EX-99.1 2 huaronni43-101technicalrep.htm EX-99.1

Document

1500 - 625 HOWE STREET

VANCOUVER, BC CANADA V6C 2T6

TEL 604.684.1175 • FAX 604.684.0147

www.panamericansilver.com

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

In accordance with the requirements of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities Administrators

Effective date: October 30, 2022

Prepared By:

M. Wafforn, P.Eng.

C. Emerson, FAusIMM.

A. Delgado, P.Eng.

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

1SUMMARY

1.1Introduction

This Technical Report has been prepared by Pan American Silver Corp. (Pan American or PAS), in accordance with the disclosure requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), to disclose relevant information about the Huaron property (the Property or Huaron). The report is an update to, and replaces, the “Technical Report for the Huaron Property, Pasco, Peru”, with an effective date of June 30, 2014, prepared by Pan American (2014 PAS Technical Report). The main purpose of this report is to give an update on the Property, the Huaron mine operation and report the current Mineral Resources and Mineral Reserves.

The effective date of this Technical Report is October 30, 2022 and the effective date of the Mineral Resources and Mineral Reserves which were depleted for mining at that time is June 30, 2022.

1.2Property description and ownership

This Technical Report refers to the Property, an underground silver-copper-lead-zinc mine located in the Huayllay district of the province of Pasco in the Central Highlands of Peru. Pan American is the 100% owner of Huaron and the mining concessions, through its wholly-owned subsidiary, Pan American Silver Huaron S.A.

1.3Geology and mineralization

The Property is located within the Western Cordillera of the Andes Mountains and the regional geology is dominated by Cretaceous aged Machay Group limestones and Tertiary aged Pocobamba continental sedimentary rocks, which are referred to as the Casapalca Red Beds.

These groups have been deformed by the Huaron anticline, the dominant structural feature of the local area. The limestones and sedimentary rocks are strongly folded and intruded by quartz monzonite and quartz monzonite dikes with associated fracturing. Following the intrusion of the dikes, the sedimentary rocks were further compressed and fractured, and subsequently altered and mineralized by hydrothermal fluids forming the Huaron deposit on the Property.

Huaron is a hydrothermal polymetallic deposit of silver, lead, zinc, and copper mineralization hosted within structures likely related to the intrusion of monzonite dikes, principally located within the Huaron anticline. Mineralization is encountered in veins parallel to the main fault systems, in replacement bodies known as “mantos” associated with the calcareous sections of the conglomerates and other favourable stratigraphic horizons, and as dissemination in the monzonitic intrusions at vein intersections.

1.4Status of exploration, development, and operations

The central part of the mineralization at Huaron is well defined by over 2,275 drillholes and has been the subject of prior Mineral Resource and Mineral Reserve estimates. Typical near mine exploration takes place on an annual basis, including testing of the open regions of the deposit at depth and along strike as well as infill drilling to upgrade the confidence categories of Mineral Resource and Mineral Reserve estimates.

The underground mine, mill, and supporting villages at Huaron were originally built in 1912 and operated until 1998, when a portion of the bed of a nearby lake collapsed and flooded the neighbouring underground mine. Through interconnected tunnels, the lake water entered and flooded the Huaron mine as well, causing its closure.

After the 1998 flooding, the Huaron mine operations were shut down and work was undertaken to clean up the flood damage, drain the workings, and prepare for an eventual mine re‐opening. The water level in the

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lake, which provided the source of floodwater, is currently maintained well below the level where it flooded into the old workings and no further flooding is expected.

Pan American acquired a majority interest in Huaron from Mauricio Hochschild & Cía Ltda. (Hochschild) in 2000 and began full scale operations in 2001. Production rates vary, but over the past several years the Huaron processing plant has processed between 900,000 to 1,000,000 tonnes of ore annually, producing copper, lead, and zinc concentrates containing approximately 3.7 million ounces (Moz) of silver, 6,000 tonnes of copper, 8,500 tonnes of lead, and 18,000 tonnes of zinc. Pan American expects to process approximately one million tonnes per annum (Mtpa) over the course of the remaining life-of-mine (LOM).

Studies for expansion of the existing tailings storage facility are currently underway including engineering design for a filtered-stacked tailings which is expected to be constructed in 2023 pending permitting approval. The filtered-stacked tailings facility will provide additional tailings storage capacity to the existing conventional pulp tailings storage facility.

No economic analyses or other engineering studies are currently underway.

1.5Mineral Resources

Pan American updates Mineral Resource estimates on an annual basis following reviews of metal price trends, operational performance and costs experienced in the previous year, and forecasts of production and costs over the LOM. Infill and near-mine drilling is conducted as required through the year. The drillhole data cut-off date for the commencement of the current geological interpretation was April 30, 2022 and the effective date of the Mineral Resource estimate is June 30, 2022.

The Mineral Resource estimates for the Property were prepared by Pan American staff under the supervision of, and reviewed by Christopher Emerson, FAusIMM, Vice President, Business Development and Geology of Pan American, who is a “Qualified Person” as that term is defined by NI 43-101 (QP). They have been estimated in accordance with the CIM Estimation of Mineral Resources and Mineral Reserves, Best Practice Guidelines (2019), and reported according to the CIM Definition Standards (2014).

Mineralization domains representing vein structures were defined in Leapfrog Geo software, while sub-block model estimates were completed within Datamine software, using capped composites and a multi-pass Ordinary Kriging (OK) or inverse distance squared (ID2) interpolation approach. Blocks weren´t classified, the mined panels were classified considering local drillhole spacing and proximity to existing development.

Wireframe and block model validation procedures including wireframe to block volume confirmation, statistical comparisons with composite and swath plots, visual reviews in three-dimensional (3D), longitudinal, cross section, and plan views, as well as cross software reporting confirmation were completed for all structures.

A summary of the Mineral Resource estimates as of June 30, 2022, for the Property are presented in Table 1.1, and is prepared in accordance with NI 43-101 definitions.

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Table 1.1    Summary of Mineral Resources as at June 30, 2022

Classification			Tonnes Mt			Ag g/t			Ag contained metal Moz			Cu %			Pb %			Zn %
Measured			2.08			163			10.88			0.42			1.58			3.05
Indicated			2.37			166			12.69			0.40			1.71			2.92
Measured + Indicated			4.46			165			23.57			0.41			1.65			2.98
Inferred			7.25			155			36.13			0.26			1.47			2.73

Notes:

•CIM Definition Standards (2014) were used for reporting the Mineral Resources.

•Mineral Resources exclude those Mineral Resources converted to Mineral Reserves.

•Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

•Mineral Resource estimates were prepared under the supervision of or were reviewed by Christopher Emerson, FAusIMM, Vice President, Business Development and Geology of Pan American.

•The Mineral Resource estimates are based on an incremental cut-off value of $80.59/t.

•Metal prices used are $19 per ounce of silver, $7,000/t for copper, $2,000/t for lead, and $2,600/t for zinc.

•The value per tonne (VPT) used to determine cut-off is based on a combination of metal price and individual metal recoveries which are variable throughout the deposit, and smelter considerations.

•Mineral Resources were constrained to conform with “reasonable prospects for eventual economic extraction” (RPEEE).

•The drillhole database was closed at April 30, 2022.

•Totals may not add up due to rounding.

1.6Mineral Reserves

Mineral Reserve estimates were prepared by Pan American technical staff under the supervision of and reviewed by Martin Wafforn, P.Eng., Vice President, Technical Services of Pan American, who is a QP.

Mineral Reserve estimates are based on assumptions that included mining, metallurgical, infrastructure, permitting, taxation, and economic parameters. Increasing costs and taxation and lower metal prices will have a negative impact on the quantity of Mineral Reserve estimates. There are no other known factors that may have a material impact on the Mineral Reserve estimates at Huaron.

Mineral Reserves for Huaron as of June 30, 2022, comprising material classified as Proven and Probable Reserves using metal prices of $19 per ounce of silver, $2,000 per tonne of lead, $2,600 per tonne of zinc, and $7,000 per tonne of copper, are given in Table 1.2.

Table 1.2    Summary of Huaron Mineral Reserves as of June 30, 2022

Classification			Tonnes Mt			Ag g/t			Ag contained metal Moz			Cu %			Pb %			Zn %
Proven			7.02			169			38.1			0.54			1.51			2.97
Probable			3.93			167			21.1			0.30			1.63			2.97
Proven + Probable			10.95			168			59.2			0.45			1.55			2.97

Notes:

•CIM Definition Standards (2014) were used for reporting the Mineral Reserves.

•Mineral Reserves are classified as Proven or Probable depending on the resource classification.

•Totals may not compute exactly due to rounding.

•Cut-off values are based on a silver metal price of $19/oz, lead metal price of $2,000/t, zinc metal price of $2,600/t, and $7,000 /t of copper.

•Metallurgical recoveries are based on feed grades, routine metallurgical testing results and historical recoveries.

•Mining recoveries for sub-level long hole stoping (SLOS) and cut and fill (C&F) are 93% and 95%, respectively.

•Unplanned mining dilution for SLOS is 7%, and the planned internal mining dilution is from 9% to 36% for SLOS. C&F has unplanned mining dilution of 5%, and the planned internal dilution varies from 18% to 31%. The average planned internal dilution for the LOM is 25%.

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•Mineral Reserve estimates were prepared under the supervision of or were reviewed by Martin Wafforn, P.Eng., Vice President, Technical Services of Pan American.

•Mr. Wafforn, P.Eng. is the Qualified Person for the Mineral Reserve estimates.

•Mineral Reserves are in addition to Mineral Resources.

1.7Mining

Mechanized longitudinal C&F is used in areas where the development of an access ramp can be economically justified. This is typically the case where the orebody is moderately dipping (<55°), sufficiently wide (up to 10 metres (m)) and economic veins are present, or where the north-south striking and east-west striking vein sets cross and provide additional mining faces. Drilling is undertaken with electric hydraulic jumbo drills and the broken ore is removed using scoop trams.

C&F mining at Huaron commences once the decline (spiral ramps) reaches the footwall (FW) drive or level access elevation of the orebody, usually midway along its strike length (see representative C&F sequence sketch in Figure 16.3). C&F is an overhand mining method, and the stope sequence begins with the lowest 3.5 m high lift. Then each subsequent lift requires the back of the level access to be slashed down (‘take down-back’ or TDB) to reach the next lift. There are typically four or five lifts between levels for a total rise of 15.0 m to 17.5 m from each access.

1.8Mineral processing and recovery methods

The Huaron mine operation is a 3,200 tonnes per day (tpd) mill with froth induced flotation to produce silver in copper, lead, and zinc concentrates. The mill flowsheet consists of three-stage crushing, ball mill grinding, and selective flotation of the ore to concentrates, followed by thickening and filtering of the concentrates. A portion of the tailings from the process are cycloned to produce sands for backfill material for the underground mining operation, and the fines and rest of tailings are deposited into a tailing impoundment facility.

1.9Infrastructure

The mine infrastructure comprises the underground mine workings, processing facilities, existing tailing impoundments, effluent management and treatment systems, waste rock storage facilities, maintenance shops and warehouses laboratories, storage facilities, offices, drill core and logging sheds, water and power lines, access roads, and the worker’s camp and recreational facilities. The primary source of power for the mine is the Peruvian national power grid which is sufficient for the mine’s current requirements. The power consumption is approximately 66 million kilowatt hours per year.

The operating mine is mature and site infrastructure including site roads are fully developed to support the existing mine production of one Mtpa.

1.10Environmental

The most significant environmental issue currently associated with the mine is treatment of the waters discharged from the mine and localized areas of acid rock drainage from historic tailings below the mine’s tailings deposit. All waters are captured and treated in a treatment plant near the exit of the Paul Nevejans drainage tunnel to achieve compliance with discharge limits. There are no known environmental or social issues that could materially impact the mine’s ability to extract the Mineral Resources and Mineral Reserves.

A full suite of environmental baseline and impact assessment studies were completed by Pan American for an update and tailings facility expansion Environmental Impact Assessment (EIA). The studies performed include surface water, groundwater, biodiversity, seismic hazards, soils, geomorphology, air quality, and climate. No material issues were identified in any environmental studies and the EIA was approved by the Peruvian Ministry of Energy and Mines in 2010. Pan American is planning to commence new baseline studies, which will supplement the regular environmental monitoring, for a modification to the Huaron EIA in mid-2022.

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Huaron participates in the Mining Association of Canada’s “Towards Sustainable Mining” program and has achieved Level A on environmental protocols.

1.11Capital and operating costs

Since the mine is in operation, any sustaining capital expenditures are justified on an on-going basis based on actual experience at the mine. Sustaining capital expenditures during 2022 primarily for mine development, diamond drilling, tailings facility expansions and mine infrastructure are estimated to total $17.5 million. The main mobile mining equipment is leased, and new leases will be undertaken throughout the mine life to ensure that the mining fleet maintains a high availability. Operating lease expenditures in 2022 are expected to total $2.7 million. The amount of diamond drilling conducted to extend the mine life beyond the existing Mineral Reserves forming the basis of the current LOM plan will be at the discretion of Pan American and may depend on the success of exploration and diamond drilling programs, if any, and prevailing market conditions.

1.12Conclusions and recommendations

Pan American has been operating Huaron since 2001 and expects to process approximately one Mtpa over the course of the remaining LOM.

Pan American conducts infill and near-mine drilling through much of the year and updates Mineral Resource and Mineral Reserve estimates on an annual basis following reviews of metal price trends, operational performance and costs experienced in the previous year, and forecasts of production and costs over the LOM.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other factors or risks that could materially affect the development of the Mineral Resources. Mineral Reserve estimates are based on assumptions that include mining, metallurgical, infrastructure, permitting, taxation, and economic parameters. Increasing costs and taxation and lower metal prices will have a negative impact on the quantity of Mineral Reserve estimates. There are no other known factors that may have a material impact on the Mineral Reserve estimates at Huaron.

Huaron is a producing mine. Studies for expansion of the existing tailings storage facility are currently underway including engineering design for filtered-stacked tailings. The authors of this report have no further recommendations to make at this time.

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TABLE OF CONTENTS

1 SUMMARY			2
1.1 Introduction			2
1.2 Property description and ownership			2
1.3 Geology and mineralization			2
1.4 Status of exploration, development, and operations			2
1.5 Mineral Resources			3
1.6 Mineral Reserves			4
1.7 Mining			5
1.8 Mineral processing and recovery methods			5
1.9 Infrastructure			5
1.10 Environmental			5
1.11 Capital and operating costs			6
1.12 Conclusions and recommendations			6
2 INTRODUCTION			17
2.1 General and terms of reference			17
2.2 The Issuer			17
2.3 Report authors			17
2.4 Sources of information			18
2.5 Other			18
3 RELIANCE ON OTHER EXPERTS			19
4 PROPERTY DESCRIPTION AND LOCATION			20
4.1 Location, issuer’s interest, mineral tenure, and surface rights			20
4.2 Mineral tenure and title			20
4.3 Royalties, back-in rights, payments, agreements, and encumbrances			23
4.4 Environmental liabilities			23
4.5 Permits			24
4.6 Significant factors and risks			24
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY			25
5.1 Access, transport, and population centre			25

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5.2 Climate, length of operating season, and physiography			26
5.3 Surface rights, land availability, infrastructure, and local resources			26
6 HISTORY			27
6.1 Ownership			27
6.2 Work carried out			27
6.3 Mineral Resource and Mineral Reserve estimates			27
6.4 Production			27
7 GEOLOGICAL SETTING AND MINERALIZATION			28
7.1 Regional and district geology			28
7.1.1 MESOZOIC: Upper Cretaceous			28
7.1.2 CENOZOIC: Paleogene - Neogene - Quaternary			30
7.1.3 Quaternary deposits			30
7.2 Property geology			31
7.3 Structure			32
7.3.1 Folding			32
7.3.2 Faulting			33
7.3.3 Unconformity			33
7.4 Alteration			33
7.5 Mineralization			33
8 DEPOSIT TYPES			36
9 EXPLORATION			37
10 DRILLING			39
10.1 Drilling summary and database			39
10.2 Drilling procedures			40
10.3 Exploration drilling			40
10.3.1 Summary			40
10.3.2 Exploration drilling programs			41
10.4 Concluding statement			42
11 SAMPLE PREPARATION, ANALYSES, AND SECURITY			43
11.1 Sampling method			43

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11.2 Sample storage and security			43
11.3 Sample preparation and analysis			43
11.4 Bulk density determinations			44
11.5 Quality Assurance and Quality Control (QA/QC)			44
11.5.1 Overview			44
11.5.2 Standard Reference Material			45
11.5.3 Blanks			50
11.5.4 Duplicate samples			51
11.5.5 Umpire samples			56
11.6 Summary statement			57
12 DATA VERIFICATION			58
12.1 Geology data reviews			58
12.2 Mine engineering data reviews			58
12.3 Metallurgy data reviews			58
13 MINERAL PROCESSING AND METALLURGICAL TESTING			59
13.1 Production metallurgical recoveries			59
13.2 Pocock 2022 SLS test work			59
14 MINERAL RESOURCE ESTIMATES			60
14.1 Introduction			60
14.2 Resource database			61
14.3 Discussion of the 2D method			61
14.4 Geological interpretation and modelling			62
14.5 Statistics and compositing			64
14.5.1 Compositing			64
14.5.2 Treatment of high-grade composites			70
14.6 Trend analysis			73
14.6.1 Variography			73
14.7 Search strategy and grade interpolation parameters			78
14.8 Bulk density			81
14.9 Block models			83

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14.10 Estimation			89
14.11 Block model validation			89
14.12 Mineral Resource classification			91
14.13 Reasonable prospects for eventual economic extraction			91
14.14 Mineral Resource tabulation			91
15 MINERAL RESERVE ESTIMATES			93
15.1 Introduction			93
15.2 Method			93
15.3 Cut-off value			93
15.4 Dilution and recovery factors			94
15.5 Mineral Reserve tabulation			94
16 MINING METHODS			96
16.1 Mining methods			96
16.1.1 Sub level open stoping			96
16.1.2 Mechanized longitudinal cut and fill			97
16.2 Materials handling			99
16.3 Underground access			99
16.4 Personnel			99
16.5 Geotechnical			99
16.6 Mining fleet and machinery			100
16.7 Backfill			100
16.8 Ventilation			100
16.8.1 Ventilation strategy			100
16.8.2 Emergency preparedness			101
16.9 Underground infrastructure			101
16.9.1 Service water			101
16.9.2 Underground workshop			101
16.9.3 Explosives magazine			101
16.9.4 Fuel storage			101
16.9.5 Compressed air			101

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16.9.6 Electrical power			102
16.9.7 Mine dewatering			102
16.10 Mine schedule			102
16.10.1 Production rate and expected mine life			102
16.10.2 Development schedule			102
17 RECOVERY METHODS			103
17.1 Introduction			103
17.2 Crushing			103
17.3 Grinding and classification			103
17.4 Flotation			103
17.5 Thickening and filtering			104
17.6 Tailings storage			104
17.7 Power, water, and process consumable requirements			104
17.8 Summary of metal production			105
18 PROJECT INFRASTRUCTURE			106
18.1 Transportation and logistics			107
18.2 Processing facilities			107
18.3 Water supply			107
18.3.1 Mine workshop			107
18.3.2 Explosives magazine			107
18.3.3 Fuel storage			107
18.3.4 Compressed air			108
18.3.5 Electrical power			108
18.4 Mine communication system			108
18.5 Tailings management facilities (TMF)			108
19 MARKET STUDIES AND CONTRACTS			109
20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT			110
20.1 Environmental factors			110
20.2 Environmental studies			110
20.3 Permitting factors			110

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20.4 Waste disposal			110
20.5 Site monitoring			110
20.6 Water management			111
20.7 Social and community factors			111
20.8 Project reclamation and closure			111
20.9 Expected material environmental issues			111
21 CAPITAL AND OPERATING COSTS			112
22 ECONOMIC ANALYSIS			113
23 ADJACENT PROPERTIES			114
24 OTHER RELEVANT DATA AND INFORMATION			115
25 INTERPRETATION AND CONCLUSIONS			116
26 RECOMMENDATIONS			117
27 REFERENCES			118
28 QP CERTIFICATES			119

Tables

Table 1.1 Summary of Mineral Resources as at June 30, 2022			4
Table 1.2 Summary of Huaron Mineral Reserves as of June 30, 2022			4
Table 2.1 Responsibilities of each qualified person			17
Table 2.2 Responsibilities of those assisting each qualified person			18
Table 4.1 Mining concession details			21
Table 9.1 Summary of channel samples			37
Table 10.1 Drillhole summary			39
Table 10.2 Greenfield drilling 2014 to 2017			41
Table 11.1 Summary of all QA/QC samples 2015 – May 2022			45
Table 11.2 Summary of QA/QC sample submission rates 2015 – May 2022			45
Table 11.3 Summary of SRM performance – 2006 - 2013			46
Table 11.4 SRMs submitted 2015 – May 2022			46
Table 11.5 Summary of SRMs submitted for analysis – 2015 – May 2022			47
Table 11.6 Summary of SRM failures – 2015 – May 2022			47
Table 11.7 Summary of coarse blank performance 2015 - May 2022			51
Table 11.8 Summary of field duplicate performance – 2006 - 2013			52
Table 11.9 Summary of pulp duplicate performance – 2006 - 2013			52

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Table 11.10 Summary of field duplicate performance Ag, Cu, Pb, and Zn – 2017 - May 2022			53
Table 11.11 Summary of coarse duplicate performance Ag, Cu, Pb, and Zn – 2017 –May 2022			54
Table 11.12 Summary of pulp duplicate performance Ag, Cu, Pb, and Zn – 2015 - 2017			55
Table 11.13 Summary of umpire duplicate performance Ag, Cu, Pb, and Zn – 2015 - May 2022			56
Table 13.1 Metallurgical recovery by year			59
Table 14.1 Summary of Mineral Resources – June 30, 2022			60
Table 14.2 Modelled structures			63
Table 14.3 Composites statistics			65
Table 14.4 Composites statistics and capping levels			71
Table 14.5 Variogram parameters			73
Table 14.6 Search strategy and grade interpolation parameters			78
Table 14.7 Composite selection plan			80
Table 14.8 Density statistics by domain			82
Table 14.9 Block model details			83
Table 14.10 Economic input parameters for Mineral Resource COGs			91
Table 14.11 Huaron Mineral Resources as of June 30, 2022			92
Table 15.1 Huaron unit costs considered for reserves cut-off value estimation			94
Table 15.2 Summary of Huaron Mineral Reserves as of June 30, 2022			95
Table 16.1 Current underground mobile mining equipment			100
Table 17.1 Summary of major process consumables			105
Table 17.2 Metal production for the past 9 years			105
Table 21.1 Annual operating costs			112

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Figures

Figure 4.1 Property location map			20
Figure 5.1 Huaron location map			25
Figure 5.2 Huaron site overview			26
Figure 7.1 Regional stratigraphic column			29
Figure 7.2 Schematic view of local geology			32
Figure 7.3 Cross section showing anticlinal structure			33
Figure 7.4 Plan of mineralized trends			35
Figure 10.1 Huaron drillhole location map			40
Figure 10.2 Location map of exploration drilling			41
Figure 11.1 STD-MEDIO SRM Control Chart (Au, Ag, Pb, Zn) – 2015 - May 2022			48
Figure 11.2 ESTANDER ALTO SRM Control Chart (Au, Ag, Pb, Zn) – 2020 - May 2022			49
Figure 11.3 Ag blank control chart – 2015 - May 2022			50
Figure 11.4 RPD and scatter plot of field duplicates for Ag – 2017 – May 2022			53
Figure 11.5 RPD and scatter plot of coarse duplicates for Ag – 2017 - May 2022			55
Figure 11.6 RPD and scatter plot of pulp duplicates for Ag – 2015 - 2017			56
Figure 11.7 RPD and scatter plot of umpire duplicates for Ag – 2015 - May 2022			57
Figure 14.1 Example longitudinal section showing a 2D estimate			62
Figure 14.2 Wireframes of the structures			64
Figure 14.3 Histogram of sample interval lengths within Juanita Ramal structure			69
Figure 14.4 Probability plot Ag ppm at Juanita Ramal vein			70
Figure 14.5 Variogram of Ag at Juanita Ramal			77
Figure 14.6 Longitudinal section Juanita Ramal			89
Figure 14.7 Strike swath plot at Juanita Ramal			90
Figure 14.8 Cross strike swath plot at Juanita Ramal			90
Figure 16.1 Plan view of Huaron underground			96
Figure 16.2 Sub level stoping long section			97
Figure 16.3 Cross section of C&F mining			98
Figure 18.1 Mine infrastructure plan			106

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ABBREVIATIONS AND ACRONYMS

Abbreviations & acronyms			Description
$			United States dollar
$/oz			Dollar per ounce
$/t			Dollar per tonne
%			Percentage
°			Degree
°C			Degree Celsius
µm			Micron
3D			Three-dimensional
AMC			AMC Mining Consultants (Canada) Ltd.
ANFO			Ammonium nitrate fuel oil
C&F			Cut and fill
cm			Centimetre
COG			Cut-off grade
EAU			Economic Administrative Unit
EIA			Environmental Impact Assessment
FW			Footwall
g			Gram
g/cm3			Gram per cubic centimetre
g/t			Grams per tonne
G&A			General and Administration
ha			Hectare
Hochschild			Mauricio Hochschild & Cía Ltda.
HW			Hangingwall
ID2			Inverse distance squared
INGEMMET			Institute of Geology, Mining, and Metallurgy
kg			Kilogram
km			Kilometre
km2			Squared kilometre
kV			Kilovolt
LDL			Lower limit of analytical detection
LOM			Life-of-mine
m			Metre
m2			Squared metre
m3			Cubic metre
m3/hr			Cubic metre per hour
m3/s			Cubic metre per second
MEM			Ministry of Energy and Mines
mm			Millimetre
Moz			Million ounces
Mt			Million tonnes
MTPD			Metric tonnes per day
Mtpa			Million tonnes per annum
MW			Megawatt

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Abbreviations & acronyms			Description
NI 43-101			National Instrument 43-101
NSR			Net Smelter Return
OK			Ordinary kriging
oz			ounce
P80			80% Passing
PAS, Pan American			Pan American Silver Corp.
Penarroya			French Penarroya Company
ppm			Parts per million
Property			Huaron Property
QA/QC			Quality assurance and quality control
QP			Qualified Person
RPD			Relative paired difference
RPEEE			Reasonable prospects for eventual economic extraction
SD			Standard deviation
SEIN			National Interconnected Electrical System
SLOS			Sub‐level open stoping
SMT			Special Mining Tax
SRM			Standard reference material
t			Tonne
TDB			Take-down-back
TMF			Tailings Management Facility
tpd			Tonnes per day
VPT			Value per tonne

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

2INTRODUCTION

2.1General and terms of reference

This Technical Report has been prepared by Pan American, in accordance with the disclosure requirements of NI 43-101, to disclose relevant information about the Property. The report is an update to, and replaces, the 2014 PAS Technical Report, with an effective date of June 30, 2014, prepared by Pan American. The main purpose of this report is to give an update on the Property, the Huaron mine operation, and report the current Mineral Resources and Mineral Reserves.

The effective date of this Technical Report is October 30, 2022. The effective date of the Mineral Resource and Mineral Reserve estimates are June 30, 2022. No new material information has become available between these dates and the signature date given on the certificate of the QPs.

2.2The Issuer

Pan American is a silver mining and exploration company listed on the Toronto (TSX:PAAS) and NASDAQ (NASDAQ:PAAS) stock exchanges. It has a diversified portfolio of mining and exploration assets located throughout the Americas, which includes 10 operating mines.

2.3Report authors

The names and details of persons who prepared this Technical Report, are QPs and are not independent of Pan American. The responsibilities of each QP are provided in Table 2.1.

Table 2.1    Responsibilities of each qualified person

Qualified Persons responsible for the preparation and signing of this Technical Report

Qualified Person

Position

Employer

Independent of Pan American

Date of last site visit

Professional designation

Sections of report

Martin Wafforn

Senior Vice President, Technical Services and Process Optimization

Pan American Silver Corp.

No

October 27 2021

P.Eng.

2 - 5, 15, 16, 19 - 22, 24 - 26 and 1.1, 1.7, 1.8, 1.11, 1.12, 12.2

Christopher Emerson

Vice President, Business Development and Geology

Pan American Silver Corp.

No

October 27 2021

FAusIMM

6 - 11, 14, 23, 27 and 1.2, 1.3, 1.4, 1.6, 12.1

Americo Delgado

Vice President, Mineral Processing, Tailings and Dams

Pan American Silver Corp.

No

September 21 - 23, 2021

P.Eng.

13, 17, 18, and 1.5, 1.9, 1.10, 12.3

Those who have assisted the QPs in its preparation, are also listed in Table 2.2.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Table 2.2    Responsibilities of those assisting each qualified person

Other experts who have assisted the QPs

Expert

Position

Employer

Independent of Pan American

Visited site

Sections of report

Mo Molavi

Director / Principal Mining Engineer

AMC

Yes

No

All

Mort Shannon

General Manager / Principal Geologist

AMC

Yes

No

2 - 12, 14.

Paul Salmenmaki

Principal Mining Engineer

AMC

Yes

No

15, 16,

Carlos Manchego

Senior Manager Mineral Resources

Pan American Silver Corp.

No

Yes

14

Sam Coronado

Mine Geology Director

Pan American Silver Corp

No

Yes

7 - 12

Brian Brodsky

Director of Geology

Pan American Silver Corp.

No

Yes

6 - 12

Mathew Andrews

Vice President, Environment

Pan American Silver Corp.

No

Yes

4, 5, 20

Carl Defilippi

Engineering Manager

KCA

Yes

Yes

13, 17

Caleb Cook

Project Engineer/ Project Manager

KCA

Yes

No

13, 17

Note: AMC refers to AMC Mining Consultants (Canada) Ltd. KCA refers to Kappes, Cassiday & Associates.

2.4Sources of information

Unless otherwise stated, information, data, and illustrations contained in this report or used in its preparation have been provided by Pan American for the purpose of this report. The most recent prior Technical Report is the 2014 PAS Technical Report, with an effective date of June 30, 2014, prepared by Pan American.

2.5Other

Inspections of the Property are carried out regularly by the QPs. The most recent visits are discussed below.

Mr. Wafforn visits the Property two or three times annually as part of his duties with Pan American. His most recent site visits were on January 21, 2021 and October 27, 2021. During these visits, Mr. Wafforn reviewed the operational mine plan, actual mine operation data, the development advance and plans for the underground mine, consultant’s geotechnical reports, mine budget plans, reserve to grade control to actual reconciliations, the site layout and logistics for mining and processing, safety protocols and indicators, the environmental layout, and general business performance.

Mr. Emerson most recently visited the Property on October 27, 2021. During the visit Mr. Emerson reviewed the exploration drilling, sampling, and sample security protocols, drill core and the core cutting and storage facilities, bench and surface mapping, cross sections, the operational mine plan, actual mine operation data, grade control protocols, mining leases, site access, surface rights information, and general business performance.

Mr. Delgado makes regular visits and most recently visited the Property on September 21-23, 2021. During the visit Mr. Delgado reviewed the processing and tailings storage facilities, tailings management system, mineral processing parameters, metallurgical balances, consultant’s geotechnical designs and reports, operational practices and data, and general business performance.

Unless otherwise stated, all units are in metric and currencies are expressed in United States dollars.

This report has an effective date of October 30, 2022.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

3RELIANCE ON OTHER EXPERTS

The QPs responsible for this report have relied on the following internal expert within the organization for input to certain sections of this report for which they do not have specific expertise and have taken appropriate steps, in their professional judgement, to ensure that the work, information, or advice that they have relied upon is sound:

Mathew Andrews, Vice President Environmental, Pan American has contributed to Sections 4.4, 4.5, and 20 by providing information and opinions relating to environmental details that are described in those sections. The information and opinions are believed to be current, accurate and complete as of the effective date of this report.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

4PROPERTY DESCRIPTION AND LOCATION

4.1Location, issuer’s interest, mineral tenure, and surface rights

The Property within which the Huaron underground polymetallic silver mine is located, is in the Huayllay district of the province of Pasco in the Central Highlands of Peru. It is located at a latitude of 11°00’S and a longitude of 76°25’W. The nearest city of Cerro de Pasco is a major mining centre and the capital of the region, with a population of approximately 70,000. A map of the Property location is shown in Figure 4.1.

Figure 4.1    Property location map

Source: Google Earth Pro (2021).

4.2Mineral tenure and title

Pan American is the 100% owner of Huaron and the mining concessions, through its wholly-owned subsidiary, Pan American Silver Huaron S.A. The mineral rights are held on 171 mining concessions with a combined area of 15,576.31 hectares (ha), covering all of the Mineral Resources and Mineral Reserves, and surface infrastructure, as well as one processing concession. The concessions are permanently granted provided that the holder complies with an annual payment to the Institute of Geology, Mining, and Metallurgy (INGEMMET), which is a branch of the Peruvian Ministry of Energy and Mines. Pan American makes the required annual payments to maintain the mining concessions and has agreements in place granting surface rights and legal access to the mining operations. To Pan American’s knowledge, all obligations required for the conduct of mining operations at Huaron are currently in good standing.

There are three types of concessions present on the Property, including mining concessions, which grant holders of the concessions the right to explore and exploit the Mineral Resources within the concession;

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

processing concessions, which grant the right to process minerals, and concessions which grant the right to provide auxiliary services to the mining concessions and lie outside the Economic Administrative Units (EAUs). Details of the 171 mining concessions and the processing concession are given in Table 4.1. Other than the Processing concession, which is not assigned an area, 121 of the mining concessions are concessions required by the mine operations and cover 4668.82 ha, and the remaining 48 mining concessions are outside of the EAUs and cover 10,807.50 ha. This gives a total area of 15,476.31 ha for the total concession area.

Table 4.1    Mining concession details

Number

Name

Area (ha)

Number

Name

Area (ha)

Processing concession

P0100085

Concentradora Francois

N/A

Mining concessions

04003370Y01

ABUNDANCIA

0.1603

04002451Y01

CONSTANCIA

1.0825

0403370AY01

ABUNDANCIA-A

0.0486

0402451AY01

CONSTANCIA-A

0.0739

04013287X01

ACUMULACION HUARON - 4

96.6606

04008037X01

CORDOBA

0.9554

04013289X01

ACUMULACION HUARON 6

251.6261

04012511X01

DARDANELOS

0.1982

04013284X01

ACUMULACION HUARON-1

795.6725

04003615X01

DIECINUEVE DE SETIEMBRE

0.5719

04013285X01

ACUMULACION HUARON-2

540.4909

04013463X01

DON JUAN Nº 2-88

687.5424

04013286X01

ACUMULACION HUARON-3

534.3813

04004653X01

DON PABLO

0.0464

04013290X01

ACUMULACION HUARON-7

787.1053

04003023X01

EL RAYO

0.2082

04002265Y01

ALIANZA Y FIRMEZA

0.0639

04003024X01

EL TRUENO

0.0741

0402265AY01

ALIANZA Y FIRMEZA-A

0.0169

04008033X01

ESPAÑA

0.1120

04004655X01

ALICIA

0.7654

04006692X01

FARALLON

7.9860

04002572X01

ALPAMINA

0.0506

04008586X01

FLORENCIA

0.1164

0402572AX01

ALPAMINA-A

0.8525

0403093AY01

FLORENCIA-A

0.2448

04000997X01

ANIMAS

0.1872

04004527X01

GAVIOTA

0.9225

04003431X01

APURO

0.3709

0404527AX01

GAVIOTA-A

1.8589

04000466X01

BALCON DE JUDAS

17.9689

04008276X01

GRANADA

5.5781

04001000X01

BALSAMO

1.9965

04004591X01

GUILLERMO BILLINGHURST

0.2760

04013394X01

C.M.H. Nº 101

0.5690

04002568X01

HUALGAYOC

0.0451

04013495X01

C.M.H. Nº 102

1.1554

04002567X01

HUANCAVELICA

0.0314

04013496X01

C.M.H. Nº 103

0.1834

04006355X01

HUAROCHIRI

0.5925

04010514X01

C.M.H. Nº 15

125.7841

010250094

HUARON 1

211.6553

04008913X01

C.M.H. Nº 16

0.7284

010250194

HUARON 2

1.6569

04008319X01

C.M.H. Nº 2

0.9388

010250294

HUARON 3

180.9170

04009299X01

C.M.H. Nº 25

21.6565

010250394

HUARON 4

127.5334

04009300X01

C.M.H. Nº 27

2.7139

010250494

HUARON 5

29.6580

04009301X01

C.M.H. Nº 28

29.6141

04008295X01

JUANA

0.0437

04008320X01

C.M.H. Nº 3

0.5161

04002211Y01

LA ALIANZA

11.9792

04009303X01

C.M.H. Nº 30

0.3297

04001001X01

LA CENTRAL

1.9966

04009433X02

C.M.H. Nº 33

1.7925

04006749X01

LA HUACA

0.7078

04009435X01

C.M.H. Nº 35

0.2543

0403589AY01

LA HUACA-A

0.0883

0403885AY01

C.M.H. Nº 3-A

0.7375

0403589BY01

LA HUACA-B

0.0486

04009481X01

C.M.H. Nº 44

0.8016

04004599X01

LA PEDRERA

0.5145

04008593X01

C.M.H. Nº 5

0.2413

04000099X01

LA PROVIDENCIA

0.0114

04009488X01

C.M.H. Nº 51

0.1332

04000998X01

LA TAPADA

3.9931

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Number

Name

Area (ha)

Number

Name

Area (ha)

04009495X01

C.M.H. Nº 52

0.8838

04770771X01

LABOR Y CONSTANCIA

23.9590

04009581X01

C.M.H. Nº 57

0.0967

04001486X01

MANLINCHER

5.9959

04009589X01

C.M.H. Nº 65

0.0837

04006337X01

MARIA

0.0836

04009591X01

C.M.H. Nº 67

0.0288

04000632X01

MARTE

0.0798

04008823X01

C.M.H. Nº 7

0.1435

04008014X01

MAX

0.0627

04009595X01

C.M.H. Nº 71

7.6848

04008013X01

MICHEL

0.5375

04009596X01

C.M.H. Nº 72

9.3854

04002570X01

MOROCOCHA

0.0677

04009843X01

C.M.H. Nº 74

26.1679

04007963X01

NUESTRA SEÑORA DEL MILAGRO

11.9793

04009844X01

C.M.H. Nº 75

0.2346

04002435Y01

NUESTRA SEÑORA DEL ROSARIO

0.1614

04009846X01

C.M.H. Nº 76

0.1020

04002617X01

OLVIDO

2.4026

04010746X01

C.M.H. Nº 79

0.5570

04000999X01

ORACULO

3.9930

04010978X01

C.M.H. Nº 84-DOS

0.9983

04006436X01

PACHITEA

0.7729

04007533X01

C.P.H. Nº 1

0.0601

04007960X01

PANDORA

1.9966

04007547X01

C.P.H. Nº 15

0.0100

04000811X01

PLANETA

1.9965

0407533AX01

C.P.H. Nº 1-A

0.1651

04001253Y01

ROSARIO

2.1132

04007534X01

C.P.H. Nº 2

0.0226

04007524X01

ROSARIO NUMERO CINCO

0.0100

04007555X01

C.P.H. Nº 23

0.5511

04008019X01

ROSARIO NUMERO CUATRO

0.0246

04007556X01

C.P.H. Nº 24

0.8570

04001130X01

SACERDOTIZA

0.1416

0407534AX01

C.P.H. Nº 2-A

0.3778

04004654X01

SANTIAGO

0.0341

04007536X01

C.P.H. Nº 4

0.0459

04008039X01

SEVILLA

0.0608

04007594X01

C.P.H. Nº 55

0.0642

04012512X01

TEUTONIA 79

0.0425

0403659AY01

C.P.H. Nº 55-A

0.3420

04012513X01

TEUTONIA DOS-79

3.5061

04007538X01

C.P.H. Nº 6

0.4477

04012514X01

TEUTONIA TRES-79

0.0100

04000874X01

CAGLIOSTRO

1.2773

010346806

UNION 7

44.2112

04003371Y01

CATORCE DE ABRIL

0.0853

04004857X01

VEINTE DE FEBRERO

0.1448

04000832X01

COMETA

15.9727

04002221Y01

VENUS

1.2216

04002573X01

CONCHUCOS

0.6759

Total

Mining Concessions

4,668.8189

Mining concessions outside the EAUs

0413290AX01

ACUMULACION HUARON-7-A1

7.9708

010235798

HORIZONTE 4

1000.0000

010480708

BUEN PASO

97.3932

010242598

HORIZONTE 68

386.0870

04009964X01

C.M.H. CHASQUI-HUASI

32.0003

010250194A

HUARON 2A

85.3000

04009995X01

C.M.H. CHASQUIHUASI NUMERO DOS

15.9997

010250294A

HUARON 3-A1

31.2087

07000365X01

C.M.H. LIMONITA NORTE

56.0001

0410353AX01

LA ESPERANZA DE CARHUAMAYO

15.0000

07000367X01

C.M.H. LIMONITA SUR

39.9995

0410129AX01

LA VERDAD

15.0000

0403998AY01

C.M.H. N° 28-A1

1.0184

010610407

LIMONITA 1

148.7534

04008978X01

C.M.H. Nº 18

7.9999

010610307

LIMONITA 2

88.6498

04009045X01

C.M.H. Nº 19

16.0000

010127509

LIMONITA TRES

100.0000

04009911X01

C.M.H. TIPISH

60.0003

04012743X01

RELAVE FRANCOIS-1

60.0000

07000366X01

CMH CUESTAS

17.9997

04009440X01

SAN ANDRES NUMERO UNO

8.0000

04013464X01

DON JUAN Nº 4-88

239.9996

04012993X01

SAN CARLOS 79

181.9998

04008809X01

EL TRIUNFO

8.0000

07000131X01

SAN JORGE II

40.0000

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Number			Name			Area (ha)			Number			Name			Area (ha)
010188012			GATITA 02-A			200.0000			07000132X01			SAN JORGE III			32.0001
010644507			HERBERT 1			19.7756			07000130X01			SAN JORGE IV			49.9998
010644207			HERBERT 2			23.7851			07000146X01			SAN JORGE IX			47.9999
010644407			HERBERT 3			464.4003			07000017X01			SAN JORGE Nº 1			120.0007
010644307			HERBERT 4			446.2397			07000133X01			SAN JORGE V			32.0003
010236398			HORIZONTE 10			500.0000			07000134X01			SAN JORGE VI			72.0003
010236498			HORIZONTE 11			992.0001			07000135X01			SAN JORGE VII			35.9997
010236698			HORIZONTE 13			699.2807			07000145X01			SAN JORGE VIII			29.9999
010236798			HORIZONTE 14			947.6313			07001624X01			SAN JORGE X			324.0018
010237398			HORIZONTE 20			1000.0000			04010668X01			SANTA LUISA N° 1			10.0000
010237498			HORIZONTE 21			1000.0000			010409797			VITACANCHA-R			1000.0000
									010113722			AMELIA 2022			100.0000
Total			Non mining (EAU) concessions			10,907.4955			Grand total			All concessions			15,576.3144

4.3Royalties, back-in rights, payments, agreements, and encumbrances

The principal taxes of Peru affecting Huaron include income tax, an employee profit sharing tax, annual fees for holding mineral properties, various payroll and social security taxes, a refundable value added tax, a mining royalty tax, and a Special Mining Tax (SMT). The royalty is applied on a company’s operating income and is based on a sliding scale with marginal rates ranging from 1% to 12% with a minimum royalty rate of 1% of sales regardless of its profitability.

There are no known back-in rights, payments, agreements, or encumbrances on the Huaron concessions.

4.4Environmental liabilities

The environmental liabilities at Huaron are typical of an operating mine. Huaron received approval of the mine’s environmental liabilities plan in 2009, which was successfully executed and concluded in 2012. From that date Pan American has continually monitored the physical stability of reclaimed mine waste and tailings facilities, hydrological, and biological factors, as well as social commitments. These factors are reported semi-annually to the Peruvian Evaluation and Environmental Control Agency, which demonstrate the reintegration of the surrounding area to its natural landscape. The post closure phase is expected to last for five years, after which environmental certification of closure will be processed.

The most significant environmental issue currently associated with the mine is relatively high metal concentrations in the waters discharged from the mine and localized areas of acid rock drainage from the mine’s tailings deposit areas. All waters are captured and treated in a treatment plant near the exit of the Paul Nevejans drainage tunnel to achieve compliance with discharge limits. Peruvian legislation sets out the progressive implementation of new, stricter water quality limits both for discharges and receiving waters by the end of 2015. An “Adaption Plan” which sets out a program of baseline monitoring and data collection to evaluate future compliance of Huaron with the new limits was presented to the Ministry of Energy and Mines (MEM) in September 2012. The plan is still under evaluation and the schedule for implementation of new guideline limits is not yet confirmed.

There are no known environmental or social issues that could materially impact the mine’s ability to extract the Mineral Resources and Mineral Reserves.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

4.5Permits

Pan American holds all the necessary environmental and operating permits for the development and operation of the existing mine and is in compliance with Peruvian law. The MEM has provided approval for Environmental Compliance and Management, the Special Program for Environmental Management, and Environmental Impact Studies.

Pan American has obtained other permits necessary for normal operations of the mine, including permits for water use, re-use of treated domestic wastewater, treated industrial and domestic wastewater disposal, mine closure plans, tailings facility growth schedules, the use and storage of explosives, and facilities for liquid fuel.

4.6Significant factors and risks

There are no known significant factors or risks that may affect access, title, or the right or ability to conduct mining, processing, and exploration activities at Huaron.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

5ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY

5.1Access, transport, and population centre

Access to Huaron is by a continuously maintained 285 kilometres (km) paved highway between Lima and Unish and a 35 km mostly paved road between Unish and Huaron. Access is also possible by two other longer and more difficult gravel roads. There is a light aircraft strip at the town of Vicco, which is located approximately 30 minutes flying time from Lima, at which point an additional 30 minutes of driving is required to reach Huaron.

The nearest city is Cerro de Pasco, a major historical mining center with a population of approximately 70,000 people, which is connected to Lima 320 km to the southwest by road and rail. The nearby town of Huayllay also provides workers, lodging, and supplies. Experienced mining personnel from the region commute to the Property via company sponsored buses, company vehicles, or privately owned vehicles. Materials, fuel, and produced metal concentrates are transported to their destinations by road. Concentrates may also be transported by rail which is in close proximity to the site, as seen Figure 5.1.

Figure 5.1    Huaron location map

Source: Ministerio de Transportes y Comunicaciones Perú (2022).

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

5.2Climate, length of operating season, and physiography

The climate at the mine site is classified as “cold climate” or “boreal” with average annual temperatures ranging from 3°Celsius (C) to 10°C. Huaron operates throughout the entire year. The topography at the mine site is hilly with locally steep slopes, at elevations ranging from 4,250 m to 4,800 m above sea level. Natural vegetation consists mainly of grasses forming meadows which have permitted development of varied livestock operations.

5.3Surface rights, land availability, infrastructure, and local resources

Surface rights for mining operations are sufficient and secure. The known mineralized zones, Mineral Resources and Mineral Reserves, mine workings, the processing plant, existing tailing impoundments, effluent management and treatment systems, and waste rock storage facilities are located within 119 of the 171 concessions. The mine is authorized to use up to 10.11 million cubic metres (M3) per annum of water obtained from a system of nearby lakes for mining activities through payment of a water use permit. This volume of water is more than sufficient for the mine’s requirements. The primary source of power for the mine is the Peruvian national power grid and is sufficient for the mine’s current requirements. The power consumption is approximately 66 million kilowatt hours per year. An overview of the site infrastructure and footprint is shown in Figure 5.2.

Figure 5.2    Huaron site overview

Source: PAS (2022) after Google Earth Pro.

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TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

6HISTORY

6.1Ownership

The underground mine, mill, and supporting villages at Huaron were originally built in 1912 by a subsidiary of the French Penarroya Company (Penarroya). In 1987 the mine was sold to Hochschild. In April 1998, a portion of the bed of the nearby Lake Naticocha collapsed and flooded the neighbouring underground mine. Through interconnected tunnels, the lake water entered and flooded the Huaron mine as well, causing its closure.

After the April 1998 flooding, the Huaron mine operations were shut down, the labour force was terminated, the camp closed, and work was undertaken to clean up the flood damage, drain the workings, and prepare for an eventual mine re‐opening. The water level in the lake, which provided the source of floodwater, is currently maintained well below the level where it flooded into the old workings and no further flooding is expected. In September 2000, the Animon mine, in accordance with a settlement agreement reached with Cía Ltda. Minera Huaron S.A., constructed a channel to route water around the lake to provide water for the Huaron mine operation and to reduce the water in upstream lakes in order to prevent agricultural flooding, which had created local social pressures.

Pan American acquired a majority interest in Huaron from Hochschild in 2000 and fast‐tracked the re‐opening project through feasibility, financing, and construction to begin full scale operations in 2001. Pan American subsequently acquired the remaining interest and now holds 100% of the Property.

6.2Work carried out

There is no available exploration data collected by previous operators other than diamond drilling. Channel samples were taken by Penarroya and by Hochschild, but no details on the nature and extent of the samples are available, and none of the channel samples collected by previous owners are used in the Mineral Resource and Mineral Reserve estimates.

6.3Mineral Resource and Mineral Reserve estimates

The historical exploration work was carried out in the form of underground drifting and mining, and no historical Mineral Resource and Mineral Reserve estimates were completed or published.

6.4Production

Prior to Pan American’s acquisition of the Property, approximately 22 million tonnes (Mt) of silver‐rich base metal sulphide ore was produced from the mine. Silver made up about 49% of historic sales value, with zinc, lead, and copper contributing 33%, 15%, and 3% respectively of the remaining portion. Ore from the mine was processed on site by crushing, grinding, and flotation to produce silver-rich copper, lead, and zinc concentrates, as it is today.

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7GEOLOGICAL SETTING AND MINERALIZATION

7.1Regional and district geology

The Property is located within the Western Cordillera of the Andes Mountains and the regional geology is dominated by Cretaceous aged Machay Group limestones and Tertiary aged Pocobamba continental sedimentary rocks, which are referred to as the Casapalca Red Beds.

These groups have been deformed by the Huaron anticline, the dominant structural feature of the local area. The limestones and sedimentary rocks are strongly folded and intruded by quartz monzonite and quartz monzonite dikes with associated fracturing. Following the intrusion of the dikes, the sedimentary rocks were further compressed and fractured, and subsequently altered and mineralized by hydrothermal fluids forming the Huaron deposit on the Property.

Minor intrusives have been recognized between the Western and Eastern Cordillera, which have an average size of up to four square kilometres. These are irregularly distributed as high-level stocks that generally intrude Paleogene rocks. Intrusives are porphyritic with (1 to 2 cm) plagioclase phenocrysts and quartz. Biotite and hornblende are common in some areas. Compositionally, the intrusives are recognized as Monzogranite.

The lithostratigraphic column of the district is comprised of sandstones, marls, conglomerates, calcareous chert, andesites, ignimbrites, breccias, and tuffs, which are described below from bottom to top. The stratigraphic column for the region is shown in Figure 7.1.

7.1.1MESOZOIC: Upper Cretaceous

Casapalca Formation

This formation outcrops discordantly on the Marañón geoanticline, with an average thickness of more than 1,000 metres. The lithology consists of brownish red shales, siltstones, and sandstones. Towards the base it consists of conglomerates with limestone clasts, red sandstones, intrusives, and subangular schists; whitish limestone with intercalations of reddish conglomeratic sandstone dominate towards the top. It is subdivided into three members:

•Lower Member: Several layers of red shales, grayish-green to reddish semi-consolidated sandstones, conglomerates, and limestone lenses. Estimated thickness is 300 m to 330 m.

•Shuco Conglomerate Member: Consists of resistant conglomerates, with clasts of limestone, quartzite, chert, red sandstone and phyllite; embedded in a calcareous, brecciated matrix. The fragments are subangular in variable sizes. Estimated thickness is 150 m to 200 m.

•Calera Member: Thinly bedded marl and shale, grading to limestone and dolomite with chert nodules, with an approximate thickness of 60 m to 65 m forms a basal unit. The middle unit is composed of limestone and marl with intercalations of thinly bedded shale, with a thickness of 53 m. Limestone and dolomite with chert nodules comprise the top unit.

Based on stratigraphic relationships, this formation is considered to have been deposited from the Cretaceous to the early Paleogene followed by folding and development of the unconformity surface during the Paleocene (lower Paleogene).

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Figure 7.1    Regional stratigraphic column

Source: Geology Department Huaron (2022).

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7.1.2CENOZOIC: Paleogene - Neogene - Quaternary

Calipuy Group

The Calipuy group unconformably overlies the Casapalca Formation. The Calipuy group comprises pyroclastic rocks, lavas, ignimbrites, tuffs, basalts, rhyolites, and dacites that were deposited after the period of folding, erosion and uplift of the Casapalca Formation.

At the regional level, four units are recognized:

•Yantac Formation Unit: A volcanic-sedimentary sequence, also known as the variegated series, made up of clastic and pyroclastic rocks, conglomerates, brownish gray sandstones, sandy limestone, siltstones, and shales of variegated colors (green to brown, purple, pink, gray, white and brown). Intercalations of tuffs, tuffaceous breccias, some levels of agglomerates with andesitic lava spills form at the top of the unit. Estimated thickness is 60 m to 150 m. Age dating places the sequence between the Paleocene to Eocene.

•Carlos Francisco Volcanic Unit: Consists of porphyritic andesitic sills occasionally intercalated with massive porphyry and volcanic breccia flows. Its thickness varies from 400 m to 1,000 m. Correlation dating places it between the Eocene and Oligocene age.

•Colqui Volcanic Unit: Consists of andesitic sills with some interbedded fine tuffs, lapillis, and agglomerates. Also contains thin layers of tufaceous sandstone and limestone for a total thickness of 200 m. Age dating places it between Eocene and the Oligocene age.

•Millotingo Volcanic Unit: Made up of andesitic to rhyodacitic (occasionally trachyandesitic) lava flows. Its average thickness is 180 m and dating places it between the Upper Oligocene and the Lower Miocene.

Rumillana Volcanics

Sequence of volcanoclastic rocks known as Rumillana agglomerate and Unish tuff. The Rumillana agglomerate is composed of angular and sub-angular fragments of limestone, phyllite, chert and strongly altered porphyritic igneous rock. The Unish tuffs are made up of pyroclasts and lavas. Total thickness of the volcanic unit is 150 m with dating placing it as Upper Miocene in age.

Pacococha Volcanics

Comprised of andesitic and basalt volcanic flows with intercalations of volcanic breccia flows and thin layers of whitish tuffs. Its thickness is 150 m and dating places it between Miocene and Pliocene age.

Huayllay Formation

Andesitic lava flows interspersed with pyroclastic rocks that formed after the last Andean Tectonic phase filling the erosion surfaces. Its radiometric dating places it as Pliocene in age.

7.1.3Quaternary deposits

Unconsolidated cover is irregularly distributed. Pleistocene alluvial deposits, moraine deposits, fluvioglacial deposits, peat deposits, colluvial deposits and alluvial deposits have been mapped in the area.

All formations have been deformed by the Huaron anticline, the dominant structural feature in the local area. The limestones and sedimentary rocks are strongly folded and intruded by quartz monzonite and quartz monzonite dikes with associated fracturing. Following the intrusion of the dikes, the sedimentary rocks were further compressed and fractured, and subsequently altered and mineralized by hydrothermal fluids.

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7.2Property geology

The main lithology in the area of Huaron is a sequence of continental redbeds of the Casapalca Formation which unconformably overlie massive marine limestones. A series of andesites and dacites outcrop to the west of the mine. North-south trending sub‐vertical porphyritic quartz monzonite dykes crosscut the mine stratigraphy.

Thinly bedded marls and sandstones known as the lower redbeds are present in the central part of the mine and at lower elevations. The upper redbeds are present on the eastern side of the mine, and are comprised of calcareous chert overlying sandstone and marls, in turn overlying the Barnabe quartzite conglomerate at the base of the sequence. On the western side of the mine, the stratigraphy consists of a series of interbedded conglomerates and sandstones.

The Huaron deposit is located within an anticline formed by east‐west compressional forces. The axis of the anticline strikes approximately north‐south and plunges gently to the north. There are two main fault systems. One system comprises north‐south striking thrust faults, parallel to the axis of the anticline, and the other comprises east‐west striking tensional faults.

In the Huaron area, an elongated monzonite dike outcrops and is emplaced in the Casapalca Formation and Calipuy Volcanics. It has a tabular form in outcrop and trends north-south with a thickness that varies from tens of metres to 100 m. Dating assumes that these intrusives are of Paleogene age.

A schematic local surface geologic map is shown in Figure 7.2.

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Figure 7.2    Schematic view of local geology

Source: Geology Department Huaron (2022).

7.3Structure

7.3.1Folding

Folding occurred during the Paleogene, possibly during the Inca orogeny. During the deposition of the Calipuy, an additional deformation occurred during the Quechua orogeny. These two phases are present in the Huarón area, with the sequence of folded Casapalca formation forming an anticline, and the sequence of the Calipuy Group forming a slightly asymmetric open anticline.

Figure 7.3 is a schematic section which is not to scale showing the Huaron anticline and the rocks at Huaron.

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Figure 7.3    Cross section showing anticlinal structure

Source: Geology Department Huaron (2018).

7.3.2Faulting

There are large dislocations accompanied by secondary faults in the region. These faults are represented in the Huarón area by the Huaychao - Cometa north-south fault and the Llacsacocha Fault. Both faults divide the deposit into four sectors. Local faults recognized only in the Huaron mine are the Shiusha Fault (related to the Pozo D Fault) and the Tapada Fault (related to the Anteabigarrada Fault). Horst-type movement occurred between the Shiusha Fault and the Tapada Fault zones.

7.3.3Unconformity

An unconformity has recently been defined on each flank of the anticline throughout the property. The unconformity occurs at the contact between the Casapalca Formation and the Calipuy Group and provides control to mineralization.

7.4Alteration

Dominant hydrothermal alteration of the enclosing rocks are argilization - silicification (associated with the copper trend), potassic alteration (associated with the Lead - Zinc zone), epidote-pyrite (associated with the silicified zone) and chlorite - magnetite (throughout the entire deposit).

7.5Mineralization

The Huaron mine is a producer of silver, zinc, lead, and copper. Ore mineralogy is made up of tetrahedrite - tenantite (gray copper), sphalerite, galena, and chalcopyrite - enargite as the most abundant ore minerals; gangue minerals mainly represented include quartz, rhodochrosite, rhodonite, manganocalcite, and alabandite.

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Research has shown the presence of three different stages of mineralization and related to high temperatures (milky quartz, pyrite, tetrahedrite), intermediate temperatures (milky quartz, pyrite, brown sphalerite, and galena) and low temperatures (barite, siderite, dolomite, blonde sphalerite, galena, argentiferous tetrahedrite, polybasite, chalcopyrite, rhodochrosite, quartz, and calcite). Huarón mineralization is assumed to be of Pliocene age.

The first pulse of mineralization was associated with the emplacement of intrusive bodies and the subsequent opening of structures, as zinc, iron, tin, and tungsten minerals were deposited. This was followed by a copper, lead, and silver rich stage, and finally by an antimony / silver phase associated with quartz.

The most important economic minerals are tennantite‐tetrahedrite (containing most of the silver), sphalerite, and galena, though more than 90 other minerals have been identified. The principal gangue minerals are pyrite, quartz, calcite, and rhodochrosite. Enargite and pyrrhotite are common in the central copper core of the mine and zinc oxides and silicates are encountered in structures with deep weathering. Silver is also found as pyrargyrite, proustite, polybasite, and pearceite.

There is a definite mineral zoning at Huaron. A central copper core contains enargite as the principal economic mineral with copper, pyrite and quartz in structures. This area was extensively mined by previous operators but metal grades and prices were overshadowed by the negative impact of high arsenic and antimony content and poor metal recoveries. To the east and west of the central core silver, lead, and zinc minerals are associated with calcite and rhodochrosite. Areas to the north of the central core contain silver, lead, and zinc minerals associated with pyrite. Sphalerite and sulfosalts with rhodochrosite follow a narrow band running north‐south along the general axis of the anticline.

Huaron is a hydrothermal polymetallic deposit of silver, lead, zinc, and copper mineralization hosted within structures likely related to the intrusion of monzonite dikes, principally located within the Huaron anticline. Mineralization occurs in veins parallel to the main fault systems, in replacement bodies known as “mantos” associated with the calcareous sections of the conglomerates and other favorable stratigraphic horizons, and as dissemination in the monzonitic intrusions at vein intersections. The mineralization controls recognized in the deposit are structural, lithological, and stratigraphic.

The types of mineralized bodies present in Huarón are veins, mantos, and stockworks.

•Veins: The mineralized veins vary from a few cm to up to 10 m wide, and may extend along strike for up to 1,800 m. Most of the structures show open mineralization at depth and along strike and have excellent exploration potential. Vein orientations vary but generally trend east-west or north-south. The deposit consists of 96 different structures which have been grouped into 13 families of mineralized trends according to location and orientation (Figure 7.4).

•Mantos: Mantos are gently dipping structures located on the western flank of the anticline.

•Stockworks: Stockwork zones have been mined with mechanized methods and high productivity. Stockwork zones occur at the intersection of veins, where veins intersect conglomerate beds (causing replacements), and also at the intersection of veins with calcareous sandstone strata (causing disseminations). Stockwork-like bodies related to the intrusive-sandstone contact are rarely recognized.

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Figure 7.4    Plan of mineralized trends

Source: PAS (2022).

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8DEPOSIT TYPES

Huaron is a hydrothermal polymetallic silver-copper-lead-zinc deposit likely related to Miocene aged intrusive monzonite dikes within the Huaron anticline. Exploration for economic veins, mantos and disseminated mineralization styles similar to those present on the Property is conducted using a combination of underground diamond drilling and channel sampling from drifts excavated along the mineralized zones.

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9EXPLORATION

Huaron is an active mining operation with ongoing exploration conducted using a combination of underground diamond drilling and channel sampling from drifts excavated along the mineralized zones. Generally, underground drillholes that intersect promising economic grade mineralization are followed up by drifting towards and then along the vein zone.

As underground drifting advances for mining, channel samples are routinely collected in drifts that are used for Mineral Resource and Mineral Reserve estimates. Channel samples are collected every 4 m across the vein in stoping areas, every 2 m across the vein in sublevels and drifts, and every 1 m in vertical development raises. Each channel sample weighs between 4 kilograms (kg) and 6 kg and is taken perpendicular to the structure after the face has been cleaned with a water hose or hard brush to reduce the risk of sample contamination. Samples are selected according to geological intervals and according to the width of the intersection with the vein which vary between 0.1 m and 1.5 m in length. Since the beginning of 2014 to May 31 2022, Pan American has collected 86,811 samples, including a total of 260,125 samples since 2001. The results of these samples are loaded in to the Datamine FusionTM (Fusion) database. The number of samples taken by year is shown in Table 9.1.

Table 9.1    Summary of channel samples

Year			Number of channels			Number of samples			Comments
2001			3,795			Not known			Information from monthly reports Oct to Dec 2001 only
2002			19,398			Not known			Information from monthly reports
2003			22,445			Not known			Information from monthly reports
2004			33,242			Not known			Information from monthly reports
2005			37,349			Not known			Information from monthly reports
2006			13,417			23,382			Information recorded in Fusion database
2007			16,221			30,094			Information recorded in Fusion database
2008			10,015			18,924			Information recorded in Fusion database
2009			13,629			28,359			Information recorded in Fusion database
2010			8,512			16,856			Information recorded in Fusion database
2011			7,691			16,950			Information recorded in Fusion database
2012			9,465			19,723			Information recorded in Fusion database
2013			9,118			19,026			Information recorded in Fusion database
2014			4,959			9,393			Information recorded in Fusion database
2015			6,605			11,806			Information recorded in Fusion database
2016			7,002			10,047			Information recorded in Fusion database
2017			7,863			11,970			Information recorded in Fusion database
2018			6,816			11,268			Information recorded in Fusion database
2019			6,381			11,992			Information recorded in Fusion database
2020			3,292			6,144			Information recorded in Fusion database
2021			5,622			9,918			Information recorded in Fusion database
To May 2022			2,462			4,273			Information recorded in Fusion database
Total			255,299			260,125

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Channel sampling generally provides reliable data for the Mineral Resource and Mineral Reserve estimates, provided that appropriate measures are taken to prevent sample contamination to ensure an unbiased, representative sample. The channel samples are taken at regular spacing in drifts above and below the Mineral Reserve volumes, assuring they are as spatially representative as possible. There are no known issues that could materially impact the reliability of the sampling results.

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10DRILLING

10.1Drilling summary and database

Huaron’s long mine life has provided for extensive diamond drillhole coverage from the underground workings. There are no available details on the nature of drilling undertaken by previous operators; therefore, the following descriptions represent only Pan American’s practices.

Most of the drilling centres over the strike length of the currently defined Mineral Resources and Mineral Reserves. A summary of the drillholes completed on the Property by all operators up to the end of May, 2022 is shown in Table 10.1. This includes the drillholes described in Section 10.3 and listed in Table 10.2.

Table 10.1    Drillhole summary

Year			Company			# of drillholes			Metres
2003			Pan American			92			10,000
2004			Pan American			68			15,002
2005			Pan American			88			8,147
2006			Pan American			87			11,647
2007			Pan American			117			15,046
2008			Pan American			118			18,507
2009			Pan American			46			5,431
2010			Pan American			87			16,107
2011			Pan American			113			25,104
2012			Pan American			177			33,437
2013			Pan American			155			26,003
2014			Pan American			231			45,068
2015			Pan American			118			22,276
2016			Pan American			209			36,276
2017			Pan American			310			57,086
2018			Pan American			139			20,645
2019			Pan American			128			19,238
2020			Pan American			37			6,103
2021			Pan American			90			19,239
To May 2022			Pan American			21			4,893
Total						2,432			415,294

Diamond drillholes are orientated to intersect the targeted vein as close to perpendicular as possible and are spaced as regularly as possible to ensure representative sample coverage. Nominal spacing is planned for pierce points on vein at 50 m - 60 m apart. A plan showing the location of the drillholes is given in Figure 10.1.

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Figure 10.1    Huaron drillhole location map

Source: PAS (2022).

10.2Drilling procedures

All underground holes are drilled by an external drilling contractor under Pan American supervision. Drilling is carried out using industry standard underground diamond drill rigs capable of drilling BQ, NQ, and HQ diameter core. The collar coordinates and bearing and dip are surveyed with a total station instrument and the drillhole deviation is measured regularly using a down hole survey instrument.

Drilling programs have been carried out by REDRILSA using a Boart Longyear LM-75 drill. The core size is HQ and NQ diameter core and core recovery is generally above 95%. The holes collars are surveyed, and downhole surveys measured drillhole deviation with a Core Tech CHAMP PILOT survey tool.

10.3Exploration drilling

10.3.1Summary

Drilling regarded as exploration drilling or greenfield drilling was carried out by Pan American from 2014 to 2017. During the period of activity, a total of 39,824 m was completed in 145 drillholes. The following targets were investigated: Shiusha Warren, Chert Sevilla-Sevilla Este, Chosica-Chosica Sur, Salpo, Patrick, and Rey. The locations of the drillholes are shown in Figure 10.2.

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Table 10.2    Greenfield drilling 2014 to 2017

Summary of greenfield exploration drilling
Year			2014			2015			2016			2017			Total
Number of drillholes			59			21			23			42			145
Meters drilled			12,352			5,477			7,989			14,006			39,824

The location of drillholes or drillhole fans is shown in Figure 10.2.

Figure 10.2    Location map of exploration drilling

Source: PAS (2022).

10.3.2Exploration drilling programs

The "Seville - Seville East" target was evaluated in 2014. The target is located within the local unit known as "Chert Sevilla". The unit contains a high silica (particles of shells and siliceous grains) horizon that is deemed a mineralization target due to strong fracturing associated with the brittle silicate horizon.

In 2015 the continuation the extension of mineralization to the south was evaluated, taking into account the influence of the west-northwest to east-southeast striking "Chosica" intrusive sill and the "vein 16" which is spatially associated with the intrusive.

During 2016, the vein system associated with the Shiusha Warren structure was evaluated. This structure is considered to have been reactivated during multiple stages of district mineralization.

In 2017, exploration focused on the Shiusha Warren and Chosica-Chosica Sur targets as well as the smaller Salpo, Patrick, and Rey vein systems.

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10.4Concluding statement

Diamond drilling at Huaron generally provides reliable data for the Mineral Resource and Mineral Reserve estimates, provided appropriate measures are taken to minimize sample material loss, to prevent sample contamination, and to ensure an unbiased, representative sample is taken. Ground conditions for diamond drilling at Huaron are generally good, resulting in high drill core recovery, and measures are taken to minimize potential contamination. There are no known drilling, sampling, or recovery factors that could materially impact the accuracy and reliability of the results.

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11SAMPLE PREPARATION, ANALYSES, AND SECURITY

11.1Sampling method

Drill cores are placed in corrugated plastic core boxes and transported to the core logging facility on site. The boxes are marked and numbered by the drill crews and tags are inserted between drill core runs to indicate the drill depths. Diamond drillhole samples are split in half with a diamond bladed saw after the core has been logged and the sample intervals have been marked by the geologist. Downhole intervals are logged for fracture density and core recovery to determine the rock quality, and for lithology, structure, and alteration types.

Channel samples are collected with a hammer and chisel every 4 m across the vein in stoping areas, every 2 m across the vein in sublevels and drifts, and every 1 m in vertical developments. Each channel sample weighs between 4 kg and 6 kg and is taken perpendicular to the structure after the face has been cleaned with a water hose or hard brush to reduce the risk of sample contamination.

Samples from both channel samples and diamond drillholes are selected according to geological intervals and the width of the intersection with the vein and vary between 0.1 m and 1.5 m in length.

Drillholes: Unmineralized hangingwall (HW) and footwall (FW) host rocks are sampled generally over 3 m beyond visible mineralization. Internal unmineralized material located between mineralized intersections is sampled over the entire length.

UG Channel samples: Unmineralized HW and FW host rocks are not sampled.

The rock mass is generally of good quality and there have been few issues regarding sample loss or contamination during sample collection and splitting. There are no known drilling, sampling, or recovery issues that could materially impact the reliability of the results.

Both channel and drill core samples are placed in new, clean plastic bags with two sample number tags on the inside and one number and barcode tag on the outside. The bags are sealed with a metal strip prior to transmission to the on-site laboratory.

11.2Sample storage and security

No specific security measures are taken with the samples, but as the samples are prepared and analyzed within the confines of the general mine security enclosures, there is no reason to believe that the validity and integrity of the samples have been compromised.

11.3Sample preparation and analysis

Channel and the underground diamond drillhole samples are sent to the Huaron on‐site laboratory. The laboratory is not certified by any standards association but is managed and operated by SGS, the international commercial laboratory firm (Certifications: ISO 14001, OHSAS 18001, NTP-ISO/IEC 17020, NTP-ISO/IEC 17025 AND NTP-ISO/IEC 17065) until June 2021 and Inspectorate Bureau Veritas (Certifications: ISO 9001, ISO 17025, ISO 45001 and ISO 14001) after June 2021.

Samples received at the prep laboratory facility are verified and coded prior to drying in a drying oven with a calibrated digital thermometer at a temperature of 120°C +/- 10°C.

Samples are pulverized through a primary jaw crusher reducing plus 3-inch material to +/- ¼ inch. Secondary crushing further reduces material size to +/- 2 millimetres (mm) (≥ 80% passing at 10 mesh). Verification and recording of sample granulometry and sample weight loss is carried out on 2% of the total number of samples in each sample batch. Strict protocols are implemented to clean sample preparation equipment with compressed air and barren silica sand.

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The crushed sample is homogenized and separated through a riffle splitter to an approximate 150-gram sample that is subsequently pulverized to a pulp sample >95% at – 140 mesh. 2% of the total pulp samples per batch are weighed to calculate sample weight loss.

Assays are performed using acid digestion and atomic absorption spectroscopy, and analyzed for silver, zinc, lead, and copper content by the SGS managed onsite laboratory.

11.4Bulk density determinations

Since 2018 density samples are taken from both underground channels and diamond drillhole core. Density measurements are generated from 10 cm diameter sample plugs using the Paraffin method for compacted samples and Pycnometer for fractured samples. This is further discussed in Section 14.8.

11.5Quality Assurance and Quality Control (QA/QC)

11.5.1Overview

The on-site laboratory conducts its own routine internal quality assurance and quality control (QA/QC) program. For each batch of 20 samples at least one duplicate sample and one certified standard is submitted by the laboratory. The laboratory information management system, LIMS software, which connects with Datamines’ Fusion ensures that the results are saved directly in the geological database without data transcription errors.

A QA/QC program independent of the on-site laboratory and supervised by the geology department is also employed. This involves the submission of one Standard Reference Material (SRM) and one blank on a daily basis to the onsite laboratory. Duplicate samples comprising one quarter of the second half of the diamond drill core and duplicate samples obtained by collecting a sample of equal weight from the same channel sample location as the original are also submitted, both to the onsite laboratory (Inspectorate Bureau Veritas) and to an external laboratory (ACTLABS, Inspectorate Bureau Veritas Lima, Peru. Certifications: ISO 9001, ISO 14025, ISO 45001 and ISO 14001) to act as a check on the onsite laboratory. A system is in place to ensure that any failed QA/QC samples are identified and that the required corrective action is taken in a timely manner, which usually involves a review of procedures to ensure that the established sample preparation and analysis protocols are being followed.

Table 11.1 and Table 11.2 list the number and rates of the submission of QA/QC samples of all types for 2015 to the end of May 2022.

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Table 11.1    Summary of all QA/QC samples 2015 – May 2022

Year			SRMs			Blanks			Coarse duplicates			Field duplicates			Umpire samples			Comments
2015			323			394			247			153			472			Certified standard used
2016			577			303			310			274			514			Certified standard used
2017			882			705			331			389			290			Certified standard used
2018			790			654			314			199						Certified standard used
2019			468			559			340			115			1			Certified standard used
2020			465			224			158			20			1			Certified standard used
2021			1,397			610			452			92			2			Certified standard used
To May 2022			468			192			177			25			2			Certified standard used
Total			5,370			3,641			2,329			1,267			1,282

Table 11.2    Summary of QA/QC sample submission rates 2015 – May 2022

Year			SRMs			Blanks			Coarse duplicates			Field duplicates			Umpire samples
2015			2.26%			2.76%			1.73%			1.07%			3.30%
2016			3.83%			2.01%			2.06%			1.82%			3.41%
2017			4.61%			3.69%			1.73%			2.03%			1.52%
2018			4.52%			3.74%			1.79%			1.14%
2019			2.79%			3.33%			2.03%			0.69%			0.01%
2020			6.26%			3.01%			2.13%			0.27%			0.01%
2021			10.33%			4.51%			3.34%			0.68%			0.01%
To May 2022			7.59%			3.11%			2.87%			0.41%			0.03%

As can be seen from Table 11.1 and Table 11.2, the total number of control samples submitted has increased over time, particularly for the SRMs and blanks. A submission rate of 4 - 5% (relative to total samples analyzed) for each QA/QC sample type is considered ideal. For future QA/QC programs, the QP will address the low submission rate of duplicate samples.

11.5.2Standard Reference Material

SRMs contain standard, predetermined concentrations of material (silver, and gold, etc.) which are inserted into the sample stream to check the analytical accuracy of the laboratory. SRMs should be monitored on a batch-by-batch basis and remedial action taken immediately if required. For each economic mineral it is recommended the use of at least three SRMs with values:

•At the approximate cut-off grade (COG) of the deposit.

•At the approximate expected grade of the deposit.

•At a higher grade.

Control charts are commonly used to monitor the analytical performance of an individual SRM over time. SRM assay results are plotted in order of analysis along the X-axis. Assay values of the SRM are plotted on the Y-axis. Control lines are also plotted on the chart for the expected value of the SRM, two standard deviations above and below the expected value (defining a warning threshold), and three standard deviations above and below the expected value (defining a fail threshold). Control charts show analytical drift, bias, trends, and irregularities occurring at the laboratory over time.

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All SRMs are made from the mine's own material, analyzed in six laboratories, and finally certified by those laboratories. These insertions allow the behavior of each dispatched batch to be evaluated, identify failures, and take corrective action. When a failure is noted, the entire batch is sent for repeat analysis.

11.5.2.1Standard Reference Material Performance 2006 - 2013

Between April 2006 and December 2013, nearly 2,900 samples from three different standard samples were submitted to the laboratory with the drill core and channel samples.

The majority of the failures were associated with a SRM that was in use from April 2006 until the stocks of that standard were depleted in November 2011. The standard performed relatively normally between April 2006 and May 2009, at which point unusual low-grade values are observed in the results. The lower grade standard showed no systematic bias while the higher-grade standard showed a slight high bias of a magnitude within the first standard deviation. There is evidence of standard and blank identification labelling errors, but overall, the results were acceptable and indicate reasonable accuracy at the laboratory.

Table 11.3    Summary of SRM performance – 2006 - 2013

			Bajo (low)			Medio (medium)			Alto (high)
Count			1,450			443			1,006
Fail +1 SD			136			11			1
Fail -1 SD			739			12			2
% Fail 1 SD			60			5			0
Fail + 2 SD			22			1			1
Fail - 2 SD			313			3			2
% fail 2 SD			23			1			0
Fail +3 SD			5			1			1
Fail -3 SD			89			3			2
% Fail 3 SD			6			1			0

11.5.2.2Standard Reference Material Performance 2015 – May 2022

From 2015 through to May 2022, approximately 5,370 SRM samples from eight different SRMs were submitted to the laboratory with the drill core and channel samples. Table 11.4 lists the SRMs used from 2015 to May 2022 with their statistics and Table 11.5 shows the numbers submitted for each by year.

Table 11.4    SRMs submitted 2015 – May 2022

SRM (internal name)			Expected value												Standard deviation
			Ag (g/t)			Cu (%)			Pb (%)			Zn (%)						Ag (g/t)			Cu (%)			Pb (%)			Zn (%)
STD-MEDIO			173			0.49			1.22			3.11						4			0.051			0.04			0.07
ESTANDAR ALTO			242			1.16			1.47			4.20						2			0.009			0.01			0.03
STD-1			179			0.15			2.4			3.18						4			0.002			0.05			0.03
STD-BAJO			132			0.84			1.92			3.97						4			0.016			0.027			0.077
ESTANDAR MEDIO			143			0.48			1.38			3.14						2			0.004			0.018			0.034
STD-ALTO			240			2.14			2.36			3.51						3			0.026			0.076			0.07
STD-2			174			0.73			1.12			2.54						4			0.02			0.02			0.06
STD-5			232			1.33			4.01			3.85						3			0.01			0.04			0.04

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Table 11.5    Summary of SRMs submitted for analysis – 2015 – May 2022

SRM name			2015			2016			2017			2018			2019			2020			2021			2022			Total
STD-MEDIO															468			229			218						915
ESTANDAR ALTO						110			446			392															948
STD-1			7																								7
STD-BAJO																					387			139			526
ESTANDAR MEDIO						63			436			398															897
STD-ALTO																		236			611			66			913
STD-2			316			404																					720
STD-5																					181			263			444
Total			323			577			882			790			468			465			1,397			468			5,370

Table 11.6 summarizes the SRM performance for all SRMs submitted between 2015 and May 2022. As discussed, previously a failure was defined where the analyzed value was ±3 standard deviations (SD) from the expected SRM value.

Table 11.6    Summary of SRM failures – 2015 – May 2022

SRM			Ag % Fail			Cu % Fail			Pb % Fail			Zn % Fail
STD-MEDIO			0.4			0.1			0.3			1.2
ESTANDAR ALTO			0.6			19.0			7.8			6.4
STD-1			0.0			0.0			0.0			0.0
STD-BAJO			0.0			0.6			0.3			0.1
ESTANDAR MEDIO			0.6			9.8			0.7			0.6
STD-ALTO			0.4			0.1			0.0			0.1
STD-2			0.1			1.3			1.9			2.5
STD-5			0.0			2.0			1.1			1.7

The failures for SRM ESTANDER ALTO were seen in the control chart and the majority of these relate to 2016 samples when the SRM was first introduced. The failures for ESTANDER MEDIO occurred in 2016 and 2017, no failures were recorded in 2018.

Figure 11.1 and Figure 11.2 show the SRM control charts for STD-MEDIO and ESTANDAR ALTO for Ag, Cu, Pb, and Zn, respectively. The STD-MEDIO SRM performed well over the entire period it was submitted. The ESTANDAR ALTO SRM performed poorly for Cu, Pb, and Zn for the 2016 samples. A correction was made for samples from 2017 onwards. For Cu and Zn, in 2017, there appears to be a low bias, which was corrected in 2018.

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Figure 11.1    STD-MEDIO SRM Control Chart (Au, Ag, Pb, Zn) – 2015 - May 2022

Source: PAS (2022).

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Figure 11.2    ESTANDER ALTO SRM Control Chart (Au, Ag, Pb, Zn) – 2020 - May 2022

Note: Some extreme high or low failures are excluded from the control charts for a better representation of the SRM performance.

Source: PAS (2022).

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Overall, the SRMs performed well, with improvement in performance over time, with a significant improvement since mid-way through 2017. Since 2018, very few failures have occurred.

11.5.3Blanks

Coarse blanks test for contamination during both the sample preparation and assay process. Pulp blanks test for contamination occurring during the analytical process. At Huaron, pulp blanks were submitted from 2015 to 2017 and coarse blanks have been submitted since 2018.

11.5.3.1Blank performance 2006 - 2013

Between April 2006 and December 2013, approximately 1,500 samples of unmineralized “blank” material were submitted with the drill core and channel samples to the onsite laboratory to assess for sample grade contamination during sample preparation and analysis. No significant failures were noted for samples that were assayed.

11.5.3.2Blank performance 2015 – May 2022

Figure 11.3 shows the blank control chart for Ag. The red line represents 10x the detection limit, blanks occurring above this value are considered failures.

Figure 11.3    Ag blank control chart – 2015 - May 2022

Source: PAS (2022).

Table 11.7 summarizes the pass rate of blanks by year over the period from 2015 to the end of May, 2022. The blank performance indicates that there are no laboratory hygiene issues.

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Table 11.7    Summary of coarse blank performance 2015 - May 2022

Year			Ag pass rate (%)			Cu pass rate (%)			Pb pass rate (%)			Zn pass rate (%)
2015			100.0			99.5			100.0			100.0
2016			100.0			100.0			100.0			100.0
2017			99.7			100.0			100.0			100.0
2018			100.0			100.0			100.0			100.0
2019			100.0			100.0			100.0			100.0
2020			100.0			100.0			100.0			100.0
2021			100.0			100.0			100.0			100.0
To May 2022			100.0			100.0			100.0			100.0

11.5.4Duplicate samples

Duplicate samples should be selected over the entire range of grades seen at the project to ensure that the geological heterogeneity is understood, however, the majority of duplicate samples should be selected from zones of mineralization. Unmineralized or very low-grade samples should not form a significant portion of duplicate sample programs as analytical results approaching the stated limit of lower detection are commonly inaccurate, and do not provide a meaningful assessment of variance.

Field duplicates monitor sampling variance, sample preparation variance, analytical variance, and geological variance. Coarse reject samples monitor sub-sampling variance, analytical variance, and geological variance. Pulp duplicates monitor analytical and geological variance. Umpire laboratory duplicates are pulp samples sent to a separate laboratory to assess the accuracy of the primary laboratory (assuming the accuracy of the umpire laboratory). Umpire duplicates measure analytical variance and pulp sub-sampling variance.

Duplicate data can be assessed using a variety of approaches. The QP typically assesses duplicate data using scatter plots and relative paired difference (RPD) plots. These plots measure the absolute difference between a sample and its duplicate. For field duplicates it is desirable to achieve 80 to 85% of the pairs having less than 30% RPD between the original assay and check assay, for coarse and pulp duplicates this is reduced to 20 and 10%, respectively. In these analyses, pairs with a mean of less than 15 times the lower limit of analytical detection or lower detection limit (LDL), are excluded. Removing these low values ensures that there is no undue influence on the RPD plots due to the higher variance of grades expected near the LDL, where precision becomes poorer (Long et al. 1997).

11.5.4.12006 - 2013 duplicate performance

Between April 2006 and December 2013, approximately 2,500 duplicate samples were submitted with the drill core and channel samples to the onsite laboratory, as well as to independent external laboratories including Acme(ISO 9001, ISO 17025), ALS Chemex (ISO 17020, ISO 17025), Certimin (ISO 9001, ISO/IEC 17025) and Actlabs Skyline(ISO 9001, ISO/IEC 17025) all located in Lima

Field duplicates

Between April 2006 and December 2013, 875 field duplicates were submitted. The results of precision pairs may be assessed using a ranked absolute relative difference plot, with acceptable results corresponding to ±30% agreement on 90% of field duplicate pairs.

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Table 11.8    Summary of field duplicate performance – 2006 - 2013

Laboratory

Sample numbers

Duplicate sample type

± Agreement %

Bias

SGS – Huaron

875

Field

26

Duplicates have slightly lower grades

Coarse duplicates

No coarse duplicates were submitted between April 2006 and December 2013.

Pulp duplicates

The results of precision pairs may be assessed using a ranked absolute relative difference plot, with acceptable results corresponding to ±10% agreement on 90% of pulp duplicate pairs when using the ranked half absolute relative difference plot.

Table 11.9    Summary of pulp duplicate performance – 2006 - 2013

Laboratory

Sample Numbers

Duplicate sample type

± Agreement %

Bias

Certimin

609

Pulp

94

Duplicates have slightly lower grades

ALS Chemex

1,115

Pulp

92

Duplicates have lower grade above the 97.5th percentile

Acme

1,337

Pulp

94

None

Umpire (check-lab) duplicates

No umpire duplicates were submitted between April 2006 and December 2013.

11.5.4.22015 – May 2022 duplicate performance

A total 4,878 duplicate samples were sent for analysis during 2015 - May 2022. This consisted of field, coarse and umpire duplicates. A summary of their performance is outlined below.

Field duplicates

A total of 1,267 field duplicates were submitted from diamond drill core samples between 2015 - May 2022. Table 11.10 summarizes the field duplicate performance by year for Ag, Cu, Pb, and Zn for field duplicate samples submitted between 2017 - May 2022. An LDL of 0.5 Ag parts per million (ppm) and 0.005% Cu, Pb, and Zn was used. The bias is measured based on the mean grade of the original sample dataset versus the duplicate sample dataset. A positive bias result indicates the overall the original samples are returning higher values than the duplicate samples. Figure 11.4 shows the RPD and scatter plot for Ag including field duplicates from 2017 - May 2022.

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Table 11.10    Summary of field duplicate performance Ag, Cu, Pb, and Zn – 2017 - May 2022

Element			Year			2017			2018			2019			2020			2021			May 2022			2017 - 2022
Ag			Field sample pairs (Pairs > 15 x LDL)			388 (307)			199 (172)			115 (113)			20 (19)			92 (91)			25 (23)			839 (725)
			Field sample pairs < 30% RPD			126			50			22			7			24			6			235
			Bias (%)			3			-9			10			-2			-2			12			1
Cu			Field sample pairs (Pairs > 15 x LDL)			388 (100)			199 (92)			115 (83)			20 (18)			92 (43)			25 (14)			839 (350)
			Field sample pairs < 30% RPD			136			65			20			8			24			11			264
			Bias (%)			-1			-1			7			-1			-4			18			0
Pb			Field sample pairs (Pairs > 15 x LDL)			388 (270)			199 (155)			115 (104)			20 (18)			92 (84)			25 (23)			839 (654)
			Field sample pairs < 30% RPD			147			69			29			61			28			7			288
			Bias (%)			-1			8			11			7			1			-7			3
Zn			Field sample pairs (Pairs > 15 x LDL)			388 (338)			199 (179)			115 (110)			20 (20)			92 (87)			25 (24)			839 (758)
			Field sample pairs < 30% RPD			133			61			21			68			25			8			254
			Bias (%)			2			-2			-1			-2			-2			8			0

Figure 11.4    RPD and scatter plot of field duplicates for Ag – 2017 – May 2022

Note: Scatterplot is limited to 1,000 Ag ppm.

Source: PAS (2022).

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The field duplicate performance is reasonable. The performance has improved over time. Ag and Cu performed the best and overall meet the assessment criteria for field duplicate performance. Pb and Zn just fall sort of the assessment criteria, however, the results are deemed acceptable.

Coarse duplicates

A total of 1,772 coarse duplicates were submitted between 2015 - May 2022. Table 11.11 summarizes the coarse duplicate performance by year for Ag, Cu, Pb, and Zn for coarse duplicate samples submitted between 2017 - May 2022. An LDL of 0.5 Ag ppm and 0.005% Cu, Pb, and Zn was used. The bias is measured based on the mean grade of the original sample dataset versus the duplicate sample dataset. A positive bias result indicates the overall the original samples are returning higher values than the duplicate samples. Figure 11.5 shows the scatter plot for Ag and Zn including coarse duplicates from 2017 - May 2022.

Table 11.11    Summary of coarse duplicate performance Ag, Cu, Pb, and Zn – 2017 –May 2022

Element			Year			2017			2018			2019			2020			2021			2022			2017 - 2022
Ag			Coarse sample pairs (Pairs > 15 x LDL)			331 (329)			314 (313)			340 (340)			158 (158)			453 (450)			176 (176)			1,772 (1,766)
			Coarse sample pairs < 20% RPD			92			11			7			2			10			5			127
			Bias (%)			5			0			0			0			-1			1			1
Cu			Coarse sample pairs (Pairs > 15 x LDL)			331 (256)			314 (249)			340 (268)			158 (136)			453 (334)			176 (143)			1,772 (1,386)
			Coarse sample pairs < 20% RPD			104			28 95			22			7			26			5			192
			Bias (%)			-11			-1			2			-1			1			1			-2
Pb			Coarse sample pairs (Pairs > 15 x LDL)			331 (307)			314 (300)			340 (328)			158 (149)			453 (430)			176 (169)			1,772 (1,683)
			Coarse sample pairs < 20% RPD			102			15			7			2			19			13			158
			Bias (%)			-3			-1			1			1			-1			0			0
Zn			Coarse sample pairs (Pairs > 15 x LDL)			331 (328)			314 (314)			340 (336)			158 (158)			453 (449)			176 (172)			1,772 (1,757)
			Coarse sample pairs < 20% RPD			103			11			9			1			17			3			144
			Bias (%)			1			0			1			0			0			0			0

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Figure 11.5    RPD and scatter plot of coarse duplicates for Ag – 2017 - May 2022

Note: Scatterplot is limited to 1,000 Ag ppm and 15% Zn.

Source: PAS (2022).

The coarse duplicates performed very well for all elements. There is a noticeable improvement in precision after the 2017 program. The coarse duplicates have performed consistently well over the period 2017 - May 2022.

Pulp duplicates

A total of 1,353 pulp duplicates were submitted between 2015 - 2017. Table 11.12 summarizes the performance by year for Ag, Cu, Pb, and Zn for pulp duplicate samples submitted between 2015 - 2017. An LDL of 0.5 Ag ppm and 0.005% Cu, Pb, and Zn was used. The bias is measured based on the mean grade of the original sample dataset versus the duplicate sample dataset. A positive bias result indicates the overall the original samples are returning higher values than the duplicate samples. Figure 11.6 shows the RPD and scatter plot for Ag including coarse duplicates from 2015 - 2017.

Table 11.12    Summary of pulp duplicate performance Ag, Cu, Pb, and Zn – 2015 - 2017

Element			Year			2015			2016			2017			2015 - 2017
Ag			Pulp sample pairs (Pairs > 15 x LDL)			373 (346)			576 (518)			377 (345)			1,326 (1,209)
			Pulp sample pairs < 20% RPD			58			58			61			59
			Bias (%)			2			0			-3			0
Cu			Pulp sample pairs (Pairs > 15 x LDL)			373 (183)			576 (302)			377 (167)			1,326 (652)
			Pulp sample pairs < 20% RPD			69			58			69			64
			Bias (%)			-11			-5			3			-6
Pb			Pulp sample pairs (Pairs > 15 x LDL)			373 (335)			576 (475)			377 (307)			1,326 (1,117)
			Pulp sample pairs < 20% RPD			58			54			59			57
			Bias (%)			4			3			2			3
Zn			Pulp sample pairs (Pairs > 15 x LDL)			373 (358)			576 (533)			377 (353)			1,326 (1,244)
			Pulp sample pairs < 20% RPD			56			58			61			58
			Bias (%)			6			0			-2			1

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Figure 11.6    RPD and scatter plot of pulp duplicates for Ag – 2015 - 2017

Source: PAS (2022).

The pulp duplicates from 2015 - 2017 performed below expectation.

11.5.5Umpire samples

A total of 1,282 umpire duplicates were submitted between 2015 - May 2022. Three external laboratories were used; in 2015 it was a combination of MINLAB (ISO 9001, ISO/IE 17025), CERTMIN (ISO 9001, ISO/IEC 17025), and ACTLAB (ISO 9001, ISO/IEC 17025). In 2016 to 2022 only ACTLABS (ISO 9001 and ISO/IEC 17025) was used as the external laboratory. For the purposes of assessing the performance, all umpire duplicates were considered together. Table 11.13 summarizes the performance by year for Ag, Cu, Pb, and Zn for umpire duplicate samples submitted between 2015 - May 2022. An LDL of 0.5 Ag ppm and 0.005% Cu, Pb, and Zn was used. The bias is measured based on the mean grade of the original sample dataset versus the duplicate sample dataset. A positive bias result indicates that overall, the SGS Huaron samples are returning higher values than the duplicate samples. Figure 11.76 shows the RPD and scatter plot for Ag including umpire duplicates from 2015 - May 2022.

Table 11.13    Summary of umpire duplicate performance Ag, Cu, Pb, and Zn – 2015 - May 2022

2015 – May 2022			Ag			Cu			Pb			Zn
Umpire sample pairs (Pairs > 15 x LDL)			1282 (1253)			1282 (709)			1282 (1132)			1282 (1243)
Umpire sample pairs < 10% RPD			383			225			338			166
Bias (%)			-3			3			-2			-2

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Figure 11.7    RPD and scatter plot of umpire duplicates for Ag – 2015 - May 2022

Source: PAS (2022).

The umpire samples for Cu and Zn performed well. The umpire samples for Ag and Pb performed below the assessment criteria for umpire duplicates, however the QP considers them to be reasonable. The QP notes that the QA/QC performance has improved since 2017 and that umpire duplicates should be inserted in future QA/QC programs.

11.6Summary statement

The QP considers the sampling methods, security, and analytical procedures to be adequate. The QA/QC performance indicates reasonable levels of accuracy and precision, with performance improving over time. This is shown in the low failure rate of the SRMs and the good performance of the field and coarse duplicates, especially after 2017. There is some variation in performance between elements, with Ag and Cu generally performing best. Laboratory hygiene is confirmed by the good results of the coarse blank samples.

The QP notes the absence of pulp duplicates and lack of submission of umpire duplicates since 2017. Submission of pulp duplicates and umpire duplicates will be addressed by the QP in future QA/QC programs.

Based on the QA/QC sample performance, the QP considers the assay results are suitable for inclusion in the Mineral Resource estimates.

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12DATA VERIFICATION

12.1Geology data reviews

On an annual basis, the QP reviews the diamond drilling plans and the Mineral Resource estimate procedures including the vein interpretations, treatment of extreme sample grade values, and the estimate of tonnes and grade. The reconciliation between the mine plan and the processing plant are reviewed quarterly, and the drillhole vein intersection width and grade results and QA/QC results are reviewed monthly. During mine visits, the exploration drilling, sample, and security protocols are reviewed, along with the operational mine plan, actual mine operation data, and grade control protocols.

Interpreted veins / structures using wireframes constructed on site with Leapfrog software are validated by senior personnel under the QP’s supervision. Wireframe construction using vein / structures codes, channel samples, diamond drill samples and marginal cut-off values are all verified. The objective of the review is to verify the coded data in the wireframes that are used to run the resource estimation.

In the opinion of the QP, the data used for the Mineral Resource and Mineral Reserve estimates are sufficiently reliable for those purposes.

12.2Mine engineering data reviews

The QP undertakes regular reviews of the mine engineering data, including the mining fleet and mine operational and production data, grade control data including dilution and ore loss, geotechnical and hydrological studies, waste disposal requirements, environmental and community factors, the processing data, the development of the LOM plan including production and recovery rates, capital and operating costs estimates for the mine and processing facilities, transportation, logistics, and power and water consumption and future requirements, taxation and royalties, and the parameters and assumptions used in the economic model.

In the opinion of the QP, the data and assumptions and parameters used for the Mineral Resource and Mineral Reserve estimates are sufficiently reliable for those purposes.

12.3Metallurgy data reviews

The QP undertakes regular reviews of the processing plant operational data such as metallurgical results, production, reagent consumption, treatment rates, plant availabilities and utilization, metallurgical lab procedures, and general business performance.

In the opinion of the QP, the data and assumptions used to estimate the metallurgical recovery model for the Mineral Resource and Mineral Reserve estimates are sufficiently reliable for those purposes.

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13MINERAL PROCESSING AND METALLURGICAL TESTING

No new metallurgical test work has been carried out since reporting in the 2014 PAS Technical Report. Metal recovery forecasts for Huaron are based on the historical performance of the plant operations. As part of normal plant operating procedures, routine metallurgical test work is undertaken on an annual basis to evaluate veins metallurgical performance and to manage the ore blend necessary to produce an optimal concentrate product. The majority of this test work comprises flotation tests and mineralogical analysis to assess metallurgical recovery, the presence and concentration of deleterious metals, and the proportion of each economic metal present in the silver-rich copper, lead, and zinc concentrates. Representative samples are selected for this work from the principal veins comprising the majority of the plant feed. The results of the test work form part of the parameters used for the annual Mineral Resource and Mineral Reserve estimates.

13.1Production metallurgical recoveries

A summary of the metallurgical recoveries by metal achieved in the plant over the past 9 years is given in Table 13.1. The distribution of silver present in the concentrates is typically between 41% and 51% to the copper concentrates, between 21% and 32% to the lead concentrates, and between 9% and 11% to the zinc concentrates. The copper concentrates average 24% copper, the lead concentrates average 51% lead, and the zinc concentrates average 45% zinc. Silver grades in the concentrates are approximately 2,700 ppm Ag in the copper concentrate, 2,000 ppm Ag in the lead concentrate, and 350 ppm in the zinc concentrate.

Table 13.1    Metallurgical recovery by year

Year			% Recovery Ag			% Recovery Cu			% Recovery Pb			% Recovery Zn
2022			84			75			80			78
2021			83			77			72			77
2020			84			75			76			78
2019			84			76			76			77
2018			83			77			73			76
2017			85			78			78			78
2016			84			75			79			74
2015			83			78			73			64
2014			83			77			72			68

13.2Pocock 2022 SLS test work

Solids Liquid Separation (SLS) test work was conducted by Pocock Industrial in 2022 from Huaron as part of evaluations for implementing dry-stacked tailings at the mine site. Samples include flotation tails as produced by the mineral processing plant and overflow of hydro-cyclone after underground backfill sands classification. The test work included flocculant screening tests, static and dynamic thickening tests, viscosity tests as well as vacuum and pressure filtration tests. Test results from the pressure filtration test work carried out range from 13% to 16% moisture content yielding a good discharge and stacking properties at reasonable dry times. Production rates achieved suggest that pressure filtration would likely be reasonable for dry stack tailings.

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14MINERAL RESOURCE ESTIMATES

14.1Introduction

Pan American updates Mineral Resource estimates on an annual basis following reviews of metal price trends, operational performance and costs experienced in the previous year, and forecasts of production and costs over the LOM. Infill and near-mine drilling is conducted as required through the year. The drillhole data cut-off date for the commencement of the current geological interpretation was April 30, 2022 and the effective date of the Mineral Resource estimate is June 30, 2022

Mineral Resource estimates for the Property were prepared by Pan American staff under the supervision of, and reviewed by Christopher Emerson, FAusIMM, Vice President, Business Development and Geology of Pan American, who is a QP. They have been estimated in accordance with the CIM Estimation of Mineral Resources and Mineral Reserves, Best Practice Guidelines (2019), and reported according to the CIM Definition Standards (2014).

Mineralization domains representing vein structures were defined in Leapfrog Geo software, while sub-block model estimates were completed within Datamine software, using capped composites and a multi-pass OK or ID2 interpolation approach. Blocks weren´t classified, the mined panels were classified considering local drillhole spacing and proximity to existing development.

Wireframe and block model validation procedures including wireframe to block volume confirmation, statistical comparisons with composite and swath plots, visual reviews in 3D, longitudinal, cross section, and plan views, as well as cross software reporting confirmation were completed for all structures.

A summary of the Mineral Resource estimates as of June 30, 2022 for the Huaron mine are presented in Table 14.1 and is prepared in accordance with NI 43-101 definitions. A detailed breakdown is shown in Table 14.11.

Table 14.1    Summary of Mineral Resources – June 30, 2022

Classification			Tonnes Mt			Ag g/t			Contained Ag Moz			Cu %			Pb %			Zn %
Measured			2.08			163			10.88			0.42			1.58			3.05
Indicated			2.37			166			12.69			0.40			1.71			2.92
Measured + Indicated			4.46			165			23.57			0.41			1.65			2.98
Inferred			7.25			155			36.13			0.26			1.47			2.73

Notes:

•CIM Definition Standards (2014) were used for reporting the Mineral Resources.

•Mineral Resources exclude those Mineral Resources converted to Mineral Reserves.

•Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

•Mineral Resource estimates were prepared under the supervision of or were reviewed by Christopher Emerson, FAusIMM, Vice President, Business Development and Geology of Pan American.

•The Mineral Resource estimates are based on an incremental VPT of $80.59/t.

•Metal prices used are $19 per ounce of silver, $7,000/t for copper, $2,000/t for lead and $2,600/t for zinc.

•The VPT used to determine cut-off is based on a combination of metal price and individual metal recoveries which are variable throughout the deposit, and smelter considerations.

•Mineral Resources were constrained to conform with RPEEE.

•The drillhole database was closed at May 31, 2022.

•Totals may not add up due to rounding.

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14.2Resource database

The drilling database is maintained in Fusion Server, with drillhole location information in WGS84 projection, UTM Zone 18. All drillhole database and channel samples are maintained in metric units, all Mineral Resource estimates at Huaron have been completed in metric units.

The database for the Huaron mine Mineral Resources consists of diamond drilling of at 25 m to 30 m average spacing and channel sample data. This amounts to 112,377 assays made up of 66,215 assays from 34,693 channels (71,468 m) and 46,162 assays from 1,173 drillholes (37,726 m). Drilling was conducted from surface and from underground infrastructure. The data was imported into Leapfrog Geo for wireframe building and then block modelling and resource estimation in Datamine.

14.3Discussion of the 2D method

The 2D estimates are prepared on an annual basis and updated with the additional diamond drilling and channel samples collected during the year, using a variation of the polygonal method in AutoCAD and Excel software. Each vein structure is projected onto a longitudinal section and divided into a series of geometrical blocks created to best fit an area of mineralization into a minable block, if the mineralization present is considered economic. The dimensions of the mining blocks are based on mining levels, stope layouts, and previously mined out areas, and range in length from between 20 m and 70 m. They are generally on the order of 50 m long and 15 m high. An example longitudinal section from the 69 structure is given in Figure 14.1.

The average true width of the vein intersection is projected for that block. The planned mining dilution (minimum mining width) based on, expected ground conditions is then added to the vein width of that block and the volume determined. Sample grades are reviewed and treated for extreme values if necessary, and then the average grade of the intersections (including the internal dilution) is assigned to the block. Bulk density values are applied to the volume of the block to estimate the tonnes of each block, based on the average bulk density measured from samples selected from each respective veins.

A value per tonne is applied to each block based on metal content, metal prices, concentrate sales terms, concentrate quality, processing recovery, transportation, refining, and other selling costs such as storage fees, port fees, etc. Metallurgical recoveries are determined separately for each group of veins or structures to account for variability in the recovery. Metal prices used to estimate mineral resources were $19 per ounce of silver, $2,000 per tonne of lead, $2,600 per tonne of zinc, and $7,000 per tonne of copper. Any blocks that do not meet the criteria of resources are removed. Each block is classified as Measured, Indicated, and Inferred Mineral Resources categories depending on confidence based on the location of the block relative to mine workings, the type of sample available in each block, and the number of samples available to estimate each block.

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Figure 14.1    Example longitudinal section showing a 2D estimate

14.4Geological interpretation and modelling

The Huaron Mineral Resource estimates are based on interpretation of vein structures in 34 domains (see Table 14.2).

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Table 14.2    Modelled structures

Domain code			Structure			Domain code			Structure
4			Bernabe Ramal			219			Sheyla Ramal
11			Cometa Ramal			221			Roxana Ramal 1
13			Danitza Ramal			222			Mariana Ramal 1
14			Dos Ramal			225			Shiusha Ramal
19			Fastidiosa Ramal 4			228			Consuelo Ramal
24			Juanita Ramal			229			Teresa Ramal
30			Labor Oeste			230			Cometa Ramal 1
34			Llacsacocha Sur			231			Cuerpo Labor
38			Margarita Ramal			233			Cuerpo Rey
40			Mariana Ramal			234			Cuerpo Santa Rita
44			Mily Ramal			235			La China Ramal
57			Productora Ramal			238			Rosita Ramal
58			Providencia Ramal			241			San Pedro Ramal
63			Roxana Ramal			250			Sevilla Ramal Este
88			Travieso Ramal			254			Shiusha Ramal Sur Piso
90			Uno Ramal			256			Lesly Ramal
91			Alianza			257			Pozo D Ramal Sur
94			Constancia			258			Pozo D Ramal Norte
98			Gavia			260			Pozo D - Chert
102			Pozo D			261			Constancia Ramal Techo
103			Rey Ramal			263			Cuerpo Shiusha Warren
104			San Narciso			265			Cuerpo Andres
106			Shiusha Warren			266			Tapada Ramal Piso
107			Tapada			267			Maritza Ramal Techo
108			Travieso			269			Halley Ramal
109			Yanacreston			271			Andres Ramal Piso
116			Yanacreston Ramal 1			401			Mariana Ramal
155			Farallon Ramal			941			Constancia
156			Llacsacocha			1551			Farallon Ramal
157			Llacsacocha Ramal Sur 1			1561			Llacsacocha
213			Cuatro Ramal			2151			Santo Tomas Ramal
215			Santa Tomas Ramal			2291			Teresa Ramal
217			Maritza Ramal

Note: Domain 24 Juanita Ramal is used as an example throughout the report.

The domain wireframe was constructed by a geologist using a marginal VPT, and domain extensions were defined at a limit of closer to 50% of the local drillhole spacing, or 50% of the distance to an excluded drillhole. Also, domains were constructed for the HW and FW of each structure (adding 01 to the vein code for the HW and 02 to the vein code for the FW). Vein orientations at the structures have been confirmed through underground mapping and sampling, as well as vein orientations observed in drill core.

A total of 34 wireframes for the mineralized zone, 34 for the HW, and 34 for the FW were modeled altogether at Huaron mine. Final domains are presented in Figure 14.2. No minimum mining width was used to model shapes.

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Figure 14.2    Wireframes of the structures

Source: PAS (2022).

14.5Statistics and compositing

14.5.1Compositing

Assay samples were composited to represent the full-length intercept of each domain. A histogram of assay lengths within mineralization domains is presented in Figure 14.3 as a histogram of the composite interval lengths within the mineralization domain at Juanita Ramal, as an example. The chosen composite length is 1.5 m or 2.0 m for different domains.

Figure 14.3 and silver composite statistics are summarized in Table 14.3.

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Table 14.3    Composites statistics

Domain			Number of Composited			Mean (g/t Ag)			Mean (% Cu)			Mean (% Pb)			Mean (% Zn)
4			1145			236.14			0.15			5.56			10.09
401			160			20.94			0.02			0.49			1.28
402			138			23.67			0.04			0.41			1.15
11			125			342.45			0.12			6.75			7.26
1101			25			23.34			0.02			0.46			1.03
1102			25			94.88			0.11			0.58			0.25
13			347			517.23			0.27			5.97			5.99
1301			95			25.90			0.01			0.46			0.52
1302			94			50.59			0.03			0.30			0.27
14			10			250.41			0.07			1.56			5.58
1401			20			1.16			0.00			0.01			0.05
1402			19			2.49			0.01			0.01			0.16
19			384			215.02			0.17			2.54			3.70
1901			93			21.06			0.02			0.22			0.39
1902			98			28.86			0.02			0.61			0.68
24			2437			382.59			1.94			1.69			2.75
2401			332			37.89			0.12			0.34			0.46
2402			419			52.99			0.27			0.29			0.51
30			1191			369.51			0.47			4.55			8.26
3001			73			20.31			0.02			0.24			0.46
3002			71			30.93			0.05			0.32			0.57
34			2882			204.80			0.45			0.91			3.92
3401			296			47.23			0.08			0.62			1.47
3402			318			74.30			0.11			0.62			1.61
38			287			582.98			0.16			2.26			4.36
3801			86			63.83			0.03			0.37			0.99
3802			80			23.52			0.02			0.22			0.34
40			477			230.01			0.93			1.93			4.31
4001			100			9.72			0.03			0.14			0.33
4002			95			12.46			0.03			0.21			0.34
44			287			180.21			0.09			1.54			5.58
4401			273			21.24			0.02			0.26			0.75
4402			274			22.96			0.02			0.34			0.80
57			2126			206.53			0.95			1.08			3.18
5701			217			24.87			0.11			0.19			0.59
5702			202			29.28			0.12			0.16			0.70
58			2213			350.20			0.56			1.96			3.94
5801			328			25.87			0.04			0.16			0.35
5802			248			15.78			0.03			0.16			0.28
63			396			380.24			0.95			1.03			2.49
6301			153			17.03			0.08			0.12			0.21
6302			163			13.25			0.02			0.08			0.16
88			157			971.06			1.16			2.34			3.75

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Domain			Number of Composited			Mean (g/t Ag)			Mean (% Cu)			Mean (% Pb)			Mean (% Zn)
8801			70			139.63			0.42			0.10			0.18
8802			101			28.96			0.09			0.18			0.26
90			15			289.69			0.09			2.06			4.61
9001			30			3.91			0.00			0.05			0.26
9002			16			1.26			0.00			0.01			0.08
91			2669			193.94			0.95			1.46			4.63
9101			258			33.50			0.12			0.24			1.14
9102			291			29.85			0.14			0.31			1.34
94			859			200.30			1.15			2.30			4.29
9401			176			30.18			0.08			0.43			0.81
9402			142			28.79			0.06			0.56			1.16
98			1253			257.86			1.11			5.07			10.02
9801			36			23.10			0.09			0.43			0.69
9802			43			38.98			0.14			0.68			1.23
102			1127			226.71			0.24			1.21			3.82
10201			107			92.04			0.07			0.74			1.46
10202			133			29.39			0.04			0.42			1.01
103			445			214.64			0.15			2.83			5.28
10301			76			33.88			0.04			0.37			0.83
10302			78			35.59			0.03			0.41			0.64
104			1436			240.70			1.03			1.21			3.27
10401			211			30.00			0.13			0.26			0.76
10402			187			61.84			0.21			0.34			0.83
106			1298			313.56			0.40			1.10			4.08
10601			323			55.51			0.05			0.60			1.53
10602			252			55.57			0.06			0.37			1.21
107			5082			336.32			1.95			1.22			2.93
10701			393			34.63			0.15			0.25			0.61
10702			404			37.46			0.14			0.22			0.54
108			3289			188.47			5.97			0.35			0.85
10801			333			42.04			2.28			0.15			0.35
10802			304			45.98			1.61			0.19			0.73
109			336			183.98			1.47			0.83			4.28
10901			100			46.18			0.11			0.07			0.94
10902			89			25.05			0.19			0.16			0.74
116			23			178.46			0.11			2.43			5.57
11601			21			20.33			0.02			0.29			1.38
11602			20			24.34			0.02			0.44			2.15
155			1044			288.66			0.14			4.24			5.07
15501			187			34.53			0.03			0.42			0.65
15502			205			29.87			0.02			0.36			0.58
156			6544			210.11			0.46			0.56			3.65
15601			525			37.31			0.10			0.16			1.00
15602			434			33.71			0.12			0.14			1.04
157			15			158.12			0.48			1.88			4.51

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Domain			Number of Composited			Mean (g/t Ag)			Mean (% Cu)			Mean (% Pb)			Mean (% Zn)
15701			12			9.64			0.03			0.13			0.85
15702			12			25.42			0.03			0.42			2.28
213			3194			261.97			1.96			1.23			2.82
21301			341			31.13			0.18			0.20			0.65
21302			394			23.62			0.10			0.23			0.65
215			91			197.03			2.58			1.10			1.51
21501			65			7.35			0.07			0.05			0.15
21502			67			16.04			0.18			0.13			0.29
217			655			456.92			0.25			2.92			3.45
21701			29			25.25			0.02			0.25			0.25
21702			35			86.29			0.07			0.44			0.73
219			208			269.62			0.63			1.48			4.13
21901			17			11.31			0.02			0.17			0.39
21902			14			38.74			0.06			0.30			0.80
221			223			347.05			0.26			1.90			2.46
22101			106			17.21			0.02			0.13			0.29
22102			101			14.25			0.02			0.15			0.19
222			326			422.57			0.58			4.98			5.28
22201			16			38.40			0.30			0.31			0.90
22202			15			71.85			0.29			0.16			0.38
225			22			126.97			0.14			2.04			3.19
22501			41			12.17			0.01			0.24			0.43
22502			32			45.97			0.02			1.06			1.04
228			14			192.83			0.73			0.99			3.41
22801			39			4.29			0.01			0.02			0.03
22802			32			17.21			0.02			0.19			0.07
229			161			400.46			0.34			1.87			3.01
22901			82			43.03			0.03			0.54			0.73
22902			79			38.35			0.02			0.36			0.59
230			6			130.59			0.03			1.95			3.75
23001			14			16.96			0.00			0.44			0.54
23002			13			22.21			0.01			0.47			0.77
231			42			87.63			0.03			2.33			3.05
23101			8			15.56			0.01			0.40			0.68
23102			14			0.01			0.00			0.00			0.00
233			217			139.29			0.16			2.64			4.62
23301			25			83.50			0.09			1.64			2.92
23302			27			47.10			0.05			1.06			2.06
234			8			161.65			0.07			0.73			1.66
23401			7			5.71			0.00			0.02			0.09
23402			4			11.80			0.05			0.22			0.44
235			328			322.29			1.70			1.75			2.93
23501			49			39.60			0.23			0.20			0.54
23502			44			37.47			0.33			0.18			0.59
238			3			317.96			0.13			1.41			3.28

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Domain			Number of Composited			Mean (g/t Ag)			Mean (% Cu)			Mean (% Pb)			Mean (% Zn)
23801			4			3.77			0.00			0.01			0.03
23802			3			1.63			0.00			0.01			0.01
241			304			246.33			0.06			4.55			3.75
24101			95			27.63			0.01			0.45			0.39
24102			87			42.69			0.02			0.66			0.53
250			394			159.31			0.03			0.42			3.24
25001			119			40.51			0.02			0.16			1.13
25002			130			32.46			0.01			0.14			1.08
254			12			115.79			0.08			1.70			2.57
25401			37			32.42			0.05			0.52			1.32
25402			25			41.80			0.05			0.68			1.68
256			191			178.09			0.89			1.92			5.87
25601			45			14.59			0.10			0.08			0.44
25602			28			29.24			0.06			0.22			1.09
257			197			186.99			0.04			0.98			3.23
25701			123			30.51			0.01			0.13			0.52
25702			102			46.19			0.01			0.18			0.79
258			841			435.58			0.10			0.59			3.38
25801			98			30.04			0.01			0.14			0.34
25802			108			28.16			0.01			0.38			0.76
260			141			209.93			0.04			0.64			2.06
26001			110			43.34			0.01			0.24			0.78
26002			131			36.56			0.01			0.40			0.87
261			431			249.33			0.60			4.64			6.62
26101			136			14.88			0.03			0.28			0.62
26102			148			19.22			0.03			0.39			0.69
263			107			148.26			0.12			1.78			3.74
26301			23			20.01			0.04			0.12			0.45
26302			33			32.45			0.04			0.19			1.06
265			421			206.64			0.06			5.47			4.15
26501			109			25.82			0.01			0.71			0.72
26502			95			23.27			0.01			0.61			0.49
266			856			542.04			1.52			2.64			4.51
26601			84			35.93			0.05			0.27			0.45
26602			71			59.77			0.07			0.27			0.45
267			277			552.98			0.21			4.89			3.12
26701			27			158.66			0.05			2.08			0.44
26702			20			23.34			0.01			0.44			0.55
269			383			660.38			0.35			3.70			2.91
26901			21			9.59			0.01			0.06			0.09
26902			22			5.77			0.03			0.02			0.03
271			228			266.84			0.04			6.84			3.52
27101			31			20.15			0.01			0.47			0.47
27102			38			27.18			0.01			0.59			0.56
401			46			256.26			1.06			1.88			4.53

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Domain			Number of Composited			Mean (g/t Ag)			Mean (% Cu)			Mean (% Pb)			Mean (% Zn)
40101			22			26.97			0.06			0.28			0.55
40102			12			104.50			0.23			0.47			1.22
941			39			156.60			0.31			2.39			4.41
94101			2			61.70			0.07			1.08			2.53
94102			7			52.36			0.09			0.82			1.65
1551			568			179.08			0.67			1.19			5.93
15501			27			43.28			0.08			0.32			1.55
15502			11			107.17			0.59			0.33			1.67
1561			1813			271.61			0.58			0.82			3.89
15601			164			32.74			0.05			0.29			0.97
15602			183			32.93			0.07			0.38			1.03
2151			222			273.12			1.17			0.68			2.54
21501			33			38.77			0.33			0.43			1.11
21502			53			27.73			0.09			0.17			0.54
2291			147			483.23			1.31			1.75			3.68
22901			21			19.15			0.03			0.11			0.48
22902			21			31.61			0.03			0.28			0.76

Figure 14.3 is a histogram of the composite interval lengths within the mineralization domain at Juanita Ramal structure as an example. The chosen composite length varies between 1.5 m and 2.0 m.

Figure 14.3    Histogram of sample interval lengths within Juanita Ramal structure

Source: PAS (2022).

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14.5.2Treatment of high-grade composites

Table 14.4 summarizes the uncapped and capped assays statistics at Huaron mine. Composites were reviewed using basic statistics, histograms, and log probability plots to determine variable global capped values for each domain independently.

Local capping was used too to reduce the impact of high grades in panels. The local capping algorithm identifies and manages, sample grades that will have an unacceptable large impact on the block grade estimates. The impact of a sample on the local estimates is evaluated by comparing two local averages: with and without the potential outlier sample. The impact of the potential outlier is measured by the ratio of the two average grades.

Figure 14.4    Probability plot Ag ppm at Juanita Ramal vein

Source: PAS (2022).

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Table 14.4    Composites statistics and capping levels

ORE																														HW												FW
Domain			Cap (g/t Ag)			Cap (% Cu)			Cap (% Pb)			Cap (% Zn)			Capped Mean (g/t Ag)			Capped Mean (% Cu)			Capped Mean (% Pb)			Capped Mean (% Zn)			Capped CV (g/t Ag)			Cap (g/t Ag)			Cap (% Cu)			Cap (% Pb)			Cap (% Zn)			Cap (g/t Ag)			Cap (% Cu			Cap (% Pb)			Cap (% Zn)
4			1142.00			0.47			32.47			33.61			212.04			0.14			4.92			9.69			0.91			65.52			0.07			1.45			4.57			78.00			0.15			1.48			4.08
11			890.56			0.44			23.09			17.75			314.30			0.08			6.45			6.98			0.61			42.49			0.05			1.25			3.87			75.51			0.09			0.60			0.58
13			1447.00			0.57			16.51			17.21			463.72			0.19			5.33			5.26			0.68			101.94			0.04			2.53			2.84			283.00			0.13			1.42			1.49
14			515.93			0.13			5.19			13.94			200.98			0.06			0.94			4.47			0.55			3.10			0.00			0.03			0.22			15.32			0.02			0.07			0.79
19			636.80			0.84			8.80			8.56			196.89			0.14			2.32			3.42			0.64			76.30			0.10			1.23			1.67			142.46			0.09			3.92			2.92
24			1245.06			9.71			7.56			10.39			351.50			1.76			1.56			2.54			0.68			170.70			0.46			1.41			1.83			208.25			1.22			1.33			1.89
30			1082.52			2.10			13.15			20.54			336.94			0.42			4.18			7.65			0.55			61.81			0.07			1.22			2.65			117.45			0.27			1.32			1.64
34			720.56			2.23			4.22			11.10			183.45			0.39			0.79			3.57			0.70			119.37			0.33			2.26			4.26			108.28			0.27			1.35			3.46
38			2807.89			0.48			6.90			10.86			502.30			0.15			2.12			4.18			0.81			256.75			0.13			1.38			4.16			70.09			0.11			0.74			1.42
40			788.75			4.04			7.78			13.80			208.81			0.85			1.77			3.99			0.61			43.78			0.11			0.84			1.74			55.23			0.11			0.76			1.52
44			566.93			0.21			5.40			14.76			163.06			0.07			1.27			5.01			0.62			74.17			0.08			1.17			3.06			94.15			0.06			1.38			3.81
57			608.51			5.16			5.83			11.26			187.34			0.83			0.96			2.91			0.60			85.50			0.56			0.86			2.48			85.76			0.56			0.54			2.47
58			1321.00			2.71			7.25			11.94			319.32			0.50			1.81			3.66			0.77			77.29			0.12			0.65			1.45			72.07			0.10			0.81			1.68
63			1703.56			3.91			4.19			8.26			345.97			0.82			0.92			2.31			0.79			66.85			0.44			0.63			1.36			37.22			0.06			0.31			0.72
88			3292.00			4.12			7.02			8.83			924.03			1.09			2.16			3.63			0.79			61.31			0.13			0.42			0.74			108.30			0.27			0.30			0.80
90			969.20			0.29			11.20			14.01			213.81			0.06			1.04			3.38			0.51			22.87			0.01			0.41			1.53			13.08			0.00			0.09			0.83
91			641.07			5.94			5.74			11.27			175.29			0.78			1.32			4.29			0.60			94.00			0.55			0.70			3.55			87.21			0.79			1.01			4.88
94			664.92			7.32			10.72			15.44			180.32			0.82			2.07			4.10			0.65			149.49			0.34			1.79			2.98			83.70			0.32			1.90			4.62
98			809.40			2.55			13.47			25.74			239.98			1.06			4.69			9.41			0.63			72.84			0.28			2.29			4.25			66.59			0.26			1.98			3.44
102			819.10			1.29			5.87			9.88			198.94			0.19			1.10			3.71			0.70			195.99			0.13			1.98			3.37			134.56			0.14			1.80			3.34
103			828.50			0.65			9.82			18.06			200.12			0.14			2.62			4.99			0.61			96.32			0.12			1.11			2.95			134.17			0.11			1.84			2.97
104			614.78			2.91			4.03			7.63			210.44			0.90			1.06			2.97			0.61			88.45			0.68			0.86			2.90			230.69			1.25			1.05			3.33
106			1239.22			2.54			4.49			12.11			263.43			0.32			0.99			3.86			0.70			111.42			0.10			1.23			3.19			86.27			0.13			0.86			2.77
107			1588.14			8.61			6.52			9.84			298.85			1.73			1.07			2.65			0.92			111.24			0.75			0.93			2.54			122.39			0.63			0.88			2.25
108			1295.92			15.23			2.98			6.74			133.79			3.78			0.23			0.56			1.16			127.77			9.65			0.72			1.58			146.35			7.59			1.06			3.96
109			561.71			12.79			4.88			11.66			174.33			1.31			0.75			4.16			0.62			78.00			0.13			0.25			2.75			85.48			0.31			0.92			3.79
116			423.01			0.31			8.64			15.92			165.04			0.11			2.05			5.09			0.38			63.97			0.09			1.07			4.31			59.29			0.06			2.28			5.94
155			515.21			4.46			4.64			12.71			256.12			0.10			3.86			4.67			0.69			71.73			0.20			0.69			3.05			295.68			1.93			0.94			3.00
156			762.73			3.09			2.28			10.56			188.27			0.39			0.50			3.34			0.63			101.48			0.34			0.54			3.27			94.67			0.51			0.48			3.25
157			239.16			2.45			7.37			10.16			156.22			0.30			0.98			3.41			0.36			38.42			0.12			0.51			3.43			60.28			0.08			1.01			4.42
213			1814.00			13.88			14.57			12.38			239.42			1.80			1.10			2.61			0.80			80.63			0.90			0.76			2.67			73.95			0.45			0.99			2.52
215			872.37			9.47			12.12			5.45			168.53			2.35			0.65			1.26			0.74			48.92			0.18			0.38			0.95			101.00			1.17			0.65			1.42

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ORE																														HW												FW
Domain			Cap (g/t Ag)			Cap (% Cu)			Cap (% Pb)			Cap (% Zn)			Capped Mean (g/t Ag)			Capped Mean (% Cu)			Capped Mean (% Pb)			Capped Mean (% Zn)			Capped CV (g/t Ag)			Cap (g/t Ag)			Cap (% Cu)			Cap (% Pb)			Cap (% Zn)			Cap (g/t Ag)			Cap (% Cu			Cap (% Pb)			Cap (% Zn)
217			1674.78			0.91			10.38			11.79			399.51			0.25			2.71			2.99			0.72			75.66			0.04			0.57			0.59			96.72			0.10			0.51			1.30
219			737.42			2.17			7.05			9.93			258.36			0.58			1.32			3.89			0.62			74.19			0.11			0.68			1.71			129.69			0.20			1.53			2.38
221			1936.32			1.28			9.70			11.40			276.71			0.21			1.62			2.15			1.01			136.40			0.11			0.52			1.63			90.00			0.07			0.55			0.89
222			1190.00			1.70			12.61			13.68			403.64			0.53			4.74			4.88			0.57			122.82			1.45			1.00			2.75			197.73			0.76			0.61			1.18
225			337.09			0.47			6.53			8.06			113.78			0.12			1.47			2.45			0.57			62.61			0.02			1.43			2.04			149.69			0.07			3.86			3.18
228			411.59			2.56			3.91			10.84			174.35			0.56			0.64			2.50			0.49			15.11			0.03			0.06			0.11			119.47			0.10			1.03			0.32
229			1229.00			1.16			4.35			7.17			348.05			0.29			1.31			2.77			0.76			150.72			0.18			1.97			3.17			140.40			0.10			1.73			2.27
230			190.52			0.06			3.75			10.81			115.71			0.02			1.40			1.90			0.26			42.21			0.01			1.22			1.86			37.98			0.03			0.89			1.47
231			226.22			0.07			7.00			6.78			72.79			0.03			2.00			2.72			0.49			66.73			0.03			1.77			3.11			10.00			0.00			0.00			0.00
233			411.65			0.51			8.13			16.31			128.40			0.13			2.45			4.25			0.61			227.54			0.27			7.23			12.48			176.40			0.24			6.28			8.10
234			338.55			0.18			2.39			3.86			135.66			0.05			0.30			1.33			0.38			23.65			0.01			0.08			0.32			16.10			0.11			0.36			0.65
235			1167.49			7.75			9.05			12.24			281.75			1.56			1.49			2.42			0.68			92.57			0.88			0.91			1.80			90.58			1.20			0.71			1.88
238			433.69			0.15			1.79			3.74			254.61			0.12			1.05			3.07			0.21			10.76			0.00			0.02			0.08			6.12			0.00			0.03			0.06
241			968.69			0.28			17.40			11.97			222.93			0.06			4.13			3.68			0.89			161.23			0.04			2.20			2.33			205.63			0.08			3.47			2.48
250			640.55			0.19			1.74			10.47			144.60			0.03			0.35			2.87			0.95			214.65			0.04			0.57			4.61			128.50			0.04			0.48			3.59
254			194.29			0.15			3.11			4.65			101.28			0.08			1.54			2.29			0.27			56.86			0.11			1.22			2.98			74.53			0.06			1.26			3.10
256			534.45			6.09			6.66			13.94			162.35			0.75			1.82			5.68			0.61			71.68			0.38			0.30			2.09			139.27			0.21			1.00			5.71
257			641.16			0.17			6.64			13.41			163.25			0.04			0.64			2.54			0.67			105.43			0.02			0.48			1.77			170.41			0.03			0.50			2.44
258			2314.11			0.51			3.69			16.32			376.38			0.09			0.49			2.97			1.24			87.53			0.01			0.51			1.86			129.98			0.04			1.46			5.06
260			918.14			0.23			2.36			8.39			159.86			0.03			0.36			1.61			0.73			136.07			0.03			0.90			3.17			156.77			0.04			0.95			2.22
261			866.30			5.44			17.28			20.75			224.95			0.47			4.17			6.06			0.69			55.22			0.07			1.14			2.82			80.57			0.20			2.34			3.16
263			2649.00			6.66			12.71			12.85			138.01			0.12			1.59			3.33			0.51			223.70			0.21			0.66			1.86			209.80			0.19			0.92			0.83
265			650.68			0.17			17.01			11.40			190.92			0.05			5.19			3.71			0.58			99.69			0.04			2.46			2.15			89.77			0.02			2.12			1.56
266			1789.35			5.53			8.54			12.40			501.80			1.39			2.37			4.06			0.65			146.43			0.22			1.20			1.84			171.96			0.25			1.00			2.31
267			2278.89			1.40			17.15			15.49			465.77			0.19			4.33			2.40			0.91			292.72			0.06			3.09			1.43			10.68			0.01			0.33			0.53
269			2914.10			1.79			14.57			15.90			514.99			0.34			3.21			2.11			0.85			38.89			0.02			0.19			0.71			29.37			0.30			0.04			0.11
271			712.81			0.12			18.59			11.45			250.02			0.03			6.53			3.05			0.61			52.64			0.02			1.53			1.72			73.90			0.01			1.68			1.65
401			782.23			3.61			8.17			22.75			233.56			0.90			1.54			3.72			0.49			50.84			0.14			1.14			2.41			44.87			0.05			0.39			0.79
941			519.67			2.09			9.59			12.62			143.33			0.26			2.33			4.30			0.58			66.09			0.10			1.09			2.70			77.18			0.15			1.24			2.37
1551			515.21			4.46			4.64			12.71			166.08			0.54			1.07			5.55			0.51			71.73			0.20			0.69			3.05			295.68			1.93			0.94			3.00
1561			1282.68			4.50			3.02			12.08			245.70			0.48			0.76			3.61			0.84			89.45			0.16			1.11			2.93			78.62			0.16			0.98			3.12
2151			1310.77			5.60			3.24			7.18			246.33			1.13			0.58			2.23			0.71			136.56			1.47			1.60			3.99			87.13			0.49			0.57			2.05
2291			1564.51			9.65			8.84			9.65			445.33			1.15			1.63			3.52			0.68			79.10			0.13			0.43			1.89			127.32			0.11			1.63			3.12

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14.6Trend analysis

14.6.1Variography

Experimental variograms were calculated and modelled in Snowden Supervisor software using capped full-length composites for each domain (ore, HW, and FW). Variograms directions were validated against vein outlines. While the mineralization domain lacked sufficient samples to obtain robust variograms, the results were useful in supporting the range of expected grade continuity. The variograms were exported to Datamine format to use in the estimation process.

Table 14.5 summarize the variogram parameters for each metal for all domains.

Table 14.5    Variogram parameters

Domain			Metals			NUGGET Co			SILL C1/C2			ROTATION									RANGES
												Z			X			Z			X			Y			Z
4			AGPPM			0.00			1.00			80			45			180			50			23			6
			CUPERC			0.01			0.99			80			45			150			36			32			6
			PBPERC			0.31			0.69			80			45			180			44			25			6
			ZNPERC			0.36			0.64			80			45			180			26			46			6
13			AGPPM			0.44			0.56			170			70			180			28			26			30
			CUPERC			0.29			0.71			170			70			180			34			29			30
			PBPERC			0.22			0.78			170			70			180			26			28			30
			ZNPERC			0.00			1.00			170			70			180			30			89			29
19			AGPPM			0.44			0.56			80			90			180			44			33			18
			CUPERC			0.32			0.68			80			90			180			50			35			18
			PBPERC			0.00			1.00			80			90			180			42			20			18
			ZNPERC			0.26			0.74			80			90			180			28			14			18
24			AGPPM			0.25			0.76			90			110			-170			30			25			12
			CUPERC			0.16			0.84			80			110			-170			40			69			12
			PBPERC			0.16			0.84			90			110			160			26			47			18
			ZNPERC			0.47			0.53			90			110			180			59			73			24
30			AGPPM			0.04			0.97			180			90			180			23			45			6
			CUPERC			0.07			0.93			180			90			180			26			45			3
			PBPERC			0.23			0.77			180			90			180			30			43			3
			ZNPERC			0.28			0.72			180			90			180			22			60			6
34			AGPPM			0.17			0.83			140			100			100			56			50			10
			CUPERC			0.02			0.99			140			100			100			47			50			10
			PBPERC			0.00			1.00			140			100			100			41			35			10
			ZNPERC			0.11			0.89			140			100			100			56			57			10
38			AGPPM			0.06			0.94			170			105			180			13			26			9
			CUPERC			0.12			0.89			170			105			180			40			55			9
			PBPERC			0.24			0.76			170			105			180			16			34			9
			ZNPERC			0.00			1.00			170			105			180			27			40			9
40			AGPPM			0.00			1.00			70			65			40			52			33			3
			CUPERC			0.00			1.00			70			70			40			35			22			3
			PBPERC			0.00			1.00			70			70			20			51			20			3
			ZNPERC			0.00			1.00			70			70			40			44			20			3

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Domain			Metals			NUGGET Co			SILL C1/C2			ROTATION									RANGES
												Z			X			Z			X			Y			Z
44			AGPPM			0.42			0.58			180			110			180			69			30			40
			CUPERC			0.43			0.57			175			110			180			111			20			10
			PBPERC			0.36			0.64			175			110			-175			65			38			15
			ZNPERC			0.33			0.67			175			110			180			60			20			15
57			AGPPM			0.25			0.75			170			105			-170			30			62			8
			CUPERC			0.00			1.00			180			105			145			75			65			8
			PBPERC			0.17			0.59			-180			105			-140			19			50			5
			ZNPERC			0.15			0.85			170			105			-140			25			42			8
58			AGPPM			0.14			0.86			180			70			-100			43			50			6
			CUPERC			0.15			0.85			-180			70			170			42			32			6
			PBPERC			0.12			0.88			-180			70			170			22			24			6
			ZNPERC			0.25			0.75			-180			70			170			17			28			6
63			AGPPM			0.15			0.85			70			70			170			30			41			5
			CUPERC			0.09			0.91			70			70			-170			51			31			6
			PBPERC			0.07			0.93			70			70			170			30			25			6
			ZNPERC			0.00			1.00			80			70			170			25			40			5
91			AGPPM			0.25			0.75			165			105			90			73			50			9
			CUPERC			0.30			0.70			165			105			90			61			50			9
			PBPERC			0.00			1.00			165			105			90			87			33			9
			ZNPERC			0.00			1.00			165			105			90			70			31			9
94			AGPPM			0.46			0.54			55			60			180			51			40			8
			CUPERC			0.27			0.73			55			60			180			21			40			8
			PBPERC			0.32			0.69			55			60			180			25			40			8
			ZNPERC			0.54			0.46			55			60			180			22			35			8
98			AGPPM			0.00			1.00			170			90			170			34			32			8
			CUPERC			0.00			1.00			170			90			170			30			32			5
			PBPERC			0.06			1.00			170			90			170			13			65			8
			ZNPERC			0.06			0.94			170			90			170			20			50			6
102			AGPPM			0.34			0.67			180			85			170			46			40			7
			CUPERC			0.27			0.74			180			85			170			81			40			7
			PBPERC			0.22			0.78			180			85			170			39			42			6
			ZNPERC			0.30			0.70			180			85			170			84			40			4
103			AGPPM			0.00			0.99			-155			85			-150			42			26			5
			CUPERC			0.00			1.00			-155			85			-170			38			50			7
			PBPERC			0.00			1.00			-155			85			-170			50			19			7
			ZNPERC			0.00			0.99			-155			85			-170			70			21			6
104			AGPPM			0.40			0.60			110			85			170			40			45			16
			CUPERC			0.16			0.84			110			85			170			42			15			9
			PBPERC			0.45			0.56			110			95			140			48			27			5
			ZNPERC			0.00			1.00			110			90			140			42			27			5
106			AGPPM			0.21			0.79			175			95			175			32			40			5
			CUPERC			0.22			0.78			175			95			175			30			27			5
			PBPERC			0.19			0.81			175			95			175			45			39			6
			ZNPERC			0.17			0.83			175			95			175			46			34			5

PAN AMERICAN SILVER CORP.    74

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Domain			Metals			NUGGET Co			SILL C1/C2			ROTATION									RANGES
												Z			X			Z			X			Y			Z
107			AGPPM			0.14			0.86			170			100			140			40			62			12
			CUPERC			0.13			0.87			170			100			140			48			62			5
			PBPERC			0.48			0.52			170			100			170			48			80			7
			ZNPERC			0.34			0.66			170			100			170			62			96			7
108			AGPPM			0.00			1.00			165			110			180			40			65			13
			CUPERC			0.00			1.00			165			110			165			62			22			13
			PBPERC			0.00			1.00			165			110			155			50			18			8
			ZNPERC			0.00			1.00			165			100			180			30			36			13
109			AGPPM			0.13			0.88			160			120			180			23			55			8
			CUPERC			0.19			0.81			150			120			180			54			50			8
			PBPERC			0.19			0.81			150			120			180			60			40			8
			ZNPERC			0.00			1.00			150			120			180			45			128			8
1551			AGPPM			0.00			1.00			170			100			180			24			24			10
			CUPERC			0.00			1.00			170			100			180			15			24			7
			PBPERC			0.00			1.00			170			100			180			35			24			6
			ZNPERC			0.00			1.00			170			100			180			24			24			8
155			AGPPM			0.00			1.00			0			70			-30			44			31			12
			CUPERC			0.19			0.82			0			70			10			60			28			6
			PBPERC			0.00			1.00			180			110			135			30			33			6
			ZNPERC			0.00			1.00			0			70			-45			31			36			10
156			AGPPM			0.29			0.71			-50			70			-40			100			109			20
			CUPERC			0.32			0.68			-50			70			-40			85			81			20
			PBPERC			0.27			0.73			-50			70			-40			111			93			20
			ZNPERC			0.22			0.78			-50			70			-40			100			105			20
1561			AGPPM			0.00			0.99			130			100			80			42			38			2
			CUPERC			0.00			0.99			130			100			80			35			20			2
			PBPERC			0.00			0.99			145			105			80			35			33			2
			ZNPERC			0.00			0.99			145			105			80			35			33			2
213			AGPPM			0.49			0.51			160			105			-90			82			39			4
			CUPERC			0.48			0.52			160			105			-90			40			63			4
			PBPERC			0.31			0.69			160			105			-90			20			28			4
			ZNPERC			0.00			1.00			160			105			-90			22			18			4
215			AGPPM			0.18			0.82			75			70			-120			43			82			10
			CUPERC			0.00			1.00			75			70			-120			40			65			20
			PBPERC			0.27			0.73			75			70			-120			40			46			10
			ZNPERC			0.00			1.00			75			70			-120			43			36			10
217			AGPPM			0.05			0.95			170			80			-170			38			45			4
			CUPERC			0.05			0.95			170			80			-170			38			45			4
			PBPERC			0.05			0.95			170			80			170			34			12			4
			ZNPERC			0.05			0.95			170			80			-170			55			47			4
219			AGPPM			0.29			0.71			135			100			90			74			20			0
			CUPERC			0.01			0.99			135			100			90			42			10			0
			PBPERC			0.15			0.85			135			100			90			77			10			0
			ZNPERC			0.00			1.00			135			100			90			74			10			0

PAN AMERICAN SILVER CORP.    75

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Domain			Metals			NUGGET Co			SILL C1/C2			ROTATION									RANGES
												Z			X			Z			X			Y			Z
222			AGPPM			0.23			0.77			-140			70			180			30			22			4
			CUPERC			0.00			1.00			-150			70			-170			13			28			4
			PBPERC			0.00			1.00			-150			70			-170			30			24			4
			ZNPERC			0.22			0.78			-145			70			-170			10			15			4
229			AGPPM			0.04			0.96			10			80			70			22			23			20
			CUPERC			0.05			0.95			10			80			70			22			23			20
			PBPERC			0.03			0.97			10			80			70			22			23			20
			ZNPERC			0.03			0.97			10			80			70			22			25			20
2291			AGPPM			0.06			0.94			180			110			130			26			26			10
			CUPERC			0.02			0.98			0			60			-60			44			41			10
			PBPERC			0.06			0.94			180			120			180			12			30			10
			ZNPERC			0.05			0.95			0			60			0			23			31			10
233			AGPPM			0.00			1.00			0			0			-170			16			11			15
			CUPERC			0.00			1.00			0			0			180			19			11			15
			PBPERC			0.00			1.00			0			0			180			19			14			15
			ZNPERC			0.00			1.00			0			0			180			35			22			15
235			AGPPM			0.27			0.73			130			90			50			40			40			10
			CUPERC			0.06			0.94			130			90			50			40			38			10
			PBPERC			0.18			0.82			130			90			50			48			45			10
			ZNPERC			0.04			0.96			130			90			50			25			40			10
241			AGPPM			0.00			1.00			-80			20			-30			55			40			6
			CUPERC			0.00			1.00			-80			20			-30			55			40			6
			PBPERC			0.23			0.77			-80			20			-10			37			40			6
			ZNPERC			0.00			1.00			-80			20			-10			23			40			6
250			AGPPM			0.12			0.88			60			20			180			23			45			6
			CUPERC			0.00			1.00			60			20			180			30			45			6
			PBPERC			0.02			0.73			60			20			180			4			60			3
			ZNPERC			0.01			0.99			60			20			180			38			28			6
256			AGPPM			0.18			0.83			-170			90			180			16			42			15
			CUPERC			0.24			0.76			-170			90			180			48			50			15
			PBPERC			0.29			0.71			-170			90			180			34			60			15
			ZNPERC			0.06			0.94			-170			90			180			50			120			15
257			AGPPM			0.08			0.92			170			110			130			65			40			10
			CUPERC			0.09			0.91			170			110			130			65			40			10
			PBPERC			0.11			0.90			170			110			130			34			31			10
			ZNPERC			0.08			0.92			170			110			130			41			52			10
258			AGPPM			0.28			0.72			160			110			180			31			35			8
			CUPERC			0.00			1.00			160			110			160			20			25			8
			PBPERC			0.64			0.36			160			110			180			16			55			6
			ZNPERC			0.27			0.73			160			110			180			41			45			8
261			AGPPM			0.00			1.00			65			65			95			30			26			5
			CUPERC			0.00			1.00			65			65			95			40			32			5
			PBPERC			0.00			1.00			60			65			95			42			28			5
			ZNPERC			0.00			1.00			65			65			95			32			30			5

PAN AMERICAN SILVER CORP.    76

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Domain			Metals			NUGGET Co			SILL C1/C2			ROTATION									RANGES
												Z			X			Z			X			Y			Z
263			AGPPM			0.48			0.52			-10			80			-90			36			32			6
			CUPERC			0.43			0.57			-10			80			-90			42			28			6
			PBPERC			0.53			0.47			-10			80			-90			30			32			6
			ZNPERC			0.42			0.58			-10			80			-90			30			17			6
265			AGPPM			0.01			0.99			5			70			90			67			32			6
			CUPERC			0.02			0.98			5			70			90			75			44			6
			PBPERC			0.11			0.89			5			70			90			89			30			6
			ZNPERC			0.21			0.79			5			70			90			92			42			6
267			AGPPM			0.00			1.00			180			110			180			37			28			10
			CUPERC			0.09			0.91			0			70			0			38			42			10
			PBPERC			0.00			1.00			0			60			0			19			31			10
			ZNPERC			0.17			0.83			0			60			0			23			31			10
269			AGPPM			0.23			0.77			-175			80			180			24			40			40
			CUPERC			0.23			0.77			-175			80			180			23			35			40
			PBPERC			0.23			0.77			-175			80			180			35			40			40
			ZNPERC			0.25			0.75			-175			80			180			90			40			40
271			AGPPM			0.09			0.91			180			85			180			37			20			10
			CUPERC			0.24			0.77			180			85			180			52			20			10
			PBPERC			0.09			0.91			180			85			180			39			20			10
			ZNPERC			0.09			0.91			180			85			180			40			50			10

Figure 14.5 is an example of the silver variogram for the Juanita Ramal vein.

Figure 14.5    Variogram of Ag at Juanita Ramal

Source: PAS (2022).

PAN AMERICAN SILVER CORP.    77

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

14.7Search strategy and grade interpolation parameters

Grade interpolation was performed on sub cell block using Ordinary Kriging or Inverse Distance and three progressively larger interpolation passes. Search ellipse dimensions and orientations are detailed in Table 14.6. The number of composites are shown for passes 1, 2, or 3 in Table 14.7.

Table 14.6    Search strategy and grade interpolation parameters

Domain			Method			1° Pass									2° Pass									3° Pass									Orientation
						X-axis (m)			Y-axis (m)			Z-axis (m)			X-axis (m)			Y-axis (m)			Z-axis (m)			X-axis (m)			Y-axis (m)			Z-axis (m)			VANGLE1			VANGLE2			VANGLE3
4			KO			15			25			6			30			50			12			90			150			36			80			45			180
11			KO			28			26			30			56			52			60			168			156			180			90			-80			0
13			KO			28			26			30			56			52			60			168			156			180			170			70			180
14			KO			25			15			8			50			30			16			150			90			48			90			-80			-
19			KO			44			33			18			88			66			36			264			198			108			80			90			180
30			KO			23			35			8			46			70			16			138			210			48			180			90			180
40			KO			42			33			6			84			66			12			252			198			36			70			65			40
44			KO			15			10			4			30			20			8			90			60			24			90			60			0
57			KO			30			42			8			60			84			16			180			252			48			170			105			-170
63			KO			30			41			10			60			82			20			180			246			60			70			70			170
88			KO			15			10			4			30			20			8			90			60			24			80			80			0
90			KO			36			25			9			72			50			18			360			250			90			165			105			90
94			KO			51			40			8			102			80			16			357			280			56			55			60			180
98			KO			34			32			8			68			64			16			204			192			48			170			90			170
102			KO			30			25			20			60			50			40			180			150			120			180			85			170
103			KO			42			26			5			84			52			9			126			78			14			-155			85			-150
104			KO			40			45			16			80			90			32			280			315			112			110			85			170
106			KO			15			10			4			30			20			8			90			60			24			90			90			0
107			KO			40			32			12			80			64			24			280			224			84			170			100			140
108			KO			35			45			13			70			90			26			280			360			104			165			110			180
109			KO			15			10			4			30			20			8			90			60			24			80			80			0
116			KO			42			26			5			84			52			9			126			78			14			-90			-110			-
155			KO			44			31			12			88			62			24			264			186			72			0			70			-30
156			KO			40			48			20			80			96			40			240			288			120			-50			70			-40
215			KO			15			10			4			30			20			8			90			60			24			-15			-60			0
217			KO			38			45			6			76			90			12			228			270			36			170			80			-170
219			KO			21			12			10			42			24			20			126			72			60			135			100			90
221			KO			15			10			4			30			20			8			90			60			24			-15			-85			0
222			KO			30			25			10			60			50			20			180			150			60			-140			70			180
225			KO			15			10			4			30			20			8			90			60			24			-95			-100			0
228			KO			15			10			4			30			20			8			90			60			24			95			-100			0
230			KO			15			10			4			30			20			8			90			60			24			40			-130			0
234			KO			15			10			4			30			20			8			90			60			24			35			-87			0
235			KO			15			10			4			30			20			8			90			60			24			35			-80			0
238			KO			15			10			4			30			20			8			90			60			24			70			-85			0
241			KO			55			40			6			110			80			12			330			240			36			-80			20			-30

PAN AMERICAN SILVER CORP.    78

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

Domain			Method			1° Pass									2° Pass									3° Pass									Orientation
						X-axis (m)			Y-axis (m)			Z-axis (m)			X-axis (m)			Y-axis (m)			Z-axis (m)			X-axis (m)			Y-axis (m)			Z-axis (m)			VANGLE1			VANGLE2			VANGLE3
250			KO			23			35			10			46			70			20			92			140			40			60			20			180
254			KO			15			10			4			30			20			8			90			60			24			85			-80			0
256			KO			15			10			4			30			20			8			90			60			24			-85			-70			0
257			KO			10			15			4			20			30			8			60			90			24			75			65			0
260			KO			10			15			4			20			30			8			60			90			24			-85			-60			0
261			KO			30			26			5			60			52			10			180			156			30			65			65			95
263			KO			36			32			6			72			64			12			252			224			42			-10			80			-90
265			KO			47			32			6			94			64			12			470			320			60			5			70			90
266			KO			30			33			10			60			66			20			210			231			70			170			100			180
267			KO			20			15			10			40			30			20			120			90			60			180			110			180
269			KO			24			40			40			48			80			80			144			240			240			-175			80			180
271			KO			10			15			4			20			30			8			60			90			24			90			0			0
401			KO			42			33			6			84			66			12			252			198			36			70			65			40
941			KO			51			40			8			102			80			16			357			280			56			55			60			180
1551			KO			24			24			10			48			48			20			144			144			60			170			100			180
1561			KO			42			38			2			84			76			4			210			190			10			130			100			80
2151			KO			15			10			4			30			20			8			90			60			24			-15			-60			0
233			ID			16			11			15			32			22			30			112			77			105			STRIKE			TRDIP			0
229			ID			20			30			4			40			60			8			140			210			28			STRIKE			TRDIP			0
91			ID			36			25			9			72			50			18			360			250			90			STRIKE			TRDIP			0
58			ID			25			20			10			50			40			20			300			240			120			STRIKE			TRDIP			0
258			ID			31			35			8			62			70			16			186			210			48			STRIKE			TRDIP			0
2291			ID			20			30			4			40			60			8			140			210			28			STRIKE			TRDIP			0
24			ID			10			35			25			20			70			50			50			175			125			STRIKE			TRDIP			0
34			ID			35			50			10			70			100			20			350			500			100			STRIKE			TRDIP			0
38			ID			18			26			9			36			52			18			90			130			45			STRIKE			TRDIP			0

Notes:

•KO: Kriging Ordinary (40 Domains)

•ID: Inverse Distance (15 Domains)

•KO-ANI: Kriging Ordinary + Dynamic Anisotropy (10 Domains)

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Table 14.7    Composite selection plan

Domain			1° Pass						2° Pass						3° Pass
			Min N°			Max N°			Min N°			Max N°			Min N°			Max N°
4			5			15			5			15			1			5
11			6			15			5			12			1			3
13			6			15			5			12			1			3
14			4			16			3			9			1			5
19			8			18			6			14			1			5
30			5			18			2			14			1			3
40			6			18			4			12			1			4
44			4			16			3			9			1			5
57			3			9			3			9			2			5
63			6			18			1			16			1			5
88			4			16			1			9			1			5
90			4			12			3			15			1			4
94			6			15			5			12			1			3
98			6			15			5			12			1			3
102			5			20			4			16			1			5
103			6			12			6			10			1			4
104			8			18			6			14			1			4
106			4			16			3			9			1			5
107			8			22			8			18			1			5
108			6			25			5			20			1			3
109			4			16			3			9			1			5
116			6			12			6			10			1			4
155			8			18			6			14			1			4
156			8			16			6			12			2			5
215			4			16			3			9			1			5
217			6			18			4			16			1			5
219			8			20			6			16			1			5
221			4			16			3			9			1			5
222			4			12			4			12			1			5
225			4			16			3			9			1			5
228			4			16			3			9			1			5
230			4			16			3			9			1			5
234			4			16			3			9			1			5
235			4			16			3			9			1			5
238			4			16			3			9			1			5
241			8			18			6			14			1			5
250			3			12			3			10			1			3
254			4			16			3			9			1			5
256			4			16			3			9			1			5
257			4			16			3			9			1			5
260			4			16			3			9			1			5
261			8			18			6			12			1			3

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Domain			1° Pass						2° Pass						3° Pass
			Min N°			Max N°			Min N°			Max N°			Min N°			Max N°
263			8			18			6			14			1			4
265			6			20			5			15			1			4
266			8			16			6			14			1			4
267			8			18			6			14			1			4
269			6			15			5			12			1			3
271			4			16			3			9			1			5
401			6			18			4			12			1			4
941			6			15			5			12			1			3
1551			8			16			4			12			2			5
1561			8			20			6			16			2			4
2151			4			16			3			9			1			5
258			8			20			6			16			1			5
260			8			18			6			14			1			5
261			8			18			6			12			1			3
263			8			18			6			14			1			5
265			6			20			5			15			1			4
266			8			18			6			14			1			4
267			8			18			6			14			1			4
269			6			15			5			12			1			3
271			8			20			6			16			1			5
233			6			14			5			10			1			3
229			6			18			5			16			1			5
91			4			12			3			15			1			4
58			8			18			6			14			1			5
258			8			20			6			16			1			5
2291			6			18			5			16			1			5
24			5			20			4			12			1			3
34			8			20			6			12			2			5
38			4			16			4			12			1			4

14.8Bulk density

Through May 2022 a total of 1,954 density measurements were collected at the Huaron mine by structure (ore, HW, and FW) and analyzed by Actlabs using the wax coating method for whole samples and Pycnometer for crushed samples. Densities ranged from 2.49 grams per cubic centimetre (g/cm3) to 4.19 g/cm3 within mineralization domains and from 2.58 g/cm3 to 3.61 g/cm3 in adjacent material.

Basic density statistics for Huaron mine are presented in Table 14.8.

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Table 14.8    Density statistics by domain

Domain			Average density (g/cm3)									N° samples									Total samples
			ORE			HW			FW			ORE			HW			FW
213			3.42			2.81			2.88			120			32			30			182
24			3.07			2.75			2.73			113			22			20			155
156			3.00			2.70			2.68			94			25			26			145
107			3.23			2.77			2.70			93			24			26			143
94			3.20			2.69			2.78			80			36			33			149
57			3.11			2.69			2.72			64			18			19			101
108			3.82			3.05			2.93			56			17			21			94
34			2.87			2.69			2.69			42			20			18			80
58			3.27			2.75			2.68			42			12			14			68
91			3.13			2.76			2.79			42			13			12			67
155			3.39			2.82			2.93			35			10			9			54
261			3.30			2.77			2.76			33			22			17			72
98			3.32			2.75			2.76			32			10			10			52
4			3.71			2.89			2.98			27			8			6			41
233			3.34			2.84			2.84			27			3			2			32
258			2.85			2.62			2.62			23			13			13			49
63			3.18			2.73			2.81			21			9			8			38
241			3.12			2.70			2.68			21			5			6			32
13			3.96			2.88			2.71			19			17			19			55
103			3.48			2.93			2.99			19			6			8			33
30			3.31						3.10			18						1			19
267			3.54			2.66			2.69			16			14			12			42
215			3.16			2.72			2.75			46			12			10			68
257			2.95			2.74			2.76			27			4			6			37
38			3.10			2.78			2.76			14			10			7			31
265			4.15			2.81			2.92			12			12			12			36
229			3.30			2.75			2.70			11			3			4			18
19			3.10			2.66			2.59			9			5			6			20
269			3.09			2.69			2.73			9			9			8			26
104			2.96			2.84			2.75			11			2			2			15
222			4.19			2.87			2.67			Data Histórica
40			3.04									Data Histórica
250			2.60									Data Histórica
217			3.56			2.67			2.65			Data Histórica
271			4.10			2.94			2.79			Data Histórica
106			3.71			2.75			3.61			Data Histórica
256			3.55			2.58			2.90			Data Histórica
228			2.49			2.65			2.63			Data Histórica
235			3.28			2.78			2.70			Data Histórica
Total												1176			393			385			1954

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14.9Block models

Block models were constructed for individual domains with block model dimensions presented in Table 14.9. The block model was constructed, and estimation was completed in Datamine software. The QP considers the block model size for the individual domains to be appropriate for the deposit geometry and proposed mining methods.

Table 14.9    Block model details

Domain			Type			X			Y			Z
4			Base Point (m)			344977.00			8783043.00			4026
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			90.00			70.00			82
11			Base Point (m)			344058.00			8781367.00			4125
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			87.00			28.00			48
13			Base Point (m)			343347.00			8782858.00			4016
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			141.00			39.00			50
14			Base Point (m)			344338.00			8782428.00			4631
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			39.00			9.00			22
19			Base Point (m)			343730.00			8782506.00			3996
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			25.00			96.00			55
24			Base Point (m)			343434.00			8781495.00			3972
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			49.00			186.00			90
30			Base Point (m)			343763.00			8781443.00			3932
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			95.00			15.00			70
34			Base Point (m)			344953.00			8782860.00			4042
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			98.00			58.00			101
38			Base Point (m)			343252.00			8782709.00			4027
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			154.00			21.00			53

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Domain			Type			X			Y			Z
40			Base Point (m)			343813.00			8781467.00			4060
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			31.00			58.00			50
401			Base Point (m)			343774.00			8781606.00			4064
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			44.00			40.00			5
44			Base Point (m)			343307.00			8782715.00			3
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			242.00			47.00			72
57			Base Point (m)			344086.00			8782298.00			4113
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			96.00			34.00			119
58			Base Point (m)			343486.00			8781577.00			3969
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			235.00			84.00			135
63			Base Point (m)			343568.00			8781977.00			4070
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			43.00			111.00			56
88			Base Point (m)			343430.00			8782197.00			4071
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			81.00			16.00			43
90			Base Point (m)			344335.00			8782400.00			4568
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			42.00			9.00			31
91			Base Point (m)			343844.00			8782386.00			3997
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			202.00			55.00			152
94			Base Point (m)			344072.00			8782269.00			4005
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			69.00			72.00			108
941			Base Point (m)			344312.00			8782313.00			4079
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			24.00			18.00			36

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Domain			Type			X			Y			Z
98			Base Point (m)			343259.00			8781402.00			3988
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			118.00			20.00			68
102			Base Point (m)			345135.00			8783088.00			4014
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			143.00			15.00			68
103			Base Point (m)			344885.00			8783119.00			4153
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			55.00			29.00			61
104			Base Point (m)			343714.00			8781348.00			4068
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			56.00			225.00			88
106			Base Point (m)			345239.00			8783102.00			4209
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			74.00			10.00			65
107			Base Point (m)			343382.00			8781758.00			3983
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			211.00			65.00			138
108			Base Point (m)			343341.00			8782155.00			3938
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			212.00			58.00			77
109			Base Point (m)			344612.00			8782673.00			4198
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			102.00			93.00			87
116			Base Point (m)			344236.00			8782663.00			4552
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			53.00			14.00			41
1551			Base Point (m)			343304.00			8782841.00			3991
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			153.00			28.00			68
155			Base Point (m)			344760.61			8782806.00			4064
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			44.00			20.00			82

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Domain			Type			X			Y			Z
156			Base Point (m)			344266.00			8782237.00			3983
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			203.00			192.00			153
1561			Base Point (m)			344775.00			8782706.00			3983
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			105.00			100.00			136
157			Base Point (m)			344545.00			8782319.00			4516
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			28.00			26.00			25
158			Base Point (m)			344100.00			8781500.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.25			0.25			0
			Number of cells			140.00			65.00			80
213			Base Point (m)			343100.00			8782140.00			3900
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			300.00			132.00			120
215			Base Point (m)			343400.00			878200.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			120.00			160.00			92
217			Base Point (m)			343200.00			8782900.00			3900
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			200.00			60.00			92
219			Base Point (m)			343260.00			8781120.00			3900
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			148.00			104.00			92
221			Base Point (m)			343460.00			8781860.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			88.00			140.00			60
222			Base Point (m)			343728.00			8781416.00			4052
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			37.00			32.00			56
225			Base Point (m)			345260.00			8783100.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			60.00			20.00			60

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Domain			Type			X			Y			Z
228			Base Point (m)			343360.00			8782040.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			124.00			28.00			80
229			Base Point (m)			343400.00			8782200.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			100.00			60.00			60
2291			Base Point (m)			343400.00			8782200.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			100.00			60.00			60
230			Base Point (m)			344500.00			8781200.00			4500
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			60.00			56.00			60
231			Base Point (m)			344560.00			8781320.00			4400
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			36.00			44.00			60
233			Base Point (m)			344860.00			8783100.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			108.00			36.00			100
234			Base Point (m)			343660.00			8781680.00			4500
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			32.00			40.00			40
235			Base Point (m)			343620.00			8781660.00			3900
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			76.00			100.00			80
238			Base Point (m)			344140.00			8780960.00			4200
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			72.00			40.00			32
241			Base Point (m)			343180.00			8782100.00			4300
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			144.00			140.00			60
250			Base Point (m)			345680.00			8782600.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			156.00			160.00			84

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Domain			Type			X			Y			Z
254			Base Point (m)			345340.00			8783000.00			4200
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			24.00			20.00			40
256			Base Point (m)			344600.00			8782640.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			100.00			32.00			80
257			Base Point (m)			345800.00			8783100.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			68.00			28.00			60
258			Base Point (m)			345700.00			8783100.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			80.00			40.00			60
260			Base Point (m)			345820.00			8783080.00			4100
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			32.00			32.00			60
261			Base Point (m)			344000.00			8782280.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			80.00			84.00			120
263			Base Point (m)			344920.00			8783140.00			4200
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			40.00			20.00			60
265			Base Point (m)			344300.00			8781400.00			4200
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			110.00			70.00			100
266			Base Point (m)			344300.00			8781400.00			4200
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			110.00			70.00			100
267			Base Point (m)			343300.00			8782820.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			128.00			60.00			100

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Domain			Type			X			Y			Z
269			Base Point (m)			343320.00			8782975.00			4000
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			72.00			25.00			60
271			Base Point (m)			344380.00			8781520.00			4300
			Parent Block Size (m)			5.00			5.00			5
			Min. Sub-block Size (m)			0.50			0.50			1
			Number of cells			48.00			16.00			60

14.10Estimation

Estimation was carried out within the individual mineralization domains representing vein structures within Datamine software using capped composites and a multi-pass OK or ID2 interpolation approach. While individual blocks were not classified, mining panels were classified considering local drillhole spacing and proximity to existing development.

14.11Block model validation

Wireframe and block model validation procedures including wireframe to block volume confirmation, statistical comparisons with composite and swath plots, visual reviews in 3D, longitudinal, cross section, and plan views, as well as cross software reporting confirmation were completed for all structures.

Examples are shown below as follows:

•Visual inspection of composites versus block grades (Figure 14.6).

•Swath plots (Figure 14.7 and Figure 14.8).

Swath plots generally demonstrated good correlation, with block grades somewhat smoothed relative to composite grades, as expected.

Figure 14.6    Longitudinal section Juanita Ramal

Source: PAS (2022).

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Figure 14.7    Strike swath plot at Juanita Ramal

Source: PAS (2022).

Figure 14.8    Cross strike swath plot at Juanita Ramal

Source: PAS (2022).

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14.12Mineral Resource classification

Measured Mineral Resources have been defined where they are proximal to mine development. Indicated and Inferred Mineral Resources have been defined where drillhole spacing of up to approximately 25 m to 30 m and 50 m to 60 m were achieved, respectively, and modified to consider geological understanding, grade continuity, and the creation of cohesive class boundaries.

14.13Reasonable prospects for eventual economic extraction

RPEEE was addressed by reporting the Mineral Resources within the domains only at a VPT cut-off. Individual COGs were calculated for each of the principal vein structures. A summary of the average of the input parameters is shown in Table 14.10.

Table 14.10    Economic input parameters for Mineral Resource COGs

Item			Units			Cost
Silver price			$/oz			19
Gold price			$/oz			1,300
Copper Price			$/tonne			7,000
Lead price			$/tonne			2,000
Zinc price			$/tonne			2,600
Mining cost			$/tonne			49.50
Processing Costs			$/tonne			11.77
G&A Costs			$/tonne			22.79
Silver recovery			%			84.62
Copper recovery			%			78.63
Lead recovery			%			76.11
Zinc recovery			%			79.26
Cut-off value (Average)			$/tonne			73.59

Detail breakdown on the costs is shown in Table 15.1.

14.14Mineral Resource tabulation

Mineral Resources for Huaron as of June 30, 2022, are shown in Table 14.11. This tabulation is for underground Mineral Resources and have been assessed for mineability and constrained within the mineralized domains.

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Table 14.11    Huaron Mineral Resources as of June 30, 2022

Classification			Tonnage Mt			Ag g/t			Ag contained metal Moz			Cu%			Pb%			Zn%
3D Modeling
Measured			1.19			168			6.40			0.61			1.68			3.27
Indicated			1.50			164			7.90			0.56			1.5			3.00
Measured+ Indicated			2.69			165			14.29			0.58			1.58			3.12
Inferred			4.43			151			21.53			0.34			1.32			2.68
2D Modeling
Measured			0.90			156			4.48			0.17			1.44			2.75
Indicated			0.87			171			4.79			0.12			2.07			2.78
Measured+ Indicated			1.77			163			9.28			0.15			1.75			2.77
Inferred			2.82			161			14.60			0.14			1.71			2.80
Combined 3D and 2D Modeling
Measured			2.08			163			10.88			0.42			1.58			3.05
Indicated			2.37			166			12.69			0.4			1.71			2.92
Measured+ Indicated			4.46			165			23.57			0.41			1.65			2.98
Inferred			7.25			155			36.13			0.26			1.47			2.73

Notes: Footnotes beneath Table 14.1 apply.

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15MINERAL RESERVE ESTIMATES

15.1Introduction

Pan American updates Mineral Reserve estimates on an annual basis following reviews of metal price trends, operational performance and costs experienced in the previous year, and forecasts of production and costs over the LOM. Other than normal course changes in metal prices, which fluctuate from time to time, no new material information has become available between June 30, 2022 and the signature date given on the certificates of the QPs.

Mineral Reserve estimates were prepared by Pan American technical staff under the supervision of and reviewed by Martin Wafforn, P.Eng., Vice President, Technical Services of Pan American, who is a QP.

Mineral Reserve estimates are based on assumptions that included mining, metallurgical, infrastructure, permitting, taxation, and economic parameters. Increasing costs and taxation and lower metal prices will have a negative impact on the quantity of Mineral Reserve estimates. There are no other known factors that may have a material impact on the Mineral Reserve estimates at Huaron.

15.2Method

Mineral Resource blocks classified as Measured and Indicated Mineral Resources that can be mined economically are converted to Mineral Reserves. Some small isolated blocks may be removed if the cost and the logistics make them uneconomic to mine. A VPT is applied to each block based on metal content, metal prices, concentrate sales terms, concentrate quality, metallurgical recovery, transportation, refining, and other selling costs such as storage fees, port fees, etc. A minimum required VPT cut-off is calculated for the blocks depending on the block location and the mining method used to mine the block. Processing costs are assumed to be the same for all ore types, and metallurgical recoveries are determined separately for each group of veins or structures to account for variability in the metal recovery. Metal prices used in the Mineral Reserve estimates were $19 per ounce of silver, $2,000 per tonne of lead, $2,600 per tonne of zinc, and $7,000 per tonne of copper.

Any blocks which are considered uneconomic after these parameters are applied either remain as Mineral Resources or may be removed from the inventory completely if they do not meet the criteria of Resources. The Mineral Reserves are classified as Proven or Probable depending on the Mineral Resource classification.

15.3Cut-off value

The cut-off value supporting the underground Mineral Reserve is based on the operating costs for the LOM plan. The cut-off value varies by location within the mine and by the planned mining method for that block. Table 15.1 shows the build-up of costs for a typical block.

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Table 15.1    Huaron unit costs considered for reserves cut-off value estimation

Description			Total ($/t)
Mine			32.46
Processing			5.78
Water treatment			0.59
Planning & engineering			1.55
Geology			1.65
Safety and environmental			3.25
General maintenance			12.20
Electrical system			7.93
Camp administration			11.48
Lima administration			7.16
Breakeven cut-off value Huaron			84.05
Subtract management fee Canada			-0.33
Add tailings dam LOM capital			5.82
Full cost value Huaron			89.54
Incremental cut-off value			80.59

An incremental cut-off value is utilized as on balance there is excess mill capacity available, which in this typical example is $80.59/t or 90% of the full cost value for Huaron (Table 15.1). The tailings dam LOM capital of $5.82/t includes the cost of tailings pressure filtration and stacking from 2025 to the end of the mine life.

The VPT calculation that is applied to each of the mineral resource blocks accounts for metallurgical recovery and the costs associated with royalties and concentrate transportation and treatment for each of the major structures.

15.4Dilution and recovery factors

In the evaluation of underground Mineral Reserves, modifying factors were applied to the tonnages and grades of all in situ mining shapes to account for dilution and ore losses that are common to all mining operations.

The unplanned dilution for SLOS will consist mainly of floor mucking dilution and has been estimated as 7%, which was applied to the SLOS in the Mineral Reserve estimates. In addition, planned internal dilution has been applied to the SLOS that ranges from 9% to 36%. Each vein (or domain) in the orebody has varying amounts of planned internal dilution based on empirical reconciliation of the actual vein width versus the surveyed width of mining. These empirical reconciliations, provide the approximation methodology for each vein’s (or domain’s) planned internal dilution, which has been added to the SLOS stopes in the Mineral Reserve estimates.

Similarly, the unplanned dilution for mechanical C&F is 5% that consists primarily of floor mucking dilution. In addition, the planned internal mining dilution is from 18% to 31% for C&F. Both the planned and unplanned dilution for C&F have been applied to the Mineral Reserve estimates.

A mining recovery for SLOS is 93% and C&F is 95%, which has been applied to the Mineral Reserve estimates.

15.5Mineral Reserve tabulation

Mineral Reserve estimates for Huaron as of June 30, 2022, are provided in Table 15.2.

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Table 15.2    Summary of Huaron Mineral Reserves as of June 30, 2022

Classification			Tonnes Mt			Ag ppm			Ag contained metal Moz			Cu %			Pb %			Zn %
Proven			7.0			169			38.1			0.54			1.51			2.97
Probable			3.9			167			21.1			0.30			1.63			2.97
Proven + Probable			11.0			168			59.2			0.45			1.55			2.97

Notes:

•CIM Definition Standards (2014) were used for reporting the Mineral Reserves.

•Mineral Reserves are classified as Proven or Probable depending on the resource classification.

•Figures in the table may not compute exactly due to rounding.

•The Mineral Reserves are based on cut-off value that vary by location in the mine and by planned mining method.

•Cut-off values are based on a silver metal price of $19/oz, lead metal price of $2,000/t, zinc metal price of $2,600/t, and $7,000/t of copper.

•Metallurgical recoveries are based on feed grades, routine metallurgical testing results and historical recoveries.

•Mining recoveries for SLOS and C&F are 93% and 95%, respectively.

•Unplanned mining dilution for SLOS is 7%, and the planned internal mining dilution is from 9% to 36% for SLOS. C&F has unplanned mining dilution of 5%, and the planned internal dilution varies from 18% to 31%.

•Mineral Reserve estimates were prepared under the supervision of or were reviewed by Martin Wafforn, P.Eng., Vice President, Technical Services of Pan American.

•Mr. Wafforn, P.Eng. is the QP for the Mineral Reserve.

•Mineral Reserves are in addition to Mineral Resources.

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16MINING METHODS

16.1Mining methods

Mining is undertaken using a combination of mechanized cut and fill (C&F) and mechanized sub-level open stoping (SLOS) methods. The overall geometry of the Huaron orebody is shown in Figure 16.1 as a plan view of the 33 domains in the underground.

Figure 16.1    Plan view of Huaron underground

Source: PAS (2022).

The selection of the mining method depends on the location, width, and orientation of the vein to be mined, as well as the ground conditions of the FW and HW. The following sections will further describe the mining methods and their application.

16.1.1Sub level open stoping

Longitudinal SLOS uses electric hydraulic long hole drills, scoop trams and development waste for backfill (see Figure 16.2). Cement is occasionally added to the waste rock backfill to create a pillar which is stable upon exposure. The dimensions of the mining blocks are based on mining levels, stope layouts, previously experience and geotechnical constraints. Stopes are typically 40 m long but can range between 20 m to 100 m in length. Sub levels spacing varies between 10 m to 12 m apart vertically.

Sub levels, cross cuts, drifts, and ramps are excavated at 3.5 m wide by 3.8 m high in sub level stoping areas. More than 80% of the mine’s production is extracted using the long hole stoping method. SLOS is done at Huaron using this methodology as shown in Figure 16.2 (also known as Avoca mining method) and at times by leaving rib pillars and stopping to fill a mined block when access from the mined side of the stope is not available for backfilling.

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Figure 16.2    Sub level stoping long section

Source: AMC (2022).

The minimum mining width for SLOS is 1.0 m and planned dilution is included in the mine design. Dilution estimates vary according to the ground conditions, mining method, vein width and the dip of the vein. The dilution factors range from 9% to 36% for planned dilution (LOM average is approximately 24%) and unplanned floor dilution is 7%. In the SLOS areas, dilution is reconciled using a cavity monitoring survey and comparing actual to design. This methodology is used to determine the planned dilution of SLOS for each vein in the orebody.

16.1.2Mechanized longitudinal cut and fill

Mechanized longitudinal C&F is used in areas where the development of an access ramp can be economically justified. This is typically the case where the orebody is moderately dipping (<55°), sufficiently wide (up to 10 m) and economic veins are present, or where the north-south striking and east-west striking vein sets cross and provide additional mining faces. Drilling is undertaken with electric hydraulic jumbo drills and the broken ore is removed using scoop trams.

C&F mining at Huaron commences once the decline (Spiral Ramp) reaches the FW drive or level access elevation of the orebody, usually midway along its strike length (see representative C&F sequence sketch in Figure 16.3). C&F is an overhand mining method, and the stope sequence begins with the lowest 3.5 m high lift. Then each subsequent lift requires the back of the level access to be slashed down to reach the next lift. There are typically four or five lifts between levels for a total rise of 15.0 m to 17.5 m from each access.

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Figure 16.3    Cross section of C&F mining

Source: PAS (2022).

Generally, for across orebody width (FW to HW thickness) of 10 m or less, the stope will be developed as longitudinal C&F. The mining begins by driving the level access to the FW contact of Lift 1 and then the drive is extended flat (zero gradient) to the HW contact of the ore. Next, the ore is mined longitudinally in a single pass along strike in both directions to the limits of the orebody. Any remaining ore on the HW side will be slashed out on retreat and then the drift will be backfilled.

The initial backfill material placed in the stope is waste rock from development in the mine, which is evenly distributed with a scoop along the length of the stope to fill approximately 80% of the void. The remainder of the stope is backfilled with cyclones mill tailings on top of the rockfill, which is piped into the SLOS. It is further noted that uneconomic materials in the stope is typically blasted down and left as backfill.

Once the stope has been backfilled the level access will be TDB to provide access for the next lift, and the process will be repeated for subsequent lifts.

The minimum mining width for C&F is 1.5 m and planned dilution is included in the mine design. Dilution estimates vary according to the ground conditions, mining method, vein width, and the dip of the vein. The dilution factors range from 18% to 31% for planned dilution (LOM average is approximately 26%), and unplanned floor dilution is 5%. In C&F mining the width of the stope is surveyed on a regular basis as mining advances and compared to the actual vein width. This reconciliation is the methodology for determining the planned dilution of C&F stopes for each vein in the orebody.

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16.2Materials handling

A combination of haul trucks and electric locomotives are used for haulage from the upper parts of the mine. A rehabilitated shaft with a tower mounted friction hoist is used for hoisting ore and occasionally waste from the 250 Level to the surface. The capacity of the shaft is limited to approximately 50,000 tonnes per month, material in excess of this amount is trucked out of the mine. There is a rail haulage system on the 500 Level that feeds directly into the surface crusher however this system is not currently being used. Ore sourced from below the 250 Level is hauled to the surface crusher using a combination of diesel haul trucks, rail haulage system on the 250 Level and hoisting in the mine shaft. The rail haulage system completed on the 250 Level is used in conjunction with mine shaft and reduces mine haul trucks requirement, as well as contractors, who provide the truck haul services.

16.3Underground access

Employee and material movement in and out of the mine is via three mine portals driven into the side of the mountain. Access and secondary egress are also possible via ladders in escape ways and ventilation raises to the surface as well as via a drainage tunnel.

16.4Personnel

The mine currently operates 24 hours per day, seven days per week on two shifts per day for a total of 14 worked shifts per week. Support staff at the mine works only a single shift.

The operation currently has a full complement of 1,554 workers with a production rate of one Mtpa.

The mine has been reducing the use of third-party contractors but still relies on contractors for several important aspects of the underground mine. These include drilling; mine development; stope preparation and mining in the south zone of the mine; raise boring; the preparation, transport, and application of wet mix shotcrete; and truck haulage of plant feed for processing up the mine ramp to surface stockpiles.

16.5Geotechnical

Pan American’s minimum ground support policy is to support each round after blasting with rock bolts. Inflatable Swellex style rock bolts are installed around the excavation profile with sacrificial Splits Sets and mesh used to support the face.

The sites team of geotechnical engineers routinely inspect the mines workings identifying any areas that do not satisfy the site geotechnical standards. Remediation plans are issued using a ground support design matrix that considers ground conditions, the degree of rock fracturing, joint conditions and the excavation size. The matrix also specifies a bolting pattern and any surface support requirements that may be required (which typically include weld mesh and / or fibre-reinforced shotcrete). To control any atypical conditions, ground support elements such as heavy gauge straps, rapid set and / or high strength fibre-reinforced shotcrete, steel arches and wooden lagging are also available for use. QA/QC programs are in place to ensure rock bolts and shotcrete are installed and perform to design specifications.

Excavation dimensions typically range between 2.5 m to 4.5 m wide and 3.0 m to 4.5 m high. Historically rock bolt installation was completed manually using jacklegs, however, mechanized techniques are now used with Resemin Muki and Raptor jumbos. Fibre-reinforced shotcrete is batched on surface, then transported underground and sprayed robotically.

SLOS stope stability designs are evaluated using industry standard empirical technics such as the Mathews Stability Method and Equivalent Linear Overbreak Slough (ELOS) methods.

The ground support standards were last updated in the third quarter of 2022 and when required the engineers will seek technical assistance from third-party geotechnical consultants.

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16.6Mining fleet and machinery

The current underground mobile mining equipment fleet owned by Pan American and the mine contractors is shown in Table 16.1.

Table 16.1    Current underground mobile mining equipment

Item			Specification			Quantity
Scooptram			6.0 cubic yard			2
Scooptram			4.2 cubic yard			9
Scooptram			2.2 cubic yard			4
Drill jumbo			1 boom			10
Long hole drill			1 boom			4
Bolting jumbo			1 boom			4
Mine haul truck			15 tonne			1
Scissor lift			2.7 tonne			170
Volvo trucks			25 tonne			14

16.7Backfill

The backfill for C&F is rockfill from waste development. If additional rockfill is required, the Huaron mine has a waste rock stockpile on surface that can be trucked underground.

The backfill for SLOS is a mixture of rockfill (approximately 80% by volume) and cycloned tailing (20% by volume) from the mill. The initial backfill material placed in the SLOS is development waste rock, which is distributed with a scoop along the length of the stope to fill approximately 70% of the void. The remainder of the stope is backfilled with a cap on top of the waste rock using cycloned mill tailings that is transported hydraulically by pipe into the stope. Cement is added occasionally to the waste rock to make a cemented rockfill product that results in a pillar which is stable upon exposure.

16.8Ventilation

16.8.1Ventilation strategy

The function of the ventilation system is to dilute/remove airborne dust, diesel emissions, explosive gases and to maintain temperatures at levels necessary to ensure safe production throughout the LOM. The ventilation system has been designed to meet the requirement of the Peruvian Occupational Health and Safety Laws.

The primary ventilation circuit is designed with exhaust fan stations located at Raisebore 39 (RB-39) and Raisebore 52 (RB-52) pulling the air through the mine. Each fan station consists of two Airtec S.A. fans installed in parallel. Fresh air ingress is via the Union, Cosmos and Yanamina Ramps, D Shaft, old workings and the Paul Nevejans tunnel. Between levels the air is distributed using internal raises and collectively this arrangement enables a maximum of 439 cubic metres per second (m³/s) of air to be available for total mine ventilation.

Contaminated return air is exhausted from the mine using internal raises adjacent to each ore block before feeding the 500 Level for exhausting into the primary exhaust raise.

Ventilation for each production level is designed such that fresh air will be sourced from level accesses and FW drives and delivered to work areas will be via auxiliary fan and duct.

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Two means of egress are provided for each production area of the mine. The primary means of egress is via the haulage ramps and secondary egress is via a series of internal ladderways located within raises with ladderways and crossover drifts.

16.8.2Emergency preparedness

In development of the ventilation strategy for Huaron, consideration has been given to the potential for mine emergencies. As such, the following criteria have been established:

•Ramps are located in fresh air and once developed may be used for either up- or down ramp egress.

•Egress from almost all levels is either using the haulage ramp or by the escape ladderway in the internal raises.

•Portable refuge chambers are installed in close proximity to active working areas of the mine.

•Huaron’s primary means of communication is radio, however, a secondary stench gas system is installed to release ethyl mercaptan into the ventilation and compressed air systems in the event of fire.

16.9Underground infrastructure

16.9.1Service water

The service water for the entire Huaron mine, process plant, and camps is supplied from Lake Llacsacocha. The average monthly consumption is around 100 cubic metres per hour (m3/hr).

16.9.2Underground workshop

There are no underground workshops, only satellite repair bays. The equipment is taken to surface for major repairs.

16.9.3Explosives magazine

The underground explosives magazine for caps and explosives are located on mining level 500. There are three separate bays to accommodate ammonium nitrate fuel oil (ANFO), emulsion, and caps.

16.9.4Fuel storage

There is no underground fuel storage. Fuel is transported underground by a tanker to the mobile equipment fleet eliminating the need for the equipment to come to surface for refueling.

16.9.5Compressed air

The compressed air is reticulated underground in a 30.5 cm diameter pipe fed from four compressors located on surface.

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16.9.6Electrical power

See Section 18.3.5 for more detail.

16.9.7Mine dewatering

There are approximately two km2 of abandoned mine workings in the areas of Huaron and the adjacent Animon mines. The Paul Nevejans tunnel receives approximately 150 litres per second of water from water draining from Lake Llacsacocha and lagoons overlying the Animon mine. Drainage at Huaron is by gravity via the 8 km long Paul Nevejans tunnel located at the 250 Level. This tunnel was constructed between 1948 and 1954 to drain the faults and Sevilla chert in the areas north of Lake Llacsacocha. Only minimal discharge (less than 20 litres per second) occurs from the mine workings above the 250 Level. Most of the flow (at a rate of approximately 290 litres per second) enters the Paul Nevejans tunnel at a 1 km stretch located to the north of Lake Llacsacocha.

The deepest mining level at Huaron is the 100 Level which is located 150 m vertically below the Paul Nevejans drainage tunnel. The 100 Level was developed with a pumping station that included a backup diesel generated power supply to pump any water inflows to the Paul Nevejans drainage tunnel.

16.10Mine schedule

16.10.1Production rate and expected mine life

The LOM plan is based on the Mineral Reserves presented in Section 15.5 of 10.95 Mt with an annual processing rate of one Mtpa (2,800 tpd) and with the current reserves the projected mine life is 10.5 years. The projected mine life may increase if the current Mineral Resources can be converted to Mineral Reserves or if additional Mineral Resources are defined and can be converted to Mineral Reserves.

The bottom level of the current Mineral Reserve and LOM is assumed to be the 100 Level. Mineralization characteristics that have already been extracted from the 100 Level do not appear to differ significantly (in terms of grade and geometry) to the same structures encountered higher up on the 180 Level. This supports the theory that these veins and structures potentially continue at depth below the 100 Level.

An economic evaluation of the resource and mineral extraction below the 100 Level has not yet been completed. The processing plant is approaching its maximum designed capacity and any increases in plant throughput further without increasing the crushing, grinding, and flotation capacity of the plant would result in reduced metal recovery. Some studies have been conducted into incrementally increasing the capacity of the processing plant; however, the economics of a mine expansion have not been quantified at this time.

16.10.2Development schedule

The total annual waste produced from mine development is approximately 300,000 tonnes, The majority of the waste is retained within the mine and placed as backfill (in the SLOS and C&F stopes). Any waste rock that is required to be mined while mining C&F stopes is blasted and where possible and left in the stope as backfill. Waste that is hauled to surface is either used as construction material (for the tailings facility construction or other projects), or deposited on an engineered waste rock dump located on top of historical tailings facility.

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17RECOVERY METHODS

17.1Introduction

Huaron mine operates a 3,200 tpd mill with froth induced flotation to produce silver in copper, lead, and zinc concentrates. The mill flowsheet consists of a three-stage crushing circuit, ball mill grinding and selective flotation of the ore to concentrates, followed by thickening and filtering of the concentrates. A portion of the tailings from the process are cycloned to produce sands for backfill material for the underground mining operation, and the fines and rest of tailings are deposited into a tailing impoundment facility.

The processing plant at Huaron has been modified multiple times since 2015 to improve operations. These modifications include:

•Additional cyclones to improve size classification.

•Addition of rougher flotation cells, a conditioner cell, and cleaner cells to the zinc circuit to increase residence time, depress iron minerals, and improve zinc concentrate quality.

•Addition of lead flotation cells to improve quality of the lead and copper concentrates.

•Addition of a high frequency screen ahead of the bulk flotation to remove trash from the pulp.

17.2Crushing

Ore is delivered from the mine to a 15,000-tonne capacity stockpile where the ore is classified by metallurgical characteristics to obtain an optimal ore blend for processing through the plant. The blended material is fed into a 100-tonne capacity coarse ore bin where it is reclaimed by an apron feeder to a vibrating grizzly. The oversize from the grizzly is reduced in size by a jaw crusher to 3.5 inches and rejoined with the grizzly undersize onto a conveyor which feeds a vibrating screen. The oversize material reports to the secondary cone crushers where it is reduced to a 2.5-inch product size then joins the undersize via conveyor to another vibrating screen. The oversize material reports to a tertiary short head cone crusher where it is reduced in size to 100% passing one quarter inch. The undersize product travels by conveyor belt equipped with an electromagnetic separator and metal detector for storage in three 300 tonne capacity fine ore bins prior to entering the grinding circuit.

17.3Grinding and classification

The grinding circuit consists of a primary ball mill 12-foot diameter by 16 foot long, operating in an open circuit with two parallel secondary ball mills (one 8 foot diameter by 8 foot long and one 6.5 foot diameter by 14 foot long) operating in a closed circuit. The milled product from the primary and secondary ball mills reports to the classification hydrocyclone nest. Underflow from the hydrocyclones is fed to the secondary ball mills and the overflow is treated in a third stage 8-foot diameter by 3-foot-long conical mill. The third stage grinding operates in a closed circuit with a hydrocyclone nest. The final milled product is approximately 60% passing 200 mesh.

17.4Flotation

The pulp from the grinding circuit is fed to the flotation circuit. The flotation circuit includes an initial stage of depression of zinc and flotation of a bulk concentrate. The bulk concentrate consists of lead and copper and is treated with sodium dichromate to separate and produce a silver rich lead and copper concentrate. The tailings from the bulk flotation are activated and conditioned with copper sulphate and lime to modify the pH and to produce a zinc concentrate. The bulk flotation occurs in three stages of roughing, three stages of cleaning, and three stages of scavenging. The cleaning concentrate is sent to the copper-lead separation circuit while the scavenger tails are pumped to a zinc flotation circuit. The copper-lead separation circuit consists of the flotation of copper through one conditioning tank, one stage of roughing, three stages of

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cleaning, and one scavenging stage, while the lead concentrates are produced from the scavenger tails. The zinc flotation circuit includes three conditioning tanks, three stages of roughing, three stages of cleaning, and two stages of scavenging to produce the zinc concentrate. The final flotation plant residues are produced in the zinc flotation circuit from the second scavenger tails.

17.5Thickening and filtering

The copper, lead, and zinc concentrates are thickened in separate thickeners with dimensions of 18 foot by 8 foot, 26 foot by 6 foot (for high copper), 20 foot by 8 foot, and 28 foot by 10 foot, respectively, to obtain a pulp of approximately 50% to 60% solids, and are stored in separate holding tanks. From the holding tanks, the concentrates are dewatered in a filter press to obtain a moisture content of approximately 7% to 8%. The concentrates are then transported to their respective destinations in 30 tonne trucks.

17.6Tailings storage

Tailings from the processing plant are sent directly to the tailings facility or classified in a hydrocyclone to obtain two products. The coarser fraction is returned underground hydraulically to act as backfill material in the mining areas and the fine material is delivered to a tailing impoundment area via a pipeline. The tailings storage facility is constructed primarily of waste rock from the mine. The tailings facilities are continually reviewed and expanded as required, and engineered and constructed to ensure geotechnical stability by Pan American’s independent designer and Engineer of Record, Anddes Associates, based in Lima, Peru. Inspections and monitoring instrumentation are in place to confirm that the performance of the facilities is stable and within design limits. The tailings protocol of the Towards Sustainable Mining program from the Mining Association of Canada has been implemented in the tailings management and Huaron has achieved level A of the program in tailings protocol.

Recent test work performed by Pocock Industrial indicates that the tailings are amenable to pressure filtration to produce a stackable product and engineering design for a filtered-stacked tailings facility is currently in progress. The filtered-stacked facility considers thickening the mill tailings before pressure filtration to produce a filter cake with a moisture content of approximately 15% by weight. The tailings filter cake will discharge to a concrete collection bunker where it will be reclaimed into trucks to be delivered to the filtered-tailings storage facility. Filtrate for the filter presses will be returned to the process or delivered to the existing tailings facility. The filtered-stacked tailings storage facility will provide additional tailings storage capacity to the conventional tailings facility. Pending permit approval, the filtered tailings facility is planned to be constructed in 2023.

17.7Power, water, and process consumable requirements

The primary source of power for the mine is the Peruvian national power grid and is sufficient for the mine’s current requirements. The annual power consumption at the processing plant is approximately 29 million kilowatt hours per year. For water consumption, the mine is authorized to use up to 320 litres per second of water obtained from a system of nearby lakes for mining and processing activities through payment of a water use permit. This volume of water is more than sufficient for the mine’s requirements. A summary of the major process consumable requirements is given in Table 17.1.

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Table 17.1    Summary of major process consumables

Item			Annual usage (tonnes)
Grinding media			550
Collectors			44
Frother			41
Copper sulphate			169
Lime			2,200

17.8Summary of metal production

In the first two quarters of 2022, the mill processed approximately 468,800 tonnes of ore with metallurgical recoveries averaging 84% for silver, 75% for zinc, 80% for lead, and 78% for copper. Metal production during 2021 was approximately 1.8 Moz of silver, 7,800 tonnes of zinc, 5,500 tonnes of lead, and 2,300 tonnes of copper. Metal recoveries have been very consistent since 2015 with overall good production results. Metal production during 2020 was significantly reduced compared to previous years and is largely due to mine shutdowns associated with the COVID-19 global pandemic; metal recoveries for 2020 were consistent with previous years and expectations. Metal production for the past 9 years is given in Table 17.2.

Table 17.2    Metal production for the past 9 years

Year			Processed tonnes			Produced silver ounces (Moz)			Produced zinc tonnes			Produced lead tonnes			Produced copper tonnes
2022*			468,800			1.8			7,800			5,500			2,300
2021			940,300			3.5			15,400			7,500			5,900
2020			555,600			2.1			11,200			5,600			3,600
2019			994,000			3.8			18,000			9,200			6,000
2018			935,000			3.6			17,400			8,000			5,400
2017			928,100			3.7			19,400			8,800			6,100
2016			904,400			3.8			20,200			10,800			6,200
2015			894,500			3.7			13,800			7,100			6,800
2014			892,800			3.7			14,600			6,200			6,000

Note: *First half of year.

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18PROJECT INFRASTRUCTURE

The Huaron mine is an underground silver-copper-lead-zinc mine located in the province of Pasco in the Central Highlands of Peru. Pan American is the 100% owner of Huaron and the mining concessions, through its wholly-owned subsidiary, Pan American Silver Huaron S.A.

The mine infrastructure comprises the underground mine workings, processing facilities, existing tailing impoundments, effluent management and treatment systems, waste rock storage facilities and maintenance shops and warehouses laboratories, storage facilities, offices, drill core and logging sheds, water and power lines, access roads, and the worker’s camp and recreational facilities. The primary source of power for the mine is the Peruvian national power grid and is sufficient for the mine’s current requirements. The power consumption is approximately 66 million kilowatt hours per year.

The operating mine is mature and site infrastructure including site roads are fully developed to support the existing mine production of one Mtpa.

A plan of the mine infrastructure is given in Figure 18.1.

Figure 18.1    Mine infrastructure plan

Source: PAS.

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18.1Transportation and logistics

Access to Huaron is by a continuously maintained 285 km paved highway between Lima and Unish and a mostly paved 35 km road between Unish and Huaron. Access is also possible by two other longer and more difficult gravel roads. There is also a light aircraft strip at the town of Vicco, which is located approximately 30 minutes flying time from Lima, at which point an additional 30 minutes of driving is required to reach Huaron.

The nearest city is Cerro de Pasco, a major historical mining center with a population of approximately 70,000 people, which is connected to Lima 320 km to the southwest by road and rail. The nearby town of Huayllay also provides workers, lodging, and supplies. Experienced mining personnel from the region commute to the Property via company sponsored buses, company vehicles, or privately owned vehicles. Materials, fuel, and produced metal concentrates are transported to their destinations by road. Concentrates may also be transported by rail.

18.2Processing facilities

The process plant, known as François, has a capacity of 3,200 tpd of ore and produces three different silver bearing copper, lead, and zinc concentrates. The process plant consists of crushing, grinding, flotation, thickening, filtration, and concentrate storage areas. The building also includes some process plant offices and a reagent preparation area.

Other major processing facilities include a stockpile area near the processing plant and a tailings facility for the storage of flotation tails. Minor processing facilities include a small building with an analytical lab and metallurgical lab, another building for general administrative offices, a milk of lime preparation plant, a water reservoir for domestic use, a water reservoir for industrial use, and two sewage water treatment plants.

18.3Water supply

The service water for the entire Huaron mine including the process plant, underground mine and camps is obtained from Lake Llacsacocha through payment of a water use permit. The average monthly consumption is around 100 m3/hr. The mine is authorized to use up to 320 litres per second of water. This volume of water is more than sufficient for the mine’s requirements.

8.3.1Mine workshop

The central maintenance workshop is located on surface. There are two wash bays, two equipment maintenance bays, tire shop, centralized lubrication area, bridge crane, spare parts area, warehouse, and electrical workshop. There are four smaller satellite maintenance bays in the underground mine.

8.3.2Explosives magazine

The explosives magazine and blasting accessories are located on mining level 500 in an area specially designed to comply with the Peruvian national regulations. This magazine storage is separated into three areas for storage of ANFO, emulsion, dynamite and blasting accessories. The storage capacity is sufficient for 30 days.

8.3.3Fuel storage

The site fuel storage facility with a capacity of 14 days demand is located on surface. A fuel truck / tanker is used for distribution to the underground mobile fleet.

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8.3.4Compressed air

The compressed air for underground activities is supplied by four compressors GA 315 (Atlas Copco) with nominal capacity of 1200 CFM. Air supply is distributed with a 30.5 cm (12 inches) pipeline and supported by compressed air tanks to maintain the pressure at 7.2 bar (105 PSI).

8.3.5Electrical power

The primary source of power for the mine is the Peruvian national power grid, National Interconnected Electrical System (SEIN) and is sufficient for the mine’s current requirements. The power consumption is approximately 66 million kilowatt hours per year. The electrical power has an installed capacity of 20 megawatts (MW). The powerline comes from the Chungar mine, a mine next to Huaron. The incoming line is at 50 kilovolts (kV) and transforms to 22.9 kV in Huaron’s main Substation. From here power is distributed to two substations, Francois substation and RB 29 substation. The voltage is further dropped to 5.5 kV for reticulation into the mine.

18.4Mine communication system

The primary means of communication in the mine is by radio.

18.5Tailings management facilities (TMF)

This is covered in Section 17.6.

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19MARKET STUDIES AND CONTRACTS

Pan American has been producing silver rich zinc, lead, and copper concentrates at Huaron since 2001, which are sold under contracts with arm’s length smelters and concentrate traders located in Peru, Asia, and Europe. Huaron receives payment for an agreed upon percentage of the silver, zinc, lead, or copper contained in the concentrates it sells after deduction of smelting and refining costs, based on quotational periods negotiated on each contract that may differ from the month in which the concentrate was produced. Under these circumstances, Pan American may, from time to time, fix the price for a portion of the payable metal content during the month that the concentrates are produced. To date, Pan American has been able to secure contracts for the sale of all concentrates produced, however, there can be no certainty that Pan American will always be able to do so or what terms will be available at the time.

Huaron has a contract in place with Robocon Shotcrete Services of Lima, Peru, for the preparation, transport, and application of wet mix shotcrete. The haulage of plant feed for processing up the mine ramp to surface stockpiles is under a contract with Dinet Logistica Inteligente of Lima, Peru. A contract is also in place with TUMI Contratistas Mineros S.A.C. of Lima, Peru, for raise boring.

In the opinion of the QP, the contracts in place conform to industry norms.

Martin Wafforn, P.Eng., Senior Vice President, Technical Service and Process Optimization of Pan American and the QP responsible for this section of the technical report, has reviewed the contract terms, rates, and charges for the production and sale of the silver, zinc, lead, and copper produced at Huaron, and considers them sufficient to support the assumptions made in this Technical Report.

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20ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

20.1Environmental factors

The most significant environmental issue currently associated with the mine is treatment of the waters discharged from the mine and localized areas of acid rock drainage from historic tailings below the mine’s tailings deposit. All waters are captured and treated in a treatment plant near the exit of the Paul Nevejans drainage tunnel to achieve compliance with discharge limits. There are no known environmental or social issues that could materially impact the mine’s ability to extract the Mineral Resources and Mineral Reserves.

20.2Environmental studies

A full suite of environmental baseline and impact assessment studies were completed by Pan American for an update and tailings facility expansion EIA. The studies performed include surface water, groundwater, biodiversity, seismic hazards, soils, geomorphology, air quality, and climate. No material issues were identified in any environmental studies and the EIA was approved by the Peruvian Ministry for Energy of Mines in 2010. Pan American is planning to commence new baseline studies, which will supplement the regular environmental monitoring, for a modification to the Huaron EIA in mid-2022.

Huaron participates in the Mining Association of Canada’s “Towards Sustainable Mining” program and has achieved Level A on environmental protocols.

20.3Permitting factors

Huaron holds all necessary environmental permits for the continued operation of the mine, including environmental licenses, water use and discharge permits, an approved closure plan, approved management plans, and approved operating permits for the tailings facility. Huaron has commenced the process of an EIA modification which will include a number of mine operations and tailings management projects to ensure continued operations over the LOM.

20.4Waste disposal

Waste rock is used principally as backfill in the underground mine. Any excess material is deposited in an engineered waste rock dump at surface or used for tailings dam buttress construction.

The fine fraction of the process tailings is delivered to a tailing impoundment area via a pipeline. The tailing impoundment area is constructed of quarried rock fill and waste rock from the mine. The facility is continually reviewed and expanded as required and engineered and constructed to ensure geotechnical stability by Pan American’s Engineer of Record, Anddes Associates. Monitoring instrumentation is in place to confirm that the performance of the facility is within design limits. In 2020 and 2021 the tailings facility was expanded to accommodate production until 2025. Further tailings facility raises will be required throughout the LOM.

20.5Site monitoring

Pan American conducts environmental monitoring in and around the mine as part of its approved environmental management plans which continues to confirm legal compliance and add to the extensive environmental database. This monitoring includes water flow and quality monitoring, air quality, noise, soil, and flora and fauna. The mine also records waste generation, recycling, energy consumption, greenhouse gas emissions, water use, and effluent quality and flow. There are no material issues arising from the results of this monitoring.

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20.6Water management

Contact waters, including mine dewatering, tailings facility discharge, and acid drainage from waste rock and tailings are captured and treated in a treatment plant near the exit of the Paul Nevejans drainage tunnel to achieve compliance with discharge limits.

20.7Social and community factors

There are no social or community pressures that materially affect our ability to extract the Mineral Reserves and Mineral Resources. Pan American’s Peruvian community relations team implements an extensive program of community engagement activities including information sessions, health services, infrastructure works, and educational and training programs for the local people, which have resulted in the establishment of several small businesses.

20.8Project reclamation and closure

In October 2003, the Peruvian government passed legislation requiring active mining operations to file closure plans within six months of the date of passage of the legislation. Administrative rules associated with this legislation which laid out detailed closure requirements, including bonding and tax deductibility of reclamation and rehabilitation expenses, were promulgated in October 2005. These rules require that detailed closure plans and cost estimates be compiled by a certified third-party consultant by October 2006. The original closure plan for Huaron was filed by mid‐year 2004.

In August of 2006, Pan American submitted a comprehensive closure plan for Huaron to the MEM in accordance with that ministry’s regulations. The closure plan was prepared by third-party consultants registered with the Peruvian authorities as qualified to present closure plans to the MEM. The closure plan includes a summary of the proposed closure scheme for each of the major areas of impact such as mine water, tailings areas, waste rock dumps, plant site infrastructure, and the underground mine. A detailed cost estimate was prepared based on Pan American’s and the consultant’s shared experience with closure works and experience with other projects in Peru. As required by the MEM, the costs were summarized in three phases: concurrent closure, final closure, and post closure. Updated closure plans are filed as required, with the most recent closure plan modification approved in 2019.

A closure cost estimate for Huaron was prepared according to State of Nevada approved Standard Reclamation Cost Estimator methodology in 2011 and is updated every year. The current undiscounted value of closure expenditures at Huaron is estimated at $17.6 million.

20.9Expected material environmental issues

The most significant environmental issue currently associated with the mine is treatment of the waters discharged from the mine and localized areas of acid rock drainage from historic tailings below the mine’s tailings deposit. All waters are captured and treated in a treatment plant near the exit of the Paul Nevejans drainage tunnel to achieve compliance with discharge limits. There are no known environmental or social issues that could materially impact the mine’s ability to extract the Mineral Resources and Mineral Reserves.

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21CAPITAL AND OPERATING COSTS

Since the mine is in operation, any sustaining capital expenditures are justified on an on‐going basis based on actual experience at the mine. Sustaining capital expenditures during 2022 primarily for mine development, diamond drilling, tailings facility expansions and mine infrastructure are estimated to total $17.5 million. The main mobile mining equipment is leased, and new leases will be undertaken throughout the LOM to ensure that the mining fleet maintains a high availability. Operating lease expenditures in 2022 are expected to total $2.7 million. The amount of diamond drilling conducted to extend the mine life beyond the existing Mineral Reserves forming the basis of the current LOM plan will be at the discretion of Pan American and may depend on the success of exploration and diamond drilling programs, if any, and prevailing market conditions.

The long-term assumptions for operating costs are shown in Table 21.1. The assumptions are justified on the basis of the current actual operating costs at the mine, and on the basis of an annual throughput of one Mtpa. As there are a number of fixed costs associated with operating a large underground mine such as Huaron, an increase in the annual throughput could reasonably be expected to increase the total costs but to reduce unit operating costs, and similarly a reduction in throughput could reasonably be expected to decrease the total costs and to increase the unit operating costs.

Table 21.1    Annual operating costs

Area			Estimated unit costs (US$ per tonne)
Mining			32.46
Processing			5.78
Maintenance			12.20
Electrical power and distribution			7.93
Safety, environment, and water treatment			3.84
Engineering and geology			3.20
Camp administration			11.48
Sub total production costs			76.89
Administration, insurance, legal, concessions			3.25
Management costs allocated			7.16
Shipping, selling, ocean freight			3.89
Total operating costs			91.19

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22ECONOMIC ANALYSIS

An economic analysis has been excluded from this Technical Report as Huaron mine is currently in production and this Technical Report does not include a material expansion of current production.

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23ADJACENT PROPERTIES

There is no relevant information on adjacent properties to report.

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24OTHER RELEVANT DATA AND INFORMATION

There is no additional information to report.

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25INTERPRETATION AND CONCLUSIONS

Pan American has been operating Huaron since 2001 and expects to process approximately one Mtpa over the course of the remaining LOM.

Pan American conducts infill and near-mine drilling through much of the year and updates Mineral Resource and Mineral Reserve estimates on an annual basis following reviews of metal price trends, operational performance and costs experienced in the previous year, and forecasts of production and costs over the LOM.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other factors or risks that could materially affect the development of the Mineral Resources other than noting that delays in the permitting process for the tailings dam filtration plant expansion could impact the availability of tailings storage. Mineral Reserve estimates are based on assumptions that included mining, metallurgical, infrastructure, permitting, taxation, and economic parameters. Increasing costs and taxation and lower metal prices will have a negative impact on the quantity of Mineral Reserve estimates. Other than normal course changes in metal prices, which fluctuate from time to time, there are no other known factors that may have a material impact on the Mineral Reserve estimates at Huaron.

Since 2014, the Huaron mine has been processing between 900,000 to 1,000,000 tonnes of ore annually, producing copper, lead, and zinc concentrates containing approximately 3.7 Moz of silver, 6,000 tonnes of copper, 8,500 tonnes of lead, and 18,000 tonnes of zinc. Pan American expects to process approximately one Mtpa in 2022. Engineering design for filtered-stacked tailings is currently underway to complement the existing conventional tailings facility.

Huaron is a producing mine. No expansions or specific economic analyses are currently underway.

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26RECOMMENDATIONS

The authors of this report have no further recommendations to make at this time.

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27REFERENCES

Author			Title
Long, S.D., Parker, H.M., and Françis-Bongarçon, D. 1997.			Assay quality assurance-quality control programme for drilling projects at the pre-feasibility to feasibility report level, prepared by Mineral Resources Development Inc. (MRDI), August 1997.

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28QP CERTIFICATES

CERTIFICATE of QUALIFIED PERSON

I, Martin Wafforn, Senior Vice President, Technical Services and Process Optimization of Pan American Silver Corp., 1500-625 Howe St, Vancouver, BC, V6C 2T6, Canada do hereby certify that:

1.I am the co-author of the technical report titled “Technical Report for the Huaron Property, Pasco, Peru”, with an effective date of October 30, 2022 (the “Technical Report”).

2.I graduated with a Bachelor of Science in Mining degree from the Camborne School of Mines in Cornwall, England in 1980. I am a Professional Engineer in good standing with The Association of Professional Engineers and Geoscientists of the Province of British Columbia. I am also a Chartered Engineer in good standing in the United Kingdom. My experience is primarily in the areas of mining engineering and I have worked as an engineer in the mining industry for a total of 40 years since my graduation from the Camborne School of Mines.

3.I have read the definition of ‘qualified person’ set out in National Instrument 43-101 (the “Instrument”) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfil the requirements of a ‘qualified person’ for the purposes of the Instrument.

4.I have visited the Property on October 27, 2021.

5.I am responsible for Sections 2 - 5, 15, 16, 19 - 22, 24 - 26 and 1.1, 1.7, 1.8, 1.11, 1.12, 12.2 of the Technical Report.

6.I am currently employed as the Senior Vice President, Technical Services and Process Optimization for Pan American Silver Corp., the owner of the Property, and by reason of my employment, I am not considered independent of the issuer as described in Section 1.5 of the Instrument.

7.I have had prior involvement with the Property that is the subject of the Technical Report; I am an employee of Pan American Silver Corp. and have conducted site visits to the Property, including as described in Section 2 – Introduction of the Technical Report, and most recently from October 27, 2021.

8.I have read the Instrument and Form 43-101F1, and the Technical Report has been prepared in compliance with the Instrument and that form.

9.As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all the scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated at Vancouver, British Columbia, this 25th day of November 2022.

“signed and sealed”

Martin Wafforn, P.Eng.

PAN AMERICAN SILVER CORP.    119

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

CERTIFICATE of QUALIFIED PERSON

I, Christopher Emerson, Vice President, Business Development and Geology of Pan American Silver Corp., 1500-625 Howe St, Vancouver, BC, V6C 2T6, Canada do hereby certify that:

1.I am the co-author of the technical report titled “Technical Report for the Huaron Property, Pasco, Peru”, with an effective date of October 30, 2022 (the “Technical Report”).

2.I graduated with a Bachelor of Engineering in Industrial Geology from Camborne School of Mines, Exeter University, England, in 1998 and earned my Master of Science in Mineral Exploration from Leicester University in 2000. I am a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and a Fellow of the Geological Society of London (FGS). I have worked as a geologist in both mining and exploration for the past 17 years since my graduation from Leicester University.

3.I have read the definition of ‘Qualified Person’ set out in National Instrument 43-101 (the “Instrument”) and certify that by reason of my education, affiliation with a professional association, and past relevant work experience, I fulfil the requirements of a ‘Qualified Person’ for the purposes of the Instrument.

4.I have visited the Property on October 27, 2021.

5.I am responsible for Sections 6 - 11, 14, 23, 27 and 1.2, 1.3, 1.4, 1.6, 12.1 of the Technical Report.

6.I am currently employed as the Vice President, Business Development and Geology for Pan American Silver Corp., the owner of the Property, and by reason of my employment, I am not considered independent of the issuer as described in Section 1.5 of the Instrument.

7.I have had prior involvement with the Property that is the subject of the Technical Report; I am an employee of Pan American Silver Corp. and have conducted site visits to the Property, including as described in Section 2 – Introduction of the Technical Report, and most recently on October 27, 2021.

8.I have read the Instrument and Form 43-101F1, and the Technical Report has been prepared in compliance with the Instrument and that form.

9.As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all the scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated at Vancouver, British Columbia, this 25th day of November 2022.

“signed and sealed”

Christopher Emerson, FAusIMM

PAN AMERICAN SILVER CORP.    120

TECHNICAL REPORT FOR THE HUARON PROPERTY, PASCO, PERU

CERTIFICATE of QUALIFIED PERSON

I, Americo Delgado, Vice President, Mineral Processing, Tailings and Dams of Pan American Silver Corp., 1500-625 Howe St, Vancouver, BC, V6C 2T6, Canada, do hereby certify that:

1.I am the co-author of the technical report titled “Technical Report for the Huaron Property, Pasco, Peru”, with an effective date of October 30, 2022 (the “Technical Report”).

2.I graduated with a Master of Science in Metallurgical and Material Engineering from the Colorado School of Mines in Golden, Colorado, in 2007, and with a Bachelor of Science in Metallurgical Engineering degree from the Universidad Nacional de Ingenieria, Lima, Peru, in 2000. I am a Professional Engineer in good standing with the Association of Professional Engineers and Geoscientists of the Province of British Columbia. My experience is primarily in the areas of metallurgy and mineral processing engineering and I have worked as a metallurgist in the mining industry for a total of 21 years since my graduation from the Universidad Nacional de Ingenieria.

3.I have read the definition of ‘qualified person’ set out in National Instrument 43-101 (the “Instrument”) and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfil the requirements of a ‘qualified person’ for the purposes of the Instrument.

4.I have visited the Property on September 21 - 23, 2021.

5.I am responsible for Sections 13, 17, 18, and 1.5, 1.9, 1.10, 12.3 of the Technical Report.

6.I am currently employed as the Vice President, Mineral Processing, Tailings and Dams for Pan American Silver Corp., the owner of the Property, and by reason of my employment, I am not considered independent of the issuer as describe in Section 1.5 of the Instrument.

7.I have had prior involvement with the Property that is the subject of the Technical Report; I am an employee of Pan American Silver Corp. and have conducted site visits to the Property, including as described in Section 2 – Introduction of the Technical Report, and most recently from September 21 - 23, 2021.

8.I have read the Instrument and Form 43-101F1, and the Technical Report has been prepared in compliance with the Instrument and that form.

9.As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all the scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated at Vancouver, British Columbia, this 25th day of November 2022.

“signed and sealed”

Americo Delgado, P.Eng.

PAN AMERICAN SILVER CORP.    121