-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TcSTjUoMoHQl8kDlSEq3L5eCtS+wp9kXYdvsIYPztlM01+4J8nWKCzAg8VKZprc6
 8zqxlVGOBuSMfoMRESGDew==

<SEC-DOCUMENT>0001137171-05-001733.txt : 20060817
<SEC-HEADER>0001137171-05-001733.hdr.sgml : 20060817
<ACCEPTANCE-DATETIME>20051014122205
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001137171-05-001733
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20051014

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PAN AMERICAN SILVER CORP
		CENTRAL INDEX KEY:			0000771992
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1500-625 HOWE STREET
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 2T6

	MAIL ADDRESS:	
		STREET 1:		1500 625 HOWE ST
		CITY:			VANCOUVER BC V6C 2T6
		STATE:			A1
		ZIP:			999999999

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PAN AMERICAN MINERALS CORP
		DATE OF NAME CHANGE:	19950608
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Filed by Filing Services Canada Inc 403-717-3898</TITLE>
<META NAME="keywords" CONTENT="Standard Letter">
<META NAME="author" CONTENT="Christopher Laffoon">
<META NAME="date" CONTENT="10/13/2005">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">September 28, 2005</P>
<P style="margin-top:26pt; margin-bottom:0pt; font-family:Times New Roman; font-size:26pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B><U>VIA HAND-DELIVERY</U></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:12pt; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt">United States Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549-7010<BR>
Attention: April Sifford, Branch Chief</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:72pt; padding-right:36pt; text-indent:-36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Re:</P>
<P style="margin:0pt; padding-left:72pt; padding-right:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Pan American Silver Corp.<BR>
Form 40-F for the Fiscal Year Ended December 31, 2004 <BR>
File No. 0-13727</I></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Dear Ms. Sifford:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Set forth below are the responses of Pan American Silver Corp., a corporation organized under the laws of Canada (the &quot;Company&quot;), to the comments of the staff (the &quot;Staff&quot;) of the Securities and Exchange Commission (the &#147;Commission&#148;) contained in the letter dated September 20, 2005 (the &quot;Comment Letter&quot;) with respect to the Annual Report on Form 40-F for the fiscal year ended December 31, 2004, filed with the Commission on March 31, 2005 via EDGAR. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>For the convenience of the Staff, we have numbered each of our responses to correspond to the numbered comments in the Comment Letter. &nbsp;Additionally, the text of each of the numbered comments in the Comment Letter has been duplicated in bold and italics type to precede each of the Company's responses. &nbsp;</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><U>Form 40-F for the Fiscal Year Ended December 31, 2004</U></I></B></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><U>Financial Statements</U></I></B></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><U>Note 6. Non-Producing Properties, page 13</U></I></B></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>1.</I></B></P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>You have disclosed contingent future payments related to the sale of the Dukat mine. Please revise Note 18 of your financial statements to disclose the following:</I></B></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I>&#183;</I></B></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I></I></B><FONT FACE="Times New Roman"><B><I>The dates by which any such contingent payments due could be determined,</I></B></FONT></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I>&#183;</I></B></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I></I></B><FONT FACE="Times New Roman"><B><I>The dates any such contingent payments would be due,</I></B></FONT></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I>&#183;</I></B></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I></I></B><FONT FACE="Times New Roman"><B><I>The duration of the agreement (i.e. does this agreement have an ending date or is it in perpetuity until the $22.5 million maximum amount is paid?), and</I></B></FONT></P>
<P style="margin-top:12pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><BR>
<BR></I></B></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities and Exchange Commission</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Page 2</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><I>&#183;</I></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B><I></I></B><FONT FACE="Times New Roman"><B><I>Any terms of the agreement that would result in a refund to the buyer of any prior amounts received.</I></B></FONT></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><U>Response:</U></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>As disclosed in Note 6, the future payments from the purchaser are to be determined annually based on the preceding year average silver price. &nbsp;Once the preceding year average silver price is determined, this amount is compared to a scale provided for in the agreement that ranges from $5.50 per ounce up to $10.00 per ounce to determine the dollar amount of the payment due to the Company. &nbsp;According to the scale, when the average silver price is $5.50 per ounce or less, there is no payment due to the company. &nbsp;The amount due within the range from $5.50 to $10.00 starts at zero and is graduated upward on the scale to $8 million when the preceding year average silver price reaches or exceeds $10.00 per ounce. The maximum amount payable in any given year is $8 million. &nbsp;The contingency in this agreement is the average silver price, because it is not known for certain if t
he future price will be over $5.50 per ounce. &nbsp;Since the entire $22.5 million may be uncollectible, the Company will only record additional consideration on the sale when the payments are determined to be receivable.</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>This arrangement exists until the buyer has paid the full $22.5 million due to the Company for the sale of its 20% interest in the Dukat mine. &nbsp;There is no provision in the agreement for the purchaser to demand back any of the funds paid to Company. &nbsp;&nbsp;</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Management considered the appropriate accounting for the contingent consideration in light of the provisions of FASB Statement 5, paragraph 17, which provides &#147;contingencies that might result in gains usually are not reflected in the accounts since to do so might recognize revenue prior to its realization.&#148;</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company&#146;s current disclosure provides the nature of the contingent receivable and the maximum amount receivable under the provisions of the Dukat sale. &nbsp;Given the uncertainty of the amount ultimately receivable and based on the volatility of past silver prices, the Company believes there is no additional disclosure or adjustments required to Note 18. &nbsp;</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><U>Note 16. Severance Indemnities and Commitments, page 21</U></I></B></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>2.</I></B></P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>&nbsp;You have discussed on page 65 of your filing that the Peruvian government has published a new law which establishes provisions for mine closure plans which may require insurance, cash collateral or other items. &nbsp;With consideration to Statement of Financial Accounting Standard (&#147;SFAS&#148;) No. 5, paragraph 3, tell us how your have evaluated the likelihood of this loss contingency, and the facts and circumstances that you considered. </I></B></P>
<P style="margin-top:12pt; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt" align=justify><U><BR>
<BR></U></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities and Exchange Commission</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Page 3</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><U>Response:</U></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Under Statement of Financial Accounting Standard (&#147;SFAS&#148;) No. 5, paragraph 3, when a loss contingency exists, the likelihood that the future event or events will confirm the loss impairment of an asset or the incurrence of a liability can range from probable to remote. &nbsp;SFAS No. 5 uses the terms <I>probable, reasonably possible</I>, and <I>remote</I> to identify three areas within that range, as follows:</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>a.</I></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Probable</I>. &nbsp;The future event or events are likely to occur.</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>b.</I></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Reasonably possible</I>. &nbsp;The chance of the future event or events occurring is more than remote but less than likely.</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:54pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>c.</I></P>
<P style="margin:0pt; padding-left:54pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Remote</I>. &nbsp;The chance of the future event or events occurring is slight.</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company has reviewed the loss contingencies discussed in Note 16, and has determined that the disclosure is appropriate for these loss contingencies and follows the guidelines discussed in SFAS No. 5, paragraph 3. With respect to the new Peruvian Mine Closure Law, the Company believes that any liability arising from the new Peruvian Mine Closure Law has already been considered in its evaluation of the Asset Retirement Obligation (&#147;ARO&#148;). &nbsp;The new mine closure law enacted a new requirement for the operators of the mines to submit to the Peruvian Ministry of Energy and Mines, within six months of the law entering into force, a mine closure plan. &nbsp;In addition, the new law requires that the operator of the mine grant an environmental warranty for the estimated costs of the mine closure plan. The plan and environmental warranty must be certified by the Peruvian governm
ent. &nbsp;The law is not clear on what form the environmental warranty will take but suggests that companies may fund or insure their environmental warranties by purchasing insurance, setting aside cash collateral, a trust agreement or maybe some other form as permitted by the civil code of Peru. &nbsp;The Company believes that its mine closure plans are designed to follow the guidelines that currently exist in Peru, and all of the additional requirements discussed on page 65 concerning the Peruvian mine closure law have been incorporated into the evaluation of ARO liability amount. &nbsp;In summary, the Company believes the likelihood of any additional liability arising from this legislation to be remote.</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>3.</I></B></P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I>If you have evaluated the likelihood of this loss contingency as other than remote based on comment two above, revise Note 18 of your financial statements to provide for accrual or disclosure of this loss contingency as required by SFAS No. 5, paragraphs 8-10, as appropriate.</I></B></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><U>Response:</U></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company respectfully submits that no additional accrual or disclosure is required to Note 18 based on the response to comment (2) above.</P>
<P style="margin-top:12pt; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt" align=justify><U><BR>
<BR></U></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities and Exchange Commission</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Page 4</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>We hope the above adequately responds to the Staff&#146;s Comment letter. Furthermore, in connection with this letter, the Company hereby acknowledges that:</P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify>&#167;</P>
<P style="margin:0pt; padding-left:72pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify><FONT FACE="Times New Roman">It is responsible for the adequacy and accuracy of the disclosure in its Form 40-F filing;</FONT></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify>&#167;</P>
<P style="margin:0pt; padding-left:72pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify><FONT FACE="Times New Roman">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the Company&#146;s Form 40-F filing; and</FONT></P>
<P style="margin-top:12pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify>&#167;</P>
<P style="margin:0pt; padding-left:72pt; line-height:14pt; font-family:Wingdings; font-size:12pt" align=justify><FONT FACE="Times New Roman">It may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</FONT></P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Please feel to contact the undersigned should you have any questions or comments.</P>
<P style="margin-top:12pt; margin-bottom:0pt; padding-left:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Very truly yours,</P>
<P style="margin-top:12pt; margin-bottom:0pt; padding-left:216pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:12pt; margin-bottom:0pt; padding-left:216pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Robert Doyle</P>
<P style="margin:0pt; padding-left:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Chief Financial Officer</P>
<P style="margin:0pt; padding-left:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Pan American Silver Corp.</P>
<P style="margin-top:12pt; margin-bottom:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>CC: Gary Newberry (Securities and Exchange Commission)</P>
<P style="margin-top:12pt; margin-bottom:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
