Pan American Silver (PAAS +1.2%) reports positive results of a preliminary economic assessment of expanding its Dolores mine in Mexico.
PAAS says the ~$105M project has the potential to generate excellent after-tax economic returns using its current reserve metal prices of $22/oz. of silver and $1,300/oz. of gold, and project economics also remain robust at long term metal prices of $19/oz. of silver and $1,200/oz. of gold.
The project will increase average annual silver production to ~5M oz. from 3.65M oz, while average annual gold production will rise to 148K oz. from 111K.