Pan American Silver Increases Reserves by 35.4 Million Ounces

| About: Pan American (PAAS)

As I mentioned in my recent article, Pan American Silver Corp. (NASDAQ:PAAS) indicated during its last conference call that it was having success in adding new reserves. On Friday the company issued a press release (.pdf) that provides more information. An excerpt is provided below.

Pan American Silver Corp. (PAAS) is pleased to announce the results of its 2006 year-end reserve and resource evaluation. In addition to replacing 100% of reserves mined during 2006, the Company added a further 20%, or 35.4 million ounces of silver, to its proven and probable reserves. At the Company’s operating and development properties, measured and indicated resources increased 12.1 million ounces, while inferred resources grew by 9.9 million ounces.

“Mining is all about building and then extracting the value from your reserve and resource book,” said Geoff Burns, President and CEO. “Our property-focused exploration efforts in 2006 yielded great results. We not only replaced all of our 2006 production, but also added significant new silver reserves and resources at every one of our operating or development properties. We now have proven and probable reserves for over ten years of mining at our current rates of production.”

I am looking forward to the conference call this week.

PAAS 1-yr chart

Disclosure: Author is long Pan American Silver.