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Pan American Silver Corporation has been very active in Mexico for a long time and now seeks to build on its' production capacity through a merger with Corner Bay Silver completed on 21Feb03. The transaction combines Pan American's silver production and operational experience with Corner Bay's Alamo Dorado silver-gold deposit. The Alamo Dorado deposit was a grass roots exploration discovery made by Corner Bay in 1997 in Sonora State, Mexico. Corner Bay holds a 100% interest, with no royalties, in this project.

Pan American Silver Corp.   PAA   (TSX)  PAAS  (NASDAQ)

Pan American Silver Corp. announced on Mar. 16, 1998 the following appointments to its senior management team: Ing. Ramon Davila: President, Plata Panamericana S.A. de C.V. (Pan American's wholly owned Mexican subsidiary). Ing. Davila is a well known Mexican mining engineer who has operated producing mines throughout Mexico since 1975, most recently the La Colorada silver mine in Zacatecas State. He is currently President of the Mexican Association of Mining Engineers. He will supervise all of the Company's activities in Mexico. Check out Pan American's website for drill result tables and late breaking news. More high grade results on La Colorada reported in January, 1999. Went through robust financing in January to try and put $25.2M (Canadian) into treasury immediately and $32.76 if options are exercised. Financing expected to close Feb 18. Net proceeds will used to put La Colorada into small-scale development at 150 tpd.

Merger with Corner Bay. Pan American Silver Corp. (Nasdaq - PAAS; Toronto - PAA) and Corner Bay Silver Inc. (Toronto - BAY) are pleased to announce that they have entered into an agreement whereby Pan American will acquire all of the issued and outstanding shares of Corner Bay pursuant to a plan of arrangement. The transaction will combine Pan American's strong silver production and operational experience with Corner Bay's proven exploration success that has resulted in the discovery of the Alamo Dorado silver-gold deposit, its principal asset. This is still ongoing as of December 2002 - the major holdup is securing a water supply for the Alamo Dorado leach project. Under the terms of a plan of arrangement, Pan American has acquired all of the issued and outstanding shares of Corner Bay. Each Corner Bay share has been exchanged for 0.3846 common shares of Pan American plus 0.1923 Pan American warrants, resulting in the issuance of a total of 7,636,659 Pan American common shares and 3,818,330 Pan American warrants. Each whole warrant will allow the holder to purchase a common share of Pan American for a price of C$12 at any time over a five-year period. The TSX has conditionally approved the listing of the Pan American warrants under the symbol PAA.WT. The listing is subject to Pan American fulfilling all of the requirements of the TSX as soon as practicable, including the distribution of the Pan American warrants to a minimum number of warrant holders.

Mineral reserves on the Alamo Dorado deposit (calculated at per ounce prices of US$4.60 silver and US$300 gold) include proven reserves of 23.36 million tonnes of ore grading 71 grams of silver per tonne and 0.27 grams of gold per tonne and probable reserves of 12.14 million tonnes of ore grading 60 grams of silver per tonne and 0.24 grams of gold per tonne (Qualified person -- Mintec, Inc., July 2002), containing approximately 77 million ounces of silver and 297,000 ounces of gold. The Alamo Dorado Project is located in the western foothills of the Sierra Madres mountain range and occupies a ridge top, making it ideal for low strip ratio, open pit mining.

The Alamo Dorado deposit is a grassroots exploration discovery made by Corner Bay in 1997. Corner Bay holds a right to earn a 100 percent interest, with no royalties, in the project located in Sonora State, Mexico. Corner Bay previously disclosed reserves (calculated at per ounce prices of $5.28 silver and $300 gold) of 50 million tonnes of ore grading 63.8 grams of silver per tonne and 0.23 grams of gold per tonne for the Alamo Dorado deposit (qualified person - MINTEC, Inc., Sept. 2000 Pre-feasibility Study) containing approximately 103 million ounces of silver and 371,000 ounces of gold. Corner Bay is currently awaiting completion of a feasibility study on the Alamo Dorado deposit by AMEC Simons Mining and Metals, a well-known independent engineering consulting firm. The ongoing feasibility study will be subject to review by Pan American prior to completion. The Alamo Dorado project is located in the western foothills of the Sierra Madres and occupies a ridge top, making it ideal for low strip ratio, open pit mining. Additional mineral resources in the deposit and ample exploration targets on the 5,370-hectare (13,400 acre) project could significantly expand the project's resource base.

Pan American's Chairman and CEO, Ross Beaty said, "I congratulate Peter on the excellent job Corner Bay has done in discovering Alamo Dorado and enhancing its value. This deposit fits Pan American like a glove and creates exceptional value for Pan American's shareholders. This transaction increases our Latin American reserves by almost 70 percent and is expected to increase our near-term silver production by more than 50 percent. In addition, over 75 percent of Alamo Dorado's value comes from silver, so it will also accentuate our existing silver purity. This acquisition will boost our silver reserves and resources to over 739 million ounces, and with Alamo Dorado in our development pipeline, Pan American's near-term annual silver production should reach 20 million ounces."



La Colorada, Zacatecas. Located 80 mi NW of Zacatecas City. Pan American Silver Corp. announced an increase in the mineral resource at its 100%-owned La Colorada project in Zacatecas State, Mexico. Pan American acquired a 100 percent interest in La Colorada in March 1998. The La Colorada property is located approximately midway between the cities of Zacatecas and Durango in west central Mexico. Drilling and underground development since acquisition proved that the total potential at La Colorada is very large, with mineralization found in veins, structural corridors, replacement bodies and breccias. You can view longitudinal and cross sections on Pan American's website.

Pan American's plans to initiate production from the sulfide veins at La Colorada in 2000 were revised when, in January 2000, a large new zone of oxide mineralization was discovered along the extension of one of the known veins. Rather than a 1.5-meter wide sulfide vein as expected, drilling and development encountered an oxidized, structural corridor with an average width of 15.5 meters and an average grade of 420 grams of silver per tonne. As a result, a production decision was postponed, the ore processing circuit and the mine development plan for La Colorada were modified and further definition work was performed. 5,312 meters of drilling (in 42 holes) and
730 meters of drifting were completed to further define this zone in early 2000. The potential to expand both oxide and sulfide reserves is outstanding.

In June, 2000 a positive bankable feasibility study was completed for La Colorada development. The current operating plan is based on mining 3.16 million tonnes grading 435 grams of silver per tonne and 0.50 grams of gold per tonne during a minimum 9-year mine life. Oxide ore will be mined for at least the first 6 years of operation. The ore will be crushed, ground and tank leached to yield silver-gold doré bars, containing at least 90 percent of their value in silver. Total capital costs for the new mine development are estimated at $26 million, including $8.1 million in mine development and $7.0 million for mill construction. The total costs to complete the mine, including provisions
for pre-production interest, additional contingencies and working capital, bank fees and other charges, is $30.5 million. Life-of-mine total cash costs per ounce of silver produced are estimated at $2.69 and total production costs are estimated at $4.05. In December the Company conditionally arranged $27 million in project loans to begin construction of a new mine. One of the conditions required for acceptance of this project financing was that Pan American hedge a significant portion (50 to 60 percent) of each year's silver production from La Colorada through the loan repayment term. The Company is awaiting modestly higher silver prices before completing this financing and beginning full-scale construction.

Pan American is also reviewing alternatives to enable fullscale construction and production at La Colorada with lesser hedging requirements. In the meantime, in January 2001 small-scale production was started from surface sulfide ore stockpiles and underground development headings at La Colorada. This production is yielding approximately 45,000 ounces of silver per month, can continue indefinitely without impacting long-term reserves, and will offset the project's care and maintenance costs while keeping the operating team intact.

The total resource for La Colorada is now 6.72 million tonnes grading 419 g/t silver, 0.31 g/t gold, 1.73% zinc and 1.04% lead as of 17Apr00. The first quarter at the La Colorada project was highlighted by the discovery of a wide new zone of high grade silver mineralization. The new zone remains open in at least three directions and is now defined by 21 drill holes and three crosscuts along a strike length of 400 m and at least 220 m vertically. To incorporate this significant zone, a new mineral resource study was completed in conjunction with, and fully audited by, MRDI Canada Inc., a division of AGRA Simons. The total resource is now over double the tonnage previously announced in 1999. 

MINERAL RESOURCE SUMMARY LA COLORADA RESERVES AND RESOURCES*
(as of December 31, 2000 * at $5.00/oz Ag; $300/oz Au; $1,100 per tonne zinc) 

  Tonnes Silver g/t Gold g/t Zinc % Lead %
Proven and Probable Oxide Reserve 2,314,947 440 0.54 0.96 0.54
Proven and Probable Sulfide Reserve 497,064 501 0.36 1.87 0.79
Measured and Indicated Resource 1,708,574 267 0.18 `.47 0.95
Inferred Resource in Veins 2,337,970 323 0.22 2.07 1.30
Inferred Resource in Breccias 5,000,000 108 0.24 0.57 1.65
TOTAL 11,858,255 255 0.29 1.13 1.23

The La Colorada Mine has produced for many years as a small, privately-owned, high-grade underground silver mine. Closed its 100% acquisition acquisition of property based on positive results from recently completed a 5,000 meter drilling program and engineering evaluation which confirmed the property's potential for expanded production. The purchase price was US$2.1 million, 304,000 common shares and a 5% NSR royalty, which can be reduced to 2% within five years for US$2 million. Plans are to expand present 150-200 tpd producer to around 600 tpd operation capable of producing 2,500,000 oz of Ag annually. This will involve the suspension of existing mine production, commencement of an underground development program including new drilling and tunneling, and construction of a new shaft and processing facility capable of at least 600 tonnes per day of production.

Drilling at La Colorada continued throughout 3Q98. Better-than-expected silver grades and vein thicknesses have enabled an increase in the new mine's proposed rate of production to 4.5 million ounces annually commencing in late 1999, up from the earlier production scenario of 3.0 million ounces per year.. Shaft rehabilitation is nearly complete (3Q98) and 3,700 meters of tunneling for mine development is underway. Environmental and permitting work for the new mine are proceeding on schedule. Construction of the mill facility is planned to begin in early 1999 with renewed silver production starting in late 1999. Capital spending on La Colorada development has totaled $2.5 million as of 3Q98. Below the high grade silver veins, deep drilling continues to encounter bulk mineable silver-lead-zinc mineralization in every hole drilled. Holes are still too widely spaced to generate ore reserves, but a large mineralized system with robust Ag+Pb+Zn values clearly exists and further exploration continues. More high grade intercepts reported in early 1999.

WWWinfo November, 2001
MBD February, 1999
Randol Conference Presentation, Jan. 1999
GCN #4 7Jan99
Press Release 16Nov98
Press Release 26May98
Press Release 23Mar98
GCN #14 21Jan98 (w/tabulated drill results)
MBD October, 1997

Plateros Project, Zacatecas. Pan American has acquired a 100% interest in the Plateros silver property, located 5 km north of the Fresnillo mine, the world's second largest silver mine. The property has a similar geological setting to Fresnillo and has been mined for silver since colonial times from a number of veins, with small scale silver mining continuing until 1997. A 2500 meter drilling program has commenced. At Fresnillo, ore-grade silver veins begin at depths of approximately 200 meters below surface and the Plateros drill program will test the deeper extensions of the known silver veins for Fresnillo-style mineralization. (Drilled it in 1998 and was not impressed with results)

Press Release 27Oct98

Lucita Property, Zacatecas. Controls 100% of vein targets with drilling 4Q96. The Lucita property, with 4,600 ha of surface, covers almost 25% of the historic colonial Zacatecas Ag district. Pan American has optioned to Teck Corporation a 60% interest in Pan American's 100% owned 8,795 hectare Lucita property, located 5 km north of Zacatecas City. Teck, one of Canada's largest mining corporations, may earn its interest by making a series of cash payments to Pan American and funding all project costs until delivery of a feasibility study. Teck's exploration focus will be the property's potential for a base metal sulfide deposit similar to the major new San Nicolas discovery 35 km southeast of Lucita, where Teck and Western Copper have announced more than 72 million tonnes of open pit copper-zinc-silver reserves.

Zacatecana Ag tailings deposit, Zacatecas. Pan American also acquired rights to these extensive tailings dating back to Spanish Colonial times from the Mexican government in May, 1995. A 160 hole reserve confirmation drill program was completed by 4Q95. Proven and probable reserves of 7.77 M tonnes at 74 grams Ag (18.4 million ounces). Target production of 2-3 Moz/yr operation to start-up mid 1997. Leased additional privately held tailings in Zacatecas District called Perdernalillos. Because of extensive Hg contamination in tailings (up to 300 grams) extensive discussions of regarding minimizing companies potential environmental liability are ongoing.

Valenciana Property, Zacatecas. Following unsuccessful drilling programs in 1996, Pan American carried out little exploration work in 1997. Interest in the region has increased significantly with the recent discovery of two large massive sulfide deposits in the region. Potential joint ventures are now being discussed with third parties for this property. No indication this was still in their files as of November 2001 website data. Maybe they dropped it.

CMH 1998-1999
GCN #54 18Mar97
Randol at Vancouver '96 Exhibitor
Corporate and Annual Reports
GCN #91 9May96
LAMR August, 1996
PAY November, 1995

Parall Property, Chihuahua. Option to acquire property in the Parall District where a 5000 m drill program is being planned

GCN #54 18Mar97

    

Alamo Dorado appears to be an exciting bulk-mineable and leachable silver deposit in southern Sonora State. Big news is that as of 02/21/03 Pan American Silver and Corner Bay completed their merger, which was approved by shareholders of both companies in early September 2002.

The transaction combines Pan American's silver production and operational experience with Corner Bay's Alamo Dorado silver-gold deposit. The Alamo Dorado deposit was a grass roots exploration discovery made by Corner Bay in 1997 in Sonora State, Mexico. Corner Bay holds a 100% interest, with no royalties, in this project.

Corner Bay Silver Inc.   BAY   (TSE)

Changed name from Corner Bay Minerals Inc. in order to promote position at Alamo Dorado. Mexican subsidiary is wholly-owned Minera Corner Bay S.A. de C.V.

Pan American Silver Corp. (Nasdaq - PAAS; Toronto - PAA) and Corner Bay Silver Inc. (Toronto - BAY) are pleased to announce that they have entered into an agreement whereby Pan American will acquire all of the issued and outstanding shares of Corner Bay pursuant to a plan of arrangement. The transaction will combine Pan American's strong silver production and operational experience with Corner Bay's proven exploration success that has resulted in the discovery of the Alamo Dorado silver-gold deposit, its principal asset.

The Alamo Dorado deposit is a grassroots exploration discovery made by Corner Bay in 1997. Corner Bay holds a right to earn a 100 percent interest, with no royalties, in the project located in Sonora State, Mexico. Corner Bay previously disclosed reserves (calculated at per ounce prices of $5.28 silver and $300 gold) of 50 million tonnes of ore grading 63.8 grams of silver per tonne and 0.23 grams of gold per tonne for the Alamo Dorado deposit (qualified person - MINTEC, Inc., Sept. 2000 Pre-feasibility Study) containing approximately 103 million ounces of silver and 371,000 ounces of gold. Corner Bay is currently awaiting completion of a feasibility study on the Alamo Dorado deposit by AMEC Simons Mining and Metals, a well-known independent engineering consulting firm. The ongoing feasibility study will be subject to review by Pan American prior to completion. The Alamo Dorado project is located in the western foothills of the Sierra Madres and occupies a ridge top, making it ideal for low strip ratio, open pit mining. Additional mineral resources in the deposit and ample exploration targets on the 5,370-hectare (13,400 acre) project could significantly expand the project's resource base.

Pan American's Chairman and CEO, Ross Beaty said, "I congratulate Peter on the excellent job Corner Bay has done in discovering Alamo Dorado and enhancing its value. This deposit fits Pan American like a glove and creates exceptional value for Pan American's shareholders. This transaction increases our Latin American reserves by almost 70 percent and is expected to increase our near-term silver production by more than 50 percent. In addition, over 75 percent of Alamo Dorado's value comes from silver, so it will also accentuate our existing silver purity. This acquisition will boost our silver reserves and resources to over 739 million ounces, and with Alamo Dorado in our development pipeline, Pan American's near-term annual silver production should reach 20 million ounces."

Alamo Dorado Ag/Au Property, Sonora. AMEC Simons Mining and Metals is conducting a feasibility study on behalf of the company. Results from ongoing drilling outside of  the known resource/reserve model returned 52.5 m grading 697  g/t silver and 0.41 g/t gold in hole AD-49. Mineralization displays good continuity with the southern extension of the starter pit area, occurring slightly deeper. Individual assay values of high-grade gold and silver are disseminated throughout the intercept. No significant sulphide mineralization was identified and the host rocks appear oxidized as are all other drill intercepts in the reserve/resource model. Plans are to drill to the south of hole AD-49

Phase II RC infill, down-dip and deepening of original holes returned results. A total of 8 drill fences 100 m apart covering strike length more than 500 m. span the length of mineralization Average of first 10 drill holes (just under 2000m total) is 100 grams Ag and 0.31 grams Au per tonne over a width of 70.1 meters. At least 23 holes totaling 6045m plus the extension of 12 earlier holes for 7,196 m have been drilled to date. Weighted average of wider intercepts is 108 m of 65 grams Ag and 0.22 grams Au. Basically a 2 to 3 opt Ag resource dipping 40 to 50 degrees to the west nearly a dip-slope scenario down to the valley floor.

Based on current economic parameters of $5.28/oz Ag and $300/oz Au, 20 gram Aqeq cutoff, 70% recovery etc.... Mintec Engineering of Tucson reported preliminary feasibility numbers of mineable/pittable "reserves" as being: 24,774,358 tonnes at 71 gpt Ag, 0.22 gpt Au or 56,378,946 oz Ag and 178,,541 oz Au. Infill drilling is scheduled to bring this up into the "measured" category for a final feasibility study. A 12-year, three phase pit with 200,000 tpm (tonnes per month) is envisioned.

Press Release 27Aug01
Press Release 12Apr00
Press Release 12Oct99
Press Release 1Mar99
LAMR December, 1998
GCN #224 23Nov98 (includes plan map and drill highlights)
Press Release 15Oct98
LAMR October, 1998
GCN #179 17Sep98
GCN #167 31Aug98
Press Release 25Aug98

Cerro Verde Cu oxide property near San Javier, Sonora. Optioned it to PD who can earn in at 60%. (NOTE: Magma Copper had an option on the same 367 ha. property in 1995.) Work in 1996 included a seven-hole program testing a 500m by 1000m surface anomaly. Drill hole CV-04 hit 196m of 0.34% Cu. This included a 68m intercept of 0.61% Cu and a Au-rich section of 28m of 0.050opt. PD plans additional drilling in 1997. Corner Bay has raised financing through private placement that will allow it to participate. To date PD has spent around $1.6M on this property - $0.3 M more than the minimum it was required to spend prior to forming a JV with Corner Bay to further develop property.

NMN v83#6 04/07/97
MBD December, 1996

Drilled San Martin Cu-oxide in northern Chihuahua. Property is located adjacent to 3,300 ha. Las Vigas Cu-Ag property which was optioned to Papago S.A. de C.V., a wholly-owned subsidiary of PD. They drilled this Cu occurrence in mid August. Claims are the Peru, Ecuador and Chile concessions located 11 SW of Coyame. (See PD for details)

La Crisis-El Pacto and surrounding properties in Chihuahua State. Option to acquire 100%. San Martin Area, in Roncesvalles area near Parral, Chihuahua was optioned by Noranda and drilled and dropped back to Corner Bay in 1995.

NMN v87#27 09/02/96
NMN v82#24 08/12/96
NMN v82#18 07/01/96
MBD May, 96 NMN
v82 #9 04/29/96
LAMR May, 1995
CMH 1996-1997