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Pan American Silver completes La Colorada mine's new processing plant

Pan American SilverCorp. said July 13 that it has completed the commissioning of the newsulfide ore processing plant at its LaColorada silver mine in Mexico, which forms part of its expansion projectfor the mine.

The new processing plant started processing sulfide ore July1, achieving throughput rates of over 1,400 tonnes per day. The plant has alreadytreated over 14,000 tonnes by July 10 but throughput rates will be slightly reduceduntil the new mine shaft and additional underground development are completed foradditional ore supply.

Apart from the new plant, the expansion project includes theconstruction of a new 618-meter-deep mine shaft, additional underground developmentto sustain production at 1,800 tonnes per day and the installation of a new powerline.

According to Pan American, the construction of the new mine shaftis progressing well, with commissioning expected late in the third quarter. Miningand processing rates are expected to increase following completion of the mine shaft,ramping up to full processing rates of 1,800 tonnes of ore per day by the end of2017, once the expansion is concluded.

The company also said La Colorada's C$80 million expansion isproceeding on time and on budget. Once completed, the expansion will boost La Colorada'sannual production to about 7.7 million ounces of silver in 2018, up by 44% fromthe mine's 2015 output.