TRX Gold Corporation press release

Pan American Silver Reports Mineral Reserves and Mineral Resources as at June 30, 2022

2022-08-10

TSX - Toronto Stock Exchange · Gold · Canada · Resource Estimate

Canada NewsWire

VANCOUVER, BC , Aug. 10, 2022 /CNW/ - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American", or the "Company") today reported its estimated mineral reserves and mineral resources as at June 30, 2022 . Proven and probable mineral reserves are estimated to contain approximately 514.9 million ounces of silver and 3.6 million ounces of gold. Measured and indicated mineral resources (excluding proven and probable reserves) are estimated to total approximately 838.6 million ounces of silver and 8.1 million ounces of gold. In addition, inferred mineral resources total 507.7 million ounces of silver and 5.7 million ounces of gold.

"We successfully replaced 11 million ounces of silver mineral reserves and 96.1 thousand ounces of gold mineral reserves at our producing mines over the past 12 months. Most of our exploration drilling was focused on near-mine exploration at La Colorada , Huaron and Timmins and produced positive results. Most notably, 7.3 million ounces of silver mineral reserves were added at La Colorada , more than replacing the 6.7 million ounces mined," said Christopher Emerson , Pan American's Vice President of Business Development and Geology. "Gold and silver mineral reserves were impacted by the reclassification of mineral reserves to mineral resources at the Dolores underground mine and considering the localized overestimation of the contained ounces within Phase 9B , which offset reserve gains at La Arena, Shahuindo and Timmins ."

Mr. Emerson added: "We continue to add mineral resources at our silver operations, with an increase of 20.7 million silver ounces in measured and indicated mineral resources and an increase of 47.3 million silver ounces in inferred mineral resources over the past year, largely attributed to gains at Huaron and La Colorada ."

This news release does not provide an update to the mineral resource estimate for the La Colorada Skarn. Pan American plans to provide that update in the third quarter of 2022.

Summary of Pan American's total mineral reserves and resources, as at June 30, 2022 (1,2,3)

| | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (Moz) | | Proven Reserves | 115.7 | 60 | 174.5 | 0.61 | 2.0 | | Probable Reserves | 112.3 | 124 | 340.4 | 0.48 | 1.6 | | Proven and Probable Reserves | 228.0 | 91 | 514.9 | 0.54 | 3.6 | | Measured Resources | 203.4 | 89 | 128.0 | 0.39 | 2.3 | | Indicated Resources | 751.8 | 118 | 710.6 | 0.30 | 5.8 | | Measured and Indicated Resources | 955.2 | 113 | 838.6 | 0.32 | 8.1 | | Inferred Resources | 404.0 | 51 | 507.7 | 0.73 | 5.7 |

| | | | | (1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2022". | | | (2) Please refer to the complete mineral reserve and resource table at the end of this news release for more information. | | | (3) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element. |

Summary of Pan American's total mineral reserves and resources, as at June 30, 2021 (1,2)

| | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (Moz) | | Proven Reserve | 122.0 | 60 | 180.4 | 0.63 | 2.3 | | Probable Reserves | 121.2 | 117 | 348.9 | 0.54 | 1.9 | | Proven and Probable Reserves | 243.2 | 89 | 529.3 | 0.58 | 4.2 | | Measured Resources | 219.5 | 68 | 121.0 | 0.36 | 2.3 | | Indicated Resources | 771.0 | 111 | 696.9 | 0.31 | 6.0 | | Measured and Indicated Resources | 990.5 | 101 | 817.9 | 0.31 | 8.3 | | Inferred Resources | 417.3 | 47 | 460.4 | 0.70 | 5.8 |

| | | | | (1) See the news release dated August 10, 2021 for the metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2021, and for the complete mineral reserve and resource tables. | | | (2) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element. |

Reserve and resource highlights for the 12 months ended June 30, 2022 :

At La Colorada , we added 7.3 million ounces of silver mineral reserves, replacing 108% of mined production. In addition, 42.8 million ounces of silver were added to inferred mineral resources, with infill drilling recovering to pre-COVID-19 levels. At Huaron, we added 7.0 million ounces of silver mineral reserves, replacing 165% of mined production. Net mineral reserves have increased for a second consecutive year, and exploration drilling has successfully expanded the southeastern portion of the deposit. At La Arena, we added 55.8 thousand ounces of gold mineral reserves, replacing 46% of mined production and extending mine life by an additional six months. Exploration drilling has increased mineral reserves for the past three years, and drilling on the northwest portion of the open pit has identified mineralization extending at shallow depths from the current pit. This zone remains open and will be targeted for further exploration in 2022. At Shahuindo, we added 161 thousand ounces of gold mineral reserves, replacing 81% of mined production. Infill drilling has increased model confidence with a focus on defining high grade structures in the northwest portion of the pit. At Timmins , we added 36.9 thousand ounces of gold mineral reserves, replacing 26% of mined production. In addition, exploration drilling has successfully defined 53 thousand ounces of new gold inferred mineral resources at the SW144 zone in the Timmins west mine.

A detailed summary of the silver and gold mineral reserves and mineral resources as of June 30, 2022 is provided in the following tables.

Pan American Mineral Reserves as at June 30, 2022 (1,2)

| Property | Location | Classification | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (koz) | | Silver Segment | | | | | | | | | Huaron | Peru | Proven | 7.0 | 169 | 38.1 | -- | -- | | Probable | 3.9 | 167 | 21.1 | -- | -- | | | | Morococha (92.3%) (3) | Peru | Proven | 3.3 | 156 | 16.6 | -- | -- | | Probable | 3.3 | 158 | 16.6 | -- | -- | | | | La Colorada | Mexico | Proven | 3.8 | 340 | 41.5 | 0.23 | 27.5 | | Probable | 6.2 | 303 | 59.9 | 0.18 | 36.0 | | | | Manantial Espejo | Argentina | Proven | 0.3 | 250 | 2.4 | 2.35 | 22.8 | | Probable | 0.1 | 246 | 0.9 | 3.06 | 10.8 | | | | San Vicente (95%) (3) | Bolivia | Proven | 1.1 | 314 | 10.8 | -- | -- | | Probable | 0.6 | 289 | 5.2 | -- | -- | | | | Joaquin | Argentina | Proven | 0.1 | 401 | 1.6 | 0.24 | 1.0 | | Probable | 0.0 | 575 | 0.6 | 0.31 | 0.3 | | | | Escobal | Guatemala | Proven | 2.5 | 486 | 39.5 | 0.42 | 34.2 | | Probable | 22.1 | 316 | 225.0 | 0.34 | 243.8 | | | | Total Silver Segment (4) | | | 54.3 | 275 | 479.7 | 0.33 | 376.3 | | Gold Segment | | | | | | | | | La Arena | Peru | Proven | 20.5 | -- | -- | 0.38 | 251.4 | | Probable | 21.8 | -- | -- | 0.27 | 191.8 | | | | Dolores | Mexico | Proven | 12.9 | 21 | 8.6 | 0.57 | 235.4 | | Probable | 4.1 | 18 | 2.4 | 0.60 | 77.7 | | | | Shahuindo | Peru | Proven | 58.9 | 8 | 15.3 | 0.51 | 971.3 | | Probable | 45.3 | 6 | 8.8 | 0.41 | 604.2 | | | | Timmins | Canada | Proven | 5.3 | -- | -- | 2.89 | 491.0 | | Probable | 4.9 | -- | -- | 2.74 | 432.5 | | | | Total Gold Segment (4) | | | 173.6 | 9 | 35.1 | 0.58 | 3,255.2 | | Total Gold and Silver Segments (4) | | Proven + Probable | 228.0 | 91 | 514.9 | 0.54 | 3,631.5 |

| | | | | (1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2022". | | | (2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology, and Martin G. Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in NI 43-101. | | | (3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated. | | | (4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element. |

Pan American Silver Measured and Indicated Mineral Resources as at June 30, 2022 (1,2)

| Property | Location | Classification | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (koz) | | Silver Segment | | | | | | | | | Huaron | Peru | Measured | 2.1 | 163 | 10.9 | -- | -- | | Indicated | 2.4 | 166 | 12.7 | -- | -- | | | | Morococha (92.3%) (3) | Peru | Measured | 0.6 | 130 | 2.7 | -- | -- | | Indicated | 0.7 | 124 | 3.0 | -- | -- | | | | La Colorada | Mexico | Measured | 1.9 | 216 | 13.0 | 0.14 | 8.2 | | Indicated | 3.4 | 191 | 20.8 | 0.17 | 18.0 | | | | Manantial Espejo | Argentina | Measured | 0.2 | 158 | 1.1 | 1.79 | 11.9 | | Indicated | 0.7 | 264 | 5.8 | 2.94 | 63.9 | | | | Joaquin | Measured | 0.1 | 349 | 1.3 | 0.29 | 1.0 | | | Indicated | 0.4 | 329 | 4.2 | 0.26 | 3.3 | | | | San Vicente (95%) (3) | Bolivia | Measured | 0.9 | 191 | 5.7 | -- | -- | | Indicated | 0.3 | 188 | 2.1 | -- | -- | | | | Navidad | Argentina | Measured | 15.4 | 137 | 67.8 | -- | -- | | Indicated | 139.8 | 126 | 564.5 | -- | -- | | | | Escobal | Guatemala | Measured | 2.3 | 251 | 18.6 | 0.23 | 16.7 | | Indicated | 14.2 | 201 | 91.6 | 0.20 | 93.0 | | | | Total Silver Segment (4) | 185.4 | 138 | 825.7 | 0.29 | 216.2 | | | | Gold Segment | | | | | | | | | Dolores | Mexico | Measured | 2.1 | 30 | 2.1 | 0.53 | 36.5 | | Indicated | 0.8 | 57 | 1.5 | 1.13 | 29.7 | | | | La Bolsa | Mexico | Measured | 10.8 | 10 | 3.5 | 0.70 | 242.8 | | Indicated | 10.6 | 8 | 2.7 | 0.54 | 184.3 | | | | Pico Machay | Peru | Measured | 4.7 | -- | -- | 0.91 | 137.5 | | Indicated | 5.9 | -- | -- | 0.67 | 127.1 | | | | La Arena | Peru | Measured | 0.8 | -- | -- | 0.16 | 4.0 | | Indicated | 2.1 | -- | -- | 0.17 | 11.9 | | | | Shahuindo | Peru | Measured | 8.3 | 5 | 1.3 | 0.29 | 76.7 | | Indicated | 13.2 | 4 | 1.8 | 0.23 | 98.1 | | | | Timmins | Canada | Measured | 3.4 | -- | -- | 3.32 | 357.6 | | Indicated | 4.5 | -- | -- | 3.08 | 449.6 | | | | La Arena II | Peru | Measured | 148.9 | -- | -- | 0.25 | 1209.7 | | Indicated | 547.5 | -- | -- | 0.23 | 4070.0 | | | | Whitney (82.8%) (3) | Canada | Measured | 0.8 | -- | -- | 7.02 | 180.7 | | Indicated | 1.9 | -- | -- | 6.77 | 406.3 | | | | Gold River | Canada | Indicated | 0.7 | -- | -- | 5.29 | 117.4 | | Marlhill | Canada | Indicated | 0.4 | -- | -- | 4.52 | 57.4 | | Vogel | Canada | Indicated | 2.2 | -- | -- | 1.75 | 125.0 | | Total Gold Segment (4) | 769.7 | 9 | 12.9 | 0.32 | 7,922.2 | | | | Total Gold and Silver Segments (4) | Measured + Indicated | 955.2 | 113 | 838.6 | 0.32 | 8,138.4 | |

| | | | | (1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2022". | | | (2) Mineral resource estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development, and Geology and Martin G. Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in NI 43-101. | | | (3) This information represents the portion of mineral resources attributable to Pan American based on its ownership interest in the operating entity as indicated. | | | (4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element. |

Pan American Inferred Mineral Resources as at June 30, 2022 (1,2)

| Property | Location | Classification | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (koz) | | Silver Segment | | | | | | | | | Huaron | Peru | Inferred | 7.2 | 155 | 36.1 | -- | -- | | Morococha (92.3%) (3) | Peru | Inferred | 5.2 | 143 | 24.0 | -- | -- | | La Colorada | Mexico | Inferred | 14.9 | 195 | 93.9 | 0.20 | 98.4 | | La Colorada skarn | Mexico | Inferred | 100.4 | 44 | 141.0 | -- | -- | | Manantial Espejo | Argentina | Inferred | 0.5 | 180 | 3.1 | 1.71 | 29.4 | | San Vicente (95%) (3) | Bolivia | Inferred | 2.9 | 249 | 23.3 | -- | -- | | Navidad | Argentina | Inferred | 45.9 | 81 | 119.4 | -- | -- | | Joaquin | Argentina | Inferred | 0.2 | 282 | 1.6 | 0.23 | 1.3 | | Escobal | Guatemala | Inferred | 1.9 | 180 | 10.7 | 0.90 | 53.7 | | Total Silver Segment (4) | 179.2 | 79 | 453.2 | 0.32 | 182.7 | | | | Gold Segment | | | | | | | | | Dolores | Mexico | Inferred | 2.5 | 29 | 2.4 | 0.92 | 74.4 | | La Bolsa | Mexico | Inferred | 13.7 | 8 | 3.3 | 0.51 | 224.6 | | Pico Machay | Peru | Inferred | 23.9 | -- | -- | 0.58 | 445.7 | | La Arena | Peru | Inferred | 6.0 | -- | -- | 0.22 | 42.3 | | Shahuindo | Peru | Inferred | 14.6 | 8 | 3.7 | 0.41 | 194.5 | | Shahuindo Sulphide | Peru | Inferred | 97.4 | 14 | 45.1 | 0.74 | 2323.3 | | Timmins | Canada | Inferred | 4.4 | -- | -- | 3.11 | 436.5 | | La Arena II | Peru | Inferred | 54.7 | -- | -- | 0.23 | 413.2 | | Whitney (82.8 %) (3) | Canada | Inferred | 0.8 | -- | -- | 5.34 | 141.4 | | Gold River | Canada | Inferred | 5.3 | -- | -- | 6.06 | 1027.4 | | Vogel | Canada | Inferred | 1.5 | -- | -- | 3.60 | 168.8 | | Total Gold Segment (4) | 224.8 | 13 | 54.5 | 0.76 | 5,492.2 | | | | Total Gold and Silver Segments (4) | Inferred | 404.0 | 51 | 507.7 | 0.73 | 5,674.9 | |

| | | | | (1) See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as of June 30, 2022". | | | (2) Mineral resource estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology, and Martin G. Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in NI 43-101. | | | (3) This information represents the portion of mineral resources attributable to Pan American based on its ownership interest in the operating entity as indicated. | | | (4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element. |

Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2022

| Mine | Category | Ag US$/oz | Au US$/oz | Cu US$/t | Pb US$/t | Zn US$/t | | Huaron | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | | Morococha | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | | La Colorada | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | | La Colorada skarn | Inferred Resource | 18.50 | | 6,500 | 2,200 | 2,600 | | Dolores | Reserves | 19.00 | 1,600 | | | | | Resources | 22.00 | 1,700 | | | | | | La Bolsa | All categories | 14.00 | 825 | | | | | Manantial Espejo | Reserves | 19.00 | 1,500 | | | | | Resources | 22.00 | 1,700 | | | | | | San Vicente | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | | Navidad | All categories | 12.52 | | | 1,100 | | | Pico Machay | All categories | | 700 | | | | | Joaquin | Reserves | 19.00 | 1,500 | | | | | Resources | 22.00 | 1,700 | | | | | | Escobal | All categories | 20.00 | 1,300 | | 2,204 | 2,424 | | Shahuindo | Reserves | 19.00 | 1,500 | | | | | Resources | 22.00 | 1,700 | | | | | | Shahuindo Sulphide | Inferred Resource | 15.00 | 1,400 | | | | | La Arena | Reserves | 19.00 | 1,500 | | | | | Resources | 22.00 | 1,700 | | | | | | La Arena II | All categories | | 1,500 | 8,816 | | | | Timmins | All categories | | 1,500 | | | | | Whitney | Resources | | 1,200 | | | | | Gold River | All categories | | 1,200 | | | | | Marlhill | All categories | | 1,125 | | | | | Vogel | Inside pit | | 1,150 | | | | | Below pit | | 1,150 | | | | |

General Notes with Respect to Technical Information

Mineral reserves and mineral resources are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum.

Pan American reports mineral resources and mineral reserves separately. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not mineral reserves have no demonstrated economic viability.

Pan American does not expect these mineral reserve and mineral resource estimates to be materially affected by metallurgical, environmental, permitting, legal, taxation, socio-economic, political, and marketing or other relevant issues.

The Company has undertaken a verification process with respect to the data disclosed in this news release. The mineral resource and mineral reserves databases compiling drilling and, in some cases, sampling, have been accumulated at each of Pan American mine sites by the qualified staff. Samples are analyzed at a variety of laboratories, including by in-house staff at the mine (San Vicente, Manantial Espejo, La Colorada ), mine laboratories operated by third party independent commercial labs (Huaron, Morococha), and commercial laboratories off-site (Shahuindo, La Arena, Timmins , Dolores). All the assay data used in the resource evaluation provided by each of the mines has been subjected to the industry standard quality assurance and quality control ("QA/QC") program including the submission of certified standards, blanks, and duplicate samples. The results are reviewed on a monthly basis by management. In general, the assay analytical technique for silver, lead, zinc and copper is acid digestion with either ICP or atomic absorption finish. The analytical technique for gold uses fire assay and a atomic absorption (AA) finish. A gravimetric finish would be used if the gold assay exceeds >10 g/t. The results of the QA/QC samples submitted for the resource databases demonstrate acceptable accuracy and precision. The Qualified Person is of the opinion that the sample preparation, analytical, and security procedures followed for the samples are sufficient and reliable for the purpose of this mineral resource and mineral reserve estimates. Pan American is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data reported herein.

See the Company's Annual Information Form dated February 23, 2022 , available at www.sedar.com for further information on the Company's material mineral properties, including detailed information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Company to estimate mineral reserves and mineral resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect the Company's business and the potential development of the Company's mineral reserves and mineral resources.

Quantities and grades of contained metal are shown before metallurgical recoveries.

Technical information contained in this news release with respect to Pan American has been reviewed and approved by Christopher Emerson , FAusIMM., Vice President Business Development and Geology, and Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, who are each Qualified Persons for the purposes of NI 43-101.

Pan American Silver Corp is authorized by The Association of Professional Engineers and Geoscientists of the Province of British Columbia to engage in Reserved Practice under Permit to Practice number 1001470.

About Pan American Silver

Pan American owns and operates silver and gold mines located in Mexico , Peru , Canada , Argentina and Bolivia . We also own the Escobal mine in Guatemala that is currently not operating. Pan American provides enhanced exposure to silver through a large base of silver reserves and resources, as well as major catalysts to grow silver production. We have a 28-year history of operating in Latin America , earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".

Learn more at panamericansilver.com .