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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of, March 2006
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Commission File Number 000-13727
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Pan American Silver Corp
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(Translation of registrant's name into English)
1500-625 Howe Street, Vancouver BC Canada V6C 2T6
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40F:
Form 20-F Form 40-F X
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Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant 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
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
82-_______________
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DOCUMENTS INCLUDED AS PART OF THIS REPORT
1 Press release, dated March 23, 2006.
DOCUMENT 1
For Immediate Release
March 23, 2006
PAN AMERICAN TO DEVELOP THE MANATIAL ESPEJO SILVER PROJECT
(all amounts in $US unless otherwise stated)
Vancouver, Canada - Pan American Silver Corp. (PAAS: NASDAQ; PAA: TSX) is
pleased to announce that it has received approval from the Province of Santa
Cruz Argentina for the Environmental Impact Statement on its 100% owned
Manantial Espejo silver project and plans to immediately proceed with the
development and construction of the mine. The Company also signed an agreement
with the Federal Government of Argentina and the Province of Santa Cruz to bring
grid electrical power to the town of Gobernador Gregores with a sub-connection
to Manantial Espejo.
The recently completed feasibility study for Manantial Espejo estimates that the
project will produce on average 4.3 million ounces of silver and 62,000 ounce of
gold annually over a mine life of 8.5 years, based on current proven and
probable reserves. Capital costs for the project are expected to be $112.3
million including working capital and normal construction contingencies, plus
$18.1 million in Argentine Value Added Tax which will be refundable once the
mine is in production.
At the feasibility study price assumptions of US$6.75 per ounce for silver and
US$475 per ounce for gold, the mine will generate an undiscounted after tax net
present value of $72.6 million, an internal rate of return of 12% and a capital
payback of 3.5 years. Average life of mine cash costs will be $0.02 per ounce,
net of gold byproduct credits. At today's prices the undiscounted after tax net
present value of the project would be $169 million, the internal rate of return
increases to 25% and the capital payback period would be approximately 2.3
years.
Basic engineering for the project has been initiated and construction is
expected to take 18-20 months. Existing mineral reserves are concentrated in
four zones: the Maria, Karina Union, Melissa and Concepcion deposits which will
be developed using both open pit and underground mining methods. Silver and gold
recovery will be by conventional milling and leaching at a rate of 2,000 tonnes
per day. The feasibility study estimates that the recovery rates for silver and
gold will be 93% and 94%, respectively. Pan American is currently exploring
financing options for the project.
According to Pan American Chairman Ross Beaty; "Development of 100% of Manantial
Espejo secures Pan American's future as the world's number one primary silver
producer. Together with this project, the completion of our new Alamo Dorado
mine in the fourth quarter of this year and the expansion of our San Vicente and
Morococha mines, we expect to double our current annual production to more than
25 million ounces of silver by the end of 2008. We have received great
co-operation from the Argentine government at the federal and provincial levels,
and particularly from the local community of Gobernador Gregores. I look forward
to a successful mine development at Manantial Espejo for the benefit of
Argentina, the local community and of course our shareholders."
*Mineral Reserves and Resources as at December 31, 2005
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Tonnes Grade Grade Silver
(000s) (g/t Ag) (g/t Au) (ounces)
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Proven Mineral Reserves 2,743 176 2.47 15,522,000
Probable Mineral Reserves 2,848 211 3.18 19,271,000
Total 5,591 194 2.83 34,793,000
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Measured Mineral Resources Indicated 1,224 108 1.22 4,248,000
Mineral Resources 1,670 118 1.22 6,332,000
Total 2,894 114 1.22 10,580,000
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Inferred Mineral Resources 1,042 133 1.20 4,468,000
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*Michael Steinmann, P.Geo., Senior Vice-President Geology and Exploration for
Pan American Silver, has estimated the mineral resources and is the Qualified
Person for the resources. Martin Wafforn, P.Eng, Director of Mine Engineering
for Pan American Silver is the Qualified Person for the proven/probable mineral
reserves. The proven and probable reserves were calculated using a silver price
of US $6.25 per ounce and a gold price of US $425 per ounce.
-end-
For Further Information Contact: Pan American Silver Corp (604) 684-1175 or
visit the Company's website at www.panamericansilver.com.
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.
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.
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(Registrant)
Date: March 29, 2006 By: /S/ ROSS BEATY
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Name: Ross Beaty
Title: Chairman