting and rinse the cut
samples prior to sampling, to prevent the risk of
cross-contamination.
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13 Sample
preparation, analyses, and security
|
||
Information
in this section has been sourced from Snowden (2009).
|
||
The
Qualified Person for the sample preparation, analyses, and security at the
Navidad Project is Mr. John J. Chulick.
|
||
13.1
Sample preparation, analyses, and security
|
||
13.1.1 Laboratory
|
||
All
diamond drill core samples at the Navidad Project have been analysed by
Alex Stewart Assayers Argentina S.A. (Alex Stewart) of Mendoza, Argentina.
Alex Stewart is ISO 9001:2000 accredited for the preparation and chemical
analysis of mining exploration samples. On two separate occasions in 2003
and 2007, Smee and Associates conducted a laboratory inspection and
considered the laboratory to conform to industry best practice methods for
analysis (Smee, 2003 and Smee, 2007).
|
||
13.1.2 Sample
preparation
|
||
Upon
receipt of the sample submission, each sample bag is weighed and the
entire sample is removed from the bag and placed in a drying pan. Samples
are dried at 70°C for up to 40 hours.
|
||
After
drying, the entire sample is removed from the drying pan and jaw crushed
to #10 mesh to reduce its fragment size so that 95% of the sample is less
than 2 mm in size (which is monitored by subsequent screen tests). The
entire sample is passed through a riffle splitter several times before a
final split of 1.2 kg is collected.
|
||
At
this point a 1.2 kg duplicate of the course reject is collected randomly
from each analytical batch. This coarse reject duplicate is subsequently
re-numbered as the original sample number with the suffix “DC” and then
treated as a normal sample. The residual coarse reject is
stored.
|
||
The
sample is then pulverised ensuring that at least 80% of the material is
less than 75 µm in size (80% passing through #200 mesh, also
monitored by screen tests). A representative 250 g split of the sample
pulp is taken as the sample and pulp duplicates are routinely collected by
the laboratory and assayed as part of their analytical quality control
measures. The remaining pulp reject (approximately 950 g) is stored for
future reference.
|
||
The
crusher and pulveriser are cleaned with barren quartz between each
sample.
|
||
13.1.3 Sample
analyses
|
||
All
drill core samples at the Navidad Project have been analysed by fire assay
for silver with gravimetric finish and gold for AAS finish and ICP-ES for
19 elements using the ICP ORE technique.
|
||
For
Ag fire assay, a 30 g charge is fused with 230 g of flux in a furnace with
temperature control at 1,050°C to produce lead buttons with a weight of at
least 30 g. The lead buttons are weighed and any sample with a button less
than 30 g is repeated. The cupellation of the lead buttons occurs in a
furnace with temperature control at 950°C. Two standards of pure metallic
silver are included in each cupellation batch to quantify the Ag loss
during the process. The prills are weighed in a microbalance and Ag
dissolved with HNO3 and
Au with Aqua Regia.
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Gold
content is determined by AAS and the silver value is calculated as the
difference between the weight of the AAS Au and Ag. The final
Ag value considers Ag lost by cupellation and adds Ag based on the two
metallic silver standards. Silver detection limits are 2 g/t Ag and
occasionally 1 g/t Ag.
|
||
In
addition, all samples are also analysed by the ICP-ORE technique that uses
strong multi-acid digestion on a sample size of 0.2 g with concentrations
determined by ICP-ES. The method uses a very strong oxidising attack to
ensure the complete dissolution of sulphides and has been optimised to
handle a wide range of concentrations of base and other metals, but with
higher than normal detection limits for typical ICP analyses. The sample
is dissolved with NPC (3% potassium chlorate in HNO3),
HBr and HCl. The elements included in the package are Ag, As, Bi, Ca, Cd,
Co, Cu, Fe, Hg, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Ti, and Zn. The detection
limits for silver, lead, copper, and zinc are 5 ppm Ag, 0.01% Pb, 0.005%
Cu, and 0.01% Zn.
|
||
The
QC protocol employed by Alex Stewart consists in batches of 50 samples for
fire assay and up to 100 samples for ICP. Fire assay batches include one
preparation blank, one analytical blank, one coarse duplicate, four pulp
duplicates, one international certified standard for base metal and
silver, one uncertified in-house standard, and two standards made from
pure silver to calibrate losses in cupellation. ICP batches include two
blanks, four standards, and 10% duplicates.
|
||
13.1.4 Sample
security and chain of custody
|
||
Samples
are transported from the drill rig to storage facilities in Gastre by
staff, where a staff geologist logs and photographs the drill core. Drill
core is cut and sampled by a staff technician, placed in a plastic bag and
sealed with a numbered tamper-proof tag corresponding to the sample
number. Five to six samples are placed in a large nylon-woven sack which
is then also sealed with a tamper-proof nylon tie. The sack, generally
containing about 50 kg of samples, is weighed by a staff technician and
transported by staff or a member of the local community to the Alex
Stewart sample preparation facilities in Mendoza, where each individual
sample is maintained under the control of Alex Stewart. After sample
preparation and analyses are complete, all pulps and coarse rejects are
shipped by Alex Stewart to a covered warehouse facility rented in Mendoza,
where the samples are stored permanently.
|
||
13.1.5 Independent
statement on sample preparation, analyses, and security
|
||
Snowden
are of the opinion that sample preparation, analyses, and security of
diamond drill core samples for the Navidad Project are of industry
standard and are suitable for use in Mineral Resource
estimates.
|
||
13.2
Quality control measures
|
||
Aquiline
routinely inserted certified standards, blanks, and field duplicates with
sample submissions as part of their sample assay quality assurance/quality
control (QAQC) programme, and provided Snowden with the data for review.
Analysis of QAQC data is made to assess the reliability of sample assay
data and the confidence in the data used for the resource
estimation.
|
||
13.2.1
Certified standard samples
|
||
Certified
standard samples are used to measure the accuracy of analytical processes
and are composed of material that has been thoroughly analysed to
accurately determine its grade within known error limits. A standard is
considered to have failed if the
assay
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result
is above or below three standard deviations of the mean certified standard
value defined by the standard manufacturer. If a standard has
failed then it may be necessary to re-analyse the sample batch associated
with the standard.
|
|||
A
total of 3,734 standard samples have been submitted at a frequency of 1 in
every 21 samples. Aquiline used standards for Ag and Pb
comprised of material collected from site and prepared by Acme
laboratories in Santiago, Chile, ALS Chemex in La Serena, Chile, ALS
Chemex in Vancouver, Canada, and Assayers Canada in Vancouver. The list of
standards employed by Aquiline and used to assess the quality of assays
used in the April 2009 Mineral Resource estimate is presented in Table
13.1. Not all standards have been certified for
Cu.
|
|||
By
late 2008 these standards had been depleted, and Aquiline purchased three
new standards certified for Ag, Pb, Cu, and Zn, prepared and packaged by
CDN Labs of Delta, British Columbia. The standards have been certified by
seven laboratories including Alex Stewart of Mendoza, ALS Chemex of
Vancouver, Acme of Vancouver, Acme of Santiago, SGS of Lima, ALS Chemex of
La Serena, and G&T Metallurgical of Kamloops. Only three standards had
been submitted at the time of the April 2009 Mineral Resource estimate,
therefore no analysis has been made of their results.
|
|||
Table
13.1 Certified
values of standards
|
Standard
|
Certified
mean grade by FA-GRAV (g/t Ag)
|
Standard
deviation by FA-GRAV (g/t Ag)
|
Certified
mean grade by ICP-OES (% Pb)
|
Standard
deviation by ICP-OES (% Pb)
|
Certified
mean grade by ICP-OES (% Cu)
|
Standard
deviation by ICP-OES (% Cu)
|
GMB01
|
110.62
|
3.28
|
6.73
|
0.13
|
0.011
|
0.0029
|
LGH
|
67.61
|
2.85
|
2.26
|
0.04
|
-
|
-
|
MGH
|
230.96
|
5.87
|
4.54
|
0.09
|
-
|
-
|
NHBG01
|
6940.2
|
166.11
|
14.52
|
0.58
|
6.24
|
0.103
|
Standard
GMB01
|
||
1,062
samples of low grade standard GMB01 were submitted from 2003 until
2008. The results from the silver gravimetric methods are shown
in Figure 13.1 and have a good accuracy. Copper ICP data
results are also good, while lead ICP data exhibit a slightly high bias,
which is not considered
significant.
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Figure
13.1 Low grade standard GMB01
results
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Standard
LGH
|
|||
Standard
LGH was used by Aquiline in August 2007 to replace standard
GMB01. A total of 849 LGH reference samples were analysed
(Figure 13.2). Ag results from FA-GRAV analyses are well
constrained about the mean certified value. Pb results are more
scattered but most results are within tolerance limits. 24
standard samples failed for Pb, representing approximately 3% of the
samples analysed between May 2007 and December 2008. A high
bias (on average) approximately equal to one standard deviation above the
mean certified value is present (approximately 1%). The bias
does not appear to be a cause for concern; however, Pan American is
recommended to follow up on any failed standard samples with the
laboratory.
|
|||
Figure
13.2 Low
grade standard LGH results
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Standard
NHBG01
|
|||
846
high grade NHBG01 reference samples were submitted between December 2003
and April 2008, with accurate results (Figure 13.4). Pb and Cu
analysis yields good results, with data points tightly constrained
slightly above the mean certified standard value (Figure
13.4).
|
|||
Figure
13.4 High grade
standard NHBG01 results
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13.2.2 Blank
Samples
|
||
Blank
samples are composed of material that is known to contain grades that are
less than the detection limit of the analytical method in use. A blank
sample is considered to have failed if the returned assay is greater than
ten times the detection limit. Analysis of blank samples is useful for
determining if cross-contamination of samples is occurring in the sample
preparation or analysis process.
|
||
Aquiline
submitted blank samples comprising barren basalt rock chips on a frequency
of 1 in 37 samples. Blank sample results are good with a low number of
failed samples (Table 13.2).
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Table
13.2 Blank sample
results
|
||||||
Analytical
method
|
Detection
limit
|
Number
of samples
|
Number
of failed samples
|
|
Ag
FA-GRAV
|
1
g/t
|
935
|
8
|
|
Pb
ICP-OES
|
0.01%
|
2,111
|
3
|
|
Cu
ICP-OES
|
0.001%
|
2,111
|
6
|
13.2.3 Duplicate drill
core samples (field duplicates)
|
|||
Field
duplicate samples are duplicate samples that are taken at the primary
sampling point. At the Navidad Project, where diamond drillhole core is
sampled by taking half of the core extracted from the ground, a field
duplicate is taken by submitting the remaining half of the core. Aquiline
were selecting quarter core samples as field duplicates until mid 2007,
when they began selecting half core samples. Field duplicates are
submitted to measure the precision of the entire sampling, sample
preparation, and analysis process. Field duplicates also provide a measure
of the inherent variability of the mineralisation (the nugget
effect).
|
|||
2,186
duplicate sample results submitted since 2003 are available for analysis,
for a submission frequency rate of 1 in 36 samples. 942 of the duplicate
samples returned silver assays with values greater than the detection
limit of the analytical instrument, for a submission frequency rate of 1
in 83 samples. Pan American should focus on field duplicate sampling in
the mineralised zone, for a submission frequency of 1 in 20
samples.
|
|||
A
number of plots and graphs can be used to quantify precision and bias in
the duplicate samples. These plots include:
|
|||
● |
Scatter
plot: assesses the degree of scatter of the duplicate result plotted
against the original (first) assay value, which allows for bias
characterisation and regression calculations.
|
||
● |
Precision
plot: half of the absolute difference (HAD) of the sample pair values
plotted against their average. The reference line indicates different
levels of precision.
|
||
● |
Relative
difference plot: relative difference of the paired values divided by their
average.
|
||
● |
Ranked
HARD plot: half absolute relative difference of samples plotted against
their ranked value (samples are ordered from lowest to highest grade and
ranked by percentile). For field duplicate samples in high nugget style
deposits, the sample threshold is accepted to be 30% or below at the
90th
percentile.
|
||
The
results of the Navidad duplicate drill core samples show good precision
and no evidence of sampling bias. Silver duplicate analyses tend to show
some scatter, but are within acceptable tolerance limits. Precision plots
yield good results at the field level, as an average of 80% of the data
plot within 20% of their respective duplicate samples, while an average of
55% of the data plot within 10%. The results of the field duplicate
samples are shown in Figure 13.5, Figure 13.6, and Figure
13.7.
|
February 2010 | 90 of 249 |
Pan American
Silver Corp:
|
Figure
13.5 Ag field
duplicate samples analysed by FA-GRAV from 2003 until
2009
|
Normal
scatter plot with threshold guidelines of
30%
|
Relative
difference plot with threshold guidelines of
30%
|
February 2010 | 91 of 249 |
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Silver Corp:
|
Precision
plot
|
Ranked
HARD plot
|
February 2010 | 92 of 249 |
Pan American
Silver Corp:
|
Figure
13.6 Pb
field duplicate samples analysed by ICP-OES from 2003 until
2009
|
Normal
scatter plot with threshold guidelines of 30%
|
Relative
difference plot with threshold guidelines of
30%
|
February 2010 | 93 of 249 |
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Silver Corp:
|
Precision
plot
|
Ranked
HARD plot
|
February 2010 | 94 of 249 |
Pan American
Silver Corp:
|
Figure
13.7 Cu
field duplicate samples analysed by ICP-OES from 2003 until
2009
|
Normal
scatter plot with threshold guidelines of 30%
|
Relative
difference plot with threshold guidelines of
30%
|
February 2010 | 95 of 249 |
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Silver Corp:
|
Precision plot |
Ranked HARD
plot
|
February 2010 | 96 of 249 |
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Silver Corp:
|
13.2.4
Independent statement of
Navidad quality control samples
|
|||
Snowden
considers the results of the standard, blank, and field duplicate samples
submitted for the Navidad Project to be of industry standard and do not
indicate any significant source of bias, cross contamination, or
inaccuracy.
|
|||
February 2010 | 97 of 249 |
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Silver Corp:
|
14 Data
verification
|
||
Information
in this section has been sourced from Snowden (2009).
|
||
14.1
Field and laboratory quality control data reviews
|
||
In June
2003, Smee and Associates Consulting Ltd (Smee) were engaged to audit the
laboratories of Alex Stewart in Mendoza and ALS Chemex laboratories of
Coquimbo and Santiago, Chile, and to make recommendations as to the
suitability of the methods used by these laboratories for the high grade
samples expected to be submitted from the Navidad Project
(Smee, 2003). The work involved a formal audit of the Alex Stewart
laboratory, a visit to the ALS Chemex laboratory in Santiago, and a formal
audit of the ALS Chemex laboratory at Coquimbo. Smee concluded that both
laboratories were capable of meeting the required standards, but there
would be some operational and turn around differences between the two
options.
|
||
In April
2005, Smee conducted a review of the 2004 Navidad QAQC data and an audit
of the procedures used at the Alex Stewart laboratory in Mendoza,
Argentina (Smee, 2005a). No site visit was undertaken. Smee considered the
laboratory facilities in Mendoza to comply with industry best practice
methods for analysis, and that the QAQC Project data as at April 2005 was
accurate, precise, free from contamination, and suitable for inclusion in
Mineral Resource estimates. Smee recommended improvements in managing QAQC
data; capturing and analysing the Alex Stewart internal QAQC data;
initiating a plan of action for identifying QAQC failures and the
corrective action required; improvements to diamond drill core cutting
(orienting core and marking a cutting line); and taking half core samples
for duplicates rather than quarter core samples.
|
||
In
December 2005, Smee conducted a review of the 2004 and 2005 QC data and
made recommendations as to the suitability of the analytical data to be
included in resource estimations (Smee, 2005b). No site visit was
undertaken. Smee considered the laboratory facilities in Mendoza were
performing the analyses using industry accepted procedures and quality
control protocols, and that the QAQC Project data as at December 2005 was
accurate, precise, free from contamination, and suitable for use in
resource estimations. Smee recommended the purchase of a commercial
software database to assist the capture of the analytical and quality
control data.
|
||
In
February 2008, Smee and Associates Consulting Ltd visited the Project and
conducted a review of the Navidad QAQC data and procedures (Smee, 2008).
Smee recommended improvements for the data compilation and in managing the
QAQC data; to build a table of failures to document the course of action
taken to correct or accept the failures; to document and describe the
nature of the inserted blank and to determine the background values of the
blank samples in order to establish a more precise warning limit. Smee
calculated the sampling precision for some of the project deposits that
showed that most areas have an overall sampling precision of nearly ±20%,
which is expected for this style of mineralisation. Smee indicated that
Calcite Hill mineralisation has a precision of ±30% which is considered to
be high for this style of mineralisation and recommended investigating the
source of this variation. It was recommended that the corresponding
lithology symbol be attached to the duplicate samples to determine which
lithology has the poorest precision. These recommendations have
subsequently been implemented by
Aquiline.
|
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14.2
Snowden independent site visits
|
|||
Ms. De
Mark conducted a site inspection of the Navidad Property from 10 September
to 13 September 2007 and from 28 April to 30 April 2009. Ms. De Mark was
involved in discussions with key Aquiline personnel (Table 14.1) and
undertook the following activities:
|
|||
—
|
Reviewed
geological plans and cross sections.
|
||
—
|
Reviewed
selected diamond drillhole logs and diamond drill core
intersections.
|
||
—
|
Reviewed
diamond drill core logging, cutting, and sampling
procedures.
|
||
—
|
Selected
mineralised intersections for independent analyses.
|
||
—
|
Confirmed
the coordinates of selected diamond drillhole collars by
GPS.
|
||
—
|
Inspected
Aquiline’s two operating diamond drilling rigs during the 2007 site visit.
No diamond drill rigs were in operation at the time of Snowden’s 2009
visit.
|
||
Table
14.1 Key Aquiline
personnel involved in data verification
discussions
|
Visit
year
|
Name
|
Position
|
|
2007,
2009
|
John
Chulick
|
Vice
President of Exploration
|
|
2007,
2009
|
Sergio
Kain
|
Senior
Project Geologist
|
|
2007
|
Sophia
Adamopoulos
|
Senior
Project Geologist
|
|
2009
|
Dean
Williams
|
Chief
Geologist
|
|
2009
|
Damian
Spring
|
Chief
Mining Engineer
|
14.2.1 Independent
review and sampling of mineralised intersections
|
||
Ms.
De Mark examined mineralised intersections in 49 drillholes from the
Barite Hill, Galena Hill, Connector Zone, Navidad Hill, Calcite Hill,
Calcite NW, Loma de La Plata and Valle Esperanza deposits in 2007 and 2009
(Table 14.2). A number of the mineralised intersections selected by
Snowden for review in 2009 were no longer available, as the drill core had
been used for metallurgical testing. These missing intersections included
drillholes NV08-658, NV07-618, NV08-681, NV08-732, NV08-765, NV08-718,
NV07-609, NV08-781, NV08-713, NV08-792, NV07-515, and NV07-543. No
discrepancies were noted.
|
||
In
2007, Ms. De Mark confirmed the presence of diamond drill core for the
Project, which is stored under cover at the Aquiline drill core storage
facilities in Gastre. Further, she collected 30 quarter core duplicate
samples from 25 drillholes (Table 14.3), and confirmed the presence of
visible Ag mineralisation in drillhole NV07-442 (which returned assays of
22,818 g/t Ag from 223.55 m to 224.05 m downhole).
|
||
In
2007, the 30 independent quarter core samples were cut and sampled under
Snowden supervision, and shipped to Vancouver, where the samples were
submitted to Acme Laboratories of Vancouver, B.C. One sample of blank rock
chips and two standard pulps were also submitted for analyses. Samples
were crushed to 70% passing #10 mesh, split to 250 g, and pulverised to
95% passing #150 mesh. Au and Ag were analysed by fire assay on a 30 g
sample. Base metal sulphides and precious metals were analysed by ICP-ES
using hot Aqua Regia digestion of a 1 g
sample.
|
February 2010 | 99 of 249 |
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Silver Corp:
|
The 31
independent samples selected by Snowden from 31 drillholes in April 2009
(Table 0.3) were cut and sampled under Snowden supervision, and shipped to
Vancouver, where the samples were submitted to ALS Laboratories of North
Vancouver, B.C. One sample of blank rock chips and four standard pulps
were also submitted for analyses. Samples were crushed to 70% passing
<2 mm mesh, pulverised to 85% passing <75 µm mesh, and split with a
riffle splitter to obtain a 30 g charge. Ag was analysed by fire assay
with gravimetric finish, and Pb was analysed using high grade four acid
digestion and ICP-AES.
|
||
The
purpose of independent sampling is to verify the presence of significantly
mineralised intersections. Because of the limited number of samples, the
size of the sample (quarter core), and slightly different sample
preparation and analysis techniques used by the alternate laboratory,
independent samples should not be considered as a QAQC sample. Snowden is
of the opinion that the results of the independent samples selected in
2007 and 2009 are acceptable for duplicate samples of the style of
mineralisation concerned.
|
||
Table
14.2 Snowden
mineralised drill core intersection
review
|
Review
year
|
Hole
number
|
Deposit
|
From
|
To
|
2007
|
NV06-309
|
Calcite
NW
|
82.29
|
128.82
|
2007
|
NV06-355
|
Navidad
Hill
|
33.4
|
59.78
|
2007
|
NV06-357
|
Navidad
Hill
|
8.0
|
31.1
|
2007
|
NV06-358
|
Navidad
Hill
|
0.0
|
19.05
|
2007
|
NV06-359
|
Navidad
Hill
|
2.6
|
21.42
|
2007
|
NV06-367
|
Galena
Hill
|
26.42
|
53.78
|
2007
|
NV06-369
|
Galena
Hill
|
3.0
|
26.48
|
2007
|
NV06-370
|
Galena
Hill
|
49.1
|
57.35
|
2007
|
NV06-374
|
Galena
Hill
|
25.53
|
37.57
|
2007
|
NV06-378
|
Connector
Zone
|
64.8
|
90.0
|
2007
|
NV06-381
|
Connector
Zone
|
27.34
|
41.13
|
2007
|
NV06-386
|
Navidad
Hill
|
36.7
|
64.45
|
2007
|
NV07-414
|
Calcite
NW
|
20.1
|
39.1
|
2007
|
NV07-416
|
Calcite
NW
|
39.8
|
54.1
|
2007
|
NV07-418
|
Calcite
NW
|
56.0
|
64.4
|
2007
|
NV07-421
|
Calcite
NW
|
25.14
|
50.14
|
2007
|
NV07-422
|
Calcite
NW
|
24.56
|
54.7
|
2009
|
NV07-442
|
Barite
Hill
|
216.14
|
240.75
|
2009
|
NV07-396
|
Barite
Hill
|
90.2
|
120.2
|
2009
|
NV08-666
|
Galena
Hill
|
119.09
|
157
|
2009
|
NV07-552
|
Galena
Hill
|
3
|
26.48
|
2009
|
NV07-560
|
Connector
Zone
|
15.33
|
47.75
|
2009
|
NV08-867
|
Connector
Zone
|
193.8
|
235.36
|
February 2010 | 100 of 249 |
Pan American
Silver Corp:
|
Review
year
|
Hole
number
|
Deposit
|
From
|
To
|
2009
|
NV08-726
|
Connector
Zone
|
189.4
|
235.65
|
2009
|
NV07-615
|
Calcite
Hill
|
39.06
|
52.14
|
2009
|
NV07-485
|
Calcite
Hill
|
14.6
|
40.54
|
2009
|
NV07-617
|
Calcite
Hill
|
6
|
36.5
|
2009
|
NV07-423
|
Calcite
NW
|
35.17
|
68.5
|
2009
|
NV07-533
|
Calcite
NW
|
28.78
|
45.44
|
2009
|
NV07-584
|
Calcite
NW
|
0
|
22.7
|
2009
|
NV07-645
|
Calcite
NW
|
46.43
|
76.48
|
2009
|
NV08-906
|
Loma
de La Plata
|
299.78
|
340.82
|
2009
|
NV07-571
|
Loma
de La Plata
|
151.56
|
201.88
|
2009
|
NV07-513
|
Loma
de La Plata
|
24.67
|
56.87
|
2009
|
NV07-611
|
Loma
de La Plata
|
207.58
|
231.84
|
2009
|
NV07-522
|
Loma
de La Plata
|
51.3
|
75.29
|
2009
|
NV08-843
|
Loma
de La Plata
|
217.66
|
266.16
|
2009
|
NV08-856
|
Loma
de La Plata
|
87.46
|
111.6
|
2009
|
NV07-622
|
Loma
de La Plata
|
261.1
|
274.18
|
2009
|
NV07-434
|
Loma
de La Plata
|
0
|
18
|
2009
|
NV08-730
|
Valle
Esperanza
|
170.59
|
206.19
|
2009
|
NV08-730
|
Valle
Esperanza
|
249.57
|
271.63
|
2009
|
NV08-740
|
Valle
Esperanza
|
239.25
|
256
|
2009
|
NV08-740
|
Valle
Esperanza
|
391.63
|
416.42
|
2009
|
NV08-790
|
Valle
Esperanza
|
49.97
|
66.5
|
2009
|
NV08-790
|
Valle
Esperanza
|
77.85
|
92.12
|
2009
|
NV08-802
|
Valle
Esperanza
|
128.1
|
161.52
|
2009
|
NV08-841
|
Valle
Esperanza
|
268.12
|
282.36
|
2009
|
NV08-655
|
Valle
Esperanza
|
180.2
|
202
|
2009
|
NV08-655
|
Valle
Esperanza
|
220
|
230.2
|
2009
|
NV08-690
|
Valle
Esperanza
|
179.98
|
212.6
|
2009
|
NV08-694
|
Valle
Esperanza
|
198.36
|
237
|
2009
|
NV08-685
|
Valle
Esperanza
|
218.8
|
232.65
|
February 2010 | 101 of 249 |
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|
Table
14.3 Snowden
independent samples
|
Deposit
|
Drillhole
number
|
Original
sample number
|
Snowden
sample number
|
From
|
To
|
Original
Ag g/t
|
Original
Pb%
|
Snowden
duplicate Ag g/t
|
Snowden
duplicate Pb%
|
|
2007
|
Calcite
NW
|
NV06-309
|
35026
|
18
|
85.5
|
88.5
|
403
|
0.21
|
390
|
0.19
|
2007
|
Navidad
Hill
|
NV06-355
|
37702
|
23
|
50
|
51.5
|
442
|
0.27
|
163
|
0.51
|
2007
|
Navidad
Hill
|
NV06-357
|
37799
|
29
|
22.15
|
23.17
|
392
|
0.13
|
140
|
0.18
|
2007
|
Navidad
Hill
|
NV06-358
|
37839
|
27
|
4.8
|
5.4
|
240
|
0.28
|
175
|
0.39
|
2007
|
Navidad
Hill
|
NV06-359
|
37879
|
26
|
4.6
|
6.04
|
239
|
0.11
|
196
|
0.1
|
2007
|
Navidad
Hill
|
NV06-359
|
37885
|
24
|
10.25
|
11
|
1680
|
0.41
|
1176
|
0.52
|
2007
|
Galena
Hill
|
NV06-367
|
38362
|
22
|
29.3
|
31.1
|
879
|
21.88
|
796
|
19.69
|
2007
|
Galena
Hill
|
NV06-367
|
38363
|
25
|
31.1
|
32.2
|
503
|
18.65
|
492
|
19.38
|
2007
|
Galena
Hill
|
NV06-369
|
38462
|
21
|
7.1
|
10.1
|
87
|
2.86
|
99
|
3.22
|
2007
|
Galena
Hill
|
NV06-370
|
38583
|
30
|
55.85
|
55.6
|
2466
|
1.64
|
2125
|
2.02
|
2007
|
Galena
Hill
|
NV06-374
|
38851
|
20
|
30.4
|
31.81
|
376
|
10.79
|
390
|
9.46
|
2007
|
Connector
Zone
|
NV06-378
|
39098
|
16
|
83.1
|
85.8
|
289
|
0.06
|
581
|
0.09
|
2007
|
Connector
Zone
|
NV06-381
|
39200
|
15
|
30.9
|
32.4
|
505
|
0.71
|
488
|
0.79
|
2007
|
Navidad
Hill
|
NV06-386
|
39479
|
28
|
53.55
|
54.9
|
739
|
0.3
|
1073
|
0.33
|
2007
|
Calcite
NW
|
NV07-414
|
41665
|
17
|
22.3
|
25.3
|
159
|
0.1
|
164
|
0.09
|
2007
|
Calcite
NW
|
NV07-414
|
41671
|
14
|
34.3
|
36.2
|
159
|
0.11
|
148
|
0.15
|
2007
|
Calcite
NW
|
NV07-416
|
41784
|
13
|
51.18
|
52
|
1074
|
3.41
|
464
|
3.95
|
2007
|
Calcite
NW
|
NV07-418
|
41889
|
5
|
37
|
40
|
2227
|
4.18
|
129
|
0.07
|
2007
|
Calcite
NW
|
NV07-421
|
42005
|
6
|
28
|
31
|
23
|
0.47
|
6
|
0.43
|
2007
|
Calcite
NW
|
NV07-422
|
42047
|
12
|
46
|
47.55
|
390
|
0.19
|
372
|
0.24
|
2007
|
Calcite
NW
|
NV07-425
|
42187
|
10
|
67
|
70
|
365
|
1.26
|
517
|
2.41
|
2007
|
Barite
Hill
|
NV07-442
|
43442
|
19
|
222.19
|
222.58
|
7072
|
<0.01
|
1221
|
0.24
|
February 2010 | 102 of 249 |
Pan American
Silver Corp:
|
2007
|
Barite
Hill
|
NV07-442
|
43443
|
8
|
222.58
|
222.92
|
5469
|
0.01
|
1876
|
0.01
|
2007
|
Barite
Hill
|
NV07-445
|
43780
|
7
|
198.15
|
199.6
|
1733
|
0.24
|
1197
|
0.12
|
2007
|
Barite
Hill
|
NV07-463
|
45791
|
9
|
197.41
|
199
|
189
|
0.05
|
102
|
0.08
|
2007
|
Barite
Hill
|
NV07-463
|
45793
|
11
|
199
|
200.49
|
111
|
0.04
|
110
|
0.02
|
2007
|
Barite
Hill
|
NV07-467
|
46178
|
3
|
85
|
86.4
|
77
|
13.28
|
98
|
15.67
|
2007
|
Barite
Hill
|
NV07-476
|
47116
|
4
|
19
|
22
|
99
|
3.01
|
151
|
4.37
|
2007
|
Calcite
Hill
|
NV07-484
|
47656
|
1
|
36.6
|
39.05
|
304
|
0.07
|
288
|
0.07
|
2007
|
Calcite
Hill
|
NV07-484
|
47658
|
2
|
40.3
|
42.6
|
815
|
0.17
|
518
|
0.16
|
2007
|
-
|
Standard
|
LGH-0324
|
31
|
-
|
-
|
111
|
6.73
|
73
|
2.32
|
2007
|
-
|
Blank
|
-
|
32
|
-
|
-
|
0
|
0
|
16
|
0.01
|
2007
|
-
|
Standard
|
MGH-0992
|
33
|
-
|
-
|
231
|
4.54
|
241
|
4.32
|
2009
|
Barite
Hill
|
NV07-396
|
39986
|
93404
|
100.94
|
102.8
|
540
|
0.06
|
521
|
0.07
|
2009
|
Calcite
NW
|
NV07-423
|
42089
|
93402
|
55
|
58
|
875
|
0.22
|
625
|
0.26
|
2009
|
Loma
de La Plata
|
NV07-434
|
42689
|
93401
|
0
|
3
|
1628
|
0.005
|
3600
|
0.01
|
2009
|
Barite
Hill
|
NV07-442
|
43444
|
93403
|
222.92
|
223.55
|
305
|
0.005
|
1575
|
0.00
|
2009
|
Calcite
Hill
|
NV07-485
|
47682
|
93422
|
28.05
|
30.1
|
905
|
0.31
|
1200
|
0.32
|
2009
|
Loma
de La Plata
|
NV07-513
|
49101
|
93396
|
49.5
|
51.8
|
1438
|
0.25
|
1495
|
0.30
|
2009
|
Loma
de La Plata
|
NV07-522
|
49365
|
93397
|
70.41
|
71.27
|
6560
|
0.01
|
6030
|
0.02
|
2009
|
Calcite
NW
|
NV07-533
|
55725
|
93425
|
33.73
|
34.55
|
2051
|
3.16
|
1360
|
2.57
|
2009
|
Galena
Hill
|
NV07-552
|
56238
|
93415
|
19.7
|
22.7
|
106
|
2.03
|
103
|
1.89
|
2009
|
Connector
Zone
|
NV07-560
|
56450
|
93420
|
22.13
|
23.5
|
564
|
1.33
|
433
|
1.10
|
2009
|
Loma
de La Plata
|
NV07-571
|
50695
|
93395
|
159.45
|
162.45
|
1516
|
0.005
|
1390
|
0.01
|
2009
|
Calcite
NW
|
NV07-584
|
57466
|
93426
|
6.76
|
7.6
|
123
|
1.59
|
102
|
1.76
|
2009
|
Calcite
Hill
|
NV07-615
|
58649
|
93416
|
43.18
|
44.86
|
398
|
0.27
|
653
|
0.40
|
February 2010 | 103 of 249 |
Pan American
Silver Corp:
|
2009
|
Calcite
Hill
|
NV07-617
|
58696
|
93424
|
25.5
|
27.8
|
636
|
0.07
|
381
|
0.08
|
2009
|
Loma
de La Plata
|
NV07-622
|
52676
|
93400
|
264.52
|
266.29
|
4335
|
0.01
|
819
|
0.00
|
2009
|
Calcite
NW
|
NV07-645
|
60123
|
93427
|
68.4
|
70.2
|
1036
|
0.23
|
1510
|
0.19
|
2009
|
Valle
Esperanza
|
NV08-655
|
60759
|
93410
|
185
|
186
|
4487
|
0.05
|
3540
|
0.06
|
2009
|
Galena
Hill
|
NV08-666
|
65176
|
93414
|
136
|
139
|
119
|
0.71
|
99
|
0.65
|
2009
|
Valle
Esperanza
|
NV08-685
|
66502
|
93428
|
277.2
|
280.2
|
256
|
0.07
|
145
|
0.04
|
2009
|
Valle
Esperanza
|
NV08-690
|
66947
|
93413
|
190.89
|
192.5
|
229
|
0.66
|
259
|
0.70
|
2009
|
Valle
Esperanza
|
NV08-694
|
67218
|
93412
|
213
|
214
|
6017
|
0.34
|
6540
|
0.37
|
2009
|
Connector
Zone
|
NV08-726
|
69251
|
93423
|
199
|
202
|
1206
|
0.005
|
866
|
0.01
|
2009
|
Valle
Esperanza
|
NV08-730
|
69492
|
93405
|
205
|
208
|
4155
|
1.05
|
3090
|
0.91
|
2009
|
Valle
Esperanza
|
NV08-740
|
69954
|
93406
|
244
|
245.67
|
207
|
0.14
|
164
|
0.09
|
2009
|
Valle
Esperanza
|
NV08-790
|
81857
|
93407
|
62
|
64
|
120
|
0.07
|
125
|
0.07
|
2009
|
Valle
Esperanza
|
NV08-802
|
82272
|
93408
|
147.65
|
148.62
|
4223
|
0.005
|
3740
|
0.01
|
2009
|
Valle
Esperanza
|
NV08-841
|
83323
|
93409
|
272.39
|
274
|
219
|
2.59
|
193
|
2.68
|
2009
|
Loma
de La Plata
|
NV08-843
|
73306
|
93398
|
228.3
|
230.3
|
7585
|
0.02
|
5060
|
0.02
|
2009
|
Loma
de La Plata
|
NV08-856
|
73557
|
93399
|
97.2
|
98.7
|
8465
|
0.03
|
>10000
|
0.03
|
2009
|
Connector
Zone
|
NV08-867
|
84241
|
93421
|
215.35
|
216.54
|
1247
|
0.17
|
1125
|
0.19
|
2009
|
Loma
de La Plata
|
NV08-906
|
90594
|
93393
|
308.57
|
309.73
|
1618
|
0.005
|
2170
|
0.00
|
2009
|
-
|
Blank
|
-
|
93411
|
-
|
-
|
0
|
0
|
4
|
0.00
|
2009
|
-
|
Standard
|
L1
|
93418
|
-
|
-
|
655
|
0.31
|
623
|
0.31
|
2009
|
-
|
Standard
|
L2
|
93419
|
-
|
-
|
254
|
0.25
|
250
|
0.24
|
2009
|
-
|
Standard
|
L3
|
93394
|
-
|
-
|
91
|
0.09
|
95
|
0.09
|
2009
|
-
|
Standard
|
L3
|
93417
|
-
|
-
|
91
|
0.09
|
85
|
0.09
|
February 2010 | 104 of 249 |
Pan American
Silver Corp:
|
14.2.2 Independent
review of drillhole collar locations
|
||
Ms.
De Mark visited 30 drillhole collars in 2007 and 2009, and measured the
drillhole collar coordinates with a hand held GPS unit (Table 14.4). No
discrepancies were noted in the coordinates beyond the accuracy of the
hand held GPS.
|
February 2010 | 105 of 249 |
Pan American
Silver Corp:
|
Table
14.4 Snowden
verification of drill collar
coordinates
|
Year
|
Drillhole
number
|
Deposit
|
Snowden
easting
|
Snowden
northing
|
Snowden
elevation
|
Aquiline
easting
|
Aquiline
northing
|
Aquiline
elevation
|
Easting
difference
|
Northing
difference
|
Elevation
difference
|
2007
|
NV07-403
|
Barite
Hill
|
2516578
|
5302703
|
not
taken
|
2516580
|
5302704
|
1124
|
2
|
1
|
|
2007
|
NV07-461
|
Barite
Hill
|
2516487
|
5302556
|
not
taken
|
2516490
|
5302557
|
1124
|
3
|
1
|
|
2007
|
NV06-284
|
Galena
Hill
|
2515634
|
5303743
|
1163
|
2515637
|
5303742
|
1185
|
3
|
-1
|
22
|
2007
|
NV06-362
|
Navidad
Hill
|
2514781
|
5304520
|
1209
|
2514783
|
5304516
|
1230
|
2
|
-4
|
21
|
2007
|
NV05-182
|
Calcite
Hill
|
2513953
|
5304968
|
1218
|
2513952
|
5304968
|
1240
|
-1
|
0
|
22
|
2007
|
NV06-261
|
Calcite
NW
|
2513549
|
5304867
|
1195
|
2513553
|
5304866
|
1221
|
4
|
-1
|
26
|
2007
|
NV07-559
|
Loma
de La Plata
|
2511766
|
5303347
|
1255
|
2511767
|
5303344
|
1279
|
1
|
-3
|
24
|
2007
|
NV07-557
|
Loma
de La Plata
|
2511678
|
5303352
|
1256
|
2511670
|
5303353
|
1284
|
-8
|
1
|
28
|
2007
|
NV07-522
|
Loma
de La Plata
|
2511649
|
5303306
|
1264
|
2511649
|
5303304
|
1288
|
0
|
-2
|
24
|
2007
|
NV07-526
|
Loma
de La Plata
|
2511600
|
5303307
|
1265
|
2511600
|
5303303
|
1290
|
0
|
-4
|
25
|
2009
|
NV08-906
|
Loma
de La Plata
|
2512479
|
5303446
|
1216
|
2512481
|
5303449
|
1238.2
|
1.94
|
2.96
|
22.2
|
2009
|
NV08-769
|
Loma
de La Plata
|
2511398
|
5302999
|
1336
|
2511398
|
5303000
|
1359.52
|
0.08
|
0.57
|
23.52
|
2009
|
NV08-761
|
Loma
de La Plata
|
2511773
|
5303602
|
1241
|
2511774
|
5303601
|
1263.7
|
1.03
|
-1.48
|
22.7
|
2009
|
NV08-812
|
Loma
de La Plata
|
2511985
|
5303450
|
1234
|
2511984
|
5303451
|
1257
|
-0.69
|
0.57
|
23
|
2009
|
NV08-886
|
Loma
de La Plata
|
2512230
|
5303497
|
1237
|
2512233
|
5303499
|
1260.88
|
2.5
|
2.18
|
23.88
|
2009
|
NV08-868
|
Loma
de La Plata
|
2512154
|
5303147
|
1247
|
2512155
|
5303149
|
1268.44
|
1.31
|
1.86
|
21.44
|
2009
|
NV07-490
|
Bajo
de Plomo
|
2512157
|
5302342
|
1271
|
2512156
|
5302344
|
1290.17
|
-1.18
|
1.95
|
19.17
|
2009
|
NV07-647
|
Filo
de Plomo
|
2512612
|
5301980
|
1281
|
2512613
|
5301982
|
1301.79
|
1.33
|
2.16
|
20.79
|
2009
|
NV07-642
|
Calcite
NW
|
2513949
|
5305156
|
1194
|
2513951
|
5305156
|
1211.89
|
1.64
|
-0.46
|
17.89
|
2009
|
NV07-641
|
Calcite
NW
|
2513828
|
5305136
|
1192
|
2513831
|
5305142
|
1210.52
|
2.56
|
6.44
|
18.52
|
2009
|
NV08-914
|
Calcite
NW
|
2513440
|
5304766
|
1201
|
2513442
|
5304770
|
1220.53
|
1.84
|
4.33
|
19.53
|
2009
|
NV08-717
|
Calcite
NW
|
2515200
|
5304118
|
1134
|
2515203
|
5304122
|
1151.28
|
2.59
|
3.57
|
17.28
|
February 2010 | 106 of 249 |
Pan American
Silver Corp:
|
Year
|
Drillhole
number
|
Deposit
|
Snowden
easting
|
Snowden
northing
|
Snowden
elevation
|
Aquiline
easting
|
Aquiline
northing
|
Aquiline
elevation
|
Easting
difference
|
Northing
difference
|
Elevation
difference
|
2009
|
NV08-653
|
Valle
Esperanza
|
2515157
|
5303338
|
1121
|
2515156
|
5303338
|
1140.04
|
-1.36
|
0.07
|
19.04
|
2009
|
NV08-847
|
Valle
Esperanza
|
2515163
|
5303346
|
1120
|
2515163
|
5303348
|
1139.97
|
0.21
|
2.1
|
19.97
|
2009
|
NV08-763
|
Valle
Esperanza
|
2514984
|
5303144
|
1125
|
2514986
|
5303147
|
1144.45
|
1.74
|
3.24
|
19.45
|
2009
|
NV08-736
|
Valle
Esperanza
|
2515003
|
5303081
|
1122
|
2515002
|
5303082
|
1145.77
|
-0.54
|
1.26
|
23.77
|
2009
|
NV06-300
|
Valle
Esperanza
|
2515178
|
5303087
|
1122
|
2515178
|
5303087
|
1140.94
|
-0.43
|
-0.06
|
18.94
|
2009
|
NV04-025
|
Valle
Esperanza
|
2515365
|
5302999
|
1119
|
2515366
|
5302999
|
1140.05
|
1.4
|
0.08
|
21.05
|
2009
|
NV04-077
|
Valle
Esperanza
|
2514691
|
5303436
|
1133
|
2514689
|
5303435
|
1151.16
|
-1.92
|
-1.3
|
18.16
|
2009
|
NV08-690
|
Valle
Esperanza
|
2514813
|
5303362
|
1127
|
2514817
|
5303361
|
1148.23
|
3.84
|
-0.99
|
21.23
|
February 2010 | 107 of 249 |
Pan American
Silver Corp:
|
14.2.3 Independent
review of original assay certificates
|
||
In
2007 and 2009, Snowden obtained original assay certificates for comparison
against the database. Original assay certificates were emailed directly to
Snowden from the Alex Stewart Mendoza laboratory. Snowden reviewed 89
certificates for 8,427 assays, and noted no discrepancies. A list of the
work order numbers, date received at the laboratory, and the sample
numbers is shown in Table 14.5.
|
||
Table
14.5 Snowden
review of original assay
certificates
|
Review
year
|
Work
order
|
Certificate
date
|
Sample
numbers from
|
Sample
numbers to
|
|
2007
|
M060593
|
22/05/2006
|
34937
|
35023
|
|
2007
|
M060603
|
23/05/2006
|
35024
|
35117
|
|
2007
|
M060855
|
16/07/2006
|
37667
|
37758
|
|
2007
|
M060859
|
18/07/2006
|
37759
|
37868
|
|
2007
|
M060874
|
21/07/2006
|
37869
|
37962
|
|
2007
|
M061581
|
4/12/2006
|
38331
|
38440
|
|
2007
|
M061592
|
16/12/2006
|
38441
|
38536
|
|
2007
|
M061593
|
7/12/2006
|
38537
|
38638
|
|
2007
|
M061610
|
11/12/2006
|
38759
|
38882
|
|
2007
|
M061631
|
11/12/2006
|
38985
|
39100
|
|
2007
|
M061643
|
12/12/2006
|
39101
|
39222
|
|
2007
|
M061695
|
18/12/2006
|
39436
|
39555
|
|
2007
|
M070089
|
22/01/2007
|
40299
|
40385
|
|
2007
|
M070281
|
15/02/2007
|
41625
|
41716
|
|
2007
|
M070290
|
16/02/2007
|
41717
|
41814
|
|
2007
|
M070297
|
19/02/2007
|
41815
|
41904
|
|
2007
|
M070327
|
22/02/2007
|
41995
|
42085
|
|
2007
|
M070360
|
27/02/2007
|
42171
|
42253
|
|
2007
|
M070459
|
12/03/2007
|
42576
|
42651
|
|
2007
|
M070727
|
10/04/2007
|
43416
|
43508
|
|
2007
|
M070746
|
16/04/2007
|
43707
|
43792
|
|
2007
|
M070926
|
7/05/2007
|
44714
|
44799
|
|
2007
|
M071070
|
31/05/2007
|
45730
|
45821
|
|
2007
|
M071110
|
6/05/2007
|
46153
|
46244
|
|
2007
|
M071226
|
25/06/2007
|
47110
|
47194
|
|
2007
|
M071256
|
29/06/2007
|
47284
|
47367
|
|
2007
|
M071305
|
10/07/2007
|
47633
|
47738
|
|
2009
|
M070290
|
16/02/2007
|
41717
|
41814
|
|
2009
|
M070297
|
19/02/2007
|
41815
|
41904
|
February 2010 | 108 of 249 |
Pan American
Silver Corp:
Technical
Report
|
Review
year
|
Work
order
|
Certificate
date
|
Sample
numbers from
|
Sample
numbers to
|
2009
|
M070298
|
29/02/2007
|
41905
|
41994
|
|
2009
|
M070671
|
9/4/2007
|
43328
|
43415
|
|
2009
|
M070727
|
10/4/2007
|
43416
|
43508
|
|
2009
|
M070956
|
15/05/2007
|
44964
|
45049
|
|
2009
|
M070976
|
17/05/2007
|
45050
|
45138
|
|
2009
|
M070990
|
21/05/2007
|
45139
|
45264
|
|
2009
|
M071305
|
10/7/2007
|
47633
|
47738
|
|
2009
|
M071513
|
21/08/2007
|
49308
|
49404
|
|
2009
|
M071515
|
21/08/2007
|
49405
|
49490
|
|
2009
|
M071561
|
27/08/2007
|
55643
|
55711
|
|
2009
|
M071562
|
27/08/2007
|
55712
|
55810
|
|
2009
|
M071622
|
9/3/2007
|
56170
|
56250
|
|
2009
|
M071635
|
9/5/2007
|
56251
|
56335
|
|
2009
|
M071640
|
9/5/2007
|
50152
|
50245
|
|
2009
|
M071646
|
9/7/2007
|
56424
|
56514
|
|
2009
|
M071647
|
9/10/2007
|
50246
|
50326
|
|
2009
|
M071980
|
22/10/2007
|
52165
|
52239
|
|
2009
|
M072018
|
29/10/2007
|
58657
|
58757
|
|
2009
|
M072019
|
29/10/2007
|
52240
|
52336
|
|
2009
|
M072042
|
30/10/2007
|
58758
|
58794
|
|
2009
|
M072089
|
5/11/2007
|
52531
|
52608
|
|
2009
|
M072090
|
11/5/2007
|
52609
|
52680
|
|
2009
|
M072106
|
5/11/2007
|
52681
|
52763
|
|
2009
|
M072231
|
16/11/2007
|
58858
|
58949
|
|
2009
|
M072244
|
20/11/2007
|
58950
|
59021
|
|
2009
|
M072334
|
26/11/2007
|
59022
|
59105
|
|
2009
|
M080049
|
14/01/2008
|
60351
|
60421
|
|
2009
|
M080060
|
16/01/2008
|
60422
|
60521
|
|
2009
|
M080065
|
21/01/2008
|
60598
|
60697
|
|
2009
|
M080072
|
23/01/2008
|
60698
|
60785
|
|
2009
|
M080137
|
28/01/2008
|
60786
|
60890
|
|
2009
|
M080160
|
29/01/2008
|
60977
|
61102
|
|
2009
|
M080183
|
2/4/2008
|
65102
|
65188
|
|
2009
|
M080270
|
7/2/2008
|
65189
|
65324
|
|
2009
|
M080487
|
22/02/2008
|
66385
|
66460
|
|
2009
|
M080530
|
28/02/2008
|
66461
|
66556
|
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|
Review
year
|
Work
order
|
Certificate
date
|
Sample
numbers from
|
Sample
numbers to
|
2009
|
M080706
|
11/3/2008
|
67015
|
67157
|
|
2009
|
M080734
|
17/03/2008
|
67158
|
67255
|
|
2009
|
M080753
|
17/03/2008
|
67256
|
67344
|
|
2009
|
M080755
|
11/3/2008
|
66937
|
67014
|
|
2009
|
M081415
|
10/5/2008
|
69162
|
69380
|
|
2009
|
M081417
|
11/5/2008
|
69381
|
69541
|
|
2009
|
M081465
|
15/05/2008
|
69542
|
69643
|
|
2009
|
M081997
|
7/7/2008
|
81005
|
81101
|
|
2009
|
M082019
|
31/07/2008
|
69162
|
69380
|
|
2009
|
M082020
|
4/7/2008
|
69381
|
69541
|
|
2009
|
M082026
|
7/10/2008
|
81102
|
81192
|
|
2009
|
M082077
|
16/07/2008
|
81193
|
81326
|
|
2009
|
M082282
|
14/08/2008
|
82212
|
82305
|
|
2009
|
M082295
|
15/08/2008
|
82306
|
82401
|
|
2009
|
M082415
|
1/9/2008
|
87728
|
87818
|
|
2009
|
M082503
|
070/09/2008
|
87819
|
87901
|
|
2009
|
M082580
|
16/09/2008
|
73178
|
73227
|
|
2009
|
M082611
|
19/09/2008
|
73228
|
73318
|
|
2009
|
M082667
|
24/09/08
|
73319
|
73373
|
|
2009
|
M082751
|
3/10/2008
|
73507
|
73577
|
|
2009
|
M082752
|
3/10/2008
|
73578
|
73647
|
|
2009
|
M082840
|
8/10/2008
|
84137
|
84225
|
|
2009
|
M082844
|
9/10/2008
|
84226
|
84276
|
|
2009
|
M082845
|
9/10/2008
|
84277
|
84326
|
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|
15 Adjacent
properties
|
||||||
Information
in this section has been sourced from Snowden (2009), which excerpted from
Chulick, (2007).
|
||||||
Third
parties control mineral tenements to the west, north, and east of the
Navidad claim block. No public information is available for the properties
to the north and east and little work is believed to have been conducted
on them.
|
||||||
15.1
Patagonia Gold
|
||||||
The
mineral tenements to the west of Navidad tenements are held by Patagonia
Gold Plc. Information concerning these properties is made public on
their website at http://www.patagoniagold.com. Information used in this
technical report is derived from this source.
|
||||||
Snowden
cannot independently verify any of the information provided by Patagonia
Gold on their website. Additionally, whatever information Patagonia Gold
provides is not necessarily indicative of the mineralisation located on
the Navidad Properties
|
||||||
The
mineralisation described by Patagonia Gold in their 2003 Annual Report is
distinct from that found at Navidad. The mineralisation described is
consistent with the low sulphidation style of epithermal type systems with
stated evidence of silica sinters and fissure veins, large zones of
argillic alteration and elevated geochemical values in gold, silver,
copper, mercury, arsenic, and antimony. This style of mineralisation is
distinct from the style of mineralisation observed at
Navidad.
|
||||||
Patagonia
Gold has stated that they have drilled 14 reverse circulation (RC) drill
holes for a total of 1,430 m. They do not provide locations for this
drilling. In their 2006 report, Patagonia Gold reported assay results of
1.66 g/t Au over 1 m in drillhole GAS-10 and 3.9 g/t
Ag over 1 m in drillhole GAS-05. No Mineral Resources or Mineral Reserves
are mentioned on the website.
|
||||||
15.2
Mina Angela
|
||||||
A
group of exploited and abandoned base metal veins referred to as Mina
Angela is located some 46 km to the north-northwest of the centre of
Galena Hill. This occurrence of northeast trending veins dips vertically
to 80º towards the northwest. Mineralisation was first discovered in the
1930s and later exploited in the mid-1970s by Cerro Castillo S.A. who
operated a 120 t per day plant, later expanded to 400 t per day, until the
close of operations in 1993.
|
||||||
Historical
Mineral Reserve figures made available by Cerro Castillo in 1986 are shown
as 593,760 t in the Proven category with grades of 3 g/t Au, 55 g/t Ag,
5.04% Zn, 1.98% Pb, and 0.049% Cu. These figures are reported here for
historical purposes only; the reader should make no comparison of the
estimates with current Mineral Resource reporting standards. The remaining
Mineral Resources at the time of shut-down are not
known.
|
||||||
The
vein mineralisation, which is primarily quartz with base metal sulphides,
occurs as individual bodies localised along fault planes up to 500 m in
length and 2.5 m in width over a total strike length of 1.6 km. Host rocks
are andesite breccias and flows believed to be Jurassic in age and
assigned to the Lonco Trapial
Formation.
|
February 2010 | 111 of 249 |
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|
15.3
Flamingo Prospect
|
|||
The
Flamingo Prospect is a 7 km by 5 km prospect located approximately 30 km
southwest from the Navidad Project and held in the name of Minera Aquiline
Argentina S.A. To date exploration work has consisted of preliminary
geological mapping plus the collection of 299 rock chip and 120 BLEG
samples in this area of presumed Jurassic age volcanic rocks which are
tentatively assigned to the Lonco Trapial Formation. Five vein
structures with epithermal to mesothermal characteristics have been
identified with strike lengths up to 4 km. In April 2005 Aquiline
published a news release which highlighted the results of 21 rock chip
samples:
|
—
|
Au
values ranging from 0.03 g/t Au to 9.70 g/t Au, with nine samples greater
than 1.0 g/t Au.
|
||
—
|
Ag
values ranging from 0 g/t Ag to 1,530 g/t Ag, with six samples greater
than 50 g/t Ag.
|
||
—
|
Cu
values ranging from 0.01% Cu to 14.15% Cu, with 11 samples greater than
1.0% Cu.
|
||
—
|
Zn
values ranging from 0.00% Zn to 1.45% Zn, with two samples greater than
0.5% Zn.
|
||
—
|
Pb
values ranging from 0.00% Pb to 9.20% Pb, with five samples greater than
0.5% Pb.
|
The
Flamingo area, which lies along the Río Chubut northwest structural trend
and parallel to the Gastre structural corridor, was excluded from
Aquiline’s aeromagnetic and radiometric survey of 2008 due to operational
reasons.
|
February 2010 | 112 of 249 |
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|
16
Mineral processing and metallurgical testing
|
||
Information
in this section has been sourced from Snowden (2009).
|
||
16.1 Mineral processing and metallurgical testing by IMA from 2005 to 2006 | ||
The
following sections regarding mineral processing and metallurgical testing
in 2005 and 2006 by IMA have been excerpted from Snowden (2006a) and
Snowden (2007).
|
||
Between
October 2004 and October 2005, G&T Metallurgical Services Ltd
(G&T) of Kamloops, British Columbia performed differential flotation
test work and mineralogical analyses on samples of mineralisation taken by
IMA from the Galena Hill, Navidad Hill and Calcite Hill deposits (G&T
2005a; G&T 2005b; G&T 2005c; G&T 2005d). In addition, two
brief mineralogical studies were performed in November 2005 (G&T
2005e; G&T 2005f) to examine the forms and distributions of pyrite
within selected composite samples.
|
||
All
sample preparation, flotation test work, and assaying was performed at the
G&T facilities in Kamloops, which have ISO 9001:2000 accreditation.
All of the test work was performed under the direct supervision of Mr Tom
Shouldice, P. Eng. Mr. Peter Taggart, P. Eng., provided overall programme
direction and acted as the Owner’s Representative.
|
||
Individual
samples of split drill core were shipped from the Navidad Project site to
the G&T facilities in Kamloops, British Columbia, Canada. Each
individual drill core sample was identified and weighed upon receipt. This
data, together with notes indicating the condition of the drill core
samples as received was recorded.
|
||
To
prepare each composite, the drill core samples were crushed using a
primary jaw crusher followed by a secondary cone crusher. The crushed
drill core samples were blended and the entire composite was staged
screened and cone crushed until the particle size was 98% passing 2
mm.
|
||
After
preparation, each composite was thoroughly homogenised, applying the “cone
and quarter” method, and subdivided into metallurgical test charges using
a rotary splitter. All test charges were purged with nitrogen, sealed in
plastic bags and stored in a freezer at –10°C to minimise the risk of
oxidation. During the homogenising stage, representative duplicate sub
samples were removed and pulverised in preparation for chemical analysis.
These head samples were analysed for copper, lead, zinc, iron, sulphur and
silver contents using standard analytical techniques.
|
||
16.1.1 Flotation
test work
|
||
G&T
conducted flotation test work on 14 samples comprising intervals of
quartered core that were crushed and homogenised at the G&T
facilities. Nine of the composites were from Galena Hill, three from
Navidad Hill, and two from the Calcite Hill deposit. The drillholes used
to produce the samples, and the corresponding metal contents, are shown in
Table 16.1.
|
February 2010 | 113 of 249 |
Pan American
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|
Table
16.1 Head grades of
composite drillhole samples used for metallurgical test
work
|
Deposit
|
Sample
|
Drillhole
number |
Ag
(g/t) |
Pb
(%) |
Cu
(%) |
Zn
(%) |
|
Galena
Hill
|
NVGH-5b/6b
|
NV04-56,57
|
76
|
3.1
|
0.02
|
0.40
|
|
NVGH-6a
|
NV04-57
|
143
|
4.86
|
0.01
|
0.40
|
||
NVGH-6b
|
NV04-57
|
107
|
3.60
|
0.00
|
0.43
|
||
NVGH-7a
|
NV04-42
|
466
|
3.90
|
0.04
|
0.30
|
||
NVGH-7b
|
NV05-42
|
297
|
3.70
|
0.07
|
0.20
|
||
NVGH-12
|
NV05-175
|
264
|
8.0
|
0.02
|
0.50
|
||
NVGH-13
|
NV05-197
|
300
|
4.90
|
0.03
|
0.20
|
||
NVGH-14
|
NV05-197
|
82
|
1.30
|
0.03
|
0.10
|
||
NVGH-15
|
NV05-197
|
340
|
0.40
|
0.14
|
0.20
|
||
Navidad
Hill
|
NVNH-8a
|
NV04-116
|
435
|
3.50
|
0.40
|
0.10
|
|
NVNH-8b
|
NV04-116
|
389
|
3.20
|
0.30
|
0.10
|
||
NVNH-9a
|
NV04-54,109
|
265
|
0.30
|
0.50
|
0.10
|
||
Calcite
Hill
|
NVCH-10a
|
NV04-88
|
72
|
8.50
|
0.00
|
0.10
|
|
NVCH-11a
|
NV04-88
|
320
|
0.3
|
0.10
|
0.10
|
Two
basic flow sheets were used to examine the flotation response of the
composite samples.
|
—
|
When
the lead sulphide content of the sample warranted, separate lead and
silver concentrates were produced. The latter would include principally
pyrite, other sulphide minerals and silver minerals. This strategy is
applicable to all composites representing the Galena Hill
mineralisation.
|
||
—
|
When
the lead sulphide content was deemed too low, a single, silver-rich bulk
sulphide concentrate was produced. This flow sheet is applicable to all
the Navidad Hill composites, and to Calcite Hill composite 11a. Calcite
Hill composite 10a mineralisation is relatively rich in galena, but low in
other sulphides. Accordingly, for this sample the single concentrate
produced is, by default, a high grade lead
product.
|
G&T
performed one or more rougher/scavenger kinetic tests on each composite
sample. These test data were used to assess relative rates of flotation,
and basic flotation conditions required in the rougher/scavenger stage
under a variety of flotation conditions. In some instances modal analyses
were performed to determine the degree to which rougher concentrates
should be reground.
|
|||
Upon
completion of the rougher scavenger tests, open circuit cleaner tests were
performed to examine various cleaner flotation conditions. Finally, a
limited number of locked cycle tests were performed on many samples to
examine the most promising test
|
February 2010 | 114 of 249 |
Pan American
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|
conditions
in a continuous mode. It is noted that, while the locked cycle tests
provide the best source of data on which to base metallurgical
projections, the work performed at this stage on these deposits was at the
scoping, or exploratory level.
|
||
While
considerable progress was achieved, much work remained to optimise
flotation conditions for these deposits. Table 0.2 provides a summary of
all flotation tests performed to date by G&T.
|
||
Table
16.2 Summary
of flotation tests
|
Deposit
|
Composite
|
Number
of Tests and Descriptions
|
|||
Roughers
|
Cleaners
|
Locked
Cycle
|
|||
Galena
Hill
|
NVGH-5b/6b
|
2
|
11
|
1
|
|
NVGH-6a
|
3
|
||||
NVGH-6b
|
3
|
||||
NVGH-7a
|
1
|
3
|
|||
NVGH-7b
|
1
|
5
|
1
|
||
NVGH-12
|
2
|
6
|
1
|
||
NVGH-13
|
6
|
2
|
|||
NVGH-14
|
1
|
2
|
|||
NVGH-15
|
1
|
2
|
|||
Navidad
Hill
|
NVNH-8a
|
8
|
2
|
||
NVNH-8b
|
2
|
2
|
1
|
||
NVNH-9a
|
7
|
4
|
1
|
||
Calcite
Hill
|
NVCH-10a
|
6
|
3
|
1
|
|
NVCH-11a
|
7
|
3
|
1
|
||
Total
|
43
|
51
|
7
|
Flotation
test results
|
||
The
G&T reports referenced contain detailed descriptions of the sample
origins, test procedures and results produced in each of the four
programs. Variability in results for any particular composite sample
generally reflects the variety of flotation conditions that were routinely
addressed in work of this nature. Once standard conditions were
established, open circuit cleaner and locked cycle flotation tests were
performed to confirm the most probable metallurgical performance, based on
the scoping work conducted to date.
|
||
The
locked cycle test procedures provide for the re-circulation of test
products and, therefore, best represent the conditions that would exist in
an operating plant. All locked cycle tests conducted by G&T achieved
stability.
|
||
The
Galena Hill and Navidad Hill composite samples were typically ground to a
nominal sizing of 80% passing 74 µm to 80 µm, prior to flotation. The
superior fragmentation characteristics afforded by the Calcite Hill
mineralisation allowed flotation feed grind sizing with the range 80%
passing 150 µm to 180 µm to be
adopted.
|
February 2010 | 115 of 249 |
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|
Galena
Hill
|
||
The
lead contents of all Galena Hill samples justified the sequential
production of selective lead and pyrite concentrates. It is evident from
the flow sheets that some differences in metallurgical response exist
between composite samples. The reasons for these differences have yet to
be clearly determined, but could include differences in composite sample
grades, mineralogical composition and fragmentation characteristics.
Differences in results produced from tests performed on the same composite
sample generally reflect differences in flotation test conditions. Silver
recoveries to the pyrite concentrate were highly variable, depending to a
large extent on the amount of silver recovered to the lead concentrate and
to the lead cleaner tailings streams. The columnar chart indicates that
the total recovery of silver in the two final concentrates varies
generally within the range of 50% to 70%.
|
||
The
adopted flow sheet and the results generated by the three locked cycle
tests performed on Galena Hill composite samples confirmed the cleaner
test results, and reveal the variability in metallurgical response between
composite samples. Further, in all cases, the pyrite rougher tail
comprises the most significant source of silver loss incurred during
processing. The subsequent investigation of pyrite deportment, by species,
in the various test products is discussed in Section
16.1.3.
|
||
Samples
of concentrates were analysed for minor elements. No deleterious elements
were observed in quantities that would seriously constrain product
marketability or attract significant penalties in these particular
samples.
|
||
Differential
flotation was effectively applied to produce selective lead and
silver-rich pyrite concentrates from composite samples of this
mineralisation although significant work is needed to increase the silver
recovery overall and produce a concentrate that can be sold or
re-processed for silver recovery.
|
||
Navidad
Hill
|
||
A
single bulk concentrate was produced when testing each of the three
composites of the Navidad Hill mineralisation.
|
||
In
general, the open circuit cleaner test flow sheet and the results achieved
when testing composites 8A, 8B, and 9A show a similar pattern, with a
15,000 g/t Ag concentrate grade achieved at a nominal 60% silver recovery.
Variability in test data is again largely attributed to differences in
test conditions.
|
||
A
single locked cycle test was performed on composites 8b and 9a of the
Navidad Hill mineralisation. The lead metallurgical performance was
adversely affected by relatively high non-sulphide lead components
(anglesite and cerussite) of the samples. Almost all the lead contained in
the concentrate produced from composite 8b was present as the non-sulphide
minerals cerussite and anglesite. It is possible that further test work,
based on commercially-proven sulphidisation procedures, might enhance the
lead grades and recovery. The concentrate produced from composite 8b
contained 972 g/t As, 1,494 g/t Mn and 42 g/t Hg, all of which could
attract modest smelter penalties.
|
||
The
low lead content of the feed was detrimental to lead performance in
composite 9a. Composite 9a yielded better silver and copper results than
corresponding values achieved from composite 8b. X-Ray Diffraction (XRD)
analysis of the composite 9a concentrate indicated that most of the copper
was present as malachite. The reasons for differences in silver metallurgy
generated by the two tests are not fully understood at this stage. The 9a
concentrate contained 1,826 g/t As and 1,539 g/t Mn, both of which could
result in some minor smelter
penalty.
|
February 2010 | 116 of 249 |
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|
The
differential flotation was effectively applied to produce selective lead
and silver-rich pyrite concentrates from composite samples of this
mineralisation although significant work is needed to increase the silver
recovery overall and produce a concentrate that can be sold or
re-processed for silver recovery.
|
||
Calcite
Hill
|
||
Two
composite samples of Calcite Hill mineralisation were examined, designated
10a and 11a. The superior fragmentation characteristics of these samples
permitted the primary grind to be adjusted from the normal 75 µm to grinds
within the range of 80% passing 150 µm to 180 µm. A single concentrate was
produced in each case. Composite 10a was rich in galena and
produced excellent lead metallurgical results.
|
||
Lead
concentrate grades approximating 80% Pb at lead recoveries of 90% were
achieved. Notwithstanding the relatively low silver content of the 10a
composite (72 g/t Ag), the silver minerals were amenable to
selective flotation, with silver recoveries exceeding 80% at 500 g/t Ag
concentrate grades. Composite 11a, though of low sulphide content,
produced a high silver recovery with a 10,500 g/t Ag concentrate
grade.
|
||
The
lead metallurgy produced in the locked cycle test on the two Calcite Hill
composite samples matched that achieved in the open circuit tests.
However, the locked cycle silver metallurgy indicated an improvement, when
compared to the open circuit results grade of the lead
concentrate.
|
||
The
concentrates produced from the locked cycle tests were devoid of
deleterious elements in amounts that would attract smelter
penalties.
|
||
Mr.
Chlumsky concluded that a single high grade lead concentrate, containing
high silver values, was successfully produced from Calcite Hill composite
10a. From Calcite Hill composite 11a a single bulk concentrate containing
high silver values was successfully produced. Mr. Chlumsky also concluded
that this type of mineralisation should be further pursued for first
development of the Project cash-flow.
|
||
16.1.2 Mineralogy
overview
|
||
The
minerals of economic interest are those containing lead and silver. The
principal sulphide minerals include galena (PbS), pyrite (FeS2),
chalcopyrite (CuFeS2) and sphalerite (ZnS). Lead sulphosalts, lead
carbonate and other sparsely distributed copper minerals were also present
in some samples. The variable mineralogical compositions of the deposits
are evidenced in the mineral deportments within the individual composites,
as shown in Table 16.3.
|
||
Table
16.3 Mineral
composition of composite samples
|
Deposit
|
Sample
|
CS
|
Ga
|
Sp
|
Py
|
Gn
|
|
Galena
Hill
|
NVGH-5b/6b
|
0.1
|
3.2
|
0.6
|
5.8
|
90.3
|
|
NVGH-7a
|
0.1
|
4.2
|
0.4
|
213.3
|
82.0
|
||
NVGH-7b
|
0.2
|
3.7
|
0.3
|
7.0
|
88.8
|
||
NVGH-12
|
<0.1
|
8.1
|
0.7
|
12.0
|
79.1
|
||
NVGH-13
|
<>1
|
4.8
|
0.3
|
6.4
|
88.4
|
||
NVGH-14
|
<.1
|
1.0
|
0.2
|
3.3
|
95.5
|
||
NVGH-15
|
<.1
|
0.3
|
0.3
|
3.3
|
96.1
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Deposit
|
Sample
|
CS
|
Ga
|
Sp
|
Py
|
Gn
|
Navidad
Hill
|
NV04-116
|
0.2
|
0.3
|
0.2
|
0.3
|
99.1
|
|
NV04-116
|
0.2
|
0.3
|
0.1
|
<0.1
|
99.4
|
||
NV04-54,109
|
0.1
|
0.1
|
0.2
|
0.6
|
99.0
|
||
Calcite
Hill
|
NV04-88
|
-.05
|
8.4
|
0.09
|
0.6
|
90.9
|
|
NV04-88
|
0.16
|
0.3
|
0.04
|
0.5
|
99.0
|
||
Cs-copper
sulphides, Ga-galena, Sp-sphalerite, Py-pyrite, Gn-non-sulphide
gangue
|
Galena
Hill mineralogy
|
||
Fine-grained
galena and pyrite were the dominant sulphide minerals in the Galena Hill
composites. An array of copper sulphides, copper bearing sulphosalts and
sphalerite were also detected in trace amounts. The sulphide minerals,
which comprised 10% to 20% by weight of the composite samples, were
contained in a carbonate rich volcanic host.
|
||
Electron
microprobe studies have shown silver to be contained interstitially within
the pyrite lattice and to a much lesser extent in the galena lattice.
Mineralogical studies at G&T (G&T 2005e and G&T 2005f) have
determined that pyrite is present in at least two forms. The dominant form
is anhedral pyrite, which includes spongiform pyrite. Subhedral pyrite is
present to a lesser extent. Optical microscopy studies were undertaken to
assess the influence which differences in pyrite speciation may impart to
silver concentrate grades and recoveries in the flotation
process.
|
||
Navidad
Hill mineralogy
|
||
Sulphide
minerals comprised less than 1% of each of the three Navidad Hill
composite samples. The sulphides observed included copper sulphides,
galena, sphalerite and pyrite, all contained within calcite and quartz
hosts. The non-sulphide host rock contained significant amounts of
montmorillonite and kaolinite. Microscopic examination of flotation
concentrate samples, produced in rougher tests on composites 8A and 9A,
revealed the presence of silver-bearing freibergite ((Cu,Fe)12Sb4S13 ))
and proustite / pyrargyrite (3Ag2S.As2S3 /
3Ag2S.Sb2S3)
minerals.
|
||
The
presence of non-sulphide minerals, such as anglesite (PbSO4),
cerussite (PbCO3) and
malachite (CuCO3.Cu(OH)2) was also reported. These minerals, in
conjunction with the low sulphide mineral content ores, would adversely
affect flotation performance.
|
||
Calcite
Hill mineralogy
|
||
The
two Calcite Hill composites, 10a and 11a, differed considerably in their
mineralogical compositions. Composite 10a contained almost 10% by weight
sulphides, most of which were present as galena. In both composites,
approximately half the copper was present as chalcopyrite, one third as
covellite (CuS), and the remainder as chalcocite (Cu2S).
The mineralisation is coarser than that examined in all other composite
samples. Composite 11a contained only 1% by weight sulphide minerals.
Silver was present as native silver, as argentite-acanthite (Ag2S),
and as stromeyerite (AgCuS).
|
||
In
both samples, freibergite accounted for approximately 60% of the silver,
while minor amounts of proustite-pyrargyrite were reported. Metallic
silver was observed in small
amounts.
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16.1.3 Modal
analyses
|
||
Modal
analyses were conducted on most of the composite samples to assess the
fragmentation characteristics of the mineralisation. The values shown in
Table 16.4 indicate the percentage of each mineral, or mineral suite,
which is liberated at the nominal sizing shown.
|
||
Flotation
feed grinds within the range of 80% passing 70 µm to 80 µm are commonly
applied prior to the differential flotation of polymetallic
ores.
|
||
In
general, the liberations of most sulphide minerals were quite variable,
and commonly less than 50%. However, it is evident that, at the sizings
shown, the non-sulphide gangue was well liberated. These conditions are
conducive to the physical separation of the gangue from the sulphides in
the rougher flotation stage. The data also suggest, however, that
regrinding of some rougher/scavenger concentrate may be required to
achieve acceptable cleaner circuit grade/recovery performance. The galena
in Calcite Hill composite 10a exhibits favourable fragmentation
characteristics, being liberated to the extent that a coarser flotation
feed grind could be applied.
|
||
Table
16.4 Summary of
fragmentation characteristics
|
Deposit
|
Composite
|
Size
|
Mineral
liberation in two dimensions-%
|
|||||
K80μm
|
Cs
|
Ga
|
Sp
|
Py
|
Gn
|
|||
Galena
Hill
|
NVGH-5b/6b
|
80
|
58
|
52
|
27
|
39
|
89
|
|
NVGH-7a
|
86
|
26
|
44
|
29
|
55
|
90
|
||
NVGH-7b
|
80
|
33
|
38
|
21
|
26
|
83
|
||
NVGH-12
|
74
|
19
|
47
|
18
|
36
|
81
|
||
NVGH-13
|
74
|
38
|
39
|
24
|
21
|
86
|
||
NVGH-14
|
71
|
53
|
29
|
9
|
21
|
85
|
||
NVGH-15
|
76
|
38
|
28
|
12
|
23
|
88
|
||
Navidad
Hill
|
NV04-116
|
66
|
38
|
20
|
45
|
68
|
95
|
|
NV04-116
|
65
|
50
|
8
|
48
|
43
|
98
|
||
NV04-54,109
|
70
|
10
|
19
|
18
|
62
|
98
|
||
Calcite
Hill
|
NV04-88
|
63
|
31
|
79
|
15
|
65
|
98
|
|
NV04-88
|
74
|
21
|
30
|
<1
|
40
|
99
|
||
Cs-copper
sulphides, Ga-galena, Sp-sphalerite, Py-pyrite, Gn-non-sulphide
gangue
|
16.1.4 Sample
grindability
|
||
G&T
conducted standard Bond Ball Mill Work Index tests on some samples to
determine the hardness of the mineral composites (Table
16.5).
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Table
16.5 Bond ball mill
work indices values
|
Deposit
|
Composite
|
Bond
ball mill indices
(kWhr/tonne)
|
|
Galena
Hill
|
NVGH-12
|
12.5
|
|
NVGH-13
|
13.5
|
||
NVGH-14
|
11.5
|
||
NVGH-15
|
12.8
|
||
Navidad
Hill
|
NV04-116
|
10.7
|
|
NV04-116
|
Na
|
||
NV04-54,109
|
11.9
|
||
Calcite
Hill
|
NV04-88
|
13.7*
|
|
NV04-88
|
18.9*
|
||
*These are comparative
values based on results from sample 8a, to which a standard Bond test was
applied to assess grindability.
|
With
the exception of composite NVCH-11a, the samples are considered to be of
average to moderate grindability. The values observed for Bond Mill Work
Index are typical of those recorded for ores from many polymetallic
massive sulphide deposits.
|
||
16.2
|
Mineral processing and metallurgical test work by Aquiline in 2007 | |
The
following section regarding mineral processing and metallurgical test work
by Aquiline in 2007 has been excerpted from Snowden (2007), with the
exception of Sections 16.2.5 and Section 16.2.6 which were
issued to Aquiline since the Snowden (2007) Technical
Report.
|
||
Additional
work commenced at G&T Metallurgical Services composites from the
Navidad Hill and Calcite Hill deposits in 2007.
|
||
This
test work was been undertaken on the Navidad Hill and Calcite Hill
portions of the Navidad Hill Project because of the excellent results
obtained during the past test work as reported previously in the Navidad
Hill and Calcite Hill Test Work sections. These results
indicate that a high grade silver concentrate may be made from each of
these separate mineralised areas. The test work followed the
same initial framework as the tests reported previously and was expanded
to test the variations in lithology and mineralogy of these areas and to
confirm that good recoveries and silver grades could be obtained from the
material.
|
||
16.2.1 Navidad
Hill
|
||
Four
metallurgical samples for Navidad Hill were selected to reflect the
spatial variability in grade and metal ratios observed in the
mineralisation. A plan of sample locations is shown in Figure 16.1. Two
samples (NV01 and NV02) are from the top portion of the hill. Sample NV01
represents higher silver and copper values than does the NV02 sample.
Sample NV03 is drawn from holes on the southern flank of the hill where
both the silver and copper values are relatively modest. The last sample,
NV04 is from the western portion of the deposit and consists of intercepts
with both high grade silver and copper
values.
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Figure
16.1
|
Location
plan of Navidad Hill and Connector Zone drill collars of samples selected
for metallurgical studies
|
The
samples can be characterised as:
|
|||
—
|
NV01:
Top of Navidad, Ag with high Cu
|
||
—
|
NV02:
Top of Navidad, Ag with low Cu
|
||
—
|
NV03:
South Navidad, lower Ag and low Cu
|
||
—
|
NV04:
East Navidad, high Ag and high Cu
|
||
Samples
NV01 and NV02 are hosted completely within the latites as no sediments
overlay the upper portion of the hill. Due to the relatively small amount
of mineralisation in this sector of the deposit both sediment and volcanic
hosted intervals were combined to achieve the target sample size. The
majority of the mineralisation in the area from which the NV04 sample was
taken is hosted in breccias located beneath sediments and over the
volcanic rocks, although a few of the samples were hosted within the
volcanic rocks.
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16.2.2 Barite
Hill
|
|||
Mineralisation
in this zone is hosted in undifferentiated sediments consisting of
intercalated mudstones to sandy conglomerates and volcaniclastic derived
from the felsic volcanic rocks. The mineralisation consists of black
sulphides and locally as native silver. The native silver although locally
spectacular (i.e., drillhole NV07-442) is believed to represent only a
minor component of total mineralisation. Because the coarse native silver
does not represent a significantly large fraction of the total
mineralisation in the zone, it was purposely avoided in the selection of
samples. The majority of the mineralisation occurs as black
silver sulphides. These minerals occur as disseminations within the host
rocks and as the matrix of crackle breccias. The tenor of the silver
mineralisation ranges from low to high grade. In addition to silver, the
zone contains only trace amounts of lead and zinc and locally minor mounts
of copper. Because of the physical similarities between the two host
lithological units, the criteria for sample selection focused upon
separating medium to lower grade and higher grade mineralisation. The two
samples selected for test work are:
|
|||
—
|
Sample
BH01 - Barite Hill medium grade Ag with low Pb, Zn, and Cu. This sample
has an estimated weight of 55.6 kg with a calculated silver grade of
271 g/t Ag. Lead and zinc values are low and copper is
calculated at 0.22%.
|
||
—
|
Sample
BH02 - Barite Hill high grade Ag with low Pb, Zn, and Cu. This sample has
an estimated weight of 57.9 kg with a calculated silver grade of 897 g/t
Ag. Once again, the Zn and Pb values are low with a calculated copper
grade of 0.36%.
|
||
16.2.3 Loma
de La Plata
|
|||
Mineralisation
is hosted by brecciated latite lavas, which are exposed at surface on the
top of the ridge, but are covered by sediments both down dip and down
slope to the east. Sample selection attempted to separate the more
oxidised mineralisation that is exposed at surface from less oxidised
mineralisation encountered at depth. The two samples selected for test
work were:
|
|||
—
|
Sample
LP01- Loma de La Plata shallow samples high silver with low Cu, Pb, and
Zn. This sample has an estimated weight of 56.2 kg and a silver grade of
920 g/t Ag. The Pb, Zn, and As values are low with a weighted
average copper grade of 0.13%. The sample consists of near surface
mineralisation with an average depth of only 10.1 m. All samples are from
less than 21 m depth. The core is logged as oxide rich and some high grade
samples close to surface may reflect supergene
enrichment.
|
||
—
|
Sample
LP02 - Loma de La Plata deeper samples high silver with low Cu, Pb, and
Zn. This sample has an estimated weight of 57.7 kg and a silver grade of
661.8 g/t Ag. The average depth of the samples in this composite
is 54.3 m and all samples are from below 45 m depth. This sample is
believed to represent less oxidised mineralisation.
|
||
16.2.4 Galena
Hill
|
|||
Three
samples of pyrite concentrates from the original G&T Metallurgical
Services test programme were submitted for additional mineralogical
evaluations to Xstrata Process Support (XPS) in Sudbury,
Ontario. The investigation was to determine if additional
beneficiation can take place with this concentrate and increase the
overall value of the product.
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16.2.5 Discussion
of G&T results
|
|||
Results
in this section from the flotation test work are excerpted from the
G&T report (2008).
|
|||
A
total of twelve composite samples representing six zones within the
Navidad Project were tested in this programme. Ore hardness and
mineralogical tests were carried out on a suite of eight samples from the
Calcite Hill and Navidad Hill zones. The additional four samples from the
Calcite NW, Connector Zone, Barite Hill and Loma de La Plata deposits were
subjected to flotation testing. Figure 0.2 shows the location of samples
taken from Calcite Hill and Calcite NW.
|
|||
Figure
16.2
|
Location
plan of Calcite Hill and Calcite NW drill collars of samples selected for
metallurgical studies
|
The
average Bond ball mill work index for seven samples from Calcite Hill and
Navidad Hill was 14.5 kWh/tonne (test results were unstable for three of
the eight samples submitted for Bond Wi testing. One sample could not be
tested because the feed was too fine). This level of hardness indicates
that the sample suite tested is of medium hardness. The Bond ball mill
work indices ranged between about 13 kWh/tonne and 16 kWh/tonne
across both the Calcite Hill and Navidad Hill
samples.
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Modal
analyses were carried out on nine samples from Calcite Hill, Navidad Hill
and Loma de La Plata. The modal results revealed that the sulphide content
ranged from about 0.4% to 22% in these samples. Composite CH-03 contained
20% galena and, as a result, this sample had much higher sulphide content
compared to the other samples. Pyrite content ranged from 0.1% to 2.6% and
is the dominant sulphide in only the NV-02 composite.
|
||
In general,
the copper sulphide minerals are poorly liberated at the target primary
grind sizing of about 70μm K80. The majority of the non-liberated
copper sulphides are in binary form with non-sulphide gangue. There are
also significant quantities of copper sulphide minerals in the multiphase
particles.
|
||
By
contrast, the galena is relatively well liberated in the Calcite Hill and
Navidad Hill samples. With the exception of the NV-02 composite,
liberation levels for galena ranged from 52% to 68%. The majority of the
non-liberated galena occurs in binary form with non-sulphide
gangue.
|
||
SEM-EDX
(scanning electron microscope energy-dispersive X-ray spectroscopy)
analysis was carried out on final concentrate from test 90, on the Loma de
La Plata composite. Silver bearing minerals present included native
silver, argentite, polybasite and iron bearing pearcite. A number of the
silver bearing minerals are also arsenic and antimony
carriers.
|
||
The
twelve composites tested had a highly variable metal content for copper,
lead and silver in the feed. This variation in feed metal content impacts
significantly on the metallurgical performance.
|
||
Concentrates
produced from these composites ranged widely in concentrations of silver,
lead and copper. The concentrates can be characterised as copper, lead,
bulk copper-lead or silver concentrates. Silver recovery into the final
concentrates ranged between 35% and 96%, with an average silver recovery
to final concentrate of about 72%. The average silver grade in the final
concentrate was about 32,000 g/t. The silver grade in the concentrate
tended to increase with increasing silver grade in the
feed.
|
||
The
Loma de La Plata composite contained low levels of copper and lead in the
feed. The silver content in the single composite tested was about 710 g/t,
considerably higher than the average resource grade for this zone.
Production of a low mass-high grade silver concentrate was readily
achievable with this sample. The best test results indicate about 74% of
the silver was recovered into a cleaner concentrate containing about
168 kg/t silver.
|
||
Consideration
should be given to conducting a metallurgical programme on representative
samples from the Loma de La Plata deposit. The copper and lead levels are
reported to be uniformly low for this zone. The near absence of copper and
lead may facilitate production of a high grade silver concentrate at
acceptable silver recovery levels. The Loma de La Plata deposit appears to
represent the best target for further metallurgical testing based on the
results of this test programme.
|
||
16.2.6 Discussion
of XPS results
|
||
Results
from the mineralogical test work are excerpted from the XPS report
(2007).
|
||
Three
Galena Hill pyrite concentrates with different size distributions were
submitted for mineralogical evaluation. The main objective of the study
was to assess upgrading potential of these concentrates. Modal mineralogy,
sulphide and gangue liberation, mineral compositions, and Ag and Pb
deportment are quantified.
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Results
indicate that these concentrates are low grade and contain considerable
amounts of liberated non-sulphide gangue, dominated by orthoclase, quartz,
kaolinite and barite. Although present in all size fractions, the gangue
component is largest in the fine size fractions. These fine particles may
have been recovered through entrainment. There is a very good opportunity
to upgrade these concentrates by inserting cleaning and entrainment
controls into the circuit such as froth washing and column flotation as
proposed in the XPS Virtual Flowsheet concept presented in previous
reports. In order to simulate cleaning potential of these concentrates, a
digital upgrading exercise was performed where all liberated (>90%)
non-sulphide gangue was removed from the samples. In such a scenario,
pyrite grades would increase from 17.9% to 46.4%. Lead, silver and zinc
grades would each increase by a factor of 2.5.
|
||
A
deportment analysis of the three concentrates indicates that on average
83% of total Ag is contained within pyrite. Trace amounts of acanthite
(Ag2S)
were identified and account for 9% to 16% of all Ag in the samples. Where
identified, these grains are generally very small and occur locked within
quartz. Low levels of Ag are also found in solid solution within
sphalerite and account for 2% to 3% of total Ag in the concentrates. Solid
solution Ag was not identified in galena. XRD results indicate there are
trace amounts of marcasite in the samples but the majority of the Fe
sulphide is pyrite.
|
||
Pyrite
grains contain variable levels of Pb, Ag, and As in solid solution within
the crystal structure. Pb grades in pyrite average 2.75%, whilst Ag grades
in pyrite average 0.17%. A small proportion of the pyrite grains contain
very high levels of Pb (>8%). High Pb-bearing pyrites (likely
marcasite), have a corresponding high level of Ag. In addition to
containing 83% of the total Ag in the concentrates, pyrite also contains
17% of the Pb.
|
||
Galena
grains are moderately
liberated. Fine textures with quartz and pyrite prevent perfect liberation
even at a P80
of 16μm. At the same time, there is evidence that soft galena grains have
been overground, and as a result have not been recovered in the lead
circuit. A total of 25% to 35% of galena is ultra-fine and liberated in
all three samples.
|
||
16.3
Mineral processing and metallurgical test work by Aquiline in
2008
|
||
Samples
for metallurgical test work on the Loma de La Plata deposit were selected
during a site visit by XPS personnel in January 2008. The
location plan of Loma de La Plata samples are shown in Figure 16.3. These
samples were sent to both XPS in Sudbury Canada and to G&T
Metallurgical Laboratory in Kamloops, Canada. Subsequent
variability metallurgical testing was performed on composites of samples
from the same drillhole, which marks a departure from previous test work,
where composites comprised samples from a number of drillholes. This test
work was carried out during 2008, under the general direction of John
Wells, an independent Consulting Metallurgist, working on behalf of
Aquiline. The XPS test work was carried out in two phases, and
was completed in February 2009, with the Phase 1 report issued in August
2008 (XPS, 2008) and the Phase 2 report issued in March 2009 (XPS, 2009).
The Loma de La Plata test work at G&T was completed in May 2008 and
their report issued in June 2008 (G&T, 2008).
|
||
The
number of samples taken from Loma de La Plata, and the details of the test
work carried out by both G&T and XPS are, in the view of Mr. Wells,
sufficient to support a Feasibility Study on this deposit. The
reports, containing all of the test work results are all issued, and will
be summarised in this technical
report.
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Figure
16.3
|
Location
plan of Loma de La Plata drill collars of samples selected for
metallurgical studies
|
Following
completion of the Loma de La Plata work, a limited number of samples were
provided to G&T from the Barite Hill and the Valle Esperanza
deposits. The location of the Barite Hill samples is shown in
Figure 16.4 and the location of the Valle Esperanza samples is shown in
Figure 16.5. This test work was carried out in the first quarter of 2009,
and a report issued in April 2009 (G&T, 2009). This
work will also be summarised in this technical report. The work
on these two deposits was more limited then the Loma de La Plata work, and
based upon fewer samples. However, Wells regards the work as sufficient to
support conceptual studies, and is probably suitable for Prefeasibility
Studies.
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Figure
16.4
|
Location
plan of Barite Hill drill collars of samples selected for metallurgical
studies
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Figure
16.5
|
Location
plan of Valle Esperanza drill collars of samples selected for
metallurgical studies
|
General
conclusions and recommendations are provided. In general the
results can be considered as very encouraging, with high silver recoveries
and concentrate grades generally achieved. The flotation
concentrates contain some copper and lead, suggesting that the
concentrates will find a ready market, probably to copper
smelters. The base metals will be minor contributors to the
overall revenue, where by far the largest contribution will be from the
silver content.
|
||
Some
of the Barite Hill and Valle Esperanza concentrates do contain levels of
minor metals, such as arsenic and antimony, which exceed commonly accepted
smelter penalty limits. However, as the tonnage of the
high grade silver concentrate is small (relative to, for example, the
output from a copper concentrator) the actual quantity of such minor
metals will be small, and unlikely, in Mr. Wells’ view, to become a
commercial issue. However, this will require review during the
Prefeasibility Study, with at least some preliminary discussions with
potential smelters.
|
||
The
test work strongly suggests that the mineral processing of Loma de La
Plata, Barite Hill, and Valle Esperanza can be carried out in a single,
simple, mineral processing facility (crushing, grinding and a single stage
of flotation to produce a high grade
silver,
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low
copper plus lead, flotation concentrate). All of this
technology is simple and well proven. The only area identified
by the test work as of concern, was the poor liquid/solids separation of
the residues from Barite Hill and Valle Esperanza. Further
investigation of this will be necessary. The samples were
typically soft to medium hardness, which will reduce the size and power of
the comminution (crushing and grinding) circuit.
|
||
The
various test programs at XPS and G&T are summarised in the following
sections of this technical report.
|
||
16.3.1 XPS
Phase 1 test work on Loma de La Plata samples
|
||
This
test work is described in full in XPS (2008) and is summarised in this
section.
|
||
XPS
carried out metallurgical test work using drill core samples collected on
site in January 2008. The study included mineralogical and
metallurgical test work on two geo-metallurgical units, defined as the
oxide zone and the sulphide zone. It is important to note that
in both zones, the mineralogy of the silver, copper and lead are all
sulphide, the term “oxide” is only a visual definition based on the
general appearance of the core. Both zones responded well to standard
flotation mineral processing techniques. The geo-metallurgical units are
described in Table 16.6.
|
||
Table
16.6 Loma de La
Plata geo-metallurgical units
|
Geo-metallurgical
Unit
|
Domain
|
Characteristics
|
|
Unit
1
|
“Sulphide”
– high grade
|
High
Ag sulphides, high Pb, low Cu
|
|
Unit
2
|
“Sulphide”
– low grade
|
Low
Ag sulphides, low Pb, high Cu
|
|
Unit
3
|
“Oxide”
– high grade
|
High
Ag sulphides, high Pb, low Cu
|
|
Unit
4
|
“Oxide”
– low grade
|
Low
Ag sulphides, low Pb, high Cu
|
The
six holes chosen for the variability composites and the assay grades are
shown in Table 16.7.
|
||
Table
16.7 Grades of
sample composites used for variability
testing
|
Hole
number
|
Ag
grade (g/t)
|
Cu
grade (%)
|
Pb
grade (%)
|
Zn
grade (%)
|
|
NV07-497
(oxide)
|
726
|
0.11
|
0.17
|
0.01
|
|
NV07-501
(oxide)
|
422
|
0.06
|
0.16
|
0.01
|
|
NV07-543
(oxide)
|
209
|
0.03
|
0.11
|
0.02
|
|
NV07-540
(sulphide)
|
90
|
0.03
|
0.12
|
0.03
|
|
NV07-526
(sulphide)
|
341
|
0.06
|
0.01
|
0.01
|
|
NV07-566
(sulphide)
|
209
|
0.10
|
0.08
|
0.03
|
The
test work included quantitative evaluation of materials by scanning
electron microscopy (QEMSCAN) and electron probe micro analyser (EPMA)
mineralogical
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work,
together with open circuit rougher flotation test work on all six
composites, reagent exploration, bond work index determinations, and
preliminary cleaner flotation on two of the
composites. Some cyanidation test work was carried out, as a
possible alternative process to flotation.
|
||
The following main observations and conclusions
were noted from this Phase 1 work. Mineralogical evaluations identified silver
sulphides as the main source of silver, predominantly acanthite and
stromeyerite. Both disseminated and coarse grained silver minerals
exist. Average silver mineral grain sizes are in the range of
11 µm to 20 µm, but some acanthite and stromeyerite grains
exceeding 300 µm were observed.
Relatively low levels of arsenic and antimony occur, generally associated
with silver bearing tetrahedrite and tennantite. The core
samples tested indicated that arsenic and antimony will generally be below
smelter penalty limits, but that some ore grade control may be required
from time to time.
|
||
Exploratory
cleaning tests produce high silver concentrate grades ranging between
43 kg and 50 kg of silver per tonne of concentrate. As no
locked cycle tests were carried out in this phase, it was not possible for
XPS to make any firm prediction of recovery. However, the
silver recoveries to the rougher concentrates were generally above 85%,
and this indicates to Mr. Wells that potential overall silver recoveries
would be in excess of 80%. This prediction has been supported by XPS Phase
2 test work and the G&T test work.
|
||
Some
cyanide leach test work was carried out as a possible alternative to
flotation. The perceived advantage to a cyanide route would be
the production of a final doré product in Argentina. Recoveries
from the cyanide tests were generally comparable to rougher floatation
(between 80% and 90%). However this work was not continued into Phase 2
due to the long leach time required (48h) which represents high cost, as
well as the high consumption of cyanide.
|
||
The cleaner concentrate grades are summarised in
Table 16.8.
|
||
Table
16.8 Cleaner
concentrate grades
|
Composite
|
Ag
grade (kg/t)
|
Cu
grade (%)
|
Pb
grade (%)
|
Zn
grade (%)
|
|
Oxide
|
50.8
|
3.1
|
14.5
|
0.2
|
|
Sulphide
|
43.1
|
13.1
|
1.1
|
1.2
|
16.3.2 XPS
Phase 2 test work on Loma de La Plata samples
|
||
The
test work is described in full in XPS (2009), and is summarised in this
section.
|
||
XPS
performed an optimisation test work module on samples of the Loma de La
Plata deposit. This work covered oxide and sulphide ore types, each at
high and low grades. Drill core was used as the sample material. This
phase of work was based on recommendations obtained from the first phase
of test work that Aquiline developed at XPS.
|
||
Physical
composite samples were prepared using External Reference Distributions.
This XPS proprietary method allowed a quality check to be performed. The
grades of the sample composites are shown in Table
16.9.
|
||
Reagent
optimisation was performed in flotation tests arranged in a factorial
structure, or design of experiments (DOE). These tests were performed in
open cycle and locked cycle format. In a similar manner, the flotation
feed grind size and slurry percent
solids
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were
optimised. A preliminary examination of type of pH modifier was also made.
Rougher concentrate regrinding was also tested to assess its potential
influence on concentrate grade and recovery. Finally, variability analysis
was performed on a range of ore samples to determine whether a
relationship could be established between silver head grade and
recovery.
|
||
Table
16.9 Grades of
sample composites used for optimisation test
work
|
Composite
description
|
Ag
ppm
|
Pb%
|
Cu%
|
S%
|
Fe%
|
Zn%
|
Au
ppm
|
As%
|
Sb%
|
Sulphide
low grade
|
92.6
|
0.025
|
0.037
|
0.230
|
2.75
|
0.028
|
-
|
0.001
|
-
|
Sulphide
high grade
|
348.6
|
0.068
|
0.065
|
0.288
|
2.95
|
0.031
|
-
|
0.004
|
0.004
|
Sulphide
composite
|
159.5
|
0.034
|
0.047
|
0.290
|
2.70
|
0.028
|
-
|
0.002
|
-
|
Oxide
low grade
|
83.8
|
0.019
|
0.038
|
0.290
|
2.77
|
0.027
|
-
|
0.004
|
-
|
Oxide
high grade
|
386.2
|
0.065
|
0.067
|
0.352
|
2.87
|
0.030
|
-
|
0.004
|
-
|
Oxide
composite
|
207.8
|
0.043
|
0.040
|
0.229
|
2.94
|
0.018
|
-
|
0.003
|
-
|
Grinding
Variability
|
||
Variability
testing on the sulphide ores, performed at a target grind size P80 of
105 µm, showed that the batch grinding times required to attain this
target varied from 6 minutes to 38 minutes. At the same P80,
the oxide samples showed less variability with a range of batch grinding
times of 18 minutes to 36 minutes. It is a recommendation that Pan
American consider the potential influence of this observation in their
design of the grinding circuit. A study simulating the grinding circuit
responses to this variance is proposed.
|
||
Reagents
|
||
A
reagent suite using 42.5 g/t of Aerophone 3418A and 33.8 g/t of Potassium
Amyl Xanthate (PAX) is recommended. These collectors were stage added
during the flotation protocol and manage to produce significant silver and
copper recovery gains by improving silver kinetics. Metallurgical
selectivity was maintained in the same silver grade recovery curve.
Interpretation of this result into a plant operating strategy is
recommended. To fulfil further engineering stage requirements, it is a
recommendation that reagents distribution be assessed via pilot plant
campaigns as a prerequisite to plant design.
|
||
Flotation
Feed Grind Size and Percent Solids
|
||
Grind
size and slurry percent solids in flotation feed proved to be key
parameters in subsequent flotation performance. It is recommended that the
percent solids be kept in the range of 26% to 33% when performing rougher
flotation of sulphide and oxide ores. The sulphide ore is much more
sensitive than the oxide ore to an increase in the slurry percent solids,
which causes a significant decrease in silver concentrate
grade.
|
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The particle size
should be kept at a P80
of about 105 μm and 150 μm for the oxide ore and at about 60 μm for the
sulphide ore. This will produce silver recoveries ranging from 78% to 80%
for oxide ore and silver recoveries ranging from 79% to 89% for sulphide
ore, if the slurry percent solids are maintained at
indicated values above.
|
|||
Flotation
Feed Retention Time
|
|||
An
additional eight minutes of flotation time produced a silver recovery
increment of 2.5% when analysing the oxide ore behaviour. It is
recommended that retention time in the flotation circuit be studied as a
trade-off in the plant design, i.e. the cost of capital to deliver this
extra retention time versus the recovery gain.
|
|||
pH
Modifiers
|
|||
Neither
soda ash nor lime had a positive impact on metallurgical performance when
compared to tests at natural pH. Silver recoveries decreased between 1%
and 13% with no clear gains in silver concentrate
grade.
|
|||
Due
to tight economical conditions, it was not possible to assess the
metallurgical performance that the different geo-metallurgical units
defined in Phase 1 of this test work would have when exposed to the newly
defined metallurgical conditions. XPS recommend that this assessment is
performed at a later stage of the Project.
|
|||
Difference
between oxide and sulphide ores
|
|||
Significant
differences between the oxide and sulphide ores were observed. The
sulphide ore produces higher recoveries but lower concentrate grades than
the oxide ore. A further module of work testing blends that correspond to
the mining plans is recommended.
|
|||
The
locked cycle tests performed using sulphide ore produced an average final
silver recovery of 83.8%, ranging from 81.7% to 88.7%. The silver
concentrate grade averaged 44.4 kg/t Ag and ranged from 41.8 kg/t Ag
to 46.0 kg/t Ag.
|
|||
The
locked cycle tests performed using oxide ore produced an average final
silver recovery of 72.6%, ranging from 70.2% to 73.7%. The silver
concentrate grade averaged 88.9 kg/t Ag and ranged from 87.9 kg/t Ag to
89.3 kg/t Ag. These values exceeded expectations of 50.0 kg/t. The
oxide ore silver recovery can be further increased by increasing retention
time in the rougher circuit, which would cause the silver concentrate
grade to decrease.
|
|||
For
both ores it was found that recycling the cleaner scavenger tailings to
the rougher flotation stage #2 improves concentrate quality while
maintaining silver recovery. Under these circumstances, silver recoveries
comparable to the open circuit data, together with saleable concentrate at
grades at or in excess of 50.0 kg/t Ag, whilst maintaining or improving
silver recovery, were achieved.
|
|||
Further
work can include:
|
|||
—
|
Including
one extra stage of cleaning.
|
||
—
|
Mixing
the sulphide ore with the oxide ore.
|
||
—
|
Regrinding
the sulphide ore at a P80
smaller than 20 µm.
|
||
—
|
Increasing
residence time in rougher flotation to increase silver
recovery.
|
||
XPS
has developed a good understanding of Loma de La Plata ore metallurgical
performance and believes that further gains can be achieved if the
recommendations indicated in this report are
implemented.
|
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16.3.3 G&T
test work on Loma de La Plata samples
|
|||
The
test work is described in full in G&T (2008). G&T had
previously carried out work on other samples from Navidad (Snowden, 2007).
The 2008 test work on Loma de La Plata used samples from the same January
2008 sample selection programme as were used by XPS.
|
|||
The
samples received by G&T (166 individual samples, 432 kg total) are
listed in detail in G&T (2008). The samples were used to
construct nine variability composites and one master
composite. The master composite was constructed proportionately
to the weights of the nine variability composites.
|
|||
The
grades of the variability samples and the master composite are shown in
Table 16.10.
|
|||
Table
16.10
|
Grades
and specific gravity of the sample composites used for variability
testing
|
Sample
number
|
Cu
grade (%) |
Pb
grade (%) |
Ag
grade (g/t) |
S
grade (%) |
Sb
grade (g/t) |
As
grade (%) |
Specific
gravity
|
|
502
|
0.05
|
0.1
|
415
|
0.19
|
104
|
0.008
|
2.60
|
|
504
|
0.03
|
0.04
|
219
|
0.15
|
90
|
0.005
|
2.59
|
|
508
|
0.05
|
0.01
|
143
|
0.14
|
108
|
0.003
|
2.53
|
|
515
|
0.05
|
0.03
|
250
|
0.64
|
125
|
0.003
|
2.53
|
|
555
|
0.09
|
0.03
|
253
|
0.51
|
116
|
0.005
|
2.51
|
|
564
|
0.03
|
0.04
|
153
|
0.21
|
148
|
0.002
|
2.54
|
|
575
|
0.08
|
0.04
|
243
|
0.24
|
158
|
0.003
|
2.49
|
|
602
|
0.18
|
0.14
|
287
|
0.62
|
235
|
0.015
|
2.42
|
|
611
|
0.06
|
0.37
|
289
|
0.40
|
156
|
0.002
|
2.51
|
|
Master
composite
|
0.07
|
0.08
|
259
|
0.33
|
146
|
0.002
|
2.61
|
The
bond mill work index of the master composite was 16.2
kWh/t. Work indices of the nine variability composites ranged
from 12.3 kWh/t to 23.1 kWh/t.
|
||
The
nine variability samples and the master composite were subject to open
circuit and locked cycle testing. The master composite was used
to carry out preliminary flow sheet development work using rougher and
open circuit cleaner tests. This was followed by two locked
cycle tests (test 23 and 26) on the master composite, the results of which
are provided in Table 16.11 and Table 16.12.
|
||
Table
16.11 Locked
cycle test conditions
|
Stream
|
Grind P80 (µm)
|
3418A
Reagent Addition g/t
|
PAX
Reagent Addition g/t
|
pH
|
|
Rougher
|
108-148
|
80
|
80
|
8.5
|
|
Regrind
|
16-22
|
-
|
-
|
8.5
|
|
Cleaner
|
-
|
50
|
40-50
|
8.5
|
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Stream
|
Grind P80 (µm)
|
3418A
Reagent Addition g/t
|
PAX
Reagent Addition g/t
|
pH
|
Note:
No Regrind was applied in Test 23. The unground rougher concentrate P80 was
16 µm. The rougher concentrate produced in Test 26 was
ground for 2 minutes to a P80 of
22 µm.
|
Table
16.12 Summary of
locked cycle test results
|
Test
number
|
Product
|
Wt%
|
Ag
grade (g/t) |
Cu
grade (%) |
Pb
grade (%) |
S
grade (%) |
Ag
recovery (%) |
Cu
recovery (%) |
Pb
recovery (%) |
S
recovery (%) |
Test
23, P80 108
µm
|
Flotation
Feed
|
100.0
|
285
|
0.07
|
0.09
|
0.3
|
100
|
100
|
100
|
100
|
Bulk
Concentrate
|
0.5
|
49888
|
7.2
|
11.9
|
9.6
|
83
|
52
|
62
|
16
|
|
Bulk
1st Cleaner Tail
|
3.0
|
290
|
0.05
|
0.17
|
0.5
|
3
|
2
|
6
|
5
|
|
Bulk
Rougher Tail
|
96.5
|
40
|
0.03
|
0.03
|
0.2
|
14
|
45
|
32
|
79
|
|
Test
26, P80 148
µm
|
Flotation
feed
|
100.0
|
264
|
0.07
|
0.09
|
0.3
|
100
|
100
|
100
|
100
|
Bulk
Concentrate
|
0.4
|
51071
|
8.1
|
12.8
|
10.5
|
77
|
48
|
59
|
16
|
|
Bulk
1st
Cleaner Tail
|
9.6
|
3.5
|
0.10
|
0.14
|
0.4
|
11
|
15
|
15
|
15
|
|
Bulk
Rougher Tail
|
90.0
|
33
|
0.03
|
0.03
|
0.2
|
11
|
37
|
26
|
69
|
|
Flotation
feed
|
100.0
|
264
|
0.07
|
0.09
|
0.3
|
100
|
100
|
100
|
100
|
|
Bulk
Concentrate
|
0.4
|
51071
|
8.1
|
12.8
|
10.5
|
77
|
48
|
59
|
16
|
The
nine variability composites were subject to batch open circuit cleaner
tests. With the exception of sample 508, silver recoveries
ranged from 78% to 90%, with approximately 50 kg/t Ag in the final cleaner
concentrates. Sample 508 yielded a recovery of 58% which may
reflect it being the lowest feed grade (143g/t Ag and
0.14% S).
|
||
A
silver association model was developed to demonstrate the relationship
between silver content, and the copper and lead content in the
concentrates. This model showed an excellent linear correlation
between silver, lead and copper in the concentrates, indicating that the
silver co-floats with the copper and lead minerals.
|
||
G&T
carried out Automated Digital Imaging Scans (ADIS) of the final
concentrates and rougher tailings. The silver minerals identified by
G&T in the concentrates were principally native silver, proustite,
acanthite and polybasite.
|
||
A
sample of the final concentrate from Test 23 was sent for grade analysis
by ICP at ALS Chemex Lab in Vancouver. The assays of the most
important revenue and penalty elements are shown in Table
16.13.
|
||
Table
16.13 Assay grades of
Test 23 locked cycle concentrate
|
Element
|
Grade
|
|
Ag
(g/t)
|
>
1,000
|
February 2010 | 134 of 249 |
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Element
|
Grade
|
|
As
(g/t)
|
1,620
|
|
Cd
(g/t)
|
130
|
|
Cu
(%)
|
6.6
|
|
Pb
(%)
|
>10.0
|
|
S
(%)
|
9.0
|
|
Sb
(g/t)
|
1,935
|
|
Zn
(%)
|
0.4
|
An
initial opinion is that this concentrate would be shipped to an offshore
copper smelter. The main component of the revenue (over 95%)
would be the silver, with a minor credit for the copper. Minor
penalties for lead, arsenic and antimony might be incurred. The average
arsenic and antimony analyses of the variability composites were 2,232
g/t Sb and 1,680 g/t As. Only one sample was above this
(sample 602) indicating some potential attention to ore blending in the
mining operation.
|
||
A
settling test on the tailings from Test 23 showed a thickener area of
about 0.06 m²/t/day would be required, with a flocculant addition of
5 g/t, resulting in a thickened slurry of 48% solids by
weight.
|
||
A
limited number of tests were carried out to recover silver using gravity
and cyanidation techniques (48 hours leach). The results are
summarised in Table 16.14.
|
||
Table
16.14 Gravity and
cyanidation test data results
|
Test
number
|
Type
|
Pan
concentrate silver extraction (%)
|
CN
silver extraction (%)
|
Overall
extraction (%)
|
CN
kg/t
|
Lime
kg/t
|
|
27
|
Whole
ore CN
|
-
|
75
|
75
|
1.0
|
0.7
|
|
25
|
Gravity
|
18
|
-
|
-
|
-
|
-
|
|
28
|
Gravity
Tail CN
|
-
|
69
|
-
|
1.3
|
1.1
|
|
25
+ 28
|
Gravity
+ CN
|
18
|
57
|
75
|
-
|
-
|
Both
the whole ore and gravity plus cyanidation flow sheets produced silver
recoveries of about 75%. Inclusion of a gravity step did not increase
overall silver recovery (based upon this single test). It would therefore
appear that about 75% of the silver contained in the master composite can
be recovered using cyanidation techniques or gravity plus
cyanidation. This compares to 80% to 85% silver recovery to a
flotation concentrate. The cyanide consumption in these tests is
significantly lower than the XPS test. This would require
confirmation if this line of test work is pursued in
future.
|
||
February 2010 | 135 of 249 |
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Technical
Report
|
16.3.4 G&T test work on Barite
Hill samples
|
||
The
test work is described in detail in G&T (2009). In a similar method as
developed for the Loma samples, nine variability samples and a master
composite were prepared from the core samples. A detailed
sample inventory is provided in G&T (2009). However, the
amount of work conducted on Barite Hill was more limited than the Loma de
La Plata programme.
|
||
The
grades of the Barite Hill sample composites are shown in Table
16.15.
|
||
Table
16.15 Grades of
Barite Hill sample composites
|
Sample
number |
Cu
grade (%) |
Pb
grade (%) |
Zn
grade (%) |
Fe
grade (%) |
Ag
grade (g/t) |
S
grade (%) |
Sb
grade (g/t) |
As
grade (%) |
|
1
|
0.03
|
0.28
|
0.054
|
2.4
|
64
|
0.61
|
19
|
99
|
|
2
|
0.03
|
0.08
|
0.061
|
2.3
|
50
|
0.87
|
11
|
97
|
|
3
|
0.25
|
0.03
|
0.029
|
2.3
|
169
|
0.62
|
11
|
412
|
|
4
|
0.07
|
0.34
|
0.057
|
2.7
|
254
|
0.25
|
5
|
252
|
|
5
|
0.14
|
0.70
|
0.084
|
1.9
|
548
|
1.12
|
27
|
519
|
|
6
|
0.31
|
0.03
|
0.033
|
2.4
|
691
|
0.72
|
18
|
826
|
|
7
|
0.01
|
0.04
|
0.012
|
3.1
|
71
|
0.17
|
2
|
43
|
|
8
|
0.13
|
0.02
|
0.018
|
3.1
|
162
|
1.56
|
6
|
110
|
|
9
|
0.14
|
0.20
|
0.016
|
2.2
|
306
|
0.79
|
4
|
172
|
|
Master
|
0.17
|
0.20
|
0.050
|
2.6
|
190
|
0.75
|
14
|
257
|
The
samples received at G&T were in the form of sample assay coarse
rejects, and therefore too fine sized to carry out standard Bond ball mill
work index tests. However it was possible to calculate a
comparative work index using grind calibration data and the Bond Wi data
from Loma de La Plata. Based on this, the Barite Hill material
is classified as soft, with an average work index of 8.1
Kwh/t.
|
||
Rougher
flotation test recoveries of about 90%, at a mass recovery of 6% to 8%
were achieved. The recovery appeared to be relatively
insensitive to primary grind P80s
between 85 µm and 140 µm.
|
||
Batch
open circuit cleaner tests were carried out on the master
composite. Silver recoveries and grades of about 80% and 20
kg/t Ag respectively were achieved.
|
||
The
results of two locked cycle tests on the master composite are summarised
in Table 16.16 and Table 16.17.
|
||
Table
16.16 Locked cycle
test conditions
|
Stream
|
Grind P80 (µm)
|
3418A
Reagent Addition g/t
|
PE26
Reagent Addition g/t
|
pH
|
|
Rougher
|
84-140
|
30
|
50
|
8.2
|
|
Regrind
|
12-20
|
-
|
-
|
8.0
|
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|
Stream
|
Grind P80 (µm)
|
3418A
Reagent Addition g/t
|
PE26
Reagent Addition g/t
|
pH
|
Cleaner
|
-
|
30-50
|
200
|
8.2
|
Table
16.17 Summary of
locked cycle test results
|
Test
number
|
Product
|
Wt%
|
Ag
grade (g/t) |
Cu
grade (%) |
Pb
grade (%) |
S
grade (%) |
Ag
recovery (%) |
Cu
recovery (%) |
Pb
recovery (%) |
S
recovery (%)
|
Test
10, P 80 140 µm
|
Flotation
feed
|
100.0
|
194
|
0.11
|
0.17
|
0.5
|
100
|
100
|
100
|
100
|
Bulk
concentrate
|
0.6
|
24,401
|
11.8
|
22.7
|
13.6
|
81
|
71
|
84
|
19
|
|
Bulk
1st
cleaner tail
|
4.0
|
344
|
0.27
|
0.52
|
1.2
|
7
|
10
|
12
|
10
|
|
Bulk
rougher tail
|
95.4
|
25
|
0.02
|
0.01
|
0.4
|
12
|
19
|
4
|
72
|
|
Test
11 P80 84
µm
|
Flotation
feed
|
100.0
|
222
|
0.12
|
0.17
|
0.6
|
100
|
100
|
100
|
100
|
Bulk
concentrate
|
0.7
|
24,343
|
11.5
|
18.3
|
13.3
|
76
|
65
|
73
|
17
|
|
Bulk
1st
cleaner tail
|
5.2
|
580
|
0.37
|
0.63
|
1.3
|
13
|
16
|
19
|
12
|
|
Bulk
rougher tail
|
94.1
|
24
|
0.02
|
0.02
|
0.4
|
10
|
19
|
8
|
71
|
Nine
variability samples from Barite Hill were tested, with feed grades varying
widely from 60 g/t Ag to 700 g/t Ag, at a P80
grind of about 100 µm. The flotation results varied from 65% to 85% Ag
recovery, for silver concentrate grades of 25 kg/t Ag. There is a close
correlation between the silver grade and the combined lead and copper
grade in the concentrate. For 25 kg/t Ag concentrates, the
combined lead plus copper grade is 30% to 35%. Acanthite/argentite are the
dominant silver minerals in the concentrate. Thus in general, Barite Hill
gave flotation results similar to Loma de La Plata, but with lower silver
concentrate grades. This concentrate should be of interest to copper
smelters.
|
||
The
settling test on tailings from the locked cycle tests indicate Barite Hill
does not settle well with low projected thicker underflow density and high
calculated areas. Further more detailed work is required to investigate
this.
|
||
Final
bulk concentrates samples were analysed using Standard Assay Protocol, the
key revenue and potential penalty elements are shown in Table 0.18, which
provides comparative data for Barite Hill, Valle Esperanza, and Loma de La
Plata. Preliminary discussions indicate that these concentrates would be
best sold to copper smelters. More detailed discussions should be held
during the Feasibility Study. Attention is drawn to the higher arsenic
content of Barite Hill and the higher arsenic and antimony levels in Valle
Esperanza. Due to the small volume (tonnage) of the concentrates and high
value, they would be shipped from site in sealed containers minimising
in-transit loses and any environmental concerns. The actual mass of
antimony and arsenic is small, and should not present a significant
problem to smelters. However some penalties will be incurred and this
issue requires further evaluation.
|
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Table
16.18 Barite Hill,
Valle Esperanza, and Loma de La Plata concentrate
grades
|
Element
|
Valle
Esperanza grades
|
Barite
Hill grades
|
Loma
de La Plata grades
|
|
Sb
g/t
|
14,090
|
986
|
1,935
|
|
As
g/t
|
14,400
|
22,130
|
1,620
|
|
Cd
g/t
|
380
|
1,250
|
130
|
|
Cu%
|
14.8
|
11.9
|
6.6
|
|
F
g/t
|
118
|
257
|
n.a.
|
|
Fe%
|
8.2
|
3.7
|
8.3
|
|
Pb%
|
23.2
|
22.7
|
10.0
+
|
|
Hg
g/t
|
262
|
38
|
n.a.
|
|
Ag
g/t
|
63,584
|
24,421
|
50,000
+
|
|
S%
|
18.1
|
13.6
|
9.0
|
|
Zn%
|
21.8
|
19.5
|
4.5
|
16.3.5 G&T
test work on Valle Esperanza samples
|
||
This
test work is described in detail in G&T (2009). A similar programme
was followed as for Barite Hill, with nine variability samples and a
composite, as shown in Table 16.19.
|
||
Table
16.19 Grades of Valle
Esperanza sample composites
|
Sample
number
|
Cu
grade (%) |
Pb
grade (%) |
Zn
grade (%) |
Fe
grade (%) |
Ag
grade (g/t) |
S
grade (%) |
Sb
grade (g/t) |
As
grade (%) |
|
1
|
0.01
|
0.14
|
0.028
|
3.4
|
39
|
0.058
|
15
|
18
|
|
2
|
0.03
|
0.13
|
0.023
|
3.6
|
52
|
0.08
|
27
|
26
|
|
3
|
0.11
|
0.01
|
0.031
|
2.5
|
71
|
0.503
|
98
|
133
|
|
4
|
0.06
|
0.35
|
0.018
|
3.5
|
243
|
0.54
|
33
|
37
|
|
5
|
0.07
|
0.13
|
0.020
|
3.5
|
217
|
0.78
|
47
|
60
|
|
6
|
0.09
|
0.55
|
0.210
|
2.7
|
318
|
1.14
|
21
|
16
|
|
7
|
0.10
|
0.15
|
0.049
|
3.1
|
486
|
0.64
|
82
|
85
|
|
8
|
0.08
|
0.03
|
0.040
|
2.2
|
419
|
1.06
|
26
|
108
|
|
9
|
0.14
|
0.30
|
0.060
|
2.0
|
827
|
0.61
|
75
|
46
|
|
Master
|
0.08
|
0.12
|
0.047
|
3.0
|
268
|
0.50
|
62
|
70
|
As
with Barite Hill, the samples received were sample assay coarse rejects,
which therefore precluded standard Bond mill tests. Comparative work index
data shows the samples to be of medium hardness with an average of 14.6
kWh/t. Rougher flotation test silver recoveries were over
90% at primary grind P80’s
between 90 µm and 165 µm. Batch open circuit cleaner test
yielded what can be viewed as excellent silver recoveries (over 90%) and
final bulk concentrates assaying between 60 kg Ag and 65 kg of silver per
tonne.
|
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|
Three
locked cycle tests were carried out on the Valle Esperanza master
composite and the results are summarised in Table 16.20 and Table
16.21.
|
||
Table
16.20 Locked cycle
test conditions
|
Stream
|
Grind P80 (µm)
|
3418A
Reagent Addition g/t
|
MIBC
Reagent Addition g/t
|
pH
|
|
Rougher
|
89-166
|
30
|
60
|
8.5
|
|
Regrind
|
19-23
|
-
|
-
|
8.5
|
|
Cleaner
|
-
|
20
|
60
|
8.5
|
Table
16.21 Summary of
locked cycle test results
|
Test
number
|
Product
|
Wt%
|
Ag
grade (g/t) |
Cu
grade (%) |
Pb
grade (%) |
S
grade (%) |
Ag
recovery (%) |
Cu
recovery (%) |
Pb
recovery (%)
|
S
recovery (%) |
Test
10, P 80 166 µm
|
Flotation
feed
|
100.0
|
276
|
0.08
|
0.12
|
0.3
|
100
|
100
|
100
|
100
|
Bulk
concentrate
|
0.4
|
65,461
|
14.5
|
23.1
|
17.9
|
92
|
71
|
74
|
20
|
|
Bulk
1st
cleaner tail
|
1.7
|
598
|
0.37
|
0.59
|
0.9
|
4
|
8
|
8
|
5
|
|
Bulk
rougher tail
|
97.9
|
12
|
0.02
|
0.02
|
0.3
|
4
|
21
|
17
|
75
|
|
Test
11 P80 89
µm
|
Flotation
feed
|
100.0
|
320
|
0.08
|
0.19
|
0.4
|
100
|
100
|
100
|
100
|
Bulk
concentrate
|
0.5
|
60,324
|
11.7
|
29.1
|
17.2
|
92
|
73
|
75
|
20
|
|
Bulk
1st
cleaner tail
|
1.5
|
954
|
0.46
|
1.19
|
1.4
|
4
|
9
|
9
|
5
|
|
Bulk
rougher tail
|
98.0
|
12
|
0.01
|
0.03
|
0.3
|
4
|
18
|
15
|
75
|
|
Test
21 P80 89
µm
|
Flotation
feed
|
100.0
|
272
|
0.07
|
0.18
|
0.4
|
100
|
100
|
100
|
100
|
Bulk
concentrate
|
0.5
|
52,555
|
12.0
|
28.6
|
10.0
|
91
|
76
|
73
|
13
|
|
Bulk
1st
cleaner tail
|
1.1
|
1118
|
0.41
|
1.02
|
1.2
|
5
|
6
|
6
|
4
|
|
Bulk
rougher tail
|
98.4
|
12
|
0.01
|
0.04
|
0.3
|
4
|
18
|
20
|
83
|
The
silver recoveries and concentrate grades achieved in the locked cycle test
were better than either Loma de La Plata or Barite Hill and can be
considered very satisfactory.
|
||
Nine
variability samples from Valle Esperanza were tested, with feed grades
varying from 50 g/t Ag to 800 g/t Ag, at a P80 of
150 µm. The majority of the samples gave silver recoveries of 88% to 90%,
with 50 kg/t Ag in the final concentrate. As with Loma de La Plata and
Barite Hill, there was a close correlation between silver and copper plus
lead in the concentrates.
|
||
Acanthite/argentite
accounts for 90% of the silver in the concentrates, 2% as native silver
and the balance as unidentified silver minerals.
|
||
As
with Barite Hill, the tailings from the flotation tests showed poor
settling (liquids-solids separation) characteristics and this will require
more detailed investigation.
|
February 2010 | 139 of 249 |
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The
chemical analysis of the concentrate is shown in Table 0.18, and the same
comments apply as for Barite Hill.
|
||
16.3.6 Conclusions
and recommendations
|
||
The
test work on Loma de La Plata undertaken by the metallurgical laboratories
has confirmed that the material tested responds well to flotation, with
high recoveries and concentrate grades. A simple crushing, grinding and
single product flotation concentrator is suggested.
|
||
The
concentrates produced in the test work contained high silver values
(around 50 kg/t Ag), with a combined base metals (copper plus lead)
content of 15% to 25%. Preliminary discussion suggests that this should be
readily saleable to base metals smelters.
|
||
The
work on Loma de La Plata involving a number of composites prepared from
fresh drill core is probably sufficient to support a Feasibility Study. A
large quantity of core has been kept in sealed bags and is sufficient for
a pilot plant test should this be considered necessary.
|
||
The
test work on Barite Hill and Valle Esperanza has generally yielded
satisfactory results, and as with Loma de La Plata, silver recoveries of
80% or better appear likely. The concentrate grades from Valle Esperanza
are particularly high (over 50 kg/t Ag to 60 kg/t Ag), while those from
Barite Hill are also satisfactory containing 20 kg/t Ag to 25 kg/t
Ag.
|
||
Mr.
Wells believes that Loma de La Plata, Barite Hill, and Valle Esperanza can
all be treated in that same, simple, one product
concentrator.
|
||
However
it should be noted that the test work on Barite Hill and Valle Esperanza
was much more limited than the Loma de La Plata test work programme, and
did not use fresh drill core samples, but sample assay crushed rejects.
Thus, more test work with new samples is essential to take Barite Hill and
Valle Esperanza to Feasibility Study level. During this future
work, more tailings samples should be taken for detailed solids liquids
separation test work, probably requiring specialist laboratories with
equipment vendors. Furthermore, concentrate samples should be
taken to review the arsenic and antimony contents, as well as any other
potential penalty elements. A more detailed evaluation of the market for
silver/copper concentrates is required during the Prefeasibility
Study.
|
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17 Mineral Resource and Mineral Reserve estimates | ||
Information
in this section has been sourced from Snowden (2009).
|
||
17.1 Disclosure |
Mineral
Resources reported in Section 17 were prepared by Ms. P. De Mark, a
Senior Consultant
of Snowden and a Qualified Person as defined under NI 43-101.
Documentation of the work was reviewed by Mr. I. Jones, Senior Principal
Consultant for Snowden’s Perth office.
|
||||
Snowden
is independent of Pan American.
|
||||
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves are reported in this Technical
Report.
|
||||
This
report uses definitions from and follows the guidelines of the CIM
Definition Standards for Mineral Resources and Mineral Reserves and NI
43-101 Form F1. The Project has no mine design or defined economic
parameters at this stage.
|
||||
17.1.1
Known issues that materially affect the Mineral Resources
|
||||
In
2006 the government of Chubut Province decreed a three year moratorium on
all mining activities, including exploration, in the western part of the
Province. This moratorium is due to expire on 29 June 2009, and the
government of Chubut has publicly declared that it intends to extend the
moratorium for another three years. The government asserts this is to
enable the completion of a province-wide map of the mineral potential. The
Navidad Property lies outside of and to the east of these “no-mining”
zones. The government of Chubut Province has also decreed a Province-wide
ban on the use of cyanide for mining purposes and the development of open
pit mines. The law states that the government of Chubut Province will
accept and review mining proposals, including open pit and cyanide based
mining operations, on a case by case basis and determine at that point
whether permits may be issued.
|
||||
The
Supreme Court of British Columbia awarded ownership of the Navidad Project
to Minera Aquiline on 14 July 2006 following a court case with IMA
Exploration Inc. (IMA) where IMA was found to have breached a
Confidentiality Agreement with Minera Normandy Argentina S.A. (Minera
Normandy), then a subsidiary of Newmont Mining Corporation. Minera
Normandy was subsequently acquired by Aquiline and its name was changed to
Minera Aquiline. IMA appealed the trial court decision to the Appeal Court
of British Columbia which denied the appeal in reasons for judgment dated
7 June 2007. In September 2007 IMA submitted an Application for Leave to Appeal to the Supreme
Court of Canada. Sole ownership rights were granted to Aquiline by the
Supreme Court of Canada on 20 December 2007, subject to Aquiline making
payment to IMA which would reimburse the latter for its accrued
exploration expenditures up to the July 2006 court decision. Aquiline’s
final payment to IMA was made on 8 February 2008 giving Aquiline full
ownership of the Project.
|
||||
Snowden
is unaware of any other issues that may materially affect the Mineral
Resources in a detrimental sense. These conclusions are based on the
following:
|
||||
—
|
The
Pan American exploration license has an approved environmental operating
license.
|
|||
February 2010 | 141 of 249 |
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—
|
Pan
American has represented that the material mineral and surface rights have
secure title.
|
||
—
|
There
are no known marketing, political, or taxation issues.
|
||
—
|
Pan
American has represented that the Project has local community
support.
|
||
—
|
There
are no known infrastructure issues.
|
17.2
|
Assumptions,
methods and parameters – 2009 Mineral Resource
estimates
|
Mineral
Resource estimates were prepared in the following
steps:
|
|||
—
|
Data
validation was undertaken by Aquiline and reviewed by
Snowden.
|
||
—
|
Data
preparation, including importation to various software
packages.
|
||
—
|
Analysis
of the QAQC data.
|
||
—
|
Geological
interpretation and modelling of lithological and mineralisation domains
was by Snowden based on interpretations provided by
Aquiline.
|
||
—
|
Coding
of drillhole data within mineralised grade estimation
domains.
|
||
—
|
Samples
were composited to 3 m lengths.
|
||
—
|
Exploratory
data analysis of silver and lead grades based on mineralised domains, and
also of copper at Loma de La Plata.
|
||
—
|
Indicator
variogram analysis and modelling.
|
||
—
|
Derivation
of kriging plan and boundary conditions.
|
||
—
|
Creation
of block models and application of density values by
domain.
|
||
—
|
Grade
estimation of Ag and Pb (and Cu at Loma de La Plata) into blocks using
multiple indicator kriging (MIK).
|
||
—
|
Grade
estimation of Ag and Pb (and Cu at Loma de La Plata) into blocks using
ordinary kriging (OK) and nearest neighbour (NN) for MIK estimation
validation.
|
||
—
|
Validation
of estimated block grades against input sample composite
grades.
|
||
—
|
Confidence
classification of estimates with respect to CIM
guidelines.
|
||
—
|
Resource
tabulation and Resource reporting.
|
17.3 Supplied data, data preparation, data transformations, and data validation |
17.3.1 Supplied
data
|
|||
Aquiline
provided raw drillhole data in Access database format, geological and
mineralisation models and surface topography data in AutoCAD DXF format,
specific gravity measurements in Microsoft Excel format, and relevant
technical documentation.
|
|||
17.3.2 Data
preparation
|
|||
Snowden
prepared desurveyed drillholes from collar, survey, lithology, and assay
data provided by Aquiline. A location map showing drillholes available for
the April 2009 Mineral Resource estimate is shown in Figure 17.1. The
number of drillholes used in the
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Navidad
April 2009 Mineral Resource estimate is shown in Table 17.1. A list of the
collar locations is given in Appendix A.
|
|||
Figure
17.1
|
Location
map of drillholes available in the April 2009 Navidad
database
|
Table
17.1
|
Number
of drillholes used in the Navidad 2009 Mineral Resource
estimates
|
Area
|
Number
of drillholes
|
Metres
of drilling
|
|
Calcite
NW
|
111
|
16,440
|
|
Calcite
Hill
|
81
|
14,973
|
|
Navidad
Hill
|
105
|
12,394
|
|
Connector
Zone
|
75
|
12,394
|
|
Galena
Hill
|
92
|
17,221
|
|
Barite
Hill
|
56
|
12,832
|
|
Loma
de La Plata
|
210
|
45,918
|
|
Valle
Esperanza
|
70
|
23,702
|
|
Total
|
800
|
155,872
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17.3.3 Data
transformations
|
||
The
drilling pattern is oriented to the northeast-southwest on the Gauss
Kruger Zone 2 projection, relative to the Campo Inchauspe datum, except at
Loma de La Plata, where the drilling pattern is oriented to the east-west.
Aquiline applied a correction to the magnetic value recorded in downhole
surveys to convert from magnetic to the Gauss Kruger grid and provided
Snowden with the final azimuth data. Snowden converted the downhole dip to
conform to Datamine convention (downward direction holes are indicated
with a positive dip sign).
|
||
Snowden
assigned values of half the detection limit of assays for Ag, Pb, and Cu
to unsampled drillhole intervals (usually at the drill collar), to prevent
smearing of sampled grades into unsampled intervals. The values applied to
the unsampled intervals were 0.5 g/t Ag, 0.005% Pb, and 0.005%
Cu.
|
||
No
other transformations or rotations have been performed by Snowden on the
data or models.
|
||
17.3.4 Data
validation
|
||
Validation
checks in Datamine mining software included searches for overlaps or gaps
in sample and geology intervals, inconsistent drillhole identifiers, and
missing data. No errors were noted.
|
||
Aquiline
also provided Snowden with sample assay quality assurance/quality control
(QAQC) data for review. Analysis of QAQC data is used to assess the
reliability of sample assay data and the confidence in the data used for
the resource estimation. The results of the QAQC analyses are discussed in
Section 13.2.
|
||
17.4
Geological interpretation, modelling, and domaining
|
||
17.4.1 Geological
interpretation and modelling
|
||
Snowden
updated the 2007 geological interpretation to include recent drilling
information, based on geological wireframes provided by Aquiline. Snowden
created new digitised geological interpretations for Valle Esperanza,
which had no previous geological interpretation, also based on geological
wireframes provided by Aquiline. Three wireframes of
north-northwest trending faults were provided by Aquiline, which were used
to truncate mineralisation to the west of Galena Hill. Snowden recommends
that Pan American continue with modelling fault interpretations, for use
in future resource estimations.
|
||
The
geological interpretations were digitised on section and wireframed into
lithological domains representing mudstone/limestone, conglomerate,
latite, and volcaniclastic contacts. Mineralised domains were digitised
around continuous areas of mineralisation generally greater than 25 g/t Ag
and/or 1% Pb.
|
||
No
model of the oxidation surface has yet been prepared, as generally there
is no well developed oxidation zone present in the respective deposits
except for a mixed zone comprised mostly of sulphides with oxidation along
fractures. Recent metallurgical test work has suggested that oxidation may
play a more important role in mineral processing than previously known.
Staff geologists will be undertaking a more diligent study of the
differences between the oxide and sulphide zones for modelling in future
resource estimations.
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17.4.2 Definition
of grade estimation domains
|
||
Grade
estimation domains, which are subdivisions of the geological model and
represented by subsets of the sample data, ensure that samples used for
estimating a block grade are from the same population as the point of
estimation. A grade population may be defined by attributes such as
spatial location, lithology, mineralisation style, and structural
boundaries.
|
||
The
Navidad Mineral Resources have been estimated and reported individually
for each deposit, including Calcite NW, Calcite Hill, Navidad Hill,
Connector Zone, Galena Hill, Barite Hill, Loma de La Plata, and Valle
Esperanza.
|
||
Data
for each deposit has been further divided into sub-domains according to
lithological unit (mudstone/limestone, latite, conglomerate, and
volcaniclastic units) and strength of mineralisation (high or low). An
example of the estimation domains at Loma de La Plata is shown in Table
17.2. The estimation domains for the remaining deposits are shown in
Appendix B.
|
||
Table
17.2 Loma de La
Plata estimation domains
|
Deposit
|
Lithology
|
Mineralisation
|
Domain
code
|
|
Loma
de La Plata
|
Conglomerate
|
Low
grade
|
715
|
|
Mudstone
|
Low
grade
|
725
|
||
Mudstone
|
High
grade
|
726
|
||
Latite
|
Low
grade
|
735
|
||
Latite
|
High
grade
|
736
|
17.5 Sample
statistics
|
||
17.5.1 Sample
compositing
|
||
Sample
lengths were composited to ensure that the samples used in statistical
analyses and estimations have similar support (i.e., length). Aquiline
sampled drillholes at various interval lengths depending on the length of
intersected geological features, and in geologically similar units, select
samples at 3 m lengths. Sample lengths were examined for each deposit and
composited to 3 m according to the most frequently sampled length interval
(3 m). The composited and raw sample data were compared to ensure no
sample length loss or metal loss had occurred.
|
||
The
Datamine COMPDH downhole compositing process was used to composite the
samples within the estimation domains (i.e., composites do not cross over
the mineralised domain boundaries). The COMPDH parameter MODE was set to a
value of 1 to allow adjusting of the composite length while keeping it as
close as possible to the composite interval (3 m); this is done to
minimise sample loss, and to ensure equal sample
support.
|
||
17.5.2 Extreme
value treatment
|
||
No
top cuts of extreme values were applied to the input samples used in the
MIK estimation, as the extreme values in the high grade mineralised
domains are well supported by other extreme values, and are not the sole
cause of the grade variability in the domain population. An example log
histogram of input sample composites from the high grade latite estimation
domain at Loma de La Plata is shown in Figure 17.2, log histograms of
input sample composites for the high grade estimation domains at
the
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remaining
deposits are shown in Appendix C. Extreme grade values are treated in the
estimate using multiple indicator kriging.
|
|||
Figure
17.2
|
Log
histogram of Loma de La Plata undeclustered sample composites in Domain
736
|
17.5.3 Data
declustering
|
||
Descriptive
statistics of sample populations within a domain may be biased by
clustering of sample data in particular areas of the domain. At the
Navidad deposits, because of the orientation and spacing of the drillholes
oblique to the Project coordinates (on the Gauss Kruger projection, Zone
2, relative to the Campo Inchauspe
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datum),
the input sample data statistics are strongly influenced by the dimensions
of the orthogonal declustering grid. To reduce any bias caused by
clustering of sample data, Snowden declustered the input sample data by
making a nearest neighbour estimate into the MIK block model. Declustered
data statistics are considered during the selection of the grade
interpolation method and used when comparing estimated grades and input
sample grades during model validation.
|
|||
17.5.4 Input
sample statistics
|
|||
Declustered
statistics for sample composites in each of the domains within the
classified resource area are shown for Ag in Appendix D and for Pb in
Appendix E. Example statistics for Loma de La Plata are shown Table 17.3
for Ag, Table 17.4 for Pb, and Table 17.5 for Cu. Mineralisation is
associated with the mudstone and latite domains although minor occurrences
of mineralised conglomerate and volcaniclastic rocks are present. High CV
values and examination of the sample histogram suggest mixed populations
within most domains. Grade estimation domains may be refined after
collection of additional drillhole samples and analysis of grade
distributions.
|
|||
Table
17.3
|
Declustered
composite sample input statistics for Ag at Loma de La
Plata
|
Deposit
|
Domain
|
Number
of composites
|
Min
(g/t)
|
Max
(g/t)
|
Mean
(g/t)
|
CV
|
Loma
de La Plata
|
715
|
1,504
|
0.5
|
23
|
1
|
1.5
|
725
|
5,585
|
0.5
|
66
|
1
|
1.9
|
|
726
|
238
|
0.5
|
213
|
23
|
1.1
|
|
735
|
4,916
|
0.5
|
84
|
2
|
1.9
|
|
736
|
1,802
|
0.5
|
5,407
|
125
|
2.7
|
Table
17.4
|
Declustered
composite sample input statistics for Pb at Loma de La
Plata
|
Deposit
|
Domain
|
Number
of composites
|
Min
(%)
|
Max
(%)
|
Mean
(%)
|
CV
|
Loma
de La Plata
|
715
|
1,504
|
0.01
|
1.69
|
1.69
|
2.6
|
725
|
5,585
|
0.01
|
1.74
|
1.74
|
2.1
|
|
726
|
238
|
0.01
|
3.23
|
3.23
|
1.1
|
|
735
|
4,916
|
0.01
|
2.28
|
2.28
|
3.3
|
|
736
|
1,802
|
0.01
|
3.54
|
3.54
|
2.8
|
Table
17.5
|
Declustered
composite sample input statistics for Cu at Loma de La
Plata
|
Deposit
|
Domain
|
Number
of composites
|
Min
(%)
|
Max
(%)
|
Mean
(%)
|
CV
|
Loma
de La Plata
|
715
|
1,504
|
0.01
|
0.04
|
0.01
|
0.5
|
725
|
5,585
|
0.01
|
0.18
|
0.01
|
1.0
|
|
726
|
238
|
0.01
|
0.24
|
0.02
|
1.8
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Deposit
|
Domain
|
Number
of composites
|
Min
(%)
|
Max
(%)
|
Mean
(%)
|
CV
|
735
|
4,916
|
0.01
|
0.28
|
0.01
|
1.2
|
|
736
|
1,802
|
0.01
|
1.30
|
0.05
|
1.8
|
17.6 Variography
|
||
Variography
was undertaken by grade estimation domain for each deposit. To improve
variogram quality in the grade estimation domains at the Navidad Trend
(Calcite NW, Calcite Hill, Navidad Hill, Connector Zone, Galena Hill, and
Barite Hill), sample composites of the grade estimation domain for the
deposit under consideration were combined with sample composites from
corresponding grade estimation domains from the two deposits lying
immediately to the northwest and southeast. For example, sample composites
for the high grade latite estimation domain for Galena Hill were combined
with high grade latite sample composites from Connector Zone to the
northwest and Barite Hill to the southeast.
|
||
17.6.1 Continuity
analysis
|
||
Continuity
analysis refers to the analysis of the spatial correlation of a grade
value between sample pairs to determine the major axis of spatial
continuity. As the mineralised domain has a long, wide, and relatively
flat shape oriented to the northwest, only orientations close to the plane
of the domain were considered.
|
||
Indicator
variograms were defined at percentile intervals chosen by grade estimation
domain to best represent the grade distribution. Horizontal, across
strike, and dip plane continuity directions for each domain were chosen by
examining indicator variogram maps and their underlying variograms for Ag
and Pb, and Cu at Loma de La Plata, rotated onto the plane of the
mineralised domain.
|
||
17.6.2 Variogram
modelling
|
||
Directional
variograms were modelled for the three principal directions for Ag and Pb,
and Cu at Loma de La Plata, based on the directions chosen from the
variogram fans.
|
||
Variogram
parameters at the 95th
decile are detailed in Table 17.6 for Ag, Table 17.7 for Pb, and Table
17.8 for Cu.
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Table
17.6 95th
decile variogram model parameters for
Ag
|
Domain
|
Rotation
1
(Z axis) |
Rotation
2
(X axis) |
Rotation
3
(Z axis) |
C0§
|
C1§
|
Ranges
(m)†
|
C2§
|
Ranges
(m)†
|
C3§
|
Ranges
(m)†
|
Navidad
Trend 15
|
210
|
15
|
0
|
0.37
|
0.17
|
120,90,40
|
0.46
|
130,120,55
|
-
|
-
|
Navidad
Trend 25
|
210
|
15
|
0
|
0.47
|
0.14
|
100,40,19
|
0.19
|
190,60,20
|
0.2
|
200,80,30
|
Navidad
Trend 26
|
210
|
15
|
0
|
0.45
|
0.2
|
30,30,5
|
0.35
|
50,50,10
|
-
|
-
|
Navidad
Trend 35
|
210
|
15
|
0
|
0.5
|
0.2
|
20,30,16
|
0.18
|
30,40,32
|
0.12
|
120,50,33
|
Navidad
Trend 36
|
210
|
15
|
0
|
0.4
|
0.1
|
10,20,7
|
0.22
|
20,30,45
|
0.28
|
40,35,50
|
Navidad
Trend 45
|
210
|
15
|
0
|
0.42
|
0.58
|
70,65,35
|
-
|
-
|
-
|
-
|
715
|
80
|
20
|
0
|
0.72
|
0.17
|
110,50,14
|
0.11
|
120,100,15
|
-
|
-
|
725
|
60
|
30
|
90
|
0.4
|
0.6
|
450,220,30
|
-
|
-
|
-
|
-
|
726
|
60
|
30
|
70
|
0.6
|
0.4
|
50,50,6
|
-
|
-
|
-
|
-
|
735
|
80
|
20
|
80
|
0.4
|
0.3
|
40,110,7
|
0.3
|
50,115,45
|
-
|
-
|
736
|
80
|
20
|
80
|
0.6
|
0.16
|
30,30,10
|
0.24
|
50,50,11
|
-
|
-
|
815
|
30
|
10
|
0
|
0.42
|
0.58
|
270,180,54
|
-
|
-
|
-
|
-
|
825
|
50
|
20
|
20
|
0.47
|
0.53
|
200,200,40
|
-
|
-
|
-
|
-
|
835
|
10
|
20
|
0
|
0.47
|
0.26
|
90,125,11
|
0.27
|
140,150,30
|
-
|
-
|
836
|
10
|
30
|
0
|
0.5
|
0.14
|
50,80,16
|
0.36
|
100,120,17
|
-
|
-
|
Note:
§ variances have been normalised to a total of one; †
ranges for major, semi-major, and minor axes, respectively; structures two
and three are modelled with a spherical
model
|
Table
17.7 95th
decile variogram model parameters for
Pb
|
Domain
|
Rotation
1
(Z axis) |
Rotation
2
(X axis) |
Rotation
3
(Z axis) |
C0§
|
C1§
|
Ranges
(m)†
|
C2§
|
Ranges
(m)†
|
Navidad
Trend 15
|
210
|
15
|
0
|
0.27
|
0.33
|
165,210,12
|
0.4
|
170,240,18
|
Navidad
Trend 25
|
210
|
15
|
0
|
0.46
|
0.13
|
110,50,15
|
0.41
|
150,80,17
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|
Domain
|
Rotation
1
(Z axis) |
Rotation
2
(X axis) |
Rotation
3
(Z axis) |
C0§
|
C1§
|
Ranges
(m)†
|
C2§
|
Ranges
(m)†
|
Navidad
Trend 26
|
210
|
15
|
0
|
0.55
|
0.45
|
50,40,10
|
-
|
-
|
Navidad
Trend 35
|
210
|
15
|
0
|
0.4
|
0.18
|
140,180,7
|
0.42
|
190,250,50
|
Navidad
Trend 36
|
210
|
15
|
0
|
0.3
|
0.2
|
40,50,4
|
0.5
|
140,70,14
|
Navidad
Trend 45
|
210
|
15
|
0
|
0.2
|
0.8
|
110,75,18
|
-
|
-
|
715
|
50
|
20
|
30
|
0.5
|
0.2
|
120,220,8
|
0.3
|
150,250,14
|
725
|
70
|
20
|
60
|
0.3
|
0.06
|
90,60,18
|
0.34
|
130,180,300
|
726
|
60
|
30
|
50
|
0.54
|
0.46
|
75,80,12
|
-
|
-
|
735
|
70
|
20
|
80
|
0.32
|
0.29
|
400,63,7
|
0.39
|
460,370,15
|
736
|
40
|
20
|
70
|
0.4
|
0.33
|
360,340,10
|
0.27
|
400,350,20
|
815
|
30
|
15
|
0
|
0.26
|
0.26
|
100,50,3
|
0.48
|
350,260,34
|
825
|
40
|
15
|
0
|
0.38
|
0.08
|
10,40,9
|
0.2
|
150,175,16
|
835
|
30
|
10
|
40
|
0.35
|
0.09
|
50,50,2
|
0.05
|
80,120,10
|
836
|
40
|
50
|
140
|
0.46
|
0.24
|
40,40,8
|
0.3
|
80,110,13
|
Note:
§ variances have been normalised to a total of one; †
ranges for major, semi-major, and minor axes, respectively; structures two
and three are modelled with a spherical
model
|
Table
17.8 95th
decile variogram model parameters for
Cu
|
Domain
|
Rotation
1
(Z axis) |
Rotation
2
(X axis) |
Rotation
3
(Z axis) |
C0§
|
C1§
|
Ranges
(m)†
|
C2§
|
Ranges
(m)†
|
715
|
40
|
20
|
90
|
0.45
|
0.3
|
60,110,8
|
0.25
|
80,120,13
|
725
|
60
|
20
|
100
|
0.5
|
0.26
|
90,90,15
|
0.24
|
100,150,20
|
726
|
70
|
20
|
80
|
0.45
|
0.55
|
100,50,8
|
-
|
-
|
735
|
70
|
20
|
60
|
0.32
|
0.21
|
180,240,6
|
0.1
|
250,250,38
|
736
|
80
|
20
|
40
|
0.36
|
0.19
|
40,30,6
|
0.45
|
80,70,10
|
Note:
§ variances have been normalised to a total of one; †
ranges for major, semi-major, and minor axes, respectively; structures two
and three are modelled with a spherical
model
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17.7 Estimation
parameters
|
|||
17.7.1 Kriging
parameters
|
|||
A
kriging neighbourhood analysis (KNA) was performed to determine the
optimum kriging parameters. KNA is the process of undertaking multiple
ordinary kriged estimates using a variety of block sizes and search
neighbourhood parameters (such as minimum and maximum sample numbers) and
comparing the slope of regression, kriging efficiency, and kriging
variance values produced from the estimates1.
Kriging parameters were selected through examination of the results of the
estimates in terms of slope of regression, kriging efficiency, kriging
variance, and Snowden’s experience with similar
deposits.
|
|||
17.7.2 Block
size selection
|
|||
Block
sizes were selected according to the average drillhole spacing, the
results of the KNA and the dimensions of the mineralised envelopes.
Snowden created block models with dimensions of 12.5 m Easting, 12.5 m
Northing, and 5 m Elevation, except at Barite Hill, where the block models
had blocks with dimensions of 25 m Easting, 25 m Northing,
and 5 m Elevation, based on the wider spacing of drillholes at Barite
Hill.
|
|||
17.7.3 Sample
search parameters
|
|||
The
following search strategy was selected based on the results of the
KNA:
|
|||
—
|
Search
range equal to the maximum variogram range.
|
||
—
|
A
minimum of 10 samples per estimate.
|
||
—
|
A
maximum of 32 samples per estimate.
|
||
—
|
Maximum
of three samples per borehole.
|
||
Three
search ellipses were employed. A second search equal to 1.5 times the
maximum variogram range was used wherever the first search did not
encounter enough samples to perform an estimate, if enough samples were
still not encountered, a third search equal to two times the maximum
variogram range was used. If the minimum number of samples required were
not encountered in the third search, no estimate was
made.
|
|||
17.7.4 Block
model set up
|
|||
Table
17.9 gives the block model parameters for the Navidad Mineral Resource
models.
|
|||
Table
17.9 Navidad
block model parameters
|
Deposit
|
Direction
|
Minimum
|
Maximum
|
Increment
(m)
|
|
Calcite
NW
|
Easting
|
2,512,100
|
2,514,100
|
12.5
|
|
Northing
|
5,304,600
|
5,306,100
|
12.5
|
||
Elevation
|
800
|
1,300
|
5
|
______________________
|
||
1 Krige (1996) considers that
kriging efficiency (KE) and regression slope (R) can be used to establish
confidence in block estimates. KE=(BV-KV)/BV and R=(BV-KV)+
│µ│)/(BV-KV+│2µ│), where BV = the theoretical variance of blocks within
the domain (block variance), KV = the variance between the kriged grade
and the true (unknown) grade (kriging variance), and µ
= LaGrange multiplier obtained from kriging. A perfect estimation would
return KV=0, KE=100%, and
R=1.
|
February 2010 | 151 of 249 |
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Silver Corp:
|
Deposit
|
Direction
|
Minimum
|
Maximum
|
Increment
(m)
|
Calcite
Hill
|
Easting
|
2,513,800
|
2,514,700
|
12.5
|
|
Northing
|
5,304,400
|
5,305,200
|
12.5
|
||
Elevation
|
900
|
1,250
|
5
|
||
Navidad
Hill
|
Easting
|
2,514,200
|
2,515,000
|
12.5
|
|
Northing
|
5,304,100
|
5,304,900
|
12.5
|
||
Elevation
|
900
|
1,250
|
5
|
||
Connector
Zone
|
Easting
|
2,514,600
|
2,516,000
|
12.5
|
|
Northing
|
5,303,900
|
5,304,525
|
12.5
|
||
Elevation
|
700
|
1,250
|
5
|
||
Galena
Hill
|
Easting
|
2,515,200
|
2,516,300
|
12.5
|
|
Northing
|
5,303,000
|
5,304,300
|
12.5
|
||
Elevation
|
700
|
1,200
|
5
|
||
Barite Hill
|
Easting
|
2,516,000
|
2,517,200
|
25
|
|
Northing
|
5,302,300
|
5,303,400
|
25
|
||
Elevation
|
700
|
1,200
|
5
|
||
Loma
de La Plata
|
Easting
|
2,509,700
|
2,512,700
|
12.5
|
|
Northing
|
5,302,600
|
5,303,900
|
12.5
|
||
Elevation
|
700
|
1,700
|
5
|
||
Valle
Esperanza
|
Easting
|
2,513,000
|
2,516,300
|
12.5
|
|
Northing
|
5,302,000
|
5,304,900
|
12.5
|
||
Elevation
|
500
|
1,300
|
5
|
17.7.5 Grade
interpolation and boundary conditions
|
||
Grade
interpolation was undertaken in the selected grade percentile bins for
each grade estimation domain using MIK. This interpolation method was
selected in preference to ordinary kriging to represent the mixed
populations in the grade estimation domains and to restrict the effect of
extreme grade values, while honouring the extreme grade values present due
to the style of mineralisation. Domain boundaries were treated
as hard boundaries, so that samples lying in one domain were not used in
the estimation of another, to prevent the smearing of grades from one
domain to another.
|
||
Ordinary
kriged estimates were also performed to assist with optimising the grade
estimation parameters and to assist with resource confidence
classification by writing the kriging efficiency, kriging variance, and
regression slope to the OK model. A nearest neighbour estimate was also
undertaken to assist with estimation validation.
|
||
17.8 Specific
gravity
|
||
Specific
gravity values were applied by domain to the block model. Table 0.10 gives statistics of the density
determinations for each of the domains, and the mean value assigned to the
block models.
|
February 2010 | 152 of 249 |
Pan American
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|
Table
17.10 Navidad block model
densities
|
Description
|
Domain
|
Count
|
Min
|
Max
|
Mean
|
CV
|
|
Unmineralised
conglomerate |
115
|
27
|
2.18
|
2.66
|
2.45
|
0.07
|
|
215
|
4
|
2.43
|
2.56
|
2.49
|
0.03
|
||
315
|
28
|
2.21
|
3.46
|
2.48
|
0.09
|
||
615
|
149
|
2.03
|
2.58
|
2.32
|
0.04
|
||
715
|
352
|
2.13
|
2.85
|
2.59
|
0.04
|
||
815
|
196
|
2.22
|
2.70
|
2.46
|
0.04
|
||
Unmineralised
mudstone/limestone |
125
|
547
|
1.03
|
4.02
|
2.47
|
0.08
|
|
225
|
123
|
2.07
|
3.18
|
2.46
|
0.07
|
||
325
|
151
|
2.05
|
3.32
|
2.44
|
0.07
|
||
425
|
56
|
1.98
|
2.65
|
2.36
|
0.06
|
||
525
|
505
|
1.89
|
2.78
|
2.29
|
0.05
|
||
625
|
648
|
1.10
|
3.59
|
2.28
|
0.08
|
||
725
|
802
|
2.08
|
3.00
|
2.56
|
0.05
|
||
825
|
182
|
1.76
|
2.96
|
2.46
|
0.06
|
||
Mineralised
mudstone/limestone |
126
|
163
|
2.04
|
3.67
|
2.50
|
0.08
|
|
226
|
62
|
1.94
|
3.17
|
2.50
|
0.10
|
||
326
|
65
|
2.12
|
2.78
|
2.44
|
0.05
|
||
426
|
106
|
1.95
|
2.99
|
2.42
|
0.07
|
||
526
|
184
|
1.87
|
3.04
|
2.41
|
0.07
|
||
626
|
499
|
1.56
|
2.95
|
2.28
|
0.06
|
||
726
|
104
|
1.87
|
4.18
|
2.62
|
0.09
|
||
Unmineralised
latite
|
135
|
202
|
1.03
|
4.02
|
2.52
|
0.09
|
|
235
|
148
|
2.11
|
3.19
|
2.43
|
0.06
|
||
335
|
205
|
1.91
|
2.76
|
2.41
|
0.05
|
||
435
|
211
|
2.15
|
2.93
|
2.51
|
0.05
|
||
535
|
424
|
2.13
|
4.25
|
2.53
|
0.07
|
||
635
|
304
|
2.00
|
2.88
|
2.38
|
0.06
|
||
735
|
1,564
|
1.88
|
4.28
|
2.61
|
0.06
|
||
835
|
777
|
2.18
|
3.99
|
2.55
|
0.05
|
||
Mineralised
latite
|
136
|
105
|
2.04
|
3.45
|
2.52
|
0.08
|
|
236
|
1,587
|
1.94
|
3.86
|
2.53
|
0.09
|
||
336
|
352
|
1.95
|
3.34
|
2.39
|
0.06
|
||
436
|
769
|
1.97
|
3.90
|
2.59
|
0.08
|
||
536
|
1,204
|
1.88
|
3.92
|
2.58
|
0.06
|
||
636
|
69
|
2.23
|
2.69
|
2.39
|
0.04
|
February 2010 | 153 of 249 |
Pan American
Silver Corp:
|
Description
|
Domain
|
Count
|
Min
|
Max
|
Mean
|
CV
|
736
|
970
|
1.79
|
3.86
|
2.61
|
0.06
|
||
836
|
172
|
2.32
|
3.71
|
2.56
|
0.06
|
||
Unmineralised
volcaniclastic |
145
|
26
|
2.36
|
3.83
|
2.61
|
0.11
|
|
245
|
44
|
1.90
|
2.58
|
2.38
|
0.05
|
||
345
|
19
|
2.30
|
2.77
|
2.48
|
0.06
|
||
445
|
41
|
2.23
|
3.20
|
2.46
|
0.06
|
||
545
|
137
|
1.98
|
2.70
|
2.43
|
0.06
|
||
645
|
23
|
2.37
|
2.63
|
2.48
|
0.03
|
17.9 Estimation
validation
|
|||
Snowden
validated the Navidad models using four techniques:
|
|||
—
|
Comparison
of global mean declustered sample statistics with the mean estimated grade
by domain.
|
||
—
|
Visual
inspection of block and sample composite grades in section, plan, and in
three dimensions.
|
||
—
|
Generation
of slice validation plots of declustered sample composite grades with
estimated block grades by domain, to compare sample and estimated grade
trends.
|
||
—
|
Comparison
to previous estimates, where possible.
|
||
17.9.1 Domain
statistics and visual validation
|
|||
Snowden
validated the Navidad models by comparing the estimated grades by domain
for each deposit with the declustered input samples. Snowden used a
nearest neighbour estimate, which does a basic decluster of the input data
into a grid defined by the block model, to make a direct comparison
between the estimated mean grade values and the sample input data.
Examples of the comparison between estimated and input data grades for
Loma de La Plata are shown in Table 0.11 for Ag, Table 0.12 for Pb, and
Table 0.13 for Cu. The comparisons for the other deposits are shown in
Appendix F for Ag and in Appendix G for Pb.
|
|||
Global
grade comparisons are within acceptable tolerances for most mineralised
domains; for low grade and poorly sampled domains the percentage
difference between input samples and estimated grades may be high. Because
the nearest neighbour estimate uses a single sample to return a grade
value to the block cell, global grade differences between the nearest
neighbour and the MIK model, which uses between 10 and 32 samples to
estimate block grades, may also be high. The global grade difference may
be particularly high if the composite closest to the block cell happens to
have an extreme grade value.
|
|||
Areas
with poor comparisons between estimated and input grades were examined
again in detail in section and three dimensions. Snowden found that the
distribution of estimated grades corresponds to the distribution of grades
in the input data, and the grades are continuously distributed. The
largest differences also appeared to be related to the sample support for
the estimates and the declustering and location of the
data.
|
February 2010 | 154 of 249 |
Pan American
Silver Corp:
|
Table
17.11 Comparison of estimated and input data
Ag grades by domain
|
Deposit
|
Domain
|
Estimated
grade (Ag g/t)
|
Declustered
input grade (Ag g/t)
|
%
difference
|
|
Loma
de La Plata
|
715
|
1
|
1
|
0
|
|
725
|
1
|
1
|
0
|
||
726
|
21
|
23
|
-8
|
||
735
|
2
|
2
|
0
|
||
736
|
126
|
125
|
0
|
Table
17.12 Comparison of estimated and input data
Pb grades by domain
|
Deposit
|
Domain
|
Estimated
grade (Pb%)
|
Declustered
input grade (Pb%)
|
%
difference
|
|
Loma
de La Plata
|
715
|
0.03
|
0.03
|
0
|
|
725
|
0.03
|
0.03
|
0
|
||
726
|
0.33
|
0.35
|
5
|
||
735
|
0.03
|
0.04
|
-14
|
||
736
|
0.10
|
0.12
|
-15
|
Table
17.13 Comparison of estimated and input data
Cu grades by domain
|
Deposit
|
Domain
|
Estimated
grade (Cu%)
|
Declustered
input grade (Cu%)
|
%
difference
|
|
Loma
de La Plata
|
715
|
0.01
|
0.01
|
0
|
|
725
|
0.01
|
0.01
|
0
|
||
726
|
0.02
|
0.02
|
0
|
||
735
|
0.01
|
0.01
|
0
|
||
736
|
0.05
|
0.05
|
0
|
17.9.2 Slice
validation plots
|
||
Validation
plots of estimated block grades and input sample data were made for all
domains for Ag and Pb (and for Cu at Loma de La Plata) on easting,
northing, and elevation. Estimated block grades generally correspond to
input sample grades with the expected degree of smoothing from the kriging
interpolation.
|
||
17.9.3 Comparison
with previous estimates
|
||
Mineral
Resources at Navidad have been previously reported (Snowden 2006a, Snowden
2006b, and Snowden 2007) for Calcite NW, Calcite Hill, Navidad Hill,
Connector Zone, Galena Hill, Barite Hill, and Loma de La Plata. Mineral
Resources have not been previously reported for Valle Esperanza. New
drillhole information available since reporting of the November 2007
Mineral Resource estimates is shown in Table
0.14.
|
February 2010 | 155 of 249 |
Pan American
Silver Corp:
|
Table
17.14
|
Additional
drilling information since the November 2007 Mineral Resource
estimates
|
Deposit
|
Number
of drillholes available in the November 2007 estimates
|
Number
of new holes available in the April 2008 estimates
|
%
new drillholes
|
Calcite
NW
|
100
|
16
|
15
|
Calcite
Hill
|
75
|
6
|
7
|
Navidad
Hill
|
104
|
0
|
0
|
Connector
Zone
|
51
|
22
|
30
|
Galena
Hill
|
85
|
17
|
18
|
Barite
Hill
|
51
|
5
|
9
|
Loma
de La Plata
|
53
|
150
|
72
|
Valle
Esperanza
|
0
|
75
|
100
|
The
additional drilling since the November 2007 Mineral Resource estimates has
resulted in the following changes to the April 2009
estimate:
|
|||
—
|
Updated
geological and mineralised envelope interpretation, including the
introduction of a new lithological domain (conglomerate/greywacke Domain
15).
|
||
—
|
Top
cuts previously applied to extreme grade values in the input sample data
for some grade estimation domains have been removed, as additional
drillhole sample data have supported the existing extreme grade
values.
|
||
—
|
Variography
has been reinterpreted with the updated drilling, with an increased nugget
and ranges remaining similar to previous estimates.
|
||
—
|
Density
values have been updated with additional specific gravity
information.
|
||
—
|
Application
of a new AgPb equivalence formula (AgEQ = Ag + (Pb*10,000/365) ) based on
updated silver and lead prices using three year rolling average prices for
silver ($12.52 per oz) and an approximate ten year rolling average for
lead ($0.50 per lb).
|
||
—
|
An
increase in Mineral Resource tonnes and, in places, shifting of tonnage
from the Inferred Resource classification to the Indicated Resource
classification. The shift in tonnes from one category to the next has
resulted in a corresponding shift of grades, usually manifested in a shift
of higher grades to a higher level of confidence, and vice
versa.
|
||
The
superseded November 2007 Mineral Resource estimates above a 50 g/t Ag
equivalent value using the new AgPb equivalence formula (AgEQ (g/t) = Ag
(g/t) + (Pb(%)*10,000/365)) are shown in Table
0.15.
|
February 2010 | 156 of 249 |
Pan American
Silver Corp:
|
Table
17.15
|
Superseded
November 2007 Mineral Resource estimates reported above a 50 g/t Ag
equivalent cut-off (AgEQ = Ag +
(Pb*10,000/365))
|
Deposit
|
Classification
|
Tonnes
(Mt) |
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Calcite
Hill NW
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
11.8
|
107
|
92
|
0.56
|
35
|
146
|
|
Meas.
+ Ind.
|
11.8
|
107
|
92
|
0.56
|
35
|
146
|
|
Inferred
|
6.7
|
72
|
51
|
0.78
|
11
|
115
|
|
Calcite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
13.9
|
126
|
106
|
0.72
|
47
|
221
|
|
Meas.
+ Ind.
|
13.9
|
126
|
106
|
0.72
|
47
|
221
|
|
Inferred
|
3.8
|
86
|
78
|
0.30
|
9
|
25
|
|
Navidad
Hill
|
Measured
|
8.1
|
136
|
122
|
0.52
|
32
|
92
|
Indicated
|
5.5
|
95
|
89
|
0.23
|
16
|
28
|
|
Meas.
+ Ind.
|
13.5
|
120
|
109
|
0.40
|
47
|
119
|
|
Inferred
|
2.6
|
91
|
81
|
0.36
|
7
|
21
|
|
Connector
Zone
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
7.5
|
108
|
98
|
0.39
|
24
|
66
|
|
Meas.
+ Ind.
|
7.5
|
108
|
98
|
0.39
|
24
|
66
|
|
Inferred
|
3.1
|
115
|
105
|
0.34
|
11
|
24
|
|
Galena
Hill
|
Measured
|
7.0
|
275
|
196
|
2.90
|
44
|
445
|
Indicated
|
40.1
|
159
|
109
|
1.83
|
140
|
1619
|
|
Meas.
+ Ind.
|
47.0
|
176
|
121
|
1.99
|
184
|
2064
|
|
Inferred
|
6.0
|
135
|
102
|
1.20
|
20
|
160
|
|
Barite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
6.2
|
194
|
184
|
0.37
|
36
|
50
|
|
Meas.
+ Ind.
|
6.2
|
194
|
184
|
0.37
|
36
|
50
|
|
Inferred
|
0.4
|
80
|
44
|
1.29
|
1
|
11
|
|
Loma
de La Plata
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
9.0
|
230
|
227
|
0.09
|
66
|
18
|
|
Meas.
+ Ind.
|
9.0
|
230
|
227
|
0.09
|
66
|
18
|
|
Inferred
|
17.2
|
163
|
160
|
0.11
|
88
|
42
|
|
Total
|
Measured
|
15.0
|
201
|
156
|
1.62
|
76
|
537
|
Indicated
|
94.0
|
149
|
120
|
1.04
|
364
|
2148
|
|
Meas.
+ Ind.
|
109.0
|
156
|
125
|
19.37
|
439
|
2685
|
|
Inferred
|
39.9
|
127
|
114
|
0.45
|
146
|
398
|
February 2010 | 157 of 249 |
Pan American
Silver Corp:
|
17.10 Mineral
Resource classification
|
|||
Resource
confidence classification considers a number of aspects affecting
confidence in the Resource estimation, such as:
|
|||
—
|
Geological
continuity (including geological understanding and
complexity)
|
||
—
|
Data
density and orientation
|
||
—
|
Data
accuracy and precision
|
||
—
|
Grade
continuity (including spatial continuity of
mineralisation)
|
||
—
|
Estimation
quality
|
||
17.10.1 Geological
continuity and understanding
|
|||
Staff
geologists log drill core in detail including textural, alteration,
structural, mineralisation, and lithological properties, and continue to
develop a good understanding of the geological controls on mineralisation.
Confidence in geological continuity is good in most cases and could be
increased by creating a geological interpretation incorporating all
available geological information, including surface mapping, geophysical
information, and core logging detail in digital, three dimensional
format.
|
|||
17.10.2 Data
density and orientation
|
|||
Aquiline
drilled the Navidad deposits on a pattern roughly 50 m along strike, with
closer spaced drilling in the Galena Hill and Navidad Hill areas.
Geological confidence and estimation quality are closely related to data
density and this is reflected in the classification of Resource confidence
categories.
|
|||
17.10.3 Data
accuracy and precision
|
|||
Classification
of Resource confidence categories are also influenced by the accuracy and
precision of the available data. The accuracy and the precision of the
data may be determined through QAQC programs and through an analysis of
the methods used to measure the data.
|
|||
At
Navidad, as in most deposits, two important items to consider regarding
data accuracy are the quality of the assay values and the specific gravity
determinations. Field duplicate results indicate a level of precision that
is within a normal range for such a deposit. Potential errors with the
specific gravity determination methods in use at the Navidad Project have
been discussed in Snowden (2007) and in Section 12.3 of this
Technical Report, and are being addressed by Pan
American.
|
|||
It
is Snowden’s opinion that the accuracy and precision of the assay and
specific gravity data, as defined by the QAQC and analysis of the methods
used to measure the data, is acceptable for use in resource estimation.
The confidence in the data is sufficient to support the assigned
classifications of the Navidad resources.
|
|||
17.10.4 Spatial
grade continuity
|
|||
Spatial
grade continuity, as indicated by the variogram, is an important
consideration when assigning Resource confidence classification. Variogram
characteristics strongly influence estimation quality parameters such as
kriging efficiency and regression slope.
|
|||
The
nugget effect and short range variance characteristics of the variogram
are the most important measures of continuity. At the Navidad deposits the
variogram nugget effect for both Ag and Pb is on average a high proportion
of the total population variance. In some cases, due to the
characteristics of the data, confidence in the model of
spatial
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continuity
may be low. In some grade estimation domains, it was not possible to
calculate reliable variograms, and variogram models from similar domains
were “borrowed” for these domains. These factors have been considered
while assigning Resource confidence classification
categories.
|
|||
17.10.5 Estimation
quality
|
|||
Estimation
quality is influenced by the variogram, the scale of the estimation, and
the data configuration. Estimations of small volumes have poorer quality
than estimations of large volumes. Measures such as kriging efficiency,
kriging variance, and regression slope quantify the quality of local
estimations.
|
|||
Snowden
used these estimation quality measures to aid in assignment of Resource
confidence classifications. The classification strategy has resulted in
the expected progression from lower to higher quality estimates when going
from Inferred to Indicated.
|
|||
17.10.6 Classification
process
|
|||
The
Mineral Resource confidence classification of the Navidad Mineral Resource
models incorporated the confidence in the drillhole data, the geological
interpretation, geological continuity, data density and orientation,
spatial grade continuity, and estimation quality. The Resource models were
coded for Inferred, Indicated, and Measured categories according to CIM
Standards. The process for classification is as
follows:
|
|||
—
|
A
three dimensional perimeter around three dimensionally continuous blocks
containing estimates created during the first search ellipse was created,
and the blocks within the perimeter coded as Inferred.
|
||
—
|
A
three dimensional perimeter around three dimensionally continuous blocks
containing kriging efficiencies greater than 40 were coded as
Indicated.
|
||
—
|
A
three dimensional perimeter around three dimensionally continuous blocks
containing kriging efficiencies greater than 60 were coded as Measured.
Not all deposits have Measured Mineral Resources.
|
||
—
|
A
surface representing the base of drilling was created, and all blocks
below this base were coded as unclassified.
|
||
—
|
A
perimeter representing the lateral extent of the drilling was created, and
expanded by 25 m and 50 m. Any blocks outside of the 50 m perimeter were
coded as unclassified. Any blocks outside of the 25 m perimeter were coded
as Inferred. The effect of this process is to restrict the confidence
classification in the dip direction, which has a less regular pattern of
drilling and often does not define the down dip boundary of mineralisation
(in other words, mineralisation remains open, and Mineral Resources may be
increased through additional drilling).
|
||
17.11 Mineral
Resource reporting
|
|||
Mineral
Resource estimates are reported for the Calcite NW, Calcite Hill, Navidad
Hill, Connector Zone, Galena Hill, Barite Hill, Loma de La Plata, and
Valle Esperanza deposits at the Navidad Property (Table 0.16). Tonnes and
grades have been reported above a cut-off grade of 50 g/t silver
equivalent. To date, no analysis has been made to determine the economic
cut-off grade that will ultimately be applied to the Navidad Project.
Silver equivalence was calculated using three year rolling average prices
for
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silver
($12.52 per oz) and an approximate ten year rolling average price for lead
($0.50 per lb). The following formula, which does not include any other
factors such as variable metal recoveries, was applied to reach the silver
equivalent value:
|
||
AgEQ
(g/t) = Ag (g/t) + (Pb (%) × 10,000/365)
|
||
No
Mineral Reserves have been estimated at this time. Additional studies will
be required to determine technical, economic, legal, environmental,
socio-economic, and governmental factors. These modifying factors are
normally included in a mining feasibility study and are a pre-requisite
for conversion of Mineral Resources to, and reporting of, Mineral
Reserves. The CIM Standards (CIM, 2005) describe completion of a
Preliminary Feasibility Study as the minimum prerequisite for the
conversion of Mineral Resources to Mineral Reserves.
|
||
The
Navidad April 2009 resources are shown above a cut-off grade of 50 g/t
silver equivalent using the silver equivalent formula utilised for
reporting the November 2007 resource estimates in Appendix H. The silver
equivalence was calculated using a silver price of US$10.00/oz and a lead
price of US$0.70/lb to derive an equivalence formula of AgEQ (g/t) = Ag
(g/t) + (Pb (%) × 10,000/208).
|
||
Tabulations
of the April 2009 Mineral Resources above a 1 oz Ag per tonne cut-off are
shown in Appendix I, and above a 50 g/t Ag cut-off in Appendix
J.
|
||
Grade-tonnage
curves of the Navidad April 2009 Mineral Resources above a range of silver
equivalent values (AgEQ (g/t) = Ag (g/t) + (Pb (%) × 10,000/365)) are
shown in Appendix K.
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Table
17.16
|
Navidad
April 2009 Mineral Resources reported above a cut-off grade of
50 g/t AgEQ
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Calcite
Hill NW
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
14.8
|
94
|
78
|
0.59
|
-
|
37
|
194
|
-
|
|
Meas.
+ Ind.
|
14.8
|
94
|
78
|
0.59
|
-
|
37
|
194
|
-
|
|
Inferred
|
14.6
|
74
|
52
|
0.82
|
-
|
24
|
265
|
-
|
|
Calcite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
17.5
|
115
|
100
|
0.55
|
-
|
56
|
212
|
-
|
|
Meas.
+ Ind.
|
17.5
|
115
|
100
|
0.55
|
-
|
56
|
212
|
-
|
|
Inferred
|
4.9
|
106
|
96
|
0.36
|
-
|
15
|
39
|
-
|
|
Navidad
Hill
|
Measured
|
8.4
|
122
|
109
|
0.46
|
-
|
29
|
85
|
-
|
Indicated
|
5.6
|
96
|
90
|
0.24
|
-
|
16
|
29
|
-
|
|
Meas.
+ Ind.
|
14
|
112
|
101
|
0.37
|
-
|
45
|
114
|
-
|
|
Inferred
|
1.8
|
81
|
70
|
0.41
|
-
|
4
|
16
|
-
|
|
Connector
Zone
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
8.2
|
102
|
91
|
0.41
|
-
|
24
|
74
|
-
|
|
Meas.
+ Ind.
|
8.2
|
102
|
91
|
0.41
|
-
|
24
|
74
|
-
|
|
Inferred
|
9.9
|
88
|
74
|
0.49
|
-
|
24
|
107
|
-
|
|
Galena
Hill
|
Measured
|
7
|
242
|
170
|
2.62
|
-
|
38
|
404
|
-
|
Indicated
|
44.7
|
166
|
117
|
1.78
|
-
|
168
|
1,754
|
-
|
|
Meas.
+ Ind.
|
51.7
|
176
|
124
|
1.89
|
-
|
206
|
2,158
|
-
|
|
Inferred
|
1.7
|
116
|
80
|
1.35
|
-
|
4
|
50
|
-
|
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|
Deposit
|
Classification
|
Tonnes
(Mt)
|
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Barite
Hill
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
7.7
|
161
|
153
|
0.28
|
-
|
38
|
48
|
-
|
|
Meas.
+ Ind.
|
7.7
|
161
|
153
|
0.28
|
-
|
38
|
48
|
-
|
|
Inferred
|
0.9
|
100
|
81
|
0.69
|
-
|
2
|
13
|
-
|
|
Loma
de La Plata
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
29.1
|
172
|
169
|
0.09
|
0.05
|
158
|
58
|
33
|
|
Meas.
+ Ind.
|
29.1
|
172
|
169
|
0.09
|
0.05
|
158
|
58
|
33
|
|
Inferred
|
1.3
|
82
|
76
|
0.21
|
0.05
|
3
|
6
|
1
|
|
Valle
Esperanza
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Indicated
|
12.2
|
178
|
172
|
0.21
|
-
|
68
|
56
|
-
|
|
Meas.
+ Ind.
|
12.2
|
178
|
172
|
0.21
|
-
|
68
|
56
|
-
|
|
Inferred
|
10.8
|
133
|
123
|
0.35
|
-
|
43
|
84
|
-
|
|
Total
|
Measured
|
15.4
|
177
|
137
|
1.44
|
-
|
67
|
489
|
-
|
Indicated
|
139.8
|
147
|
126
|
0.79
|
0.05
|
565
|
2,425
|
33
|
|
Meas.
+ Ind.
|
155.2
|
150
|
127
|
0.85
|
0.05
|
632
|
2,914
|
33
|
|
Inferred
|
45.9
|
97
|
81
|
0.57
|
0.05
|
119
|
580
|
1
|
|
Notes:
The
most likely cut-off grade for these deposits is not known at this time and
must be confirmed by the appropriate economic studies.
Silver
equivalent grade values are calculated without consideration of variable
metal recoveries for silver and lead. A silver price of US$12.52/oz and
lead price of US$0.50/lb was used to derive an equivalence formula of AgEQ
(g/t) = Ag (g/t) + (Pb (%) × 10,000 / 365). Silver prices are based on a
three-year rolling average and lead prices are based on an approximate ten
year rolling average.
The
estimated metal content does not include any consideration of mining,
mineral processing, or metallurgical recoveries.
Tonnes,
ounces, and pounds have been rounded and this may have resulted in minor
discrepancies in the totals.
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves have been estimated.
The
estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
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18 Other
relevant data and information
|
||
Information
in this section has been sourced from Snowden (2009).
|
||
For
a detailed history of the ownership of the Navidad properties, the reader
is referred to the Pan American website at www.panamericansilver.com,
where documents may be downloaded pertaining to the decision handed down
by the Supreme Court of British Columbia as well as the subsequent ruling
made by the British Columbia Court of Appeal.
|
||
In
October 2008, Aquiline filed a Preliminary Economic Assessment (PEA) of
Loma de La Plata on SEDAR (Snowden, 2008). That assessment was based on
the resource estimate produced in 2007, although copper and other minor
elements were modelled as part of the PEA. No mining reserve was
calculated for Loma at that time.
|
||
Based
on a production rate of 10,000 tpd of ore, a silver price of $12.52/oz and
a copper price of $3.23/lb (three year average prices), the study
determined the Loma de La Plata Project has a net present value (NPV)
pre-tax at 7.5% of US$135.6 million, an internal rate of return (IRR) of
22% and a 25 month payback period. The mine would produce on average 15
million ounces of silver per annum for 6.6 years at an average operating
cash cost of $5.22/oz Ag, with peak production in the first year of up to
23 million ounces of silver.
|
||
Ore
production from the first of two stages accounts for the first three years
of production, at an average grade of 231 g/t Ag before declining to an
average grade of 140 g/t Ag in the second stage mined from Year 4 onward.
The stripping ratio for the first stage pit is less than 1:1. During the
first stage, mining and processing costs are $4.75/oz Ag, increasing as
the second stage is mined due to a higher strip ratio and lower
grade.
|
||
Pre-production
capital expenditures are estimated at $272.6 million, most of which
supports a processing plant handling throughput of 10,000 tpd (3.65 Mtpa)
capable of being expanded to 30,000 tpd at some later stage. Conventional
flotation of Loma de La Plata ore is expected to achieve a recovery of 80%
of Ag to produce a concentrate grading 50 kilograms silver per tonne of
concentrate. An estimated 450 personnel will be required during mine
construction and up to 342 during mine operations.
|
||
Snowden
is not aware of any other relevant data or information concerning the
Navidad properties to report.
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|
19 Interpretation
and conclusions
|
||
Information
in this section has been sourced and updated from Snowden
(2009).
|
||
On
14 October 2009, Pan American announced a friendly offer to acquire all of
the issued and outstanding securities of Aquiline. On 7 December 2009, Pan
American acquired approximately 85% of the issued and outstanding shares
of Aquiline and extended its bid to 22 December 2009, and on that latter
date, Pan American took up an additional approximately 7% of the issued
and outstanding shares in the capital of Aquiline. Since the offer to
acquire the Aquiline shares was accepted by holders of more than 90% of
the Aquiline shares, on 23 December 2009, Pan American provided notice to
the remaining shareholders of its intention to exercise its right to
acquire the remaining issued and outstanding Aquiline shares pursuant to
the compulsory acquisition provisions of the Business Corporation Act
(Ontario). Pursuant to the compulsory acquisition, Pan American has been
deemed to have acquired the balance of the Aquiline shares not already
owned by it on or about 22 January 2010.
|
||
As
a result of its acquisition of Aquiline, Pan American is required to file
a technical report on the Navidad Project pursuant to NI 43-101. This
Technical Report is prepared to fulfil this requirement and is based on
information disclosed in the Technical Report filed on SEDAR by Aquiline
on 2 June 2009, and dated May 2009, amended June 2009 (Snowden, 2009).
There are no other material changes to the Navidad Project to report aside
from the acquisition of Aquiline by Pan American.
|
||
The
Navidad Project is an advanced stage silver-lead mineral exploration
project located in Chubut Province, Argentina, and is owned by Pan
American through its subsidiary, Aquiline, who in turn operates in
Argentine through its Argentine entity Minera Argenta S.
A.
|
||
The
deposit areas at Navidad occur within a sedimentary package known as the
Cañadón Asfalto Formation hosting an intermediate volcanic rock identified
as trachyandesite, referred to locally as latite. Lithologies described as
the Cañadón Asfalto may occur both above and below the intercalated bodies
of latite. The entire sequence is interpreted to have been deposited
within a lacustrine basin environment.
|
||
A
group of eight individual deposits and six prospects have been identified
at the project and seven of these have been the subject of previous
Mineral Resource estimates (Snowden 2006a, Snowden 2006b, and Snowden,
2007). All of these deposits are either hosted in the latite unit itself
or in the sedimentary sequence proximal to the latite. Base metals,
principally lead and to a lesser extent copper, are typically present but
are largely not significant in quantity except at Galena Hill. There has
been virtually no gold detected to date.
|
||
Between
the filing of the November 2007 Technical Report and the June 2009
Technical Report, additional geochemical and geophysical surveys plus 367
diamond drillholes totalling 92,540 m have been done on the Project. The
geophysical surveys over the core area of the property have included
gravity, deep-array pole-dipole IP, CSAMT, and a high definition ground
magnetometer survey. At Navidad only the latter technique has shown some
continued promise as an exploration guide through the interpretation of
the detailed structural setting in the district.
|
||
The
drilling programme continued to yield significant results during the 18
months prior to the June 2009 Technical Report, and of particular
significance is the discovery of the Valle Esperanza deposit which in this
estimate contains in the Indicated
category
|
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12.2
Mt at a grade of 172 g/t Ag, above a cut-off grade of 50 g/t AgEQ. In the
Inferred category, the deposit contains 10.8 Mt at a grade of 123 g/t Ag
above the same cut-off grade. The grade, geometry, and depth of this
deposit are such that underground mining is a potential
option.
|
||
Early
metallurgical testing of Galena Hill has proved that differential
flotation was effective in producing a lead concentrate and silver-rich
concentrate, although it was recommended significant work was required to
increase overall silver recovery and improve the quality of the
concentrate for sale. Subsequent analysis of the pyrite concentrate
mineralogy (XPS, 2007) identified the potential to upgrade the concentrate
by inserting cleaning and entrainment controls into the circuit such as
froth washing and column flotation, that improve concentrate grades by a
factor of 2.5.
|
||
Initial
metallurgical testing of Loma de La Plata proved highly successful
especially as recovery of silver exceeded 80% and the concentrate was high
in silver (around 50 kg/t Ag), but low in lead with a combined
base metal (copper plus lead) content of 15% to 25%. Subsequent efforts
were directed at testing the variability of the deposit in support of a
Preliminary Economic Assessment of Loma de La Plata only. The test work at
both G&T and XPS concluded that Loma de La Plata ore responds well to
flotation, with high recoveries and concentrate grades. A simple crushing,
grinding, and single product flotation concentrator was proposed for the
PEA, and the concentrate sold to an offshore copper smelter with minor
penalties for lead.
|
||
With
the discovery of Valle Esperanza and its similarity in mineralisation
style to Loma de La Plata, metallurgical testing was expanded to
incorporate deposits likely to produce a high-value silver concentrate
with low lead content. Testing of Valle Esperanza and Barite Hill samples
yielded satisfactory results, and as with Loma de La Plata, silver
recoveries of 80% or better appear likely. The concentrate grades from
Valle Esperanza are particularly high (over 50 kg/t Ag to 60 kg/t Ag),
while those from Barite Hill are also satisfactory containing 20 kg/t Ag
to 25 kg/t Ag. However, the individual concentrates contain high levels of
penalty elements such as arsenic and antimony. Mr. Wells believes that
Loma de La Plata, Barite Hill, and Valle Esperanza can all be treated in
the same, simple, one-product concentrator.
|
||
The
testing of Loma de La Plata is likely to be sufficient to support a
Feasibility Study. A large quantity of core has been kept in sealed bags
and is sufficient for a pilot plant test should this be considered
necessary.
|
||
The
Preliminary Economic Assessment of Loma de La Plata (Snowden, 2008),
concluded the development of Loma de La Plata would deliver a pre-tax NPV
at 7.5% of US$135.6 million, and internal rate of return (IRR) of 22%, and
a 25 month payback period.
|
||
The
June 2009 Technical Report (Snowden, 2009) disclosed recently updated
Mineral Resources at the Calcite NW, Calcite Hill, Navidad Hill, Connector
Zone, Galena Hill, Barite Hill, and Loma de La Plata deposits and
disclosed the first Mineral Resource for Valle Esperanza at the Navidad
Project.
|
||
Mineral
Resource estimates were reported at the Navidad Property (Table 0.16).
Tonnes and grades have been reported above a cut-off of 50 g/t silver
equivalent. To date, no analysis has been made to determine the economic
cut-off grade that will ultimately be applied to the Navidad Project.
Silver equivalence was calculated using three year rolling average prices
for silver ($12.52 per oz) and an approximate ten year rolling average
price for lead ($0.50 per lb) values. The following formula, which
does
|
February 2010 | 165 of 249 |
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|
not
include any other factors such as variable metal recoveries, was applied
to reach the silver equivalent value: AgEQ (g/t) = Ag (g/t) + (Pb (%) ×
10,000/365).
|
||
Measured
and Indicated Mineral Resources silver ounces have increased by 40% since
the November 2007 Mineral Resource estimate. This increase is mainly
contributed by the upgrade of Inferred resources to Indicated resources,
defined during infill drilling at Loma de La Plata. Valle Esperanza is now
estimated to contain the largest Inferred resource of the
Project. With additional infill drilling on 50 m sections at
Valle Esperanza, the conversion rate of Inferred resources to Indicated
resources is anticipated to be as high as that experienced at the other
deposits at the Project.
|
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|
20 Recommendations
|
|||
Information
in this section has been sourced from Snowden (2009).
|
|||
The
following recommendations are made for the further advancement of the
Project:
|
|||
—
|
Continue
metallurgical definition of the deposits with particular emphasis on
Galena Hill, which hosts 30% of the Indicated Resource silver ounces as
well as 2,158 Mlb of lead in the Measured and Indicated
categories.
|
||
—
|
Using
the Loma de La Plata Preliminary Economic Assessment study as a model,
develop an expanded model to include Valle Esperanza and Barite Hill as
sources of high-grade silver concentrates with relatively low base metal
content.
|
||
—
|
Develop
a global Preliminary Economic Assessment that takes all deposits into
consideration with emphasis on an optimum extended mine
life.
|
||
—
|
Continue
selective exploration of the best targets in the core project area that
have Loma de La Plata or Valle Esperanza type potential. The continued
exploration in the extended Valle Esperanza Valley is one of the highest
priority areas.
|
||
—
|
Continue
to evaluate and prioritise the various mining concessions that Pan
American controls along the Gastre Fault structural
trend.
|
||
—
|
Continue
to advance the Navidad environmental base line studies in anticipation of
an eventual filing of the appropriate environmental impact statement
(EIS). In the short term Pan American plans to engage an
international-level consultant to conduct a baseline review and plan the
outstanding baseline work to complete the environmental impact assessment
(EIA) for the proposed mine. This consultant would conduct an independent
evaluation and consult with the Chubut Provincial authorities. The
consultant would then assist with baseline studies and ultimately be
responsible for preparation of the mine EIA.
|
||
—
|
Pan
American should increase its efforts to explain and present the Navidad
Project to the authorities in the Chubut Provincial government, especially
stressing the benefits in employment, infrastructure, and tax revenue that
would accrue to the community if the authorities were to rescind
legislation that currently prohibits open pit mining.
|
||
Pan
American should continue to implement proposed continuous improvement
practices on diamond drilling, QAQC, sampling, density determinations, and
resource modelling aspects at the Project, including:
|
|||
—
|
Survey
all drillholes regardless of their orientation, with the first measurement
taken at the collar of the drillhole, to ensure that the spatial location
of mineralisation is well defined.
|
||
—
|
Continue
to refine the effectiveness of the QAQC database through more accurate
documentation of the QAQC sample type and the analytical method, and by
following the recommendations made by Smee (2008). Pan American is in the
process of implementing these recommendations.
|
||
—
|
Determine
the density of drill core prior to splitting with a diamond saw to reduce
the error in the calculation introduced by a small sample size. Samples
should be
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Silver Corp:
|
coated
with a material such as wax or varnish to prevent water retention in the
sample from influencing the calculated specific gravity value. Samples
should be selected according to a representative suite of lithologies,
mineralisation, and alteration types, through spatially representative
locations throughout the area covered by drilling. The representativity
can be confirmed by consulting the number of density determinations
tabulated by grade estimation domain for each deposit in Table 0.10, and
increasing the number of density samples in domains with low sample
numbers relative to the number of sample assays in the domain. Spatial
representativity can be confirmed by plotting the location of specific
gravity samples on the drillhole trace in plan and in
section.
|
|||
—
|
Further
refine the geological interpretation to incorporate all available
geological information, including surface mapping (including the position
of outcropping mineralisation), geophysical information, structural
information, and core logging detail in digital, three dimensional
format.
|
||
—
|
Continue
the modelling of fault interpretations for use in future resource
estimations.
|
||
—
|
Undertake
a study of the differences between the oxide and sulphide zones for
modelling in future resource estimations.
|
||
Snowden
further recommends that Pan American undertake a drillhole spacing study
at Loma de La Plata using conditional simulation to quantify the optimal
drillhole spacing required to achieve a range of estimation qualities.
Some close-spaced drilling should be performed in a representative
mineralised domain to characterise the short-range behaviour of the
mineralisation. Aquiline has already drilled 23 holes at Loma de La Plata
in anticipation of such a drillhole spacing study. The outcome of this
approach would be an understanding of the degree of grade estimation error
associated with particular volumes of mineralisation for a range of
drillhole spacing patterns. The grade estimation error and other important
aspects of the project data, described in Section 17.10, are considered
while assigning Mineral Resource confidence categories.
|
|||
Pan
American plans to proceed to an expanded Preliminary Economic Assessment
of the Navidad Project, using the Loma de La Plata PEA study published in
October 2008 as a basis (Snowden, 2008), focussing on deposits that are
likely to produce a high-value silver concentrate with low lead content
and maximise the operational mine life. The study will utilise the updated
resource models produced as part of this report, in addition to the
metallurgical testing of Valle Esperanza and Barite Hill. A more detailed
evaluation of the market for silver/copper concentrates is also required.
In addition to examining open pit mining methods, those deposits with
likely high strip ratio cutbacks such as Valle Esperanza, Loma de La
Plata, and Barite Hill will be evaluated for extraction by underground
methods.
|
|||
More
test work with fresh core samples is essential to take Barite Hill and
Valle Esperanza to Feasibility Study level to enable Bond Mill work
indices to be determined, further tailings settling tests and potential
penalty elements including arsenic and antimony.
|
|||
Further
studies of Galena Hill will focus on developing a programme to test the
metallurgical variability of the deposit including initial modelling of
the geo-metallurgical domains and designing the drill programme for fresh
samples. The design
|
February 2010 | 168 of 249 |
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Silver Corp:
|
of
the metallurgical test programme should incorporate opportunities for
improving concentrate quality already identified.
|
||
Continued
exploration in the company’s land package in the Navidad district will be
directed towards additional Jurassic-age basins in the Gastre structural
corridor with Cañadón Asfalto lithologies. Geochemical sampling techniques
should be effective tools to efficiently explore these basins. The
distribution of associated potassic-style alteration such as adularia
within the regional basins may be detected through the interpretation of
the 2008 airborne radiometric
survey.
|
February 2010 | 169 of 249 |
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Silver Corp:
|
21 References
|
Author
|
Title
|
|
Allo,
W., Paolini, M. Williams, D., 2009
|
Internal
reports prepared by Aquiline Resources Inc., April,
2009.
|
|
Andolino,
A., Lizuain, A., Solani, F., and Pezzuchi, H., 1999
|
Preliminary
Gan Gan Geology Map, SEGEMAR 4369-II, 1:250,000.
|
|
CIM,
2003
|
CIM
Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines, adopted by CIM Council on November 23,
2003.
|
|
CIM,
2005
|
CIM
DEFINITION STANDARDS - For Mineral Resources and Mineral
Reserves. Prepared by the CIM Standing Committee on Reserve
Definitions. Adopted by CIM Council on December 11,
2005.
|
|
Chulick,
J., 2007
|
Internal
reports prepared by Aquiline Resources Inc., October
2007.
|
|
Corbett,
G., 2004
|
Epithermal
Au-Ag: The Magmatic Connection Comparisons Between East and West Pacific
Rim, Ishihara symposium, Geoscience Australia.
|
|
Cuburu,
C., 2007
|
Internal
report prepared by Aquiline Resources Inc., October
2007.
|
|
G&T
Metallurgical Services, 2005a
|
Phase
1 G&T Metallurgical Test Program Project. Internal report prepared by
G&T Metallurgical Services Ltd for IMA Exploration Inc., March 2005,
project number KM1574.
|
|
G&T
Metallurgical Services, 2005b
|
Preliminary
Assessment of Response of Navidad Hill Composite. Internal report prepared
by G&T Metallurgical Services Ltd for IMA Exploration Inc., June 2005,
project number KM1624.
|
|
G&T
Metallurgical Services, 2005c
|
Preliminary
Assessment of Response of calcite Hill Composite Samples. Internal report
prepared by G&T Metallurgical Services Ltd for IMA Exploration Inc.,
June 2005, project number KM1632.
|
|
G&T
Metallurgical Services, 2005d
|
The
Flotation Response of Galena Hill Mineralization. Internal report prepared
by G&T Metallurgical Services Ltd for IMA Exploration Inc., October
2005.
|
|
G&T
Metallurgical Services, 2005e
|
Textural
Analysis of Pyrite Particles. Internal report prepared by G&T
Metallurgical Services Ltd for IMA Exploration Inc., November
2005.
|
|
G&T
Metallurgical Services, 2005f
|
Additional
Textural Analysis of Galena Hill Pyrite Particles. Internal report
prepared by G&T Metallurgical Services Ltd for IMA Exploration Inc.,
November 2005.
|
|
G&T
Metallurgical Services, 2008
|
Preliminary
Metallurgical Assessment Loma de La Plata Project. Report prepared by
G&T Metallurgical Services Ltd. for Aquiline Resources Inc.,
13 June 2008, project number KM2202.
|
|
G&T
Metallurgical Services, 2009
|
Preliminary
Metallurgical Assessment Valle Esperanza and Barite Hill Deposits. Report
prepared by G&T Metallurgical Services Ltd. for Aquiline Resources
Inc., 1 April 2009, project number KM2353/KM2354.
|
|
JORC,
2004
|
The
Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Prepared by the Joint Ore Reserves Committee
of The Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia
(JORC).
|
|
Kain,
S. 2007
|
Internal
reports prepared by Aquiline Resources Inc., October
2007.
|
February 2010 | 170 of 249 |
Pan American
Silver Corp:
|
Author
|
Title
|
|
Lang,
J. R., 2003
|
Petrographic
descriptions and SEM analyses of 11 samples from the Navidad Property,
Argentina. Internal report prepared for IMA Exploration Inc., by Lang
Geoscience Inc, 6 March 2003.
|
|
Lhotka,
P. G., 2003
|
Exploration
of the Navidad Silver-copper-lead property, December 2003 to May 2003,
Chubut Province, Argentina, on behalf of IMA Exploration Inc. Internal
report prepared for IMA, 2 September 2003.
|
|
Lhotka,
P. G., 2004
|
Diamond
drilling of the Navidad silver-copper-lead project, November 2003 to March
2004, Chubut Province, Argentina, on behalf of IMA Exploration Inc.
Internal report prepared for IMA, 12 May 2004.
|
|
Lortie,
R.B., Clark, A. H., 1987
|
Strata-bound
cupriferous sulphide mineralization associated with continental rhyolite
volcanic rocks, northern Chile; I, The Jardin copper-silver deposit,
Economic Geology, May
1987;v.82;no.3;p.546-570;DOI:10.2113/gsecongeo.82.3.546.
|
|
Rapela,
C.W, Pankhurst, R.J., 1992
|
The
Granites of Northern Patagonia and the Gastre Fault System in Relation to
the Break-up of Gondwana, from Storey, B.C., Alabaster, T. &
Pankhurst, R.J. (eds). Magmatism and the Causes of Continental Break-up,
Geological Society Special Publication No. 68, pp.
209-220.
|
|
Sillitoe,
R., 2007
|
Geologic
model and exploration potential of the Navidad silver-lead deposit, Chubut
Province, Argentina, December 2005. Internal report prepared for Aquiline
Resources.
|
|
Smee,
B. W., 2003
|
Results
of an Audit of Alex Stewart and ALS Chemex Laboratories Argentina and
Chile. Report prepared by Smee, June, 2003.
|
|
Smee,
B.W., 2005a
|
A
Review of Field and Laboratory Quality Control Data, Navidad Project,
Chubut Province, Argentina. Internal report for IMA Exploration prepared
by Smee for Aquiline, April 2005. 39 p.
|
|
Smee,
B.W., 2005b
|
A
Review of Field and Laboratory Quality Control Data, Navidad Project,
Chubut Province, Argentina. Report prepared by Smee for Aquiline,
December, 2005. 36 p.
|
|
Smee
and Associates, 2007
|
Results
of Laboratory Audits: Peru, Chile and Argentina, South America. Report
prepared by Smee and Associates Consulting Ltd. November
2007.
|
|
Smee
and Associates, 2008
|
A
Review of Quality Control Methods, Quality Control Data, Drill Core
Sampling Protocol and Geochemistry, Navidad Silver Project, Chubut
Province, Argentina. Report prepared by Smee and Associates Ltd. for
Aquiline, March, 2008.
|
|
Snowden,
2004
|
Technical
Report Connector Zone and Navidad Hill, Navidad Project, Chubut Province,
Argentina. Report prepared by Snowden for IMA Exploration Inc, December
2004.
|
|
Snowden,
2005
|
Technical
Report Calcite Hill, Navidad Project, Chubut Province, Argentina.
Technical report prepared by Snowden for IMA Exploration Inc., July
2005.
|
|
Snowden,
2006a
|
Mineral
Resource Estimate, Navidad Project, Chubut Province, Argentina. Technical
report prepared by Snowden for IMA Exploration Inc., February 2006,
amended May 2006.
|
|
Snowden,
2006b
|
Resource
Estimate and Drill Spacing Study, Galena Hill Project, Chubut Province,
Argentina. Report prepared By Snowden for IMA Exploration Inc., September
2006.
|
February 2010 | 171 of 249 |
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Silver Corp:
|
Author
|
Title
|
|
Snowden,
2007
|
Technical
Report Navidad Project, Chubut Province, Argentina. Report prepared by
Snowden for Aquiline Resources Inc., November, 2007
|
|
Snowden,
2008
|
Preliminary
Economic Assessment of Loma de La Plata. Report prepared by Snowden for
Aquiline Resources Inc., October 2008, amended 16 October
2008.
|
|
Snowden,
2009
|
Technical
Report Navidad Project, Chubut Province, Argentina. Report prepared by
Snowden for Aquiline Resources Inc., May 2009, amended June
2009.
|
|
Von
Gosen, W., Loske, W., 2004
|
Tectonic
history of the Calcatapul Formation, Chubut Province, Argentina, and the
“Gastre fault system”, Journal of South American Earth Sciences, 18
(2004), 73-88.
|
|
Williams,
D., 2007
|
Internal
reports prepared by Aquiline Resources Inc., October
2007.
|
|
Xstrata
Process Support, 2007
|
Aquiline
Resources – Galena Hill Mineralogy. Report prepared by Xstrata Process
Support – A Business Unit of Xstrata Canada Corporation for Aquiline
Resources Inc., 5 October 2007.
|
|
Xstrata
Process Support, 2008
|
Aquiline
Resources – Navidad Project, Loma de La Plata Ore Deposit – Phase 1
Report. Report prepared by Xstrata Process Support – A Business Unit of
Xstrata Canada Corporation for Aquiline Resources Inc. 6 August
2008.
|
|
Xstrata
Process Support, 2009
|
Aquiline
Resources - Navidad Project, Loma de La Plata Ore Deposit – Phase 2
Report. Report prepared by Xstrata Process Support – A Business Unit of
Xstrata Canada Corporation for Aquiline Resources Inc., 20 March
2009.
|
February 2010 | 172 of 249 |
Pan American
Silver Corp:
|
22 Date
and signatures
|
||
Technical Report | ||
Pan American Silver Corp.: Navidad Project, Chubut Province, Argentina | ||
February 2010 | ||
Issued by: | ||
Pan American Silver Corp. | ||
Pamela
De Mark
|
04
February 2010
|
|
[signed]
|
Date
|
|
John
J. Chulick
|
04
February 2010
|
|
[signed]
|
Date
|
|
Dean
K. Williams
|
04
February 2010
|
|
[signed]
|
Date
|
|
John
A. Wells
|
04
February 2010
|
|
[signed]
|
Date
|
|
Damian
Spring
|
04
February 2010
|
|
[signed]
|
February 2010 | 173 of 249 |
Pan American
Silver Corp:
|
23 Certificates
|
|||
CERTIFICATE
of QUALIFIED PERSON
|
|||
(a)
|
I,
Pamela L. De Mark, Senior Consultant of Snowden Mining Industry
Consultants Inc., 600-1090 W. Pender St, Vancouver, BC, V6E 2N7
Canada; do hereby certify that:
|
||
(b)
|
|||
I
am the co-author of the technical report titled “Pan American Silver
Corp.: Navidad Project, Chubut Province, Argentina”, dated 4 February 2010
(the “Technical Report”).
|
|||
(c)
|
I
graduated with a Bachelor of Applied Science (Honours) Degree in Applied
Geology from the University of Technology, Sydney (Australia) in
1994. I am a Member of the Australasian Institute of Mining and
Metallurgy and am a member of The Association of Professional Engineers
and Geoscientists of the Province of British Columbia
(License #33050). I have worked as a mining and Mineral
Resource geologist for a total of 15 years since my graduation from
university.
|
||
(d)
|
I
have read the definition of ‘qualified person’ set out in National
Instrument 43-101 (“the “Instrument”) and certify that by reason of my
education, affiliation with a professional association and past relevant
work experience, I fulfil the requirements of a ‘qualified person’ for the
purposes of the Instrument. I have been involved in mining and
Resource evaluation consulting practice for
3 years. During my working career I have been involved in
mining and resource evaluation.
|
||
(e)
|
I
am responsible for the preparation of the sections of the Technical Report
as detailed in Table 2.1.
|
||
(f)
|
I
am independent of the issuer as defined in section 1.4 of the
Instrument.
|
||
(g)
|
I
have had prior involvement with the Property that is the subject of the
Technical Report; I was the co-author of the technical report titled
“Aquiline Resources Inc.: Navidad Project, Chubut Province, Argentina” and
dated November 2007 and co-author of the amended technical report titled
“Aquiline Resources Inc.: Navidad Project, Chubut Province, Argentina” and
dated May 2009 and amended June 2009. I also conducted two site
visits: (i) from September 10 to September 13, 2007; and (ii) from April
28 to April 30, 2009.
|
||
(h)
|
I
have read the Instrument and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and
form.
|
||
(i)
|
As
of the date of this certificate, to the best of my knowledge, information
and belief, the Technical Report contains all the scientific and technical
information that is required to be disclosed to make the Technical report
not misleading.
|
||
Dated
at Vancouver, British Columbia, this 4th
day of February, 2010.
|
|||
[signed]
|
|||
Pamela
L. De Mark, P. Geo., BSc(App Geo),
MAusIMM
|
February 2010 | 174 of 249 |
Pan American
Silver Corp:
|
CERTIFICATE
of QUALIFIED PERSON
|
||
(a)
|
I,
John J. Chulick, Licensed Professional Geologist #3945 State of
California, of Puerto Varas, Chile; do hereby certify
that:
|
|
(b)
|
I
am a co-author of the technical report titled “Pan American Silver Corp.:
Navidad Project, Chubut Province, Argentina” and dated 4 February 2010
(the “Technical Report”) under the supervision of Snowden Mining Industry
Consultants Inc.
|
|
(c)
|
I
graduated with the Geological Engineer (Honours) Degree from the Colorado
School of Mines, Golden, Colorado, in 1968, and with the degree Masters
Business Administration in Finance, 1987, from golden Gate University, San
Francisco. I am a Member of the Society of Economic Geologists
since 1998 and am a Licensed Professional Geologist
(Certificate #3945) in the State of California. I have
worked as an Exploration and Economic Geologist for a total of
36 years since my graduation from university.
|
|
(d)
|
I
have read the definition of ‘qualified person’ set out in National
Instrument 43-101 (the “Instrument”) and certify that by reason of my
education, affiliation with a professional association and past relevant
work experience, I fulfil the requirements of a ‘qualified person’ for the
purposes of the Instrument.
|
|
(e)
|
I
am responsible for the preparation of the sections of the Technical Report
as detailed in Table 2.1.
|
|
(f)
|
I
am independent of the issuer as defined in section 1.4 of the
Instrument.
|
|
(g)
|
I
have had prior involvement with the Property that is the subject of the
Technical Report; I was the co-author of the amended technical report
titled “Aquiline Resources Inc.: Navidad Project, Chubut Province,
Argentina” and dated May 2009 and amended June 2009.
|
|
(h)
|
I
have read the Instrument and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and
form.
|
|
(i)
|
As
of the date of this certificate, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical
information that is required to be disclosed to make the Technical report
not misleading.
|
|
Dated
at Puerto Varas, this 4th
day of February, 2010.
|
||
[signed]
|
||
John
J. Chulick
|
||
Licensed
Professional Geologist #3945 State of
California
|
February 2010 | 175 of 249 |
Pan American
Silver Corp:
|
CERTIFICATE
of QUALIFIED PERSON
|
||
(j)
|
I,
Dean K. Williams, B.Sc., LPG, MBA, of Montevideo, Uruguay; do hereby
certify that:
|
|
(k)
|
I
am a co-author of the technical report titled “Pan American Silver Corp.:
Navidad Project, Chubut Province, Argentina” and dated 4 February 2010
(the “Technical Report”).
|
|
(l)
|
I
graduated with a Bachelor of Science (Honours) Degree in Geology from
Oregon State University (1979) and a Master of Business Administration
from the University of Oregon (Beta Gamma Sigma) in
1988.
|
|
I
am a Licensed Professional Geologist as recognised by the National
Association of State Boards of Geology (ASBOG), as a Licensed Professional
Geologist in the State of Utah No. 5338683, and a Fellow of the
Society of Economic Geologists since 1993. I have worked as an
exploration geologist for a total of 26 years since my graduation
from university.
|
||
(m)
|
I
have read the definition of ‘qualified person’ set out in National
Instrument 43-101 (the “Instrument”) and certify that by reason of my
education, affiliation with a professional association and past relevant
work experience, I fulfil the requirements of a ‘qualified person’ for the
purposes of the Instrument.
|
|
(n)
|
I
am responsible for the preparation of the sections of the Technical Report
as detailed in Table 2.1.
|
|
(o)
|
I
am independent of the issuer as defined in section 1.4 of the
Instrument.
|
|
(p)
|
I
have had prior involvement with the Property that is the subject of the
Technical Report; I was the co-author of the amended technical report
titled “Aquiline Resources Inc.: Navidad Project, Chubut Province,
Argentina” and dated May 2009 and amended June 2009.
|
|
(q)
|
I
have read the Instrument and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and
form.
|
|
(r)
|
As
of the date of this certificate, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical
information that is required to be disclosed to make the Technical report
not misleading.
|
|
Dated
at Montevideo, Uruguay, this 4th day of February, 2010.
|
||
[signed]
|
||
Dean
K. Williams, B.Sc., LPG, MBA
|
February 2010 | 176 of 249 |
Pan American
Silver Corp:
|
CERTIFICATE
of QUALIFIED PERSON
|
||
(a)
|
I,
Damian Spring, B.E. (Mining), MAusIMM, of Puerto Madryn, Argentina; do
hereby certify that:
|
|
(b)
|
I
am a co-author of the technical report titled “Pan American Silver Corp.:
Navidad Project, Chubut Province, Argentina” and dated 4 February 2010
(the “Technical Report”).
|
|
(c)
|
I
graduated with a Bachelor of Engineering (Mining) Degree from the
University of Auckland in 1993.
|
|
I
am a Member of the Australian Institute of Mining and
Metallurgy. I have worked as a mining engineer for a total of
15 years since my graduation from university.
|
||
(d)
|
I
have read the definition of ‘qualified person’ set out in National
Instrument 43-101 (the “Instrument”) and certify that by reason of my
education, affiliation with a professional association and past relevant
work experience, I fulfil the requirements of a ‘qualified person’ for the
purposes of the Instrument.
|
|
(e)
|
I
am responsible for the preparation of the sections of the Technical Report
as detailed in Table 2.1.
|
|
(f)
|
I
am independent of the issuer as defined in section 1.4 of the
Instrument.
|
|
(g)
|
I
have had prior involvement with the Property that is the subject of the
Technical Report; I was the co-author of the amended technical report
titled “Aquiline Resources Inc.: Navidad Project, Chubut Province,
Argentina” and dated May 2009 and amended June 2009.
|
|
(h)
|
I
have read the Instrument and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and
form.
|
|
(i)
|
As
of the date of this certificate, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical
information that is required to be disclosed to make the Technical report
not misleading.
|
|
Dated
at Puerto Madryn, Argentina, this 4th
day of February, 2010.
|
||
[signed]
|
||
Damian
Spring, B. E. (Mining), MAusIMM
|
February 2010 | 177 of 249 |
Pan American
Silver Corp:
|
CERTIFICATE
OF QUALIFIED PERSON
|
||
(a)
|
I,
John A. Wells, Metallurgical Consultant of Vernon, British Columbia, do
hereby certify that:
|
|
(b)
|
I
am a co-author of the technical report titled “Pan American Silver Corp.:
Navidad Project, Chubut Province, Argentina” and dated 4 February 2010
(the “Technical Report”).
|
|
(c)
|
I
graduated with the degree of Bachelor of Engineering, Mineral Technology,
Honours from the Royal School of Mines, London, England in
1967. I am a Fellow of the South African Institute of Mining
and Metallurgy. I have worked as a metallurgical engineer in operational,
managerial, technical and consulting roles for 40 years since my
graduation from university.
|
|
(d)
|
I
have read the definition of ‘qualified person’ set out in National
Instrument 43-101 (the “Instrument”) and certify that by reason of my
education, affiliation with a professional association and past relevant
work experience, I fulfil the requirements of a ‘qualified person’ for the
purposes of the Instrument.
|
|
(e)
|
I
am responsible for the preparation of the sections of the Technical Report
as detailed in Table 2.1 of such report.
|
|
(f)
|
I
am independent of the issuer as defined in section 1.4 of the
Instrument.
|
|
(g)
|
I
have had prior involvement with the Property that is the subject of the
Technical Report; I was the co-author of the amended technical report
titled “Aquiline Resources Inc.: Navidad Project, Chubut Province,
Argentina” and dated May 2009 and amended June 2009.
|
|
(h)
|
I
have read the Instrument and Form 43-101F1, and the Technical Report has
been prepared in compliance with that instrument and
form.
|
|
(i)
|
As
of the date of this certificate, to the best of my knowledge, information
and belief, the Technical Report contains all scientific and technical
Information that is required to be disclosed to make the Technical report
not misleading.
|
|
Dated
at Vernon, British Columbia, this 4th
day of February, 2010
|
||
[signed]
|
||
John
A. Wells
|
||
B.Sc
(Hons), MBA, MCIMM, FSAIMM
|
February 2010 | 178 of 249 |
Pan American
Silver Corp:
|
A
|
Collar
locations of drillholes available in the Navidad 2009 Mineral Resource
estimates
|
February 2010 | 179 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Barite
Hill
|
NV04-058
|
2516311.400
|
5303248.930
|
1156.790
|
173.1
|
Existing
|
Barite
Hill
|
NV04-059
|
2516267.780
|
5303169.230
|
1141.820
|
191.1
|
Existing
|
Barite
Hill
|
NV04-060
|
2516209.480
|
5303266.940
|
1144.830
|
131.1
|
Existing
|
Barite
Hill
|
NV04-074
|
2516391.130
|
5303188.640
|
1165.290
|
158
|
Existing
|
Barite
Hill
|
NV04-075
|
2516556.680
|
5303073.050
|
1162.850
|
158
|
Existing
|
Barite
Hill
|
NV04-076
|
2516734.980
|
5302976.190
|
1170.550
|
152
|
Existing
|
Barite
Hill
|
NV04-091
|
2516673.380
|
5302980.430
|
1164.970
|
187.5
|
Existing
|
Barite
Hill
|
NV04-092
|
2516831.530
|
5302677.100
|
1141.970
|
163.9
|
Existing
|
Barite
Hill
|
NV07-395
|
2516735.260
|
5302975.410
|
1170.720
|
183.5
|
Existing
|
Barite
Hill
|
NV07-396
|
2516685.890
|
5302893.590
|
1151.390
|
234.8
|
Existing
|
Barite
Hill
|
NV07-397
|
2516635.220
|
5302804.160
|
1146.930
|
238
|
Existing
|
Barite
Hill
|
NV07-398
|
2516828.690
|
5302933.620
|
1168.100
|
204.1
|
Existing
|
Barite
Hill
|
NV07-399
|
2516827.720
|
5302931.970
|
1168.060
|
202
|
Existing
|
Barite
Hill
|
NV07-400
|
2516823.120
|
5302730.340
|
1150.950
|
235.3
|
Existing
|
Barite
Hill
|
NV07-401
|
2517028.600
|
5302683.110
|
1130.160
|
211.2
|
Existing
|
Barite
Hill
|
NV07-402
|
2516875.550
|
5302422.840
|
1116.830
|
277.3
|
Existing
|
Barite
Hill
|
NV07-403
|
2516579.830
|
5302703.860
|
1123.840
|
214.3
|
Existing
|
Barite
Hill
|
NV07-441
|
2516520.180
|
5302598.740
|
1122.990
|
40
|
Existing
|
Barite
Hill
|
NV07-442
|
2516519.430
|
5302597.440
|
1123.000
|
297
|
Existing
|
Barite
Hill
|
NV07-443
|
2516477.440
|
5302731.230
|
1122.840
|
237.5
|
Existing
|
Barite
Hill
|
NV07-444
|
2516590.900
|
5302623.200
|
1121.280
|
253
|
Existing
|
Barite
Hill
|
NV07-445
|
2516540.530
|
5302836.200
|
1136.940
|
229
|
Existing
|
Barite
Hill
|
NV07-446
|
2516584.120
|
5302915.420
|
1147.900
|
220
|
Existing
|
Barite
Hill
|
NV07-447
|
2516707.240
|
5302821.830
|
1141.820
|
238
|
Existing
|
Barite
Hill
|
NV07-448
|
2516649.890
|
5302724.650
|
1131.390
|
226.5
|
Existing
|
Barite
Hill
|
NV07-449
|
2516612.750
|
5302561.390
|
1121.040
|
232
|
Existing
|
Barite
Hill
|
NV07-450
|
2516667.520
|
5302656.700
|
1123.120
|
232
|
Existing
|
Barite
Hill
|
NV07-451
|
2516508.410
|
5302676.700
|
1123.430
|
229
|
Existing
|
Barite
Hill
|
NV07-452
|
2516561.840
|
5302764.450
|
1130.220
|
157
|
Existing
|
Barite
Hill
|
NV07-457
|
2516550.390
|
5302650.530
|
1122.150
|
240.2
|
Existing
|
February 2010 | 180 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Barite
Hill
|
NV07-458
|
2516567.730
|
5302582.120
|
1122.090
|
240.2
|
Existing
|
Barite
Hill
|
NV07-459
|
2516621.820
|
5302678.920
|
1123.040
|
238
|
Existing
|
Barite
Hill
|
NV07-460
|
2516634.570
|
5302601.880
|
1120.640
|
259
|
Existing
|
Barite
Hill
|
NV07-461
|
2516490.170
|
5302557.230
|
1123.900
|
292
|
Existing
|
Barite
Hill
|
NV07-462
|
2516583.600
|
5302514.580
|
1123.060
|
256
|
Existing
|
Barite
Hill
|
NV07-463
|
2516667.490
|
5302563.420
|
1119.900
|
256
|
Existing
|
Barite
Hill
|
NV07-464
|
2516641.200
|
5302513.710
|
1120.110
|
289
|
Existing
|
Barite
Hill
|
NV07-465
|
2516695.890
|
5302613.300
|
1121.750
|
247
|
Existing
|
Barite
Hill
|
NV07-466
|
2516722.730
|
5302659.170
|
1125.490
|
247
|
Existing
|
Barite
Hill
|
NV07-467
|
2516730.460
|
5302562.170
|
1119.780
|
268
|
Existing
|
Barite
Hill
|
NV07-468
|
2516750.300
|
5302605.460
|
1125.030
|
262
|
Existing
|
Barite
Hill
|
NV07-469
|
2516696.980
|
5302509.780
|
1119.090
|
277
|
Existing
|
Barite
Hill
|
NV07-470
|
2516693.150
|
5302701.280
|
1127.890
|
253
|
Existing
|
Barite
Hill
|
NV07-471
|
2516635.210
|
5302804.190
|
1146.800
|
217
|
Existing
|
Barite
Hill
|
NV07-472
|
2516673.470
|
5302772.610
|
1140.030
|
223
|
Existing
|
Barite
Hill
|
NV07-473
|
2516720.460
|
5302748.950
|
1133.580
|
235
|
Existing
|
Barite
Hill
|
NV07-474
|
2516322.050
|
5302860.910
|
1124.450
|
274
|
Existing
|
Barite
Hill
|
NV07-475
|
2516374.750
|
5302956.610
|
1131.180
|
229
|
Existing
|
Barite
Hill
|
NV07-476
|
2516430.560
|
5303048.590
|
1144.230
|
232
|
Existing
|
Barite
Hill
|
NV07-477
|
2516473.300
|
5303125.640
|
1164.600
|
201.5
|
Existing
|
Barite
Hill
|
NV07-478
|
2516164.540
|
5302985.900
|
1125.600
|
259.2
|
Existing
|
Barite
Hill
|
NV07-603
|
2516641.540
|
5302413.780
|
1122.730
|
388.6
|
New
|
Barite
Hill
|
NV07-606
|
2516479.110
|
5302637.110
|
1123.570
|
273.4
|
New
|
Barite
Hill
|
NV07-608
|
2516496.310
|
5302866.550
|
1132.910
|
222
|
New
|
Barite
Hill
|
NV07-610
|
2516733.220
|
5302875.520
|
1151.500
|
240
|
New
|
Barite
Hill
|
NV08-698
|
2516113.620
|
5302899.120
|
1125.180
|
307
|
New
|
Calcite
Hill
|
NV04-088
|
2514048.420
|
5304731.070
|
1223.640
|
192.3
|
Existing
|
Calcite
Hill
|
NV04-121
|
2514191.120
|
5304568.760
|
1202.760
|
149.1
|
Existing
|
Calcite
Hill
|
NV04-122
|
2514148.420
|
5304649.380
|
1210.560
|
253.45
|
Existing
|
Calcite
Hill
|
NV04-123
|
2514144.630
|
5304642.940
|
1210.280
|
199.88
|
Existing
|
Calcite
Hill
|
NV04-124
|
2514075.000
|
5304772.820
|
1227.400
|
209.27
|
Existing
|
Calcite
Hill
|
NV04-125
|
2514022.520
|
5304685.500
|
1219.740
|
167.1
|
Existing
|
Calcite
Hill
|
NV04-126
|
2514059.790
|
5304648.470
|
1214.600
|
283.5
|
Existing
|
Calcite
Hill
|
NV05-134
|
2514129.910
|
5304759.720
|
1222.360
|
281
|
Existing
|
February 2010 | 181 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
Hill
|
NV05-135
|
2514160.100
|
5304818.020
|
1223.940
|
266
|
Existing
|
Calcite
Hill
|
NV05-136
|
2514210.370
|
5304912.550
|
1227.580
|
251
|
Existing
|
Calcite
Hill
|
NV05-137
|
2514101.660
|
5304817.410
|
1229.040
|
262
|
Existing
|
Calcite
Hill
|
NV05-138
|
2514157.890
|
5304814.350
|
1223.910
|
250
|
Existing
|
Calcite
Hill
|
NV05-143
|
2514236.870
|
5304809.940
|
1216.840
|
268.8
|
Existing
|
Calcite
Hill
|
NV05-144
|
2514274.730
|
5304712.210
|
1210.030
|
260.1
|
Existing
|
Calcite
Hill
|
NV05-145
|
2514249.310
|
5304669.110
|
1208.110
|
250.7
|
Existing
|
Calcite
Hill
|
NV05-146
|
2514301.250
|
5304563.610
|
1198.680
|
199.8
|
Existing
|
Calcite
Hill
|
NV05-147
|
2514285.140
|
5304539.560
|
1194.180
|
191.1
|
Existing
|
Calcite
Hill
|
NV05-148
|
2514015.770
|
5304767.970
|
1229.460
|
170.1
|
Existing
|
Calcite
Hill
|
NV05-149
|
2514038.450
|
5304811.510
|
1233.670
|
221.1
|
Existing
|
Calcite
Hill
|
NV05-150
|
2513959.620
|
5304767.660
|
1230.020
|
188.1
|
Existing
|
Calcite
Hill
|
NV05-151
|
2513984.280
|
5304811.650
|
1233.570
|
176.1
|
Existing
|
Calcite
Hill
|
NV05-152
|
2514009.510
|
5304856.380
|
1238.990
|
221.1
|
Existing
|
Calcite
Hill
|
NV05-162
|
2514269.230
|
5304787.710
|
1214.370
|
274.8
|
Existing
|
Calcite
Hill
|
NV05-163
|
2514258.590
|
5304582.720
|
1196.650
|
215.1
|
Existing
|
Calcite
Hill
|
NV05-164
|
2514334.970
|
5304523.970
|
1193.810
|
195.6
|
Existing
|
Calcite
Hill
|
NV05-165
|
2514361.200
|
5304570.920
|
1201.730
|
170.1
|
Existing
|
Calcite
Hill
|
NV05-166
|
2514344.520
|
5304631.900
|
1206.500
|
146.1
|
Existing
|
Calcite
Hill
|
NV05-167
|
2514009.730
|
5304857.460
|
1239.010
|
158.1
|
Existing
|
Calcite
Hill
|
NV05-168
|
2514040.920
|
5304911.010
|
1235.750
|
167.1
|
Existing
|
Calcite
Hill
|
NV05-169
|
2513936.160
|
5304833.120
|
1234.420
|
129
|
Existing
|
Calcite
Hill
|
NV05-170
|
2513963.870
|
5304875.930
|
1237.230
|
143.4
|
Existing
|
Calcite
Hill
|
NV05-171
|
2513985.090
|
5304909.070
|
1237.940
|
134.1
|
Existing
|
Calcite
Hill
|
NV05-172
|
2514159.030
|
5304674.170
|
1211.880
|
281.1
|
Existing
|
Calcite
Hill
|
NV05-173
|
2514183.790
|
5304788.090
|
1221.240
|
248.4
|
Existing
|
Calcite
Hill
|
NV05-174
|
2514244.660
|
5304741.740
|
1214.010
|
263.1
|
Existing
|
Calcite
Hill
|
NV05-176
|
2513985.080
|
5304909.110
|
1238.000
|
233.1
|
Existing
|
Calcite
Hill
|
NV05-177
|
2514034.470
|
5304901.210
|
1236.130
|
239.1
|
Existing
|
Calcite
Hill
|
NV05-180
|
2513902.830
|
5304876.270
|
1233.840
|
131.4
|
Existing
|
Calcite
Hill
|
NV05-181
|
2513928.760
|
5304924.450
|
1237.230
|
161.2
|
Existing
|
Calcite
Hill
|
NV05-182
|
2513952.000
|
5304968.020
|
1239.630
|
218.2
|
Existing
|
Calcite
Hill
|
NV05-183
|
2514064.230
|
5304854.050
|
1234.440
|
257.2
|
Existing
|
Calcite
Hill
|
NV05-184
|
2514108.500
|
5304732.490
|
1220.530
|
209.2
|
Existing
|
February 2010 | 182 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
Hill
|
NV05-185
|
2514314.090
|
5304685.050
|
1209.530
|
164
|
Existing
|
Calcite
Hill
|
NV05-186
|
2514367.520
|
5304678.240
|
1210.550
|
119
|
Existing
|
Calcite
Hill
|
NV05-187
|
2514060.410
|
5304646.210
|
1214.370
|
185
|
Existing
|
Calcite
Hill
|
NV05-188
|
2514269.170
|
5304787.590
|
1214.250
|
236
|
Existing
|
Calcite
Hill
|
NV05-205
|
2514333.440
|
5304721.200
|
1210.700
|
163.5
|
Existing
|
Calcite
Hill
|
NV05-206
|
2514351.590
|
5304748.160
|
1207.220
|
190
|
Existing
|
Calcite
Hill
|
NV05-207
|
2514389.920
|
5304719.810
|
1208.790
|
166
|
Existing
|
Calcite
Hill
|
NV05-208
|
2514396.720
|
5304618.630
|
1205.310
|
125
|
Existing
|
Calcite
Hill
|
NV05-209
|
2514289.330
|
5304737.650
|
1211.560
|
227
|
Existing
|
Calcite
Hill
|
NV05-210
|
2514426.910
|
5304677.820
|
1210.240
|
209
|
Existing
|
Calcite
Hill
|
NV05-211
|
2514160.420
|
5304748.420
|
1219.290
|
233
|
Existing
|
Calcite
Hill
|
NV05-212
|
2514140.510
|
5304711.940
|
1216.800
|
212
|
Existing
|
Calcite
Hill
|
NV05-239
|
2514442.580
|
5304707.270
|
1209.480
|
103
|
Existing
|
Calcite
Hill
|
NV05-240
|
2514434.760
|
5304691.690
|
1210.430
|
90
|
Existing
|
Calcite
Hill
|
NV05-246
|
2514286.750
|
5304732.030
|
1211.130
|
209.5
|
Existing
|
Calcite
Hill
|
NV05-247
|
2514291.670
|
5304742.050
|
1211.910
|
173.4
|
Existing
|
Calcite
Hill
|
NV06-270
|
2514436.090
|
5304792.770
|
1189.950
|
68
|
Existing
|
Calcite
Hill
|
NV06-271
|
2514403.860
|
5304799.550
|
1190.000
|
101.2
|
Existing
|
Calcite
Hill
|
NV06-316
|
2514133.980
|
5304825.150
|
1226.770
|
233
|
Existing
|
Calcite
Hill
|
NV06-317
|
2514121.590
|
5304803.300
|
1226.560
|
215
|
Existing
|
Calcite
Hill
|
NV06-318
|
2514109.640
|
5304781.420
|
1226.960
|
206
|
Existing
|
Calcite
Hill
|
NV06-324
|
2514096.980
|
5304758.750
|
1224.330
|
200
|
Existing
|
Calcite
Hill
|
NV06-325
|
2514082.590
|
5304734.210
|
1223.210
|
178
|
Existing
|
Calcite
Hill
|
NV06-326
|
2514085.060
|
5304864.540
|
1232.870
|
218
|
Existing
|
Calcite
Hill
|
NV06-327
|
2514072.760
|
5304841.370
|
1233.130
|
194
|
Existing
|
Calcite
Hill
|
NV06-328
|
2514059.450
|
5304819.050
|
1232.800
|
179
|
Existing
|
Calcite
Hill
|
NV06-329
|
2514046.730
|
5304795.290
|
1231.560
|
166.5
|
Existing
|
Calcite
Hill
|
NV06-330
|
2514033.310
|
5304773.450
|
1229.180
|
152
|
Existing
|
Calcite
Hill
|
NV06-331
|
2514020.950
|
5304751.340
|
1227.840
|
146
|
Existing
|
Calcite
Hill
|
NV07-482
|
2514462.700
|
5304888.910
|
1178.540
|
189.4
|
Existing
|
Calcite
Hill
|
NV07-483
|
2514456.720
|
5305066.780
|
1167.330
|
48.4
|
Existing
|
Calcite
Hill
|
NV07-484
|
2514394.060
|
5305034.240
|
1182.130
|
57.6
|
Existing
|
Calcite
Hill
|
NV07-485
|
2514347.140
|
5305058.300
|
1179.900
|
66.1
|
Existing
|
Calcite
Hill
|
NV07-612
|
2514370.960
|
5304982.830
|
1194.700
|
131
|
New
|
February 2010 | 183 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
Hill
|
NV07-613
|
2514321.270
|
5305014.270
|
1190.480
|
120.6
|
New
|
Calcite
Hill
|
NV07-614
|
2514329.510
|
5305113.110
|
1178.680
|
79.8
|
New
|
Calcite
Hill
|
NV07-615
|
2514308.540
|
5305065.350
|
1182.090
|
121.3
|
New
|
Calcite
Hill
|
NV07-617
|
2514450.860
|
5305018.780
|
1180.020
|
91.5
|
New
|
Calcite
Hill
|
NV07-618
|
2514417.680
|
5304959.260
|
1194.560
|
117.8
|
New
|
Calcite
NW
|
NV05-178
|
2513464.660
|
5305117.510
|
1222.640
|
302
|
Existing
|
Calcite
NW
|
NV05-179
|
2513419.980
|
5305032.070
|
1207.990
|
212.1
|
Existing
|
Calcite
NW
|
NV05-189
|
2513458.150
|
5305302.250
|
1181.490
|
211.5
|
Existing
|
Calcite
NW
|
NV05-190
|
2513497.490
|
5305375.350
|
1174.780
|
158
|
Existing
|
Calcite
NW
|
NV05-191
|
2512985.560
|
5305686.600
|
1167.190
|
197
|
Existing
|
Calcite
NW
|
NV05-192
|
2512944.290
|
5305608.880
|
1167.880
|
209
|
Existing
|
Calcite
NW
|
NV05-198
|
2513829.120
|
5305018.130
|
1238.470
|
221.3
|
Existing
|
Calcite
NW
|
NV05-199
|
2513834.280
|
5305027.500
|
1238.410
|
170.1
|
Existing
|
Calcite
NW
|
NV05-200
|
2513548.840
|
5305059.450
|
1221.380
|
275.1
|
Existing
|
Calcite
NW
|
NV05-201
|
2513549.250
|
5305060.340
|
1221.420
|
200
|
Existing
|
Calcite
NW
|
NV05-202
|
2513502.260
|
5304969.080
|
1214.530
|
149.1
|
Existing
|
Calcite
NW
|
NV05-203
|
2513359.650
|
5305149.100
|
1210.660
|
324.75
|
Existing
|
Calcite
NW
|
NV05-204
|
2513360.110
|
5305150.080
|
1210.590
|
161
|
Existing
|
Calcite
NW
|
NV05-213
|
2513913.970
|
5304983.940
|
1238.440
|
263
|
Existing
|
Calcite
NW
|
NV05-214
|
2513135.040
|
5305543.430
|
1172.770
|
254
|
Existing
|
Calcite
NW
|
NV05-215
|
2513283.970
|
5305398.620
|
1176.240
|
254
|
Existing
|
Calcite
NW
|
NV05-216
|
2513117.800
|
5305113.600
|
1197.770
|
200
|
Existing
|
Calcite
NW
|
NV05-222
|
2513272.250
|
5305178.100
|
1199.130
|
239
|
Existing
|
Calcite
NW
|
NV05-223
|
2513272.680
|
5305178.990
|
1199.200
|
181.5
|
Existing
|
Calcite
NW
|
NV05-224
|
2513471.940
|
5304924.770
|
1220.350
|
152
|
Existing
|
Calcite
NW
|
NV05-225
|
2513395.550
|
5304994.280
|
1212.450
|
146
|
Existing
|
Calcite
NW
|
NV05-226
|
2513334.500
|
5305087.970
|
1201.780
|
140
|
Existing
|
Calcite
NW
|
NV05-227
|
2513581.090
|
5304909.780
|
1220.070
|
251
|
Existing
|
Calcite
NW
|
NV06-255
|
2513634.350
|
5304802.630
|
1222.710
|
131
|
Existing
|
Calcite
NW
|
NV06-256
|
2513714.130
|
5304749.280
|
1220.660
|
185
|
Existing
|
Calcite
NW
|
NV06-257
|
2513801.020
|
5304602.590
|
1206.830
|
140
|
Existing
|
Calcite
NW
|
NV06-258
|
2513689.900
|
5304704.300
|
1218.000
|
100.8
|
Existing
|
Calcite
NW
|
NV06-259
|
2513739.970
|
5304791.400
|
1223.840
|
122
|
Existing
|
Calcite
NW
|
NV06-260
|
2513658.350
|
5304847.600
|
1226.470
|
131
|
Existing
|
February 2010 | 184 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
NW
|
NV06-261
|
2513553.240
|
5304865.980
|
1220.750
|
131.5
|
Existing
|
Calcite
NW
|
NV06-262
|
2513468.430
|
5305020.010
|
1211.140
|
122
|
Existing
|
Calcite
NW
|
NV06-263
|
2513493.450
|
5305058.950
|
1219.290
|
131
|
Existing
|
Calcite
NW
|
NV06-264
|
2513417.810
|
5305129.340
|
1218.530
|
134
|
Existing
|
Calcite
NW
|
NV06-265
|
2513327.000
|
5305172.950
|
1205.650
|
137.1
|
Existing
|
Calcite
NW
|
NV06-267
|
2513311.450
|
5305350.690
|
1178.660
|
149.2
|
Existing
|
Calcite
NW
|
NV06-268
|
2513298.270
|
5305324.740
|
1180.870
|
143.4
|
Existing
|
Calcite
NW
|
NV06-269
|
2513184.660
|
5305428.570
|
1178.130
|
161
|
Existing
|
Calcite
NW
|
NV06-308
|
2513460.580
|
5305110.260
|
1222.240
|
134
|
Existing
|
Calcite
NW
|
NV06-309
|
2513420.770
|
5305134.250
|
1218.370
|
139.5
|
Existing
|
Calcite
NW
|
NV06-310
|
2513420.350
|
5305133.430
|
1218.440
|
140
|
Existing
|
Calcite
NW
|
NV06-311
|
2513327.160
|
5305173.910
|
1205.600
|
160.5
|
Existing
|
Calcite
NW
|
NV06-312
|
2513226.350
|
5305201.890
|
1197.460
|
101
|
Existing
|
Calcite
NW
|
NV06-313
|
2513379.100
|
5305064.650
|
1205.250
|
110
|
Existing
|
Calcite
NW
|
NV06-314
|
2513442.180
|
5304973.320
|
1216.180
|
122
|
Existing
|
Calcite
NW
|
NV06-315
|
2513522.780
|
5305214.220
|
1196.320
|
91
|
Existing
|
Calcite
NW
|
NV07-411
|
2513209.640
|
5304864.680
|
1211.760
|
349
|
New
|
Calcite
NW
|
NV07-412
|
2512565.850
|
5305752.780
|
1165.120
|
301.2
|
Existing
|
Calcite
NW
|
NV07-413
|
2513210.890
|
5305473.890
|
1176.030
|
109.3
|
Existing
|
Calcite
NW
|
NV07-414
|
2513163.480
|
5305392.120
|
1180.290
|
106.3
|
Existing
|
Calcite
NW
|
NV07-415
|
2513308.290
|
5305445.210
|
1174.430
|
151.2
|
Existing
|
Calcite
NW
|
NV07-416
|
2513263.750
|
5305364.790
|
1178.610
|
151
|
Existing
|
Calcite
NW
|
NV07-417
|
2513335.680
|
5305396.070
|
1175.150
|
121.2
|
Existing
|
Calcite
NW
|
NV07-418
|
2513352.260
|
5305314.930
|
1181.470
|
121
|
Existing
|
Calcite
NW
|
NV07-419
|
2513485.910
|
5305249.410
|
1189.900
|
91.2
|
Existing
|
Calcite
NW
|
NV07-420
|
2513358.610
|
5305030.340
|
1206.310
|
94
|
Existing
|
Calcite
NW
|
NV07-421
|
2513390.740
|
5304987.180
|
1213.380
|
91
|
Existing
|
Calcite
NW
|
NV07-422
|
2513420.750
|
5304931.490
|
1216.680
|
100
|
Existing
|
Calcite
NW
|
NV07-423
|
2513505.230
|
5304905.880
|
1218.600
|
115
|
Existing
|
Calcite
NW
|
NV07-424
|
2513536.070
|
5304931.240
|
1216.920
|
118.2
|
Existing
|
Calcite
NW
|
NV07-425
|
2513557.810
|
5304977.470
|
1219.650
|
112
|
Existing
|
Calcite
NW
|
NV07-426
|
2513592.430
|
5305021.170
|
1224.520
|
121
|
Existing
|
Calcite
NW
|
NV07-427
|
2513593.520
|
5305023.030
|
1224.480
|
123.6
|
Existing
|
Calcite
NW
|
NV07-428
|
2513614.820
|
5304999.760
|
1226.500
|
121
|
Existing
|
February 2010 | 185 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
NW
|
NV07-429
|
2513616.060
|
5305001.720
|
1226.540
|
132.6
|
Existing
|
Calcite
NW
|
NV07-430
|
2513592.430
|
5304952.220
|
1221.700
|
127
|
Existing
|
Calcite
NW
|
NV07-514
|
2512714.900
|
5305612.360
|
1166.340
|
145.1
|
Existing
|
Calcite
NW
|
NV07-516
|
2512767.460
|
5305696.020
|
1163.140
|
146.1
|
Existing
|
Calcite
NW
|
NV07-518
|
2512813.600
|
5305788.290
|
1160.630
|
107.1
|
Existing
|
Calcite
NW
|
NV07-520
|
2512519.390
|
5305670.690
|
1170.830
|
131.1
|
Existing
|
Calcite
NW
|
NV07-521
|
2512541.360
|
5305709.470
|
1167.550
|
113.1
|
Existing
|
Calcite
NW
|
NV07-523
|
2512616.000
|
5305840.470
|
1162.920
|
104.1
|
Existing
|
Calcite
NW
|
NV07-524
|
2512639.090
|
5305886.510
|
1164.150
|
113.1
|
Existing
|
Calcite
NW
|
NV07-525
|
2513010.340
|
5305729.760
|
1167.640
|
82.8
|
Existing
|
Calcite
NW
|
NV07-527
|
2512911.010
|
5305556.710
|
1167.340
|
128.1
|
Existing
|
Calcite
NW
|
NV07-528
|
2513160.690
|
5305588.280
|
1171.310
|
149
|
Existing
|
Calcite
NW
|
NV07-530
|
2513113.850
|
5305503.670
|
1177.780
|
152.1
|
Existing
|
Calcite
NW
|
NV07-531
|
2513089.960
|
5305464.910
|
1177.450
|
113.1
|
Existing
|
Calcite
NW
|
NV07-533
|
2513187.220
|
5305634.330
|
1172.930
|
128
|
Existing
|
Calcite
NW
|
NV07-534
|
2513137.780
|
5305351.930
|
1181.300
|
101.1
|
Existing
|
Calcite
NW
|
NV07-536
|
2513236.980
|
5305514.750
|
1176.270
|
116.1
|
Existing
|
Calcite
NW
|
NV07-538
|
2513264.260
|
5305560.250
|
1173.540
|
101.1
|
Existing
|
Calcite
NW
|
NV07-539
|
2512838.830
|
5305828.870
|
1160.110
|
107.1
|
Existing
|
Calcite
NW
|
NV07-541
|
2513000.300
|
5305504.610
|
1172.480
|
107.1
|
Existing
|
Calcite
NW
|
NV07-542
|
2512527.410
|
5305892.240
|
1164.640
|
89.1
|
Existing
|
Calcite
NW
|
NV07-544
|
2512479.690
|
5305805.580
|
1165.260
|
110.1
|
Existing
|
Calcite
NW
|
NV07-545
|
2512667.090
|
5305926.680
|
1165.070
|
83.1
|
Existing
|
Calcite
NW
|
NV07-565
|
2513861.620
|
5304901.130
|
1233.140
|
158.1
|
Existing
|
Calcite
NW
|
NV07-567
|
2513871.560
|
5305001.500
|
1238.020
|
154.4
|
Existing
|
Calcite
NW
|
NV07-568
|
2513821.840
|
5304932.130
|
1232.180
|
161.1
|
Existing
|
Calcite
NW
|
NV07-570
|
2513769.400
|
5304938.130
|
1231.250
|
158.1
|
Existing
|
Calcite
NW
|
NV07-572
|
2513792.820
|
5304982.710
|
1234.910
|
146.1
|
Existing
|
Calcite
NW
|
NV07-573
|
2513741.120
|
5304986.040
|
1234.910
|
172.3
|
Existing
|
Calcite
NW
|
NV07-574
|
2513735.610
|
5304977.720
|
1234.530
|
155
|
Existing
|
Calcite
NW
|
NV07-576
|
2513677.860
|
5304974.830
|
1233.990
|
208.3
|
New
|
Calcite
NW
|
NV07-577
|
2513678.810
|
5304976.160
|
1234.080
|
167
|
New
|
Calcite
NW
|
NV07-578
|
2513624.340
|
5304888.840
|
1225.950
|
179.1
|
New
|
Calcite
NW
|
NV07-580
|
2513600.150
|
5304849.200
|
1224.200
|
161
|
New
|
February 2010 | 186 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Calcite
NW
|
NV07-582
|
2512400.190
|
5305691.150
|
1175.410
|
161
|
New
|
Calcite
NW
|
NV07-583
|
2512299.000
|
5305659.310
|
1185.560
|
110.1
|
New
|
Calcite
NW
|
NV07-584
|
2512471.580
|
5305996.370
|
1173.430
|
76.6
|
New
|
Calcite
NW
|
NV07-585
|
2513532.440
|
5304822.730
|
1221.730
|
69.4
|
New
|
Calcite
NW
|
NV07-587
|
2513492.170
|
5304856.780
|
1220.270
|
101.4
|
New
|
Calcite
NW
|
NV07-589
|
2513453.750
|
5304894.870
|
1219.950
|
104.1
|
New
|
Calcite
NW
|
NV07-590
|
2513395.100
|
5304890.060
|
1220.900
|
107
|
New
|
Calcite
NW
|
NV07-638
|
2513691.100
|
5305102.400
|
1206.420
|
223
|
New
|
Calcite
NW
|
NV07-639
|
2513743.100
|
5305191.900
|
1206.240
|
220
|
New
|
Calcite
NW
|
NV07-641
|
2513830.560
|
5305142.440
|
1210.520
|
163
|
New
|
Calcite
NW
|
NV07-642
|
2513950.640
|
5305155.540
|
1211.890
|
160
|
New
|
Calcite
NW
|
NV07-645
|
2513622.460
|
5305188.580
|
1190.810
|
271
|
New
|
Calcite
NW
|
NV08-913
|
2513553.440
|
5304763.640
|
1221.860
|
100.5
|
New
|
Calcite
NW
|
NV08-914
|
2513441.840
|
5304770.330
|
1220.530
|
85.7
|
New
|
Calcite
NW
|
NV08-915
|
2513314.440
|
5304945.190
|
1218.860
|
97.5
|
New
|
Calcite
NW
|
NV08-916
|
2513227.420
|
5305095.980
|
1199.300
|
85.5
|
New
|
Connector
Zone
|
NV04-027
|
2514763.200
|
5304161.110
|
1163.980
|
181.5
|
Existing
|
Connector
Zone
|
NV04-032
|
2515378.850
|
5304232.780
|
1154.650
|
154.5
|
Existing
|
Connector
Zone
|
NV04-033
|
2515342.990
|
5304169.820
|
1154.800
|
149
|
Existing
|
Connector
Zone
|
NV04-034
|
2514950.940
|
5304325.760
|
1180.000
|
228.2
|
Existing
|
Connector
Zone
|
NV04-039
|
2515154.550
|
5304239.870
|
1157.090
|
215
|
Existing
|
Connector
Zone
|
NV04-040
|
2515212.180
|
5304340.550
|
1155.900
|
127.2
|
Existing
|
Connector
Zone
|
NV04-066
|
2514861.460
|
5304332.580
|
1183.940
|
181.5
|
Existing
|
Connector
Zone
|
NV04-067
|
2514998.140
|
5304275.730
|
1170.750
|
226.5
|
Existing
|
Connector
Zone
|
NV04-068
|
2515162.290
|
5304352.700
|
1163.740
|
178.5
|
Existing
|
Connector
Zone
|
NV04-086
|
2515348.390
|
5304285.920
|
1148.210
|
169.5
|
Existing
|
Connector
Zone
|
NV04-087
|
2515406.500
|
5304174.580
|
1160.180
|
159.5
|
Existing
|
Connector
Zone
|
NV04-094
|
2515178.000
|
5304280.500
|
1156.860
|
172.5
|
Existing
|
Connector
Zone
|
NV04-095
|
2514980.170
|
5304237.840
|
1166.900
|
100.5
|
Existing
|
Connector
Zone
|
NV04-096
|
2514818.590
|
5304260.000
|
1174.150
|
100.5
|
Existing
|
Connector
Zone
|
NV04-105
|
2515132.310
|
5304401.870
|
1175.990
|
82.7
|
Existing
|
Connector
Zone
|
NV04-106
|
2515093.720
|
5304333.380
|
1170.570
|
88.7
|
Existing
|
Connector
Zone
|
NV04-107
|
2515289.470
|
5304323.460
|
1147.650
|
118.1
|
Existing
|
Connector
Zone
|
NV04-108
|
2515378.590
|
5304230.250
|
1154.550
|
145.5
|
Existing
|
February 2010 | 187 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Connector
Zone
|
NV04-127
|
2515265.620
|
5304291.120
|
1149.550
|
137.1
|
Existing
|
Connector
Zone
|
NV04-128
|
2515265.540
|
5304336.390
|
1149.920
|
109.6
|
Existing
|
Connector
Zone
|
NV04-129
|
2515309.070
|
5304307.370
|
1146.420
|
28.8
|
Existing
|
Connector
Zone
|
NV04-130
|
2515307.870
|
5304305.070
|
1146.460
|
106.8
|
Existing
|
Connector
Zone
|
NV04-131
|
2515371.800
|
5304259.800
|
1152.040
|
130.8
|
Existing
|
Connector
Zone
|
NV05-153
|
2515447.370
|
5304354.790
|
1143.380
|
163.8
|
Existing
|
Connector
Zone
|
NV05-154
|
2515453.330
|
5304354.350
|
1143.210
|
190.8
|
Existing
|
Connector
Zone
|
NV05-155
|
2515474.090
|
5304273.250
|
1149.470
|
88.8
|
Existing
|
Connector
Zone
|
NV05-156
|
2515379.440
|
5304305.290
|
1148.830
|
110.1
|
Existing
|
Connector
Zone
|
NV05-228
|
2515147.950
|
5304430.180
|
1178.550
|
61.5
|
Existing
|
Connector
Zone
|
NV05-229
|
2515398.630
|
5304153.110
|
1159.120
|
79.5
|
Existing
|
Connector
Zone
|
NV05-230
|
2515242.800
|
5304392.370
|
1155.610
|
82.3
|
Existing
|
Connector
Zone
|
NV05-231
|
2515422.170
|
5304351.680
|
1145.020
|
80
|
Existing
|
Connector
Zone
|
NV05-232
|
2515423.230
|
5304351.750
|
1145.020
|
67.3
|
Existing
|
Connector
Zone
|
NV05-233
|
2515408.470
|
5304300.930
|
1150.700
|
100.3
|
Existing
|
Connector
Zone
|
NV05-234
|
2515422.580
|
5304250.790
|
1155.320
|
70.1
|
Existing
|
Connector
Zone
|
NV05-235
|
2515344.790
|
5304250.430
|
1150.550
|
143
|
Existing
|
Connector
Zone
|
NV05-236
|
2515375.170
|
5304200.830
|
1157.210
|
100.4
|
Existing
|
Connector
Zone
|
NV05-237
|
2515450.570
|
5304303.480
|
1149.690
|
82.2
|
Existing
|
Connector
Zone
|
NV06-376
|
2515149.100
|
5304330.070
|
1163.700
|
145.1
|
Existing
|
Connector
Zone
|
NV06-377
|
2515127.640
|
5304293.240
|
1163.040
|
135.8
|
Existing
|
Connector
Zone
|
NV06-378
|
2515066.500
|
5304287.990
|
1167.820
|
109.5
|
Existing
|
Connector
Zone
|
NV06-379
|
2515036.930
|
5304335.060
|
1177.440
|
69.8
|
Existing
|
Connector
Zone
|
NV06-380
|
2514954.530
|
5304194.050
|
1163.750
|
84.8
|
Existing
|
Connector
Zone
|
NV06-381
|
2514943.540
|
5304275.030
|
1172.520
|
81.9
|
Existing
|
Connector
Zone
|
NV06-390
|
2515037.590
|
5304237.820
|
1165.190
|
106.1
|
Existing
|
Connector
Zone
|
NV06-391
|
2515102.480
|
5304249.460
|
1161.840
|
153.9
|
Existing
|
Connector
Zone
|
NV07-556
|
2514996.150
|
5304366.230
|
1186.680
|
79.7
|
Existing
|
Connector
Zone
|
NV07-558
|
2514920.480
|
5304230.710
|
1168.060
|
172.7
|
Existing
|
Connector
Zone
|
NV07-560
|
2515061.950
|
5304381.730
|
1183.780
|
70.7
|
Existing
|
Connector
Zone
|
NV07-561
|
2515113.750
|
5304366.930
|
1173.130
|
76.7
|
Existing
|
Connector
Zone
|
NV07-562
|
2515189.800
|
5304400.150
|
1165.510
|
112.6
|
Existing
|
Connector
Zone
|
NV07-563
|
2515010.700
|
5304191.430
|
1161.630
|
127.7
|
Existing
|
Connector
Zone
|
NV08-673
|
2515284.410
|
5304060.370
|
1151.730
|
292.3
|
New
|
February 2010 | 188 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Connector
Zone
|
NV08-675
|
2515177.120
|
5304077.090
|
1150.110
|
280.1
|
New
|
Connector
Zone
|
NV08-677
|
2515237.150
|
5304185.670
|
1152.040
|
208
|
New
|
Connector
Zone
|
NV08-679
|
2515231.560
|
5303973.520
|
1148.840
|
313.4
|
New
|
Connector
Zone
|
NV08-680
|
2515295.640
|
5303887.940
|
1150.420
|
295.1
|
New
|
Connector
Zone
|
NV08-682
|
2515349.660
|
5303979.710
|
1154.600
|
274.15
|
New
|
Connector
Zone
|
NV08-683
|
2515401.550
|
5304065.010
|
1159.080
|
226
|
New
|
Connector
Zone
|
NV08-717
|
2515202.590
|
5304121.570
|
1151.280
|
250
|
New
|
Connector
Zone
|
NV08-719
|
2515152.340
|
5304033.130
|
1148.790
|
310
|
New
|
Connector
Zone
|
NV08-721
|
2515121.070
|
5304076.020
|
1150.820
|
304
|
New
|
Connector
Zone
|
NV08-723
|
2515145.650
|
5304121.300
|
1152.120
|
301
|
New
|
Connector
Zone
|
NV08-726
|
2515231.000
|
5304067.660
|
1150.250
|
268
|
New
|
Connector
Zone
|
NV08-727
|
2515208.760
|
5304022.650
|
1148.860
|
298
|
New
|
Connector
Zone
|
NV08-867
|
2515158.900
|
5303946.640
|
1146.540
|
334
|
New
|
Connector
Zone
|
NV08-896
|
2515102.040
|
5303945.390
|
1147.030
|
352.5
|
New
|
Connector
Zone
|
NV08-897
|
2515281.240
|
5304156.490
|
1153.050
|
205
|
New
|
Connector
Zone
|
NV08-898
|
2515330.670
|
5304243.060
|
1151.110
|
142
|
New
|
Connector
Zone
|
NV08-899
|
2515197.870
|
5304208.030
|
1153.650
|
211.5
|
New
|
Connector
Zone
|
NV08-900
|
2515064.340
|
5304178.850
|
1158.250
|
160
|
New
|
Connector
Zone
|
NV08-901
|
2514967.510
|
5304120.200
|
1157.520
|
151.5
|
New
|
Connector
Zone
|
NV08-902
|
2514910.000
|
5304121.000
|
1159.000
|
130.5
|
New
|
Connector
Zone
|
NV08-903
|
2514876.140
|
5304155.400
|
1161.860
|
154
|
New
|
Galena
Hill
|
NV03-003
|
2515651.550
|
5303580.250
|
1178.410
|
178.5
|
Existing
|
Galena
Hill
|
NV03-004
|
2515655.940
|
5303588.630
|
1178.560
|
284.98
|
Existing
|
Galena
Hill
|
NV03-005
|
2515722.190
|
5303703.340
|
1176.620
|
217.7
|
Existing
|
Galena
Hill
|
NV04-012
|
2515610.530
|
5303508.960
|
1155.400
|
220
|
Existing
|
Galena
Hill
|
NV04-013
|
2515583.070
|
5304029.530
|
1179.400
|
142.7
|
Existing
|
Galena
Hill
|
NV04-014
|
2515636.300
|
5303879.560
|
1178.050
|
158
|
Existing
|
Galena
Hill
|
NV04-015
|
2515776.140
|
5303797.360
|
1167.040
|
139.55
|
Existing
|
Galena
Hill
|
NV04-016
|
2515547.640
|
5303399.230
|
1138.270
|
250.5
|
Existing
|
Galena
Hill
|
NV04-017
|
2515488.650
|
5303621.440
|
1156.680
|
164.2
|
Existing
|
Galena
Hill
|
NV04-018
|
2515365.900
|
5303403.790
|
1137.100
|
274.7
|
Existing
|
Galena
Hill
|
NV04-019
|
2515597.250
|
5303803.360
|
1181.710
|
188.1
|
Existing
|
Galena
Hill
|
NV04-020
|
2515459.490
|
5303965.350
|
1162.970
|
70.9
|
Existing
|
Galena
Hill
|
NV04-021
|
2515654.740
|
5303911.410
|
1174.210
|
198.1
|
Existing
|
February 2010 | 189 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Galena
Hill
|
NV04-022
|
2515670.170
|
5303936.430
|
1171.940
|
193.75
|
Existing
|
Galena
Hill
|
NV04-023
|
2515539.960
|
5303706.400
|
1177.310
|
191.1
|
Existing
|
Galena
Hill
|
NV04-024
|
2515524.920
|
5304072.420
|
1173.770
|
145.6
|
Existing
|
Galena
Hill
|
NV04-026
|
2515375.610
|
5303818.940
|
1153.530
|
134
|
Existing
|
Galena
Hill
|
NV04-028
|
2515757.600
|
5303755.760
|
1170.640
|
158
|
Existing
|
Galena
Hill
|
NV04-029
|
2515865.360
|
5303673.310
|
1157.590
|
158
|
Existing
|
Galena
Hill
|
NV04-030
|
2515825.520
|
5303601.740
|
1159.770
|
209
|
Existing
|
Galena
Hill
|
NV04-031
|
2515655.100
|
5303585.940
|
1178.490
|
296
|
Existing
|
Galena
Hill
|
NV04-035
|
2515480.850
|
5303206.530
|
1134.200
|
293
|
Existing
|
Galena
Hill
|
NV04-036
|
2515588.310
|
5303995.310
|
1176.540
|
77
|
Existing
|
Galena
Hill
|
NV04-037
|
2515553.220
|
5303930.970
|
1173.840
|
102.5
|
Existing
|
Galena
Hill
|
NV04-038
|
2515503.350
|
5303850.010
|
1164.380
|
107
|
Existing
|
Galena
Hill
|
NV04-041
|
2515724.240
|
5303865.370
|
1174.950
|
145.2
|
Existing
|
Galena
Hill
|
NV04-042
|
2515721.530
|
5303861.620
|
1174.530
|
187.9
|
Existing
|
Galena
Hill
|
NV04-043
|
2515678.740
|
5303787.430
|
1180.330
|
230.6
|
Existing
|
Galena
Hill
|
NV04-044
|
2515626.320
|
5303698.870
|
1188.150
|
232.9
|
Existing
|
Galena
Hill
|
NV04-045
|
2515813.050
|
5303719.060
|
1163.980
|
167
|
Existing
|
Galena
Hill
|
NV04-046
|
2515763.810
|
5303630.940
|
1168.580
|
239
|
Existing
|
Galena
Hill
|
NV04-047
|
2515728.050
|
5303560.160
|
1176.620
|
242
|
Existing
|
Galena
Hill
|
NV04-048
|
2515934.790
|
5303787.090
|
1147.180
|
67.5
|
Existing
|
Galena
Hill
|
NV04-049
|
2515900.820
|
5303730.850
|
1150.500
|
82.8
|
Existing
|
Galena
Hill
|
NV04-050
|
2515798.470
|
5303835.790
|
1165.660
|
113
|
Existing
|
Galena
Hill
|
NV04-051
|
2515806.250
|
5303850.900
|
1165.500
|
100.5
|
Existing
|
Galena
Hill
|
NV04-052
|
2515566.700
|
5303962.090
|
1173.440
|
100.5
|
Existing
|
Galena
Hill
|
NV04-053
|
2515483.920
|
5304017.140
|
1169.230
|
97.5
|
Existing
|
Galena
Hill
|
NV04-056
|
2515633.610
|
5303983.940
|
1178.090
|
142.5
|
Existing
|
Galena
Hill
|
NV04-057
|
2515690.960
|
5303733.140
|
1180.570
|
245.1
|
Existing
|
Galena
Hill
|
NV04-093
|
2515993.770
|
5303285.470
|
1133.570
|
200
|
New
|
Galena
Hill
|
NV05-175
|
2515629.030
|
5303700.960
|
1187.900
|
516.12
|
Existing
|
Galena
Hill
|
NV05-197
|
2515698.280
|
5303820.670
|
1177.360
|
441.05
|
Existing
|
Galena
Hill
|
NV06-272
|
2515595.260
|
5303768.100
|
1180.710
|
175.7
|
Existing
|
Galena
Hill
|
NV06-273
|
2515582.800
|
5303747.520
|
1183.110
|
185
|
Existing
|
Galena
Hill
|
NV06-274
|
2515571.160
|
5303725.490
|
1186.680
|
197
|
Existing
|
Galena
Hill
|
NV06-275
|
2515608.240
|
5303792.360
|
1181.900
|
161
|
Existing
|
February 2010 | 190 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Galena
Hill
|
NV06-276
|
2515619.820
|
5303813.350
|
1184.620
|
197
|
Existing
|
Galena
Hill
|
NV06-277
|
2515591.020
|
5303712.780
|
1187.470
|
212.2
|
Existing
|
Galena
Hill
|
NV06-278
|
2515603.230
|
5303733.280
|
1186.790
|
212
|
Existing
|
Galena
Hill
|
NV06-279
|
2515615.780
|
5303755.590
|
1183.550
|
206
|
Existing
|
Galena
Hill
|
NV06-280
|
2515628.260
|
5303776.500
|
1184.050
|
218.4
|
Existing
|
Galena
Hill
|
NV06-281
|
2515641.200
|
5303798.000
|
1182.990
|
212
|
Existing
|
Galena
Hill
|
NV06-282
|
2515612.580
|
5303699.120
|
1188.080
|
227.3
|
Existing
|
Galena
Hill
|
NV06-283
|
2515625.230
|
5303721.680
|
1186.980
|
227
|
Existing
|
Galena
Hill
|
NV06-284
|
2515636.720
|
5303741.630
|
1184.670
|
230.2
|
Existing
|
Galena
Hill
|
NV06-285
|
2515649.710
|
5303762.960
|
1183.040
|
224
|
Existing
|
Galena
Hill
|
NV06-286
|
2515662.210
|
5303784.880
|
1181.470
|
206
|
Existing
|
Galena
Hill
|
NV06-295
|
2515607.100
|
5303763.730
|
1182.130
|
206
|
Existing
|
Galena
Hill
|
NV06-296
|
2515665.000
|
5303813.680
|
1181.360
|
215
|
Existing
|
Galena
Hill
|
NV06-302
|
2515643.130
|
5303825.430
|
1181.920
|
224
|
Existing
|
Galena
Hill
|
NV06-303
|
2515631.150
|
5303804.960
|
1183.790
|
200
|
Existing
|
Galena
Hill
|
NV06-304
|
2515618.480
|
5303784.140
|
1183.270
|
199.7
|
Existing
|
Galena
Hill
|
NV06-305
|
2515651.730
|
5303791.900
|
1182.260
|
206
|
Existing
|
Galena
Hill
|
NV06-306
|
2515639.140
|
5303770.340
|
1183.740
|
209
|
Existing
|
Galena
Hill
|
NV06-307
|
2515626.160
|
5303748.760
|
1184.390
|
207.66
|
Existing
|
Galena
Hill
|
NV06-366
|
2515702.680
|
5303527.390
|
1170.110
|
253.6
|
Existing
|
Galena
Hill
|
NV06-367
|
2515820.910
|
5303735.260
|
1162.890
|
127.2
|
Existing
|
Galena
Hill
|
NV06-368
|
2515850.120
|
5303787.560
|
1156.390
|
90.1
|
Existing
|
Galena
Hill
|
NV06-369
|
2515602.170
|
5303654.840
|
1180.140
|
234
|
Existing
|
Galena
Hill
|
NV06-370
|
2515626.510
|
5303957.190
|
1175.810
|
139.3
|
Existing
|
Galena
Hill
|
NV06-371
|
2515599.760
|
5303910.100
|
1177.180
|
150.8
|
Existing
|
Galena
Hill
|
NV06-372
|
2515574.680
|
5303866.350
|
1178.180
|
150.2
|
Existing
|
Galena
Hill
|
NV06-373
|
2515548.600
|
5303819.010
|
1170.260
|
130.1
|
Existing
|
Galena
Hill
|
NV06-374
|
2515482.820
|
5303805.520
|
1165.720
|
109.1
|
Existing
|
Galena
Hill
|
NV06-375
|
2515455.390
|
5303760.240
|
1163.990
|
97
|
Existing
|
Galena
Hill
|
NV07-392
|
2516027.070
|
5303349.660
|
1138.710
|
142
|
Existing
|
Galena
Hill
|
NV07-393
|
2516081.260
|
5303443.190
|
1141.750
|
94.1
|
Existing
|
Galena
Hill
|
NV07-394
|
2516138.070
|
5303545.720
|
1136.100
|
49
|
Existing
|
Galena
Hill
|
NV07-548
|
2515949.200
|
5303513.180
|
1150.820
|
181.7
|
Existing
|
Galena
Hill
|
NV07-551
|
2516000.080
|
5303606.220
|
1142.960
|
85.7
|
Existing
|
February 2010 | 191 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Galena
Hill
|
NV07-552
|
2516048.060
|
5303688.100
|
1137.350
|
61.7
|
Existing
|
Galena
Hill
|
NV07-553
|
2515956.950
|
5303679.950
|
1145.320
|
87.2
|
Existing
|
Galena
Hill
|
NV07-554
|
2515906.850
|
5303596.960
|
1150.720
|
133.7
|
Existing
|
Galena
Hill
|
NV08-658
|
2515672.930
|
5303479.560
|
1153.620
|
166
|
New
|
Galena
Hill
|
NV08-660
|
2515739.990
|
5303450.940
|
1150.980
|
178
|
New
|
Galena
Hill
|
NV08-661
|
2515625.150
|
5303397.350
|
1139.720
|
322.1
|
New
|
Galena
Hill
|
NV08-663
|
2515691.610
|
5303373.380
|
1138.160
|
292
|
New
|
Galena
Hill
|
NV08-666
|
2515857.890
|
5303455.940
|
1149.820
|
220
|
New
|
Galena
Hill
|
NV08-667
|
2515806.350
|
5303366.290
|
1138.130
|
232.1
|
New
|
Galena
Hill
|
NV08-668
|
2515756.210
|
5303277.810
|
1131.670
|
277.1
|
New
|
Galena
Hill
|
NV08-671
|
2515707.690
|
5303195.650
|
1131.600
|
355
|
New
|
Ginger
Hill
|
NV07-405
|
2515091.180
|
5300526.890
|
1224.170
|
268.3
|
New
|
Ginger
Hill
|
NV07-406
|
2514969.480
|
5300317.160
|
1246.380
|
352.1
|
New
|
Ginger
Hill
|
NV07-407
|
2514715.320
|
5300697.540
|
1262.800
|
211.2
|
New
|
Ginger
Hill
|
NV07-408
|
2514625.080
|
5300526.450
|
1259.200
|
202
|
New
|
Ginger
Hill
|
NV07-409
|
2514361.260
|
5300861.610
|
1293.740
|
226.3
|
New
|
Ginger
Hill
|
NV07-410
|
2515134.250
|
5300627.090
|
1214.320
|
160.1
|
New
|
Loma
de La Plata
|
NV05-193
|
2512425.340
|
5303512.370
|
1243.550
|
299
|
New
|
Loma
de La Plata
|
NV05-241
|
2511456.430
|
5303007.690
|
1363.450
|
118.5
|
Existing
|
Loma
de La Plata
|
NV05-242
|
2511478.570
|
5303026.180
|
1358.410
|
70.5
|
Existing
|
Loma
de La Plata
|
NV05-243
|
2511500.000
|
5303007.700
|
1353.900
|
95
|
Existing
|
Loma
de La Plata
|
NV05-244
|
2511490.030
|
5302981.080
|
1355.030
|
71
|
Existing
|
Loma
de La Plata
|
NV05-245
|
2511545.880
|
5303011.680
|
1342.280
|
89
|
Existing
|
Loma
de La Plata
|
NV06-252
|
2511768.840
|
5303682.640
|
1263.450
|
407.21
|
New
|
Loma
de La Plata
|
NV06-319
|
2511457.710
|
5302987.110
|
1363.340
|
62
|
Existing
|
Loma
de La Plata
|
NV06-320
|
2511539.460
|
5303043.180
|
1346.360
|
113.5
|
Existing
|
Loma
de La Plata
|
NV06-321
|
2511528.090
|
5303092.450
|
1343.430
|
82
|
Existing
|
Loma
de La Plata
|
NV06-322
|
2511542.010
|
5303070.940
|
1344.000
|
89
|
Existing
|
Loma
de La Plata
|
NV06-323
|
2511504.120
|
5303053.950
|
1351.990
|
118.5
|
Existing
|
Loma
de La Plata
|
NV07-431
|
2511472.610
|
5303566.110
|
1274.000
|
256.5
|
New
|
Loma
de La Plata
|
NV07-432
|
2511498.830
|
5303607.200
|
1270.430
|
166.2
|
New
|
Loma
de La Plata
|
NV07-433
|
2511384.520
|
5303609.190
|
1276.890
|
222.8
|
New
|
Loma
de La Plata
|
NV07-434
|
2511370.030
|
5303523.960
|
1285.440
|
188
|
New
|
Loma
de La Plata
|
NV07-496
|
2511567.220
|
5303103.320
|
1335.770
|
65.8
|
Existing
|
February 2010 | 192 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV07-497
|
2511591.000
|
5303077.990
|
1332.290
|
81.7
|
Existing
|
Loma
de La Plata
|
NV07-498
|
2511610.990
|
5303150.220
|
1320.270
|
81.2
|
Existing
|
Loma
de La Plata
|
NV07-499
|
2511631.530
|
5303100.230
|
1320.600
|
100.5
|
Existing
|
Loma
de La Plata
|
NV07-500
|
2511678.120
|
5303096.310
|
1307.030
|
111.8
|
Existing
|
Loma
de La Plata
|
NV07-501
|
2511663.130
|
5303147.090
|
1308.570
|
100.7
|
Existing
|
Loma
de La Plata
|
NV07-502
|
2511623.600
|
5303197.840
|
1310.290
|
121.3
|
Existing
|
Loma
de La Plata
|
NV07-503
|
2511671.070
|
5303204.580
|
1302.600
|
132.9
|
Existing
|
Loma
de La Plata
|
NV07-504
|
2511655.030
|
5303246.610
|
1301.350
|
138.5
|
Existing
|
Loma
de La Plata
|
NV07-505
|
2511695.240
|
5303250.820
|
1293.170
|
159.8
|
Existing
|
Loma
de La Plata
|
NV07-506
|
2511597.240
|
5303253.360
|
1296.950
|
142.6
|
Existing
|
Loma
de La Plata
|
NV07-507
|
2511543.240
|
5303253.960
|
1298.060
|
129.2
|
Existing
|
Loma
de La Plata
|
NV07-508
|
2511552.930
|
5303300.330
|
1296.720
|
117.7
|
Existing
|
Loma
de La Plata
|
NV07-509
|
2511486.570
|
5303197.320
|
1311.600
|
72.1
|
Existing
|
Loma
de La Plata
|
NV07-510
|
2511467.130
|
5303353.510
|
1309.140
|
114.5
|
Existing
|
Loma
de La Plata
|
NV07-511
|
2511480.350
|
5303449.180
|
1292.790
|
135.2
|
Existing
|
Loma
de La Plata
|
NV07-512
|
2511577.380
|
5303450.770
|
1288.100
|
117.9
|
Existing
|
Loma
de La Plata
|
NV07-513
|
2511725.820
|
5303095.030
|
1299.700
|
135.8
|
Existing
|
Loma
de La Plata
|
NV07-515
|
2511693.280
|
5303047.760
|
1312.300
|
123.8
|
Existing
|
Loma
de La Plata
|
NV07-517
|
2511704.170
|
5303152.360
|
1302.270
|
129.8
|
Existing
|
Loma
de La Plata
|
NV07-519
|
2511713.170
|
5303201.400
|
1295.940
|
145
|
Existing
|
Loma
de La Plata
|
NV07-522
|
2511651.700
|
5303303.320
|
1287.780
|
162.5
|
Existing
|
Loma
de La Plata
|
NV07-526
|
2511601.280
|
5303303.130
|
1290.040
|
150.4
|
Existing
|
Loma
de La Plata
|
NV07-529
|
2511711.960
|
5303295.450
|
1289.850
|
156.7
|
Existing
|
Loma
de La Plata
|
NV07-532
|
2511745.140
|
5303248.310
|
1287.290
|
146.9
|
Existing
|
Loma
de La Plata
|
NV07-535
|
2511796.750
|
5303251.170
|
1281.620
|
170.8
|
Existing
|
Loma
de La Plata
|
NV07-537
|
2511761.150
|
5303148.590
|
1292.700
|
130.2
|
Existing
|
Loma
de La Plata
|
NV07-540
|
2511802.900
|
5303149.690
|
1287.110
|
156
|
Existing
|
Loma
de La Plata
|
NV07-543
|
2511739.070
|
5303052.860
|
1304.170
|
98.8
|
Existing
|
Loma
de La Plata
|
NV07-546
|
2511789.020
|
5303051.110
|
1297.060
|
177.7
|
Existing
|
Loma
de La Plata
|
NV07-547
|
2511616.860
|
5302949.090
|
1321.690
|
90.35
|
Existing
|
Loma
de La Plata
|
NV07-549
|
2511702.480
|
5302949.410
|
1308.740
|
93.8
|
Existing
|
Loma
de La Plata
|
NV07-550
|
2511890.960
|
5303251.450
|
1273.230
|
230.95
|
Existing
|
Loma
de La Plata
|
NV07-555
|
2511571.520
|
5303349.900
|
1298.240
|
122.9
|
Existing
|
Loma
de La Plata
|
NV07-557
|
2511670.910
|
5303352.000
|
1281.860
|
143.1
|
Existing
|
February 2010 | 193 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV07-559
|
2511764.870
|
5303347.310
|
1278.190
|
185.5
|
Existing
|
Loma
de La Plata
|
NV07-564
|
2511866.250
|
5303350.500
|
1271.220
|
188.3
|
Existing
|
Loma
de La Plata
|
NV07-566
|
2511981.950
|
5303351.330
|
1261.740
|
235
|
Existing
|
Loma
de La Plata
|
NV07-569
|
2511906.630
|
5303148.310
|
1278.020
|
185.2
|
Existing
|
Loma
de La Plata
|
NV07-571
|
2511926.070
|
5303447.490
|
1262.370
|
234.5
|
Existing
|
Loma
de La Plata
|
NV07-575
|
2512044.000
|
5303454.960
|
1252.850
|
277
|
Existing
|
Loma
de La Plata
|
NV07-579
|
2511832.070
|
5303449.620
|
1266.520
|
210.3
|
Existing
|
Loma
de La Plata
|
NV07-581
|
2512131.960
|
5303448.420
|
1255.050
|
316
|
Existing
|
Loma
de La Plata
|
NV07-586
|
2511550.440
|
5302903.230
|
1334.190
|
85
|
New
|
Loma
de La Plata
|
NV07-588
|
2511520.150
|
5303642.760
|
1266.400
|
247
|
New
|
Loma
de La Plata
|
NV07-591
|
2511545.160
|
5303688.960
|
1260.400
|
274
|
New
|
Loma
de La Plata
|
NV07-592
|
2511459.320
|
5303735.380
|
1258.490
|
250
|
New
|
Loma
de La Plata
|
NV07-594
|
2511433.440
|
5303693.520
|
1264.910
|
229
|
New
|
Loma
de La Plata
|
NV07-597
|
2511805.740
|
5303301.800
|
1278.330
|
185.7
|
New
|
Loma
de La Plata
|
NV07-598
|
2511905.400
|
5303296.750
|
1269.200
|
202
|
New
|
Loma
de La Plata
|
NV07-601
|
2511517.850
|
5303400.870
|
1297.110
|
127
|
New
|
Loma
de La Plata
|
NV07-602
|
2511617.550
|
5303399.750
|
1288.550
|
121.4
|
New
|
Loma
de La Plata
|
NV07-604
|
2511719.900
|
5303399.270
|
1275.710
|
172
|
New
|
Loma
de La Plata
|
NV07-605
|
2511820.050
|
5303400.010
|
1271.680
|
199
|
New
|
Loma
de La Plata
|
NV07-607
|
2511922.910
|
5303400.060
|
1264.850
|
233.7
|
New
|
Loma
de La Plata
|
NV07-609
|
2512014.410
|
5303403.920
|
1257.210
|
268
|
New
|
Loma
de La Plata
|
NV07-611
|
2512115.710
|
5303398.350
|
1256.780
|
289
|
New
|
Loma
de La Plata
|
NV07-616
|
2511650.310
|
5303304.720
|
1287.590
|
270.4
|
New
|
Loma
de La Plata
|
NV07-620
|
2511651.170
|
5303301.720
|
1287.710
|
109
|
New
|
Loma
de La Plata
|
NV07-621
|
2511669.060
|
5303354.770
|
1281.790
|
169
|
New
|
Loma
de La Plata
|
NV07-622
|
2512231.930
|
5303452.330
|
1258.880
|
333.3
|
New
|
Loma
de La Plata
|
NV07-625
|
2512279.570
|
5303549.890
|
1257.070
|
337.05
|
New
|
Loma
de La Plata
|
NV07-626
|
2512179.810
|
5303552.970
|
1255.480
|
331.9
|
New
|
Loma
de La Plata
|
NV07-627
|
2512083.480
|
5303552.750
|
1247.410
|
317
|
New
|
Loma
de La Plata
|
NV07-630
|
2511981.470
|
5303550.700
|
1252.210
|
289.9
|
New
|
Loma
de La Plata
|
NV07-631
|
2511873.420
|
5303550.280
|
1258.760
|
298.75
|
New
|
Loma
de La Plata
|
NV07-633
|
2512030.270
|
5303653.640
|
1246.430
|
348.2
|
New
|
Loma
de La Plata
|
NV07-637
|
2512128.780
|
5303653.590
|
1242.910
|
425.5
|
New
|
Loma
de La Plata
|
NV08-654
|
2512073.420
|
5303351.630
|
1261.280
|
305
|
New
|
February 2010 | 194 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV08-656
|
2512329.160
|
5303453.910
|
1250.350
|
341.7
|
New
|
Loma
de La Plata
|
NV08-676
|
2511995.410
|
5303251.310
|
1267.970
|
242
|
New
|
Loma
de La Plata
|
NV08-678
|
2512145.390
|
5303252.100
|
1268.840
|
329
|
New
|
Loma
de La Plata
|
NV08-681
|
2512103.990
|
5303151.500
|
1273.640
|
254
|
New
|
Loma
de La Plata
|
NV08-684
|
2512270.070
|
5303351.630
|
1252.370
|
357.2
|
New
|
Loma
de La Plata
|
NV08-687
|
2512303.780
|
5303149.910
|
1254.770
|
372.9
|
New
|
Loma
de La Plata
|
NV08-689
|
2512037.180
|
5303048.470
|
1274.440
|
203.1
|
New
|
Loma
de La Plata
|
NV08-691
|
2512104.620
|
5302950.360
|
1273.720
|
288.5
|
New
|
Loma
de La Plata
|
NV08-693
|
2512305.050
|
5302952.640
|
1277.570
|
334.6
|
New
|
Loma
de La Plata
|
NV08-704
|
2511836.690
|
5303051.640
|
1290.670
|
131
|
New
|
Loma
de La Plata
|
NV08-705
|
2511884.860
|
5303050.760
|
1285.530
|
260
|
New
|
Loma
de La Plata
|
NV08-707
|
2511806.410
|
5302951.240
|
1298.090
|
149.5
|
New
|
Loma
de La Plata
|
NV08-708
|
2511991.320
|
5303153.530
|
1274.840
|
251.2
|
New
|
Loma
de La Plata
|
NV08-710
|
2512002.060
|
5303302.420
|
1264.540
|
309
|
New
|
Loma
de La Plata
|
NV08-711
|
2511814.750
|
5303203.290
|
1283.720
|
221
|
New
|
Loma
de La Plata
|
NV08-713
|
2511913.590
|
5303199.370
|
1274.760
|
238.9
|
New
|
Loma
de La Plata
|
NV08-714
|
2512015.340
|
5303201.090
|
1273.790
|
314.5
|
New
|
Loma
de La Plata
|
NV08-716
|
2511782.620
|
5303443.540
|
1268.880
|
302
|
New
|
Loma
de La Plata
|
NV08-718
|
2511770.810
|
5303549.170
|
1266.500
|
316.7
|
New
|
Loma
de La Plata
|
NV08-720
|
2511682.400
|
5303447.470
|
1279.150
|
263
|
New
|
Loma
de La Plata
|
NV08-722
|
2511569.910
|
5303549.710
|
1277.240
|
263
|
New
|
Loma
de La Plata
|
NV08-724
|
2511671.590
|
5303547.620
|
1276.930
|
280.5
|
New
|
Loma
de La Plata
|
NV08-725
|
2512217.650
|
5303397.840
|
1255.690
|
340.8
|
New
|
Loma
de La Plata
|
NV08-728
|
2511567.730
|
5302947.550
|
1333.530
|
109.7
|
New
|
Loma
de La Plata
|
NV08-729
|
2511451.950
|
5302898.450
|
1345.400
|
161
|
New
|
Loma
de La Plata
|
NV08-731
|
2511499.480
|
5302898.960
|
1343.030
|
368.1
|
New
|
Loma
de La Plata
|
NV08-732
|
2511601.710
|
5303000.850
|
1330.850
|
160.5
|
New
|
Loma
de La Plata
|
NV08-733
|
2511515.620
|
5302951.890
|
1348.220
|
202.2
|
New
|
Loma
de La Plata
|
NV08-735
|
2512131.330
|
5303653.110
|
1242.980
|
457
|
New
|
Loma
de La Plata
|
NV08-737
|
2511699.980
|
5302998.860
|
1313.880
|
433.9
|
New
|
Loma
de La Plata
|
NV08-739
|
2512031.900
|
5303702.890
|
1244.640
|
433.7
|
New
|
Loma
de La Plata
|
NV08-741
|
2511600.470
|
5302898.580
|
1324.160
|
230
|
New
|
Loma
de La Plata
|
NV08-743
|
2512132.100
|
5303700.850
|
1240.300
|
97
|
New
|
Loma
de La Plata
|
NV08-744
|
2511381.740
|
5303099.340
|
1330.830
|
181.7
|
New
|
February 2010 | 195 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV08-747
|
2512118.900
|
5303699.310
|
1240.800
|
425
|
New
|
Loma
de La Plata
|
NV08-748
|
2511378.950
|
5303099.320
|
1330.820
|
230
|
New
|
Loma
de La Plata
|
NV08-749
|
2511365.380
|
5303151.060
|
1331.260
|
200
|
New
|
Loma
de La Plata
|
NV08-750
|
2511460.720
|
5303149.930
|
1319.270
|
353.5
|
New
|
Loma
de La Plata
|
NV08-754
|
2511407.690
|
5303150.790
|
1322.620
|
198
|
New
|
Loma
de La Plata
|
NV08-755
|
2511929.630
|
5303650.240
|
1251.540
|
428
|
New
|
Loma
de La Plata
|
NV08-756
|
2511429.180
|
5303100.010
|
1335.180
|
66.16
|
New
|
Loma
de La Plata
|
NV08-757
|
2511427.690
|
5303100.160
|
1335.160
|
172.7
|
New
|
Loma
de La Plata
|
NV08-759
|
2511478.700
|
5303100.180
|
1333.830
|
208.7
|
New
|
Loma
de La Plata
|
NV08-761
|
2511774.030
|
5303600.520
|
1263.700
|
391
|
New
|
Loma
de La Plata
|
NV08-762
|
2511449.340
|
5303046.670
|
1356.400
|
181.8
|
New
|
Loma
de La Plata
|
NV08-764
|
2511403.030
|
5303049.650
|
1348.550
|
140.3
|
New
|
Loma
de La Plata
|
NV08-765
|
2511873.490
|
5303599.630
|
1256.310
|
374.5
|
New
|
Loma
de La Plata
|
NV08-766
|
2511348.520
|
5303051.290
|
1340.510
|
145.9
|
New
|
Loma
de La Plata
|
NV08-769
|
2511398.080
|
5302999.570
|
1359.520
|
139.9
|
New
|
Loma
de La Plata
|
NV08-770
|
2511974.510
|
5303599.980
|
1251.260
|
404
|
New
|
Loma
de La Plata
|
NV08-771
|
2511350.150
|
5302999.370
|
1354.740
|
139.6
|
New
|
Loma
de La Plata
|
NV08-772
|
2511297.920
|
5303001.550
|
1354.640
|
182.8
|
New
|
Loma
de La Plata
|
NV08-774
|
2511515.330
|
5303151.870
|
1328.880
|
190.8
|
New
|
Loma
de La Plata
|
NV08-775
|
2512083.630
|
5303599.270
|
1245.390
|
445
|
New
|
Loma
de La Plata
|
NV08-777
|
2511557.870
|
5303150.670
|
1329.250
|
280.8
|
New
|
Loma
de La Plata
|
NV08-779
|
2511531.330
|
5303200.170
|
1317.090
|
190.9
|
New
|
Loma
de La Plata
|
NV08-781
|
2511596.340
|
5303049.880
|
1332.820
|
160.2
|
New
|
Loma
de La Plata
|
NV08-782
|
2511521.010
|
5303348.840
|
1303.790
|
132.6
|
New
|
Loma
de La Plata
|
NV08-784
|
2511363.390
|
5302951.280
|
1361.100
|
204.8
|
New
|
Loma
de La Plata
|
NV08-785
|
2511495.210
|
5303296.850
|
1314.470
|
131.1
|
New
|
Loma
de La Plata
|
NV08-786
|
2511649.820
|
5303000.640
|
1320.990
|
60
|
New
|
Loma
de La Plata
|
NV08-788
|
2511670.400
|
5303400.640
|
1281.260
|
160
|
New
|
Loma
de La Plata
|
NV08-789
|
2511773.370
|
5303098.260
|
1294.860
|
182.1
|
New
|
Loma
de La Plata
|
NV08-792
|
2511645.710
|
5303048.960
|
1322.170
|
143.1
|
New
|
Loma
de La Plata
|
NV08-793
|
2511523.890
|
5303450.270
|
1290.420
|
146.1
|
New
|
Loma
de La Plata
|
NV08-794
|
2511570.830
|
5303199.510
|
1316.090
|
155.1
|
New
|
Loma
de La Plata
|
NV08-797
|
2511960.720
|
5303199.280
|
1272.130
|
37
|
New
|
Loma
de La Plata
|
NV08-798
|
2511762.090
|
5303200.760
|
1289.390
|
183.7
|
New
|
February 2010 | 196 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV08-799
|
2511958.010
|
5303199.290
|
1272.230
|
252.6
|
New
|
Loma
de La Plata
|
NV08-801
|
2511855.790
|
5303148.060
|
1281.710
|
120.2
|
New
|
Loma
de La Plata
|
NV08-803
|
2511776.270
|
5303100.070
|
1294.730
|
140.2
|
New
|
Loma
de La Plata
|
NV08-804
|
2511847.270
|
5303250.310
|
1276.440
|
176.1
|
New
|
Loma
de La Plata
|
NV08-805
|
2512051.160
|
5303301.050
|
1268.200
|
139.9
|
New
|
Loma
de La Plata
|
NV08-807
|
2511758.440
|
5303299.800
|
1283.470
|
182.1
|
New
|
Loma
de La Plata
|
NV08-808
|
2512149.790
|
5303301.290
|
1264.660
|
81.5
|
New
|
Loma
de La Plata
|
NV08-809
|
2512168.340
|
5303499.380
|
1258.260
|
90
|
New
|
Loma
de La Plata
|
NV08-811
|
2511922.400
|
5303348.070
|
1266.590
|
228.6
|
New
|
Loma
de La Plata
|
NV08-812
|
2511984.310
|
5303450.570
|
1257.000
|
200
|
New
|
Loma
de La Plata
|
NV08-814
|
2511963.640
|
5303402.650
|
1262.150
|
251.1
|
New
|
Loma
de La Plata
|
NV08-815
|
2511875.390
|
5303449.940
|
1264.870
|
244
|
New
|
Loma
de La Plata
|
NV08-817
|
2511714.090
|
5303349.940
|
1279.580
|
197
|
New
|
Loma
de La Plata
|
NV08-820
|
2511925.390
|
5303651.020
|
1251.540
|
111.2
|
New
|
Loma
de La Plata
|
NV08-821
|
2511670.300
|
5303401.490
|
1281.260
|
165.5
|
New
|
Loma
de La Plata
|
NV08-822
|
2511774.890
|
5303601.390
|
1265.680
|
120.8
|
New
|
Loma
de La Plata
|
NV08-823
|
2511716.810
|
5303548.480
|
1273.050
|
255.5
|
New
|
Loma
de La Plata
|
NV08-826
|
2511924.340
|
5303097.260
|
1280.460
|
280.7
|
New
|
Loma
de La Plata
|
NV08-828
|
2511649.730
|
5302999.740
|
1321.030
|
146
|
New
|
Loma
de La Plata
|
NV08-830
|
2511333.610
|
5303201.230
|
1342.970
|
166.5
|
New
|
Loma
de La Plata
|
NV08-831
|
2512065.570
|
5303399.000
|
1255.750
|
284.4
|
New
|
Loma
de La Plata
|
NV08-833
|
2511346.160
|
5303299.850
|
1328.020
|
149.6
|
New
|
Loma
de La Plata
|
NV08-834
|
2511954.070
|
5303300.260
|
1265.940
|
211.6
|
New
|
Loma
de La Plata
|
NV08-835
|
2511982.100
|
5303450.550
|
1257.160
|
251
|
New
|
Loma
de La Plata
|
NV08-836
|
2511435.110
|
5303200.390
|
1326.410
|
121.9
|
New
|
Loma
de La Plata
|
NV08-838
|
2512049.960
|
5303300.340
|
1268.160
|
328.15
|
New
|
Loma
de La Plata
|
NV08-839
|
2511855.040
|
5303148.100
|
1281.710
|
161
|
New
|
Loma
de La Plata
|
NV08-840
|
2512278.840
|
5303601.130
|
1256.830
|
288.9
|
New
|
Loma
de La Plata
|
NV08-843
|
2512064.140
|
5303500.060
|
1249.720
|
298.5
|
New
|
Loma
de La Plata
|
NV08-844
|
2512381.550
|
5303448.590
|
1245.010
|
359
|
New
|
Loma
de La Plata
|
NV08-846
|
2511963.270
|
5303499.070
|
1254.980
|
271.5
|
New
|
Loma
de La Plata
|
NV08-849
|
2511864.710
|
5303499.370
|
1261.070
|
239
|
New
|
Loma
de La Plata
|
NV08-850
|
2511566.570
|
5303500.300
|
1283.200
|
245
|
New
|
Loma
de La Plata
|
NV08-853
|
2512270.000
|
5303400.000
|
1253.000
|
371
|
New
|
February 2010 | 197 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Loma
de La Plata
|
NV08-854
|
2511765.180
|
5303499.240
|
1268.870
|
232.5
|
New
|
Loma
de La Plata
|
NV08-856
|
2511664.340
|
5303499.450
|
1280.580
|
241.5
|
New
|
Loma
de La Plata
|
NV08-857
|
2512320.520
|
5303350.360
|
1249.450
|
353
|
New
|
Loma
de La Plata
|
NV08-860
|
2511466.290
|
5303499.050
|
1284.540
|
196.6
|
New
|
Loma
de La Plata
|
NV08-861
|
2512169.000
|
5303352.000
|
1260.000
|
311
|
New
|
Loma
de La Plata
|
NV08-862
|
2511313.180
|
5303500.130
|
1292.620
|
157.5
|
New
|
Loma
de La Plata
|
NV08-863
|
2512095.820
|
5303249.660
|
1275.320
|
311
|
New
|
Loma
de La Plata
|
NV08-866
|
2511419.310
|
5303548.990
|
1278.440
|
187.1
|
New
|
Loma
de La Plata
|
NV08-868
|
2512155.310
|
5303148.860
|
1268.440
|
270.6
|
New
|
Loma
de La Plata
|
NV08-871
|
2511620.590
|
5303549.180
|
1278.270
|
286.5
|
New
|
Loma
de La Plata
|
NV08-872
|
2512248.000
|
5303301.000
|
1255.000
|
362
|
New
|
Loma
de La Plata
|
NV08-876
|
2511691.180
|
5303600.090
|
1272.170
|
313.7
|
New
|
Loma
de La Plata
|
NV08-877
|
2511824.040
|
5303100.040
|
1289.590
|
209
|
New
|
Loma
de La Plata
|
NV08-880
|
2511869.370
|
5303400.420
|
1267.990
|
304.6
|
New
|
Loma
de La Plata
|
NV08-881
|
2511874.670
|
5303100.000
|
1284.180
|
218.4
|
New
|
Loma
de La Plata
|
NV08-884
|
2511819.750
|
5303648.820
|
1260.380
|
290
|
New
|
Loma
de La Plata
|
NV08-886
|
2512232.500
|
5303499.180
|
1260.880
|
320
|
New
|
Loma
de La Plata
|
NV08-888
|
2511865.100
|
5303200.060
|
1279.560
|
241.2
|
New
|
Loma
de La Plata
|
NV08-889
|
2511941.960
|
5303250.550
|
1270.110
|
295.5
|
New
|
Loma
de La Plata
|
NV08-891
|
2512060.120
|
5303199.640
|
1278.400
|
295.5
|
New
|
Loma
de La Plata
|
NV08-904
|
2512420.420
|
5303348.610
|
1243.280
|
388
|
New
|
Loma
de La Plata
|
NV08-905
|
2512352.660
|
5303297.480
|
1247.430
|
364
|
New
|
Loma
de La Plata
|
NV08-906
|
2512480.940
|
5303448.960
|
1238.200
|
397.5
|
New
|
Loma
de La Plata
|
NV08-907
|
2512519.760
|
5303349.710
|
1238.350
|
420
|
New
|
Loma
de La Plata
|
NV08-908
|
2511350.170
|
5303730.820
|
1260.760
|
151
|
New
|
Loma
de La Plata
|
NV08-917
|
2512527.410
|
5303499.560
|
1236.390
|
381.1
|
New
|
Loma
de La Plata
|
NV08-919
|
2512618.200
|
5303600.080
|
1233.840
|
168
|
New
|
Loma
de La Plata
|
NV08-920
|
2512550.820
|
5303364.100
|
1237.300
|
427.3
|
New
|
Navidad
Hill
|
NV03-001
|
2514819.500
|
5304458.810
|
1219.490
|
109.5
|
Existing
|
Navidad
Hill
|
NV03-002
|
2514802.020
|
5304429.780
|
1211.220
|
154.5
|
Existing
|
Navidad
Hill
|
NV03-006
|
2514769.450
|
5304449.940
|
1218.370
|
136.2
|
Existing
|
Navidad
Hill
|
NV03-007
|
2514729.900
|
5304465.410
|
1222.210
|
108.9
|
Existing
|
Navidad
Hill
|
NV03-008
|
2514789.840
|
5304488.980
|
1226.440
|
146
|
Existing
|
Navidad
Hill
|
NV03-009
|
2514760.770
|
5304518.560
|
1231.360
|
106.1
|
Existing
|
February 2010 | 198 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Navidad
Hill
|
NV03-010
|
2514760.160
|
5304433.500
|
1215.060
|
150.7
|
Existing
|
Navidad
Hill
|
NV03-011
|
2514511.930
|
5304676.800
|
1209.200
|
133.2
|
Existing
|
Navidad
Hill
|
NV04-054
|
2514714.810
|
5304437.980
|
1215.420
|
190.5
|
Existing
|
Navidad
Hill
|
NV04-055
|
2514769.950
|
5304373.610
|
1196.920
|
168.8
|
Existing
|
Navidad
Hill
|
NV04-065
|
2514672.370
|
5304366.340
|
1192.340
|
229.5
|
Existing
|
Navidad
Hill
|
NV04-069
|
2514680.710
|
5304495.150
|
1226.810
|
181.3
|
Existing
|
Navidad
Hill
|
NV04-070
|
2514655.800
|
5304558.170
|
1229.020
|
190.3
|
Existing
|
Navidad
Hill
|
NV04-071
|
2514647.210
|
5304442.290
|
1208.190
|
172.5
|
Existing
|
Navidad
Hill
|
NV04-072
|
2514608.760
|
5304491.610
|
1210.420
|
223.2
|
Existing
|
Navidad
Hill
|
NV04-073
|
2514551.940
|
5304392.650
|
1184.480
|
193.5
|
Existing
|
Navidad
Hill
|
NV04-083
|
2514610.990
|
5304578.420
|
1221.120
|
169.5
|
Existing
|
Navidad
Hill
|
NV04-084
|
2514570.240
|
5304586.780
|
1218.540
|
213
|
Existing
|
Navidad
Hill
|
NV04-085
|
2514522.380
|
5304625.980
|
1213.280
|
88.5
|
Existing
|
Navidad
Hill
|
NV04-089
|
2514515.230
|
5304413.400
|
1183.980
|
97.5
|
Existing
|
Navidad
Hill
|
NV04-090
|
2514500.630
|
5304469.650
|
1189.410
|
106.5
|
Existing
|
Navidad
Hill
|
NV04-097
|
2514647.260
|
5304322.200
|
1180.730
|
100.5
|
Existing
|
Navidad
Hill
|
NV04-098
|
2514534.240
|
5304343.250
|
1177.710
|
76.7
|
Existing
|
Navidad
Hill
|
NV04-099
|
2514442.040
|
5304484.040
|
1188.070
|
88.7
|
Existing
|
Navidad
Hill
|
NV04-100
|
2514482.190
|
5304431.610
|
1183.360
|
130.7
|
Existing
|
Navidad
Hill
|
NV04-101
|
2514400.090
|
5304413.140
|
1181.910
|
109.7
|
Existing
|
Navidad
Hill
|
NV04-102
|
2514385.990
|
5304507.110
|
1194.350
|
122
|
Existing
|
Navidad
Hill
|
NV04-103
|
2514490.470
|
5304573.810
|
1204.080
|
79.8
|
Existing
|
Navidad
Hill
|
NV04-104
|
2514461.290
|
5304521.190
|
1192.260
|
100.3
|
Existing
|
Navidad
Hill
|
NV04-109
|
2514769.610
|
5304532.200
|
1231.400
|
133.5
|
Existing
|
Navidad
Hill
|
NV04-110
|
2514690.480
|
5304614.210
|
1222.430
|
100.5
|
Existing
|
Navidad
Hill
|
NV04-111
|
2514655.450
|
5304558.190
|
1229.000
|
35
|
Existing
|
Navidad
Hill
|
NV04-112
|
2514632.040
|
5304616.250
|
1218.400
|
85.5
|
Existing
|
Navidad
Hill
|
NV04-113
|
2514593.430
|
5304627.020
|
1213.410
|
76.5
|
Existing
|
Navidad
Hill
|
NV04-114
|
2514570.250
|
5304510.280
|
1204.370
|
62.1
|
Existing
|
Navidad
Hill
|
NV04-115
|
2514535.560
|
5304529.570
|
1203.830
|
62
|
Existing
|
Navidad
Hill
|
NV04-116
|
2514535.450
|
5304447.050
|
1189.360
|
70.7
|
Existing
|
Navidad
Hill
|
NV04-117
|
2514499.590
|
5304505.140
|
1195.960
|
109.5
|
Existing
|
Navidad
Hill
|
NV04-118
|
2514409.700
|
5304549.970
|
1197.510
|
80
|
Existing
|
Navidad
Hill
|
NV04-119
|
2514436.560
|
5304597.530
|
1201.330
|
77.1
|
Existing
|
February 2010 | 199 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Navidad
Hill
|
NV04-120
|
2514601.530
|
5304363.620
|
1184.260
|
95
|
Existing
|
Navidad
Hill
|
NV04-132
|
2514451.780
|
5304383.510
|
1178.570
|
127.8
|
Existing
|
Navidad
Hill
|
NV04-133
|
2514506.480
|
5304324.520
|
1174.910
|
184.8
|
Existing
|
Navidad
Hill
|
NV05-139
|
2514493.370
|
5304497.960
|
1194.130
|
80
|
Existing
|
Navidad
Hill
|
NV05-140
|
2514476.370
|
5304468.560
|
1188.880
|
80
|
Existing
|
Navidad
Hill
|
NV05-141
|
2514528.620
|
5304479.380
|
1193.280
|
80
|
Existing
|
Navidad
Hill
|
NV05-142
|
2514515.540
|
5304456.860
|
1188.860
|
77
|
Existing
|
Navidad
Hill
|
NV05-157
|
2514578.090
|
5304329.740
|
1178.060
|
131.1
|
Existing
|
Navidad
Hill
|
NV05-158
|
2514494.410
|
5304381.380
|
1179.830
|
104.1
|
Existing
|
Navidad
Hill
|
NV05-159
|
2514630.510
|
5304287.670
|
1175.180
|
137.5
|
Existing
|
Navidad
Hill
|
NV05-160
|
2514734.770
|
5304313.140
|
1182.110
|
128.15
|
Existing
|
Navidad
Hill
|
NV05-161
|
2514554.290
|
5304476.070
|
1195.500
|
83.1
|
Existing
|
Navidad
Hill
|
NV05-217
|
2514483.120
|
5304279.070
|
1172.000
|
248
|
Existing
|
Navidad
Hill
|
NV05-218
|
2514552.080
|
5304287.180
|
1172.570
|
194.5
|
Existing
|
Navidad
Hill
|
NV05-219
|
2514604.720
|
5304244.630
|
1169.530
|
266
|
Existing
|
Navidad
Hill
|
NV05-220
|
2514681.550
|
5304228.730
|
1169.890
|
176
|
Existing
|
Navidad
Hill
|
NV05-221
|
2514525.880
|
5304237.850
|
1169.570
|
194
|
Existing
|
Navidad
Hill
|
NV05-238
|
2514472.130
|
5304338.590
|
1175.470
|
167
|
Existing
|
Navidad
Hill
|
NV05-248
|
2514465.410
|
5304644.700
|
1209.050
|
81
|
Existing
|
Navidad
Hill
|
NV05-249
|
2514859.730
|
5304454.010
|
1215.890
|
63.6
|
Existing
|
Navidad
Hill
|
NV05-250
|
2514831.240
|
5304392.060
|
1198.480
|
120
|
Existing
|
Navidad
Hill
|
NV05-251
|
2514808.680
|
5304357.760
|
1191.030
|
99
|
Existing
|
Navidad
Hill
|
NV06-332
|
2514741.940
|
5304543.390
|
1229.490
|
121.5
|
Existing
|
Navidad
Hill
|
NV06-333
|
2514728.880
|
5304521.870
|
1229.530
|
100.5
|
Existing
|
Navidad
Hill
|
NV06-334
|
2514715.830
|
5304500.030
|
1228.090
|
88.5
|
Existing
|
Navidad
Hill
|
NV06-335
|
2514702.730
|
5304478.380
|
1226.300
|
109.5
|
Existing
|
Navidad
Hill
|
NV06-336
|
2514829.450
|
5304516.970
|
1225.430
|
109.5
|
Existing
|
Navidad
Hill
|
NV06-337
|
2514815.140
|
5304493.530
|
1226.320
|
109.5
|
Existing
|
Navidad
Hill
|
NV06-338
|
2514783.380
|
5304431.000
|
1212.090
|
79.7
|
Existing
|
Navidad
Hill
|
NV06-339
|
2514487.230
|
5304523.890
|
1195.780
|
62
|
Existing
|
Navidad
Hill
|
NV06-340
|
2514470.320
|
5304494.220
|
1190.330
|
71.2
|
Existing
|
Navidad
Hill
|
NV06-341
|
2514456.120
|
5304470.180
|
1186.600
|
94
|
Existing
|
Navidad
Hill
|
NV06-342
|
2514557.270
|
5304445.990
|
1191.980
|
82.7
|
Existing
|
Navidad
Hill
|
NV06-343
|
2514543.360
|
5304422.690
|
1187.240
|
89
|
Existing
|
February 2010 | 200 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Navidad
Hill
|
NV06-344
|
2514530.380
|
5304399.590
|
1183.660
|
80.5
|
Existing
|
Navidad
Hill
|
NV06-345
|
2514694.250
|
5304322.770
|
1182.660
|
92
|
Existing
|
Navidad
Hill
|
NV06-346
|
2514682.440
|
5304302.220
|
1178.710
|
119
|
Existing
|
Navidad
Hill
|
NV06-347
|
2514669.650
|
5304280.380
|
1175.200
|
110.1
|
Existing
|
Navidad
Hill
|
NV06-348
|
2514722.600
|
5304292.120
|
1179.100
|
116
|
Existing
|
Navidad
Hill
|
NV06-349
|
2514710.260
|
5304270.240
|
1175.500
|
110
|
Existing
|
Navidad
Hill
|
NV06-350
|
2514698.150
|
5304249.070
|
1172.660
|
110
|
Existing
|
Navidad
Hill
|
NV06-351
|
2514628.700
|
5304348.710
|
1184.170
|
92.1
|
Existing
|
Navidad
Hill
|
NV06-352
|
2514613.560
|
5304323.040
|
1178.530
|
101
|
Existing
|
Navidad
Hill
|
NV06-353
|
2514599.030
|
5304297.930
|
1174.570
|
110
|
Existing
|
Navidad
Hill
|
NV06-354
|
2514574.780
|
5304375.750
|
1184.920
|
92
|
Existing
|
Navidad
Hill
|
NV06-355
|
2514559.430
|
5304351.700
|
1180.650
|
110
|
Existing
|
Navidad
Hill
|
NV06-356
|
2514541.120
|
5304318.940
|
1175.790
|
122
|
Existing
|
Navidad
Hill
|
NV06-357
|
2514505.470
|
5304435.390
|
1185.540
|
80
|
Existing
|
Navidad
Hill
|
NV06-358
|
2514807.970
|
5304398.520
|
1202.200
|
90.5
|
Existing
|
Navidad
Hill
|
NV06-359
|
2514739.270
|
5304437.410
|
1215.660
|
100.5
|
Existing
|
Navidad
Hill
|
NV06-360
|
2514834.150
|
5304444.280
|
1214.490
|
91.5
|
Existing
|
Navidad
Hill
|
NV06-361
|
2514864.630
|
5304498.640
|
1222.870
|
100.5
|
Existing
|
Navidad
Hill
|
NV06-362
|
2514782.740
|
5304515.960
|
1229.600
|
121.5
|
Existing
|
Navidad
Hill
|
NV06-363
|
2514770.960
|
5304494.470
|
1228.500
|
100.5
|
Existing
|
Navidad
Hill
|
NV06-364
|
2514699.040
|
5304581.440
|
1224.880
|
142.5
|
Existing
|
Navidad
Hill
|
NV06-365
|
2514685.980
|
5304558.910
|
1227.920
|
91.5
|
Existing
|
Navidad
Hill
|
NV06-382
|
2514584.820
|
5304272.880
|
1171.730
|
201.8
|
Existing
|
Navidad
Hill
|
NV06-383
|
2514523.170
|
5304288.270
|
1172.260
|
132.8
|
Existing
|
Navidad
Hill
|
NV06-384
|
2514641.480
|
5304372.930
|
1190.770
|
90.3
|
Existing
|
Navidad
Hill
|
NV06-385
|
2514411.930
|
5304474.030
|
1187.980
|
102.2
|
Existing
|
Navidad
Hill
|
NV06-386
|
2514433.830
|
5304511.740
|
1191.550
|
90.9
|
Existing
|
Navidad
Hill
|
NV06-387
|
2514454.740
|
5304548.050
|
1195.460
|
60.8
|
Existing
|
Navidad
Hill
|
NV06-388
|
2514370.490
|
5304481.090
|
1189.270
|
144.9
|
Existing
|
Navidad
Hill
|
NV06-389
|
2514402.430
|
5304588.560
|
1201.160
|
84.8
|
Existing
|
Valle
Esperanza
|
NV04-025
|
2515366.400
|
5302999.080
|
1140.050
|
199.8
|
New
|
Valle
Esperanza
|
NV04-061
|
2515322.220
|
5302924.140
|
1149.200
|
241.5
|
New
|
Valle
Esperanza
|
NV04-062
|
2515198.180
|
5302926.080
|
1153.610
|
223.5
|
New
|
Valle
Esperanza
|
NV04-063
|
2514530.440
|
5303175.270
|
1174.630
|
178.4
|
New
|
February 2010 | 201 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Valle
Esperanza
|
NV04-064
|
2514486.900
|
5303135.100
|
1188.080
|
235.3
|
New
|
Valle
Esperanza
|
NV04-077
|
2514689.080
|
5303434.700
|
1151.160
|
250.5
|
New
|
Valle
Esperanza
|
NV04-078
|
2515425.810
|
5302895.110
|
1146.670
|
100.5
|
New
|
Valle
Esperanza
|
NV04-079
|
2515233.320
|
5302977.010
|
1146.500
|
121.5
|
New
|
Valle
Esperanza
|
NV04-080
|
2515116.950
|
5302970.120
|
1150.980
|
100.5
|
New
|
Valle
Esperanza
|
NV04-081
|
2514567.990
|
5303214.930
|
1165.530
|
150.8
|
New
|
Valle
Esperanza
|
NV04-082
|
2514460.600
|
5303159.380
|
1185.710
|
151
|
New
|
Valle
Esperanza
|
NV06-287
|
2514462.150
|
5303161.300
|
1185.450
|
221
|
New
|
Valle
Esperanza
|
NV06-288
|
2514212.750
|
5303405.790
|
1165.670
|
248
|
New
|
Valle
Esperanza
|
NV06-289
|
2514763.770
|
5303160.070
|
1152.390
|
248
|
New
|
Valle
Esperanza
|
NV06-290
|
2515146.200
|
5303025.610
|
1145.350
|
245
|
New
|
Valle
Esperanza
|
NV06-291
|
2515520.660
|
5302876.320
|
1144.190
|
242
|
New
|
Valle
Esperanza
|
NV06-292
|
2515877.120
|
5302690.840
|
1131.470
|
251
|
New
|
Valle
Esperanza
|
NV06-293
|
2516187.780
|
5302427.570
|
1132.830
|
105.5
|
New
|
Valle
Esperanza
|
NV06-294
|
2516489.280
|
5302157.000
|
1125.030
|
59
|
New
|
Valle
Esperanza
|
NV06-297
|
2516154.080
|
5302367.770
|
1134.530
|
275
|
New
|
Valle
Esperanza
|
NV06-298
|
2516452.400
|
5302084.860
|
1126.140
|
111.1
|
New
|
Valle
Esperanza
|
NV06-299
|
2516422.070
|
5302019.870
|
1130.000
|
283.8
|
New
|
Valle
Esperanza
|
NV06-300
|
2515177.570
|
5303086.940
|
1140.940
|
238.6
|
New
|
Valle
Esperanza
|
NV06-301
|
2515266.710
|
5303040.080
|
1140.460
|
250.7
|
New
|
Valle
Esperanza
|
NV07-453
|
2514536.040
|
5303961.390
|
1159.920
|
331.2
|
New
|
Valle
Esperanza
|
NV07-454
|
2514435.950
|
5303793.930
|
1157.360
|
392.5
|
New
|
Valle
Esperanza
|
NV07-455
|
2514966.600
|
5303909.240
|
1149.220
|
376.2
|
New
|
Valle
Esperanza
|
NV07-456
|
2515067.500
|
5303387.870
|
1142.170
|
406.2
|
Previously
GH
|
Valle
Esperanza
|
NV07-624
|
2515117.820
|
5303475.420
|
1141.150
|
616
|
New
|
Valle
Esperanza
|
NV07-628
|
2515066.050
|
5303383.720
|
1142.200
|
364
|
New
|
Valle
Esperanza
|
NV07-629
|
2515214.090
|
5303146.680
|
1139.350
|
368
|
New
|
Valle
Esperanza
|
NV07-632
|
2515215.290
|
5303148.680
|
1139.270
|
517.5
|
New
|
Valle
Esperanza
|
NV07-634
|
2514506.170
|
5303214.700
|
1171.400
|
195
|
New
|
Valle
Esperanza
|
NV07-635
|
2514399.800
|
5303245.290
|
1174.460
|
177
|
New
|
Valle
Esperanza
|
NV07-636
|
2514652.510
|
5303115.630
|
1167.770
|
232
|
New
|
Valle
Esperanza
|
NV07-646
|
2515019.140
|
5303299.110
|
1143.140
|
328
|
New
|
Valle
Esperanza
|
NV08-649
|
2514982.910
|
5303436.340
|
1143.690
|
373
|
New
|
Valle
Esperanza
|
NV08-653
|
2515155.640
|
5303338.070
|
1140.040
|
385.1
|
New
|
February 2010 | 202 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Valle
Esperanza
|
NV08-655
|
2514929.040
|
5303349.470
|
1145.450
|
373
|
New
|
Valle
Esperanza
|
NV08-657
|
2514884.170
|
5303272.250
|
1146.490
|
244.8
|
New
|
Valle
Esperanza
|
NV08-685
|
2514985.060
|
5303440.850
|
1143.650
|
385.2
|
New
|
Valle
Esperanza
|
NV08-686
|
2514867.620
|
5303445.590
|
1146.350
|
346
|
New
|
Valle
Esperanza
|
NV08-688
|
2514917.030
|
5303528.360
|
1144.880
|
367.5
|
New
|
Valle
Esperanza
|
NV08-690
|
2514816.840
|
5303361.010
|
1148.230
|
316
|
New
|
Valle
Esperanza
|
NV08-692
|
2514965.450
|
5303215.010
|
1144.120
|
331
|
New
|
Valle
Esperanza
|
NV08-694
|
2515100.960
|
5303247.540
|
1141.140
|
370
|
New
|
Valle
Esperanza
|
NV08-696
|
2514970.000
|
5303614.700
|
1144.070
|
382
|
New
|
Valle
Esperanza
|
NV08-709
|
2514759.800
|
5303451.560
|
1149.150
|
376
|
New
|
Valle
Esperanza
|
NV08-712
|
2514806.590
|
5303534.960
|
1147.290
|
490
|
New
|
Valle
Esperanza
|
NV08-715
|
2514916.810
|
5303128.180
|
1145.870
|
328
|
New
|
Valle
Esperanza
|
NV08-730
|
2515054.370
|
5303164.330
|
1142.700
|
484
|
New
|
Valle
Esperanza
|
NV08-736
|
2515002.460
|
5303082.260
|
1145.770
|
526
|
New
|
Valle
Esperanza
|
NV08-740
|
2515029.030
|
5303522.810
|
1142.750
|
601
|
New
|
Valle
Esperanza
|
NV08-746
|
2515122.830
|
5303181.290
|
1141.020
|
469
|
New
|
Valle
Esperanza
|
NV08-753
|
2515078.840
|
5303611.550
|
1142.400
|
490.2
|
New
|
Valle
Esperanza
|
NV08-758
|
2515170.640
|
5303269.280
|
1139.700
|
471
|
New
|
Valle
Esperanza
|
NV08-763
|
2514985.740
|
5303147.240
|
1144.450
|
472
|
New
|
Valle
Esperanza
|
NV08-768
|
2515034.420
|
5303231.420
|
1142.580
|
427
|
New
|
Valle
Esperanza
|
NV08-773
|
2515085.890
|
5303318.360
|
1141.540
|
485
|
New
|
Valle
Esperanza
|
NV08-778
|
2514901.120
|
5303195.470
|
1145.710
|
403
|
New
|
Valle
Esperanza
|
NV08-783
|
2514946.460
|
5303283.140
|
1144.700
|
500
|
New
|
Valle
Esperanza
|
NV08-790
|
2514888.670
|
5303075.850
|
1148.250
|
318.5
|
New
|
Valle
Esperanza
|
NV08-795
|
2514966.460
|
5303016.650
|
1150.550
|
300.5
|
New
|
Valle
Esperanza
|
NV08-800
|
2515020.260
|
5303009.160
|
1150.520
|
210.7
|
New
|
Valle
Esperanza
|
NV08-802
|
2515071.820
|
5303099.840
|
1143.690
|
352
|
New
|
Valle
Esperanza
|
NV08-806
|
2515269.090
|
5303038.330
|
1140.390
|
508
|
New
|
Valle
Esperanza
|
NV08-813
|
2515320.580
|
5303125.260
|
1137.000
|
455
|
New
|
Valle
Esperanza
|
NV08-818
|
2515467.640
|
5302981.460
|
1137.710
|
388
|
New
|
Valle
Esperanza
|
NV08-824
|
2515381.220
|
5303033.870
|
1137.460
|
37.9
|
New
|
Valle
Esperanza
|
NV08-827
|
2515379.260
|
5303030.060
|
1137.710
|
501.4
|
New
|
Valle
Esperanza
|
NV08-841
|
2515492.760
|
5303025.520
|
1134.420
|
472
|
New
|
Valle
Esperanza
|
NV08-847
|
2515163.210
|
5303348.100
|
1139.970
|
415.5
|
New
|
February 2010 | 203 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Hole
number
|
Collar
Easting
|
Collar
Northing
|
Collar
Elevation
|
Depth
|
New
or existing hole to Resource estimates
|
Valle
Esperanza
|
NV08-852
|
2515211.800
|
5303438.220
|
1139.500
|
385.5
|
New
|
Valle
Esperanza
|
NV08-859
|
2514770.250
|
5303273.730
|
1149.570
|
373
|
New
|
Valle
Esperanza
|
NV08-864
|
2514721.480
|
5303183.790
|
1154.330
|
252.5
|
New
|
Valle
Esperanza
|
NV08-870
|
2515106.370
|
5303856.990
|
1145.220
|
385
|
New
|
February 2010 | 204 of 249 |
Pan American
Silver Corp:
|
B
|
Navidad
estimation domains
|
February 2010 | 205 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Lithology
|
Mineralisation
|
Domain
code
|
|
Calcite
NW
|
Conglomerate
|
Low
grade
|
615
|
|
Mudstone
|
Low
grade
|
625
|
||
Mudstone
|
High
grade
|
626
|
||
Latite
|
Low
grade
|
635
|
||
Latite
|
High
grade
|
636
|
||
Volcaniclastic
|
Low
grade
|
645
|
||
Calcite
Hill
|
Mudstone
|
Low
grade
|
525
|
|
Mudstone
|
High
grade
|
526
|
||
Latite
|
Low
grade
|
535
|
||
Latite
|
High
grade
|
536
|
||
Volcaniclastic
|
Low
grade
|
545
|
||
Navidad Hill
|
Mudstone
|
Low
grade
|
425
|
|
Mudstone
|
High
grade
|
426
|
||
Latite
|
Low
grade
|
435
|
||
Latite
|
High
grade
|
436
|
||
Volcaniclastic
|
Low
grade
|
445
|
||
Connector
Zone
|
Conglomerate
|
Low
grade
|
315
|
|
Mudstone
|
Low
grade
|
325
|
||
Mudstone
|
High
grade
|
326
|
||
Latite
|
Low
grade
|
335
|
||
Latite
|
High
grade
|
336
|
||
Volcaniclastic
|
Low
grade
|
345
|
||
Galena
Hill
|
Conglomerate
|
Low
grade
|
215
|
|
Mudstone
|
Low
grade
|
225
|
||
Mudstone
|
High
grade
|
226
|
||
Latite
|
Low
grade
|
235
|
||
Latite
|
High
grade
|
236
|
||
Volcaniclastic
|
Low
grade
|
245
|
||
Barite
Hill
|
Conglomerate
|
Low
grade
|
115
|
|
Mudstone
|
Low
grade
|
125
|
||
Mudstone
|
High
grade
|
126
|
||
Latite
|
Low
grade
|
135
|
||
Latite
|
High
grade
|
136
|
||
Volcaniclastic
|
Low
grade
|
145
|
February 2010 | 206 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Lithology
|
Mineralisation
|
Domain
code
|
|
Loma
de La Plata
|
Conglomerate
|
Low
grade
|
715
|
|
Mudstone
|
Low
grade
|
725
|
||
Mudstone
|
High
grade
|
726
|
||
Latite
|
Low
grade
|
735
|
||
Latite
|
High
grade
|
736
|
||
Valle
Esperanza
|
Conglomerate
|
Low
grade
|
815
|
|
Mudstone
|
Low
grade
|
825
|
||
Latite
|
Low
grade
|
835
|
||
Latite
|
High
grade
|
836
|
February 2010 | 207 of 249 |
Pan American
Silver Corp:
|
C
|
Log
histograms of input sample composites
(undeclustered)
|
February 2010 | 208 of 249 |
Pan American
Silver Corp:
|
February 2010 | 209 of 249 |
Pan American
Silver Corp:
|
February 2010 | 210 of 249 |
Pan American
Silver Corp:
|
February 2010 | 211 of 249 |
Pan American
Silver Corp:
|
February 2010 | 212 of 249 |
Pan American
Silver Corp:
|
February 2010 | 213 of 249 |
Pan American
Silver Corp:
|
February 2010 | 214 of 249 |
Pan American
Silver Corp:
|
February 2010 | 215 of 249 |
Pan American
Silver Corp:
|
February 2010 | 216 of 249 |
Pan American
Silver Corp:
|
D
|
Declustered
composite sample input statistics for
Ag
|
February 2010 | 217 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Number
of composites
|
Min
(Ag g/t)
|
Max
(Ag g/t)
|
Mean
(Ag g/t)
|
CV
|
|
Calcite
NW
|
615
|
637
|
0.5
|
9
|
1
|
1.1
|
|
625
|
2,351
|
0.5
|
38
|
3
|
1.5
|
||
626
|
1,119
|
0.5
|
1,583
|
45
|
2.0
|
||
635
|
1,211
|
0.5
|
80
|
2
|
2.0
|
||
636
|
166
|
0.5
|
643
|
59
|
1.9
|
||
645
|
62
|
0.5
|
15
|
3
|
1.3
|
||
Calcite
Hill
|
525
|
1,625
|
0.5
|
70
|
2
|
1.8
|
|
526
|
276
|
0.5
|
2,485
|
59
|
3.7
|
||
535
|
952
|
0.5
|
42
|
4
|
1.2
|
||
536
|
1,614
|
0.5
|
2,840
|
71
|
2.2
|
||
545
|
562
|
0.5
|
613
|
1
|
3.5
|
||
Navidad
Hill
|
425
|
571
|
0.5
|
37
|
2
|
1.9
|
|
426
|
350
|
0.5
|
4,612
|
64
|
2.4
|
||
435
|
841
|
0.5
|
58
|
6
|
1.0
|
||
436
|
2,105
|
0.5
|
9,207
|
67
|
3.5
|
||
445
|
237
|
0.5
|
613
|
1
|
7.8
|
||
Connector
Zone
|
315
|
249
|
0.5
|
23
|
1
|
1.8
|
|
325
|
1,177
|
0.5
|
25
|
1
|
1.7
|
||
326
|
149
|
0.5
|
232
|
59
|
1.0
|
||
335
|
1,328
|
0.5
|
69
|
3
|
2.0
|
||
336
|
844
|
0.5
|
3,750
|
73
|
1.9
|
||
345
|
255
|
0.5
|
36
|
2
|
2.4
|
||
Galena
Hill
|
215
|
69
|
0.5
|
6
|
2
|
0.9
|
|
225
|
999
|
0.5
|
36
|
1
|
1.8
|
||
226
|
205
|
0.5
|
2,012
|
74
|
3.1
|
||
235
|
795
|
0.5
|
24
|
4
|
1.0
|
||
236
|
3,192
|
0.5
|
2,940
|
70
|
2.4
|
||
245
|
503
|
0.5
|
32
|
2
|
2.7
|
||
Barite
Hill
|
115
|
995
|
0.5
|
23
|
1
|
1.4
|
|
125
|
1,561
|
0.5
|
140
|
3
|
1.5
|
||
126
|
196
|
1.2
|
5,228
|
190
|
2.8
|
||
135
|
892
|
0.5
|
71
|
3
|
1.7
|
||
136
|
308
|
0.5
|
2,153
|
90
|
2.5
|
||
145
|
336
|
0.5
|
22
|
1
|
1.8
|
February 2010 | 218 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Number
of composites
|
Min
(Ag g/t)
|
Max
(Ag g/t)
|
Mean
(Ag g/t)
|
CV
|
|
Loma
de La Plata
|
715
|
1,504
|
0.5
|
23
|
1
|
1.5
|
|
725
|
5,585
|
0.5
|
66
|
1
|
1.9
|
||
726
|
238
|
0.5
|
213
|
23
|
1.1
|
||
735
|
4,916
|
0.5
|
84
|
2
|
1.9
|
||
736
|
1,802
|
0.5
|
5,407
|
125
|
2.7
|
||
Valle
Esperanza
|
815
|
1,818
|
0.5
|
5
|
1
|
0.5
|
|
825
|
1,782
|
0.5
|
244
|
1
|
3.0
|
||
835
|
3,465
|
0.5
|
336
|
3
|
3.6
|
||
836
|
646
|
0.5
|
4,155
|
103
|
3.2
|
February 2010 | 219 of 249 |
Pan American
Silver
Corp:
|
E
|
Declustered
composite sample input statistics for
Pb
|
February 2010 | 220 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Number
of composites
|
Min
(Pb%)
|
Max
(Pb%)
|
Mean
(Pb%)
|
CV
|
|
Calcite
NW
|
615
|
637
|
0.01
|
0.46
|
0.01
|
3.2
|
|
625
|
2,351
|
0.01
|
0.91
|
0.11
|
1.2
|
||
626
|
1,119
|
0.01
|
10.10
|
0.60
|
1.2
|
||
635
|
1,211
|
0.01
|
1.00
|
0.04
|
2.4
|
||
636
|
166
|
0.01
|
5.89
|
0.61
|
1.5
|
||
645
|
62
|
0.01
|
0.01
|
0.01
|
0.2
|
||
Calcite
Hill
|
525
|
1,625
|
0.01
|
3.24
|
0.08
|
1.47
|
|
526
|
276
|
0.01
|
13.40
|
1.01
|
1.45
|
||
535
|
952
|
0.01
|
1.13
|
0.02
|
2.45
|
||
536
|
1,614
|
0.01
|
28.66
|
0.30
|
3.84
|
||
545
|
562
|
0.01
|
0.25
|
0.01
|
0.86
|
||
Navidad
Hill
|
425
|
571
|
0.01
|
1.12
|
0.08
|
1.1
|
|
426
|
350
|
0.01
|
11.48
|
0.72
|
1.4
|
||
435
|
841
|
0.01
|
0.81
|
0.02
|
2.7
|
||
436
|
2,105
|
0.01
|
13.87
|
0.18
|
3.5
|
||
445
|
237
|
0.01
|
0.22
|
0.01
|
1.0
|
||
Connector
Zone
|
315
|
249
|
0.01
|
0.20
|
0.01
|
2.1
|
|
325
|
1,177
|
0.01
|
1.44
|
0.07
|
1.5
|
||
326
|
149
|
0.02
|
3.41
|
0.89
|
1.0
|
||
335
|
1,328
|
0.01
|
0.87
|
0.03
|
2.5
|
||
336
|
844
|
0.01
|
11.97
|
0.38
|
1.9
|
||
345
|
255
|
0.01
|
0.07
|
0.01
|
0.6
|
||
Galena
Hill
|
215
|
69
|
0.01
|
0.83
|
0.26
|
1.2
|
|
225
|
999
|
0.01
|
1.08
|
0.09
|
1.3
|
||
226
|
205
|
0.06
|
19.95
|
1.34
|
1.4
|
||
235
|
795
|
0.01
|
2.06
|
0.15
|
1.2
|
||
236
|
3,192
|
0.01
|
26.64
|
1.27
|
1.8
|
||
245
|
503
|
0.01
|
0.58
|
0.01
|
2.6
|
||
Barite
Hill
|
115
|
995
|
0.01
|
0.75
|
0.02
|
3.1
|
|
125
|
1,561
|
0.01
|
4.49
|
0.08
|
1.7
|
||
126
|
196
|
0.01
|
1.78
|
0.17
|
1.8
|
||
135
|
892
|
0.01
|
1.90
|
0.12
|
2.0
|
||
136
|
308
|
0.01
|
8.26
|
0.46
|
1.6
|
||
145
|
336
|
0.01
|
0.65
|
0.02
|
3.4
|
February 2010 | 221 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Number
of composites
|
Min
(Pb%)
|
Max
(Pb%)
|
Mean
(Pb%)
|
CV
|
|
Loma
de La Plata
|
715
|
1,504
|
0.01
|
1.69
|
1.69
|
2.6
|
|
725
|
5,585
|
0.01
|
1.74
|
1.74
|
2.1
|
||
726
|
238
|
0.01
|
3.23
|
3.23
|
1.1
|
||
735
|
4,916
|
0.01
|
2.28
|
2.28
|
3.3
|
||
736
|
1,802
|
0.01
|
3.54
|
3.54
|
2.8
|
||
Valle
Esperanza
|
815
|
1,818
|
0.01
|
0.22
|
0.01
|
1.9
|
|
825
|
1,782
|
0.01
|
2.43
|
0.03
|
2.4
|
||
835
|
3,465
|
0.01
|
2.21
|
0.10
|
2.2
|
||
836
|
646
|
0.01
|
2.94
|
0.30
|
1.5
|
February 2010 | 222 of 249 |
Pan American
Silver Corp:
|
F
|
Comparison
of estimated and input data Ag grades by
domain
|
February 2010 | 223 of 249 |
Pan American
Silver
Corp:
|
Deposit
|
Domain
|
Estimated
grade (Ag g/t) |
Declustered
input
grade (Ag g/t) |
%
difference
|
|
Calcite
NW
|
615
|
1
|
1
|
0
|
|
625
|
3
|
3
|
0
|
||
626
|
48
|
45
|
7
|
||
635
|
2
|
2
|
0
|
||
636
|
52
|
59
|
-12
|
||
645
|
2
|
3
|
-35
|
||
Calcite
Hill
|
525
|
2
|
2
|
0
|
|
526
|
60
|
59
|
1
|
||
535
|
4
|
4
|
0
|
||
536
|
85
|
71
|
19
|
||
545
|
1
|
1
|
0
|
||
Navidad
Hill
|
425
|
2
|
2
|
0
|
|
426
|
72
|
64
|
12
|
||
435
|
7
|
6
|
11
|
||
436
|
66
|
67
|
-3
|
||
445
|
1
|
1
|
0
|
||
Connector
Zone
|
315
|
1
|
1
|
0
|
|
325
|
1
|
1
|
0
|
||
326
|
56
|
59
|
-5
|
||
335
|
4
|
3
|
17
|
||
336
|
74
|
73
|
2
|
||
345
|
2
|
2
|
0
|
||
Galena
Hill
|
215
|
2
|
2
|
0
|
|
225
|
1
|
1
|
0
|
||
226
|
79
|
74
|
6
|
||
235
|
5
|
4
|
5
|
||
236
|
79
|
70
|
12
|
||
245
|
2
|
2
|
0
|
||
Barite
Hill
|
115
|
1
|
1
|
0
|
|
125
|
4
|
3
|
37
|
||
126
|
150
|
190
|
-21
|
||
135
|
4
|
3
|
20
|
||
136
|
101
|
90
|
12
|
||
145
|
1
|
1
|
0
|
February 2010 | 224 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Estimated
grade (Ag g/t) |
Declustered
input
grade (Ag g/t) |
%
difference
|
Loma
de La Plata
|
715
|
1
|
1
|
0
|
|
725
|
1
|
1
|
0
|
||
726
|
21
|
23
|
-8
|
||
735
|
2
|
2
|
0
|
||
736
|
126
|
125
|
0
|
||
Valle
Esperanza
|
815
|
1
|
1
|
0
|
|
825
|
1
|
1
|
0
|
||
835
|
2
|
3
|
-11
|
||
836
|
105
|
103
|
2
|
February 2010 | 225 of 249 |
Pan American
Silver Corp:
|
G
|
Comparison
of estimated and input data Pb grades by
domain
|
February 2010 | 226 of 249 |
Pan American
Silver
Corp:
|
Deposit
|
Domain
|
Estimated
grade (Pb%) |
Declustered
input
grade (Pb%) |
%
difference
|
|
Calcite
NW
|
615
|
0.02
|
0.01
|
25
|
|
625
|
0.11
|
0.11
|
-1
|
||
626
|
0.61
|
0.60
|
2
|
||
635
|
0.05
|
0.04
|
7
|
||
636
|
0.68
|
0.61
|
12
|
||
645
|
0.01
|
0.01
|
1
|
||
Calcite
Hill
|
525
|
0.08
|
0.08
|
0
|
|
526
|
1.03
|
1.01
|
2
|
||
535
|
0.02
|
0.02
|
0
|
||
536
|
0.31
|
0.30
|
5
|
||
545
|
0.01
|
0.01
|
0
|
||
Navidad
Hill
|
425
|
0.08
|
0.08
|
0
|
|
426
|
0.78
|
0.72
|
8
|
||
435
|
0.02
|
0.02
|
0
|
||
436
|
0.18
|
0.18
|
0
|
||
445
|
0.01
|
0.01
|
0
|
||
Connector
Zone
|
315
|
0.01
|
0.01
|
0
|
|
325
|
0.07
|
0.07
|
0
|
||
326
|
0.73
|
0.89
|
-18
|
||
335
|
0.03
|
0.03
|
0
|
||
336
|
0.38
|
0.38
|
0
|
||
345
|
0.01
|
0.01
|
0
|
||
Galena
Hill
|
215
|
0.16
|
0.26
|
-36
|
|
225
|
0.11
|
0.09
|
19
|
||
226
|
1.43
|
1.34
|
7
|
||
235
|
0.17
|
0.15
|
13
|
||
236
|
1.36
|
1.27
|
7
|
||
245
|
0.02
|
0.01
|
54
|
||
Barite
Hill
|
115
|
0.02
|
0.02
|
0
|
|
125
|
0.08
|
0.08
|
0
|
||
126
|
0.20
|
0.17
|
22
|
||
135
|
0.12
|
0.12
|
0
|
||
136
|
0.47
|
0.46
|
2
|
||
145
|
0.01
|
0.02
|
-17
|
February 2010 | 227 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Domain
|
Estimated
grade (Pb%)
|
Declustered
input grade (Pb%)
|
%
difference
|
Loma
de La Plata
|
715
|
0.03
|
0.03
|
0
|
|
725
|
0.03
|
0.03
|
0
|
||
726
|
0.33
|
0.35
|
5
|
||
735
|
0.03
|
0.04
|
-14
|
||
736
|
0.10
|
0.12
|
-15
|
||
Valle
Esperanza
|
815
|
0.01
|
0.01
|
0
|
|
825
|
0.03
|
0.03
|
0
|
||
835
|
0.09
|
0.10
|
-10
|
||
836
|
0.27
|
0.30
|
-10
|
February 2010 | 228 of 249 |
Pan American
Silver Corp:
|
H
|
Navidad
2009 Mineral Resource estimates above a 50 g/t AgEQ cut-off using a $10
per oz Ag and $0.70 per lb Pb price
|
February 2010 | 229 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Calcite
Hill NW
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
17.7
|
98
|
70
|
0.59
|
40
|
229
|
|
Meas.
+ Ind.
|
17.7
|
98
|
70
|
0.59
|
40
|
229
|
|
Inferred
|
20.9
|
81
|
44
|
0.76
|
30
|
352
|
|
Calcite
Hill
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
18.7
|
122
|
95
|
0.55
|
57
|
229
|
|
Meas.
+ Ind.
|
18.7
|
122
|
95
|
0.55
|
57
|
229
|
|
Inferred
|
5.0
|
113
|
95
|
0.37
|
15
|
40
|
|
Navidad
Hill
|
Measured
|
8.9
|
127
|
105
|
0.46
|
30
|
90
|
Indicated
|
6.0
|
98
|
86
|
0.25
|
17
|
32
|
|
Meas.
+ Ind.
|
14.8
|
116
|
98
|
0.37
|
47
|
123
|
|
Inferred
|
2.0
|
86
|
65
|
0.43
|
4
|
19
|
|
Connector
Zone
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
8.6
|
108
|
88
|
0.41
|
24
|
78
|
|
Meas.
+ Ind.
|
8.6
|
108
|
88
|
0.41
|
24
|
78
|
|
Inferred
|
11.2
|
93
|
70
|
0.49
|
25
|
121
|
|
Galena
Hill
|
Measured
|
7.4
|
284
|
162
|
2.53
|
39
|
411
|
Indicated
|
54.3
|
177
|
100
|
1.61
|
174
|
1,927
|
|
Meas.
+ Ind.
|
61.6
|
190
|
107
|
1.72
|
213
|
2,338
|
|
Inferred
|
3.7
|
98
|
45
|
1.11
|
5
|
89
|
|
Barite
Hill
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
8.7
|
154
|
138
|
0.32
|
39
|
62
|
|
Meas.
+ Ind.
|
8.7
|
154
|
138
|
0.32
|
39
|
62
|
|
Inferred
|
1.1
|
103
|
70
|
0.67
|
3
|
16
|
|
Loma
de La Plata
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
30.0
|
170
|
165
|
0.10
|
159
|
67
|
|
Meas.
+ Ind.
|
30.0
|
170
|
165
|
0.10
|
159
|
67
|
|
Inferred
|
2.0
|
76
|
55
|
0.44
|
4
|
20
|
|
Valle
Esperanza
|
Measured
|
0.0
|
0
|
0
|
0.00
|
0
|
0
|
Indicated
|
12.7
|
177
|
167
|
0.21
|
68
|
60
|
|
Meas.
+ Ind.
|
12.7
|
177
|
167
|
0.21
|
68
|
60
|
|
Inferred
|
11.6
|
134
|
117
|
0.36
|
44
|
91
|
|
Total
|
Measured
|
16.2
|
198
|
131
|
1.40
|
69
|
501
|
Indicated
|
156.6
|
152
|
115
|
0.78
|
578
|
2,684
|
February 2010 | 230 of 249 |
Pan American
Silver
Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
AgEQ
g/t
|
Ag
g/t
|
Pb%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Meas.
+ Ind.
|
172.9
|
157
|
116
|
0.84
|
647
|
3,185
|
|
Inferred
|
57.5
|
98
|
70
|
0.59
|
129
|
750
|
|
Notes:
The
most likely cut-off grade for these deposits is not known at this time and
must be confirmed by the appropriate economic studies.
Silver
equivalent grade values are calculated without consideration of variable
metal recoveries for silver and lead. A silver price of US$10.00/oz and
lead price of US$0.70/lb was used to derive an equivalence formula of AgEQ
= Ag + (Pb × 10,000 / 208). Silver prices are based on a three-year
rolling average and lead prices are based on an approximate ten year
rolling average.
The
estimated metal content does not include any consideration of mining,
mineral processing, or metallurgical recoveries.
Tonnes,
ounces, and pounds have been rounded and this may have resulted in minor
discrepancies in the totals.
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves have been estimated.
The
estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
|
February 2010 | 231 of 249 |
Pan American
Silver
Corp:
|
I
|
Navidad
2009 Mineral Resource estimates above a 1 oz Ag
cut-off
|
February 2010 | 232 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Calcite
Hill NW
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
16.1
|
74
|
0.55
|
-
|
39
|
196
|
-
|
|
Meas.
+ Ind.
|
16.1
|
74
|
0.55
|
-
|
39
|
196
|
-
|
|
Inferred
|
14.8
|
54
|
0.66
|
-
|
26
|
217
|
-
|
|
Calcite
Hill
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
21.2
|
90
|
0.44
|
-
|
61
|
205
|
-
|
|
Meas.
+ Ind.
|
21.2
|
90
|
0.44
|
-
|
61
|
205
|
-
|
|
Inferred
|
4.9
|
97
|
0.31
|
-
|
15
|
34
|
-
|
|
Navidad
Hill
|
Measured
|
10.0
|
98
|
0.39
|
-
|
32
|
86
|
-
|
Indicated
|
9.0
|
71
|
0.16
|
-
|
20
|
31
|
-
|
|
Meas.
+ Ind.
|
19.0
|
85
|
0.28
|
-
|
52
|
117
|
-
|
|
Inferred
|
2.3
|
64
|
0.30
|
-
|
5
|
15
|
-
|
|
Connector
Zone
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
8.7
|
88
|
0.39
|
-
|
25
|
76
|
-
|
|
Meas.
+ Ind.
|
8.7
|
88
|
0.39
|
-
|
25
|
76
|
-
|
|
Inferred
|
10.5
|
73
|
0.38
|
-
|
25
|
89
|
-
|
|
Galena
Hill
|
Measured
|
6.6
|
179
|
2.70
|
-
|
38
|
393
|
-
|
Indicated
|
39.8
|
128
|
1.81
|
-
|
164
|
1592
|
-
|
|
Meas.
+ Ind.
|
46.4
|
135
|
1.94
|
-
|
202
|
1985
|
-
|
|
Inferred
|
1.2
|
107
|
1.10
|
-
|
4
|
29
|
-
|
|
Barite
Hill
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
7.8
|
152
|
0.23
|
-
|
38
|
40
|
-
|
|
Meas.
+ Ind.
|
7.8
|
152
|
0.23
|
-
|
38
|
40
|
-
|
|
Inferred
|
0.9
|
83
|
0.62
|
-
|
2
|
12
|
-
|
|
Loma
de la Plata
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
33.7
|
151
|
0.09
|
0.05
|
164
|
64
|
37
|
|
Meas.
+ Ind.
|
33.7
|
151
|
0.09
|
0.05
|
164
|
64
|
37
|
|
Inferred
|
1.8
|
65
|
0.19
|
0.05
|
4
|
8
|
2
|
|
Valle
Esperanza
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
13.1
|
163
|
0.21
|
-
|
69
|
60
|
-
|
|
Meas.
+ Ind.
|
13.1
|
163
|
0.21
|
-
|
69
|
60
|
-
|
|
Inferred
|
13.1
|
108
|
0.32
|
-
|
45
|
92
|
-
|
|
Total
|
Measured
|
16.6
|
130
|
1.30
|
70
|
479
|
||
Indicated
|
149.4
|
121
|
0.69
|
580
|
2264
|
37
|
February 2010 | 233 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Meas.
+ Ind.
|
166.1
|
122
|
0.75
|
650
|
2743
|
37
|
||
Inferred
|
49.5
|
79
|
0.45
|
126
|
495
|
2
|
||
The
most likely cut-off grade for these deposits is not known at this time and
must be confirmed by the appropriate economic studies.
The
estimated metal content does not include any consideration of mining,
mineral processing, or metallurgical recoveries.
Tonnes,
ounces, and pounds have been rounded and this may have resulted in minor
discrepancies in the totals.
The
estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves have been
estimated.
|
February 2010 | 234 of 249 |
Pan American
Silver
Corp:
|
J
|
Navidad
2009 Mineral Resource estimates above a 50 g/t Ag
cut-off
|
February 2010 | 235 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Calcite
Hill NW
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
11.0
|
90
|
0.54
|
-
|
32
|
132
|
-
|
|
Meas.
+ Ind.
|
11.0
|
90
|
0.54
|
-
|
32
|
132
|
-
|
|
Inferred
|
6.2
|
74
|
0.64
|
-
|
15
|
88
|
-
|
|
Calcite
Hill
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
15.6
|
107
|
0.47
|
-
|
54
|
163
|
-
|
|
Meas.
+ Ind.
|
15.6
|
107
|
0.47
|
-
|
54
|
163
|
-
|
|
Inferred
|
4.5
|
101
|
0.28
|
-
|
15
|
28
|
-
|
|
Navidad
Hill
|
Measured
|
7.4
|
119
|
0.41
|
-
|
28
|
67
|
-
|
Indicated
|
5.1
|
94
|
0.20
|
-
|
16
|
23
|
-
|
|
Meas.
+ Ind.
|
12.5
|
109
|
0.33
|
-
|
44
|
90
|
-
|
|
Inferred
|
1.2
|
84
|
0.18
|
-
|
3
|
5
|
-
|
|
Connector
Zone
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
7.1
|
98
|
0.39
|
-
|
22
|
61
|
-
|
|
Meas.
+ Ind.
|
7.1
|
98
|
0.39
|
-
|
22
|
61
|
-
|
|
Inferred
|
7.2
|
88
|
0.35
|
-
|
21
|
56
|
-
|
|
Galena
Hill
|
Measured
|
5.7
|
201
|
2.91
|
-
|
37
|
365
|
-
|
Indicated
|
32.5
|
148
|
1.91
|
-
|
155
|
1363
|
-
|
|
Meas.
+ Ind.
|
38.1
|
156
|
2.06
|
-
|
192
|
1728
|
-
|
|
Inferred
|
0.9
|
126
|
1.03
|
-
|
4
|
21
|
-
|
|
Barite
Hill
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
6.5
|
176
|
0.14
|
-
|
37
|
20
|
-
|
|
Meas.
+ Ind.
|
6.5
|
176
|
0.14
|
-
|
37
|
20
|
-
|
|
Inferred
|
0.4
|
141
|
0.39
|
-
|
2
|
3
|
-
|
|
Loma
de la Plata
|
Measured
|
0.0
|
0
|
0.00
|
-
|
-
|
-
|
-
|
Indicated
|
28.2
|
173
|
0.08
|
0.05
|
157
|
49
|
33
|
|
Meas.
+ Ind.
|
28.2
|
173
|
0.08
|
0.05
|
157
|
49
|
33
|
|
Inferred
|
1.0
|
86
|
0.09
|
0.05
|
3
|
2
|
1
|
|
Valle
Esperanza
|
Measured
|
0.0
|
0
|
0.00
|
0.00
|
-
|
-
|
-
|
Indicated
|
11.6
|
179
|
0.20
|
-
|
67
|
51
|
-
|
|
Meas.
+ Ind.
|
11.6
|
179
|
0.20
|
-
|
67
|
51
|
-
|
|
Inferred
|
9.8
|
131
|
0.33
|
-
|
41
|
73
|
-
|
|
Total
|
Measured
|
13.0
|
155
|
1.50
|
65
|
432
|
-
|
February 2010 | 236 of 249 |
Pan American
Silver Corp:
|
Deposit
|
Classification
|
Tonnes
(Mt)
|
Ag
g/t
|
Pb%
|
Cu%
|
Contained
Ag (Moz)
|
Contained
Pb (Mlb)
|
Contained
Cu (Mlb)
|
Indicated
|
117.6
|
143
|
0.72
|
539
|
1862
|
33
|
||
Meas.
+ Ind.
|
130.7
|
144
|
0.80
|
604
|
2,294
|
33
|
||
Inferred
|
31.4
|
102
|
0.40
|
103
|
275
|
1
|
||
Notes:
The
most likely cut-off grade for these deposits is not known at this time and
must be confirmed by the appropriate economic studies.
The
estimated metal content does not include any consideration of mining,
mineral processing, or metallurgical recoveries.
Tonnes,
ounces, and pounds have been rounded and this may have resulted in minor
discrepancies in the totals.
The
estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, socio-political, marketing, or other
relevant issues.
Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability. No Mineral Reserves have been
estimated.
|
February 2010 | 237 of 249 |
Pan American
Silver Corp:
|
February 2010 | 238 of 249 |
Pan American
Silver Corp:
|
K
|
Grade
tonnage curves for the Navidad April 2009 Mineral Resource estimates above
a range of Ag equivalent cut-off
grades
|
February 2010 | 239 of 249 |
Pan American
Silver
Corp:
|
February 2010 | 240 of 249 |
Pan American
Silver Corp:
|
February 2010 | 241 of 249 |
Pan American
Silver Corp:
|
February 2010 | 242 of 249 |
Pan American
Silver
Corp:
|
February 2010 | 243 of 249 |
Pan American
Silver
Corp:
|
February 2010 | 244 of 249 |
Pan American
Silver Corp:
|
February 2010 | 245 of 249 |
Pan American
Silver
Corp:
|
February 2010 | 246 of 249 |
Pan American
Silver Corp:
|
February 2010 | 247 of 249 |
Pan American
Silver Corp:
|
February 2010 | 248 of 249 |
Pan American
Silver
Corp:
|
February 2010 | 249 of 249 |
PAN
AMERICAN SILVER CORP
|
||||||
(Registrant)
|
||||||
Date:
|
February
5, 2010
|
By:
|
/s/
Robert Pirooz
|
|||
Name: |
Robert
Pirooz
|
|||||
Title: | General Counsel, Secretary and Director |