FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For June 16, 2003
PAN AMERICAN SILVER CORP.
1500 - 625 HOWE STREET
VANCOUVER, B.C.
V6C 2T6
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F____ Form 40-F__X__
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes____ No__X__
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-____
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PAN AMERICAN SILVER CORP.
Date: June 16, 2003 By: /s/ Ross Beaty
--------------------------
Ross Beaty
Chairman and C.E.O.
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(PAN-AMERICAN SILVER CORP. LETTERHEAD)
NEWS RELEASE
June 16, 2003
PAN AMERICAN SILVER ADVANCES ALAMO DORADO
AND MANANTIAL ESPEJO DEVELOPMENT PROJECTS
(all figures in US dollars unless otherwise stated)
Vancouver, Canada - Pan American Silver Corp (NASDAQ -- PAAS; TSX -- PAA) is
pleased to announce excellent progress at two of its major development projects,
Alamo Dorado and Manantial Espejo, as part of its aggressive growth strategy.
The Alamo Dorado project in Mexico, acquired in early 2003 with the purchase of
Corner Bay Silver, continues on pace to feasibility by the fourth quarter.
Currently, Alamo Dorado contains proven and probable reserves of 35.5 million
tonnes grading 68 g/tonne silver, or 77 million ounces of silver as reported at
December 31, 2002 (John Thornton, Mintec, Qualified Person).
A recently completed seven-hole drill program* returned excellent silver and
gold grades and provided samples for metallurgical testwork to update the June
2002 feasibility study completed by Corner Bay. AMEC E&C Services Inc. has been
retained to confirm the economic benefit of adding a conventional mill circuit
to a small-scale heap leach operation. A conventional mill may improve
recoveries, thereby reducing production costs. All permits for the heap leach
operation have been received, except for water permits; however, the agreements
to lease water and the corresponding permits are expected to be in place by
October. Power supply options have been examined and discussions to source power
are underway with the Mexican power authority.
A production decision, complete with financing plans, is expected by the end of
this year. Pan American expects Alamo Dorado to produce 6 million ounces of
silver annually at an average cash cost of $3.25 per equivalent ounce of silver
starting in 2005.
In Argentina, a 6,000 m infill drilling program has been completed on the 50%
owned Manantial Espejo silver-gold joint venture. The results have confirmed the
size of the deposit and increased the Company's confidence in its geological
model, leading the joint venture to accelerate the commissioning of a
feasibility study on the property. The study will be initiated in the fourth
quarter for completion in the fall of 2004. Over the remainder of the year,
geotechnical and environmental work will proceed to facilitate permitting.
Currently, reported measured and indicated mineral resources at Manantial Espejo
total 4.39 million tonnes grading 264 g/tonne silver and 4.51 g/tonne gold, or
37 million ounces of silver and 620,000 ounces of gold, with an additional 13
million ounces of silver and 185,000 ounces of gold identified in inferred
resources of 1.59 million tonnes grading 259 g/tonne silver and 3.65 g/tonne
gold (Stewart Wallis, P.Geo, Qualified Person). The feasibility study will
evaluate the potential for Manantial Espejo to produce 4 million ounces of
silver and 70,000 ounces of gold annually.
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1500-625 HOWE STREET, VANCOUVER, BC CANADA V6C 2T6.
TEL 604.684.1175 FAX 604.684.0147
www.panamericansilver.com
In 2003, Pan American expects to produce more than 10 million ounces of silver.
The completion of the La Colorada expansion currently underway in Mexico,
coupled with the successful development of Alamo Dorado and Manantial Espejo
will see Pan American's production double to 20 million ounces of silver
annually in 2005.
For Further Information Contact:
Brenda Radies, VP Corporate Relations (604) 684-1175
Ross Beaty, Chairman and CEO (604) 684-1175
www.panamericansilver.com
*Most recent drill holes from Alamo Dorado:
AG AU AGEQV
HOLE# FROM TO METERS (G/TONNE) (G/TONNE) (G/TONNE)
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ADDDH-09 33 150 117 69 0.267 86
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ADDDH-10 48 195 147 110 0.331 132
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ADDDH-11 27 89 62 119 0.519 153
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ADDDH-11 109 145 36 47 0.171 58
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ADDDH-11 169 185 16 43 0.201 56
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ADDDH-12 73 238 166 118 0.209 131
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ADDDH-13 137 215 78 231 0.050 234
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ADDDH-14 83 171 87 149 0.814 202
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ADDDH-15 63 165 102 208 0.517 242
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Norm Pitcher, Chief Geologist, Mining and Development, Pan American Silver,
Qualified Person. All assays were performed by IPL Division of Midas Canada Inc.
with checks done by ALS Chemex Labs, with industry standard QA/QC procedures.
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CAUTIONARY NOTE
SOME OF THE STATEMENTS IN THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS AND
AS SUCH ARE BASED ON AN ASSUMED SET OF ECONOMIC CONDITIONS AND COURSES OF
ACTION. THESE INCLUDE ESTIMATES OF FUTURE PRODUCTION LEVELS, EXPECTATIONS
REGARDING MINE PRODUCTION COSTS, EXPECTED TRENDS IN MINERAL PRICES AND
STATEMENTS THAT DESCRIBE PAN AMERICAN'S FUTURE PLANS, OBJECTIVES OR GOALS. THERE
IS A SIGNIFICANT RISK THAT ACTUAL RESULTS WILL VARY, PERHAPS MATERIALLY, FROM
RESULTS PROJECTED DEPENDING ON SUCH FACTORS AS CHANGES IN GENERAL ECONOMIC
CONDITIONS AND FINANCIAL MARKETS, CHANGES IN PRICES FOR SILVER AND OTHER METALS,
TECHNOLOGICAL AND OPERATIONAL HAZARDS IN PAN AMERICAN'S MINING AND MINE
DEVELOPMENT ACTIVITIES, UNCERTAINTIES INHERENT IN THE CALCULATION OF MINERAL
RESERVES, MINERAL RESOURCES AND METAL RECOVERIES, THE TIMING AND AVAILABILITY OF
FINANCING, GOVERNMENTAL AND OTHER APPROVALS, POLITICAL UNREST OR INSTABILITY IN
COUNTRIES WHERE PAN AMERICAN IS ACTIVE, LABOR RELATIONS AND OTHER RISK FACTORS
LISTED FROM TIME TO TIME IN PAN AMERICAN'S FORM 40-F.
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