Pan American's Gold and Silver Project Commissioning Delayed

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Researched by Industrial Info Resources (Sugar Land, Texas)--Pan American Silver Corporation (NASDAQ:PAAS) (Vancouver, British Columbia) reported that the expected commissioning of its Manantial Espejo gold and silver project will be delayed approximately three months. The project schedule had called for initial silver and gold production in late August 2008, but the company now believes that start-up will commence in October, with initial production in November. The company stated that "slower than planned equipment deliveries and the recent theft, in transit, of critical electrical switchgear for the process plant has pushed back planned commissioning by an estimated three months." The stolen electrical equipment has been re-ordered and underground and open pit mining operations continue to run smoothly, the company said.

Manantial Espejo is located in the Province of Santa Cruz, southern Argentina, in the mineral-rich Patagonia region. The project entails the construction of an open pit and underground mine, as well as the installation of a mill to produce 400,000 ounces of silver and 8,000 ounces of gold from the 1.4 million ounces of silver and 27,000 ounces of gold originally anticipated. Capital cost has also been revised and the company now estimates that the project will cost about $200 million from the previous estimate of $185 million. Ingenieria Penta Sur S.A. (Buenos Aires, Argentina) and Ausenco Limitada (Buenos Aires) are providing engineering services for this project. Esuco S.A. (Buenos Aires) is in charge of construction of the project.

Pan American became a 100% owner of Manantial Espejo in March 2006 when it purchased compatriot Silver Standard Resources Incorporated's (NASDAQ:SSRI) 50% interest in the project. Pan American operates the project through its Argentine subsidiary, Minera Triton Argentina S.A. (Buenos Aires).

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