America’s top silver mining company spiked on Thursday in response to a major discovery found in Mexico. Pan American Silver (NASDAQ: PAAS) saw it’s stock price rise by around 10 percent today after announcing the results from an exploratory drilling operation that took place over the past three months at its La Colorada location in Mexico.
Mining stocks usually surge dramatically on major discoveries, and this time is no different, but the main difference is that Pan American Silver is a relatively larger company which makes today’s stock move all the more significant.
The second-largest silver miner in the world reported on initial test drilling results at their La Colorado mine in Mexico, revealing strong yields of gold, zinc, and lead deposits with concentrations around 2 percent, 0.25 percent, and 6 percent as a rough average for each of the three metals respectively.
Additionally, there are a number of drill holes that show plenty of copper as well as silver sulfides over large widths, which if this initial drilling is indicative of the entire mine, would make this a particularly excellent discovery for the American miner.
“We are very pleased with the outstanding recent drill results at La Colorada, which further define the skarn mineralization,” said Christopher Emerson, Pan American’s Vice President of Business Development and Geology. “In particular, drillholes U-51 and U-46 indicate the high concentration of base metal and silver sulphides over large widths. The drill holes now cover a horizontal area of about 600 metres by 300 metres, delineating skarn and manto zones that are still open laterally and at depth.”
Over the next six months, Pan American plans to conduct a massive, 50,000-meter drilling program and review the results of a further 12-kilometer geophysics survey for their La Colorado mine.
A more complete resource estimate will be made sometime in late 2019. However, today’s news, as initial and incomplete as it is, was good enough for investors to buy up plenty of shares of the mining company. Investors and short-term traders alike should keep their eyes out for when the full survey results are released, as shares will likely shoot up even more that day if the results are as strong as they have so far been.
Shares of Pan American Silver rose by 9.55 percent on Thursday, which markets one of the best single-day moves for the stock in a long time. The miner has had a tumultuous past six-months, giving back a significant portion of its stock price in the first quarter of 2019 before staging a recovery throughout Q2. Currently, it’s trading at a pricy 247.8 price to earnings ratio with a dividend of 0.85 percent.
Pan American Silver Company Profile
Pan American Silver Corp is a mining company focused exclusively on the exploration and development of silver mines. It produced roughly 22 million ounces of silver in 2011. The company operates primarily in Central and South America. It also sells the byproducts from its silver mining operations, including zinc, lead, copper, and gold. Pan American Silver is based in British Columbia. – Warrior Trading News
