06:52 AM EDT, 03/25/2026 (MT Newswires) -- Pan American Silver ( PAAS ) late on Tuesday released results of a revised preliminary economic assessment for the proposed La Colorada development in Mexico.

The revised PEA includes a portion of the mineral resources from the La Colorada vein mine and high-grade portions of the scarf deposit mineral resources.

The Revised PEA envisions simultaneous development of a newly identified silver mineral resource in the eastern Candelaria area of the existing La Colorada mine and the higher grade portions of the skarn deposit, as well as the construction of a 15,000 tonnes per day plant.

Production from the existing La Colorada vein mineral reserves will continue throughout construction, commissioning and well into the operation of the La Colorada Skarn Project, resulting in an overall expansion of La Colorada.

The expanded La Colorada Mine is expected to significantly boost silver production and extend mine life.

The revised PEA showed annual average silver production of 15.8 million ounces from the La Colorada Skarn Project over the initial five-year period, incremental to expected average silver production of 3.3 million ounces from the existing La Colorada mine mineral reserves.

Average all-in sustaining cost is expected at negative US$22.67 per ounce over the initial five-year period, reflecting contribution of zinc and lead by-product credits.

The project has an after-tax net present value discounted at 5% of $2.6 billion, with an after-tax internal rate of return of 17%, using long-term metal prices of $45 per ounce of silver, $2,800 per tonne of zinc and $2,000 per tonne of lead.

The La Colorada Skarn Project grades under the revised PEA are higher by 84% for silver, 45% for zinc and 54% for lead, compared to the 2023 PEA.