Pan American Silver To Resume Operations

After facing an armed robbery last week, Pan American Silver has selected a date to resume operations at its La Colorada mine. The company stated that its production and cost projections for 2023 are not expected to be affected due to the suspension of operations.

On Oct. 5, two trailers of concentrates were stolen from the Colorado mine during an armed robbery. The company reported that no employees were physically injured. However, the company decided to temporarily suspend operations at La Colorada due to security concerns at the mine and in the region.

Recently, Minister General of Government, Rodrigo Reyes Mugüerza, and representatives of the Army and the National Guard met with Pan American Silver to discuss the reopening of the mine. Following the meeting, the company decided to resume operations on Oct. 16, noting that the quick response of authorities and the company itself has ensured the safety of workers, contractors and residents of nearby communities.

Pan American noted that authorities agreed to facilitate safe transit to and from the La Colorada mine for employees and people in nearby communities. In addition, the company stressed that it will maintain communication with Mexican authorities to ensure a smooth resumption of operations.

Furthermore, Pan American announced that the theft and subsequent suspension of operations at La Colorada is not expected to have a material impact on its 2023 production and cost guidance nor on the expected timetable for the publication of the La Colorada Skarn PEA in 2023.

La Colorada
The “La Colorada” mine is the company’s largest silver producing project located in Zacatecas. The state is known for being a mining-friendly state and one of the most important locations for the industry in Mexico. In 2022, it produced 28.8% of the gold in the country, placing Zacatecas as the main gold-producing state. In the silver category, Zacatecas is the leader with 35.8% of Mexico's production. For copper, the state ranked second with 13.6% of the total production, according to CAMIMEX.

Pan American Silver reported that the La Colorada complex produces oxide and sulfide ore, processed through separate plants. Its total nominal processing capacity is 1,800t/d, divided between 1,400t/d of sulfide ore and 400t/d of oxide ore. The oxide plant comprises a conventional cyanide leach circuit consisting of crushing, grinding, leaching, Merrill-Crowe zinc precipitation and on-site refining to produce precious metal ore. The sulfide plant has a conventional floatation circuit comprised of crushing, grinding and selective lead and zinc froth flotation to recover precious and base metals.