Pan American’s largest silver mine just got bigger

Pan American Silver (TSX, NYSE: PAAS) has discovered at least four new high-grade veins at its La Colorada silver mine in Zacatecas, Mexico, following a recent exploration campaign.

Drilling in the southeastern and eastern Candelaria zones identified the Filomena, Nicolasa, Bernardina and Josefina veins, along with associated contact-related replacement mineralization, the company said Thursday. About 40% of drill holes from the campaign returned silver assays exceeding 1,000 grams per tonne.

The high-grade intercepts indicate potential to expand mineral resources at the operation, Christopher Emerson, senior vice president of exploration and geology, said in the statement. Pan American expects to incorporate the new drilling data into its mineral reserve and mineral resource update scheduled for the end of June.

The discoveries also support Pan American’s revised strategy for a phased development plan at La Colorada focused on higher-grade zones within both the vein system and the skarn deposit.

The company continues to invest in Mexico despite the increasingly volatile environment. At least 22 states experienced unrest following the death of drug cartel leader Nemesio Oseguera last month.

Relative calm

Recent cartel-linked incidents — including the late January abduction of 10 Vizsla Silver (TSX, NYSE: VZLA) workers and the killing of some of them — highlight the strategic importance of Mexico’s mining industry, particularly for silver, TD Cowen mining analysts said in a February report.

Relative calm has since returned after authorities deployed soldiers and National Guard personnel to restore order, but tensions remain elevated, according to British security risk management firm MS Risk.

Pan American Silver ranks among the leading silver and gold producers in the Americas, with operations in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company also holds a 44% joint venture interest in the Juanicipio mine in Mexico and owns the Escobal mine in Guatemala, which remains on care and maintenance, along with several exploration and development projects across the region.

The company recently met its full-year 2025 production guidance, delivering a record 22.8 million oz. of silver, including 7.3 million oz. in the fourth quarter as operations strengthened across its portfolio.