Pan American Silver has uncovered four new high-grade mineral veins at its La Colorada mine in Zacatecas, Mexico, following a drilling campaign that ran from November 2025 to January 2026. The discoveries, made in the southeastern and eastern Candelaria zones, were found between the Cristina and San Gerónimo systems and are associated with contact-related replacement mineralization.

Significant Drill Results and Structural Expansion

The exploration campaign involved drilling 17,774 meters across 38 holes, building upon earlier findings released in September and December 2025. The newly identified veins—named Filomena, Nicolasa, Bernardina, and Josefina—form part of a structural cluster that extends 500 meters in strike length and vertically by 500 meters. These veins contribute to a combined strike length of approximately 2,500 meters, maintaining a west-northwest trend observed in previously known veins.

Key drill results include an intercept of 11.60 meters from hole S-153-25, which yielded 241 grams per tonne (g/t) silver, 0.81 g/t gold, 2.08% lead, and 4.48% zinc. Another notable result came from hole S-161-25, with an intercept of 1.03 meters yielding up to 9,730 g/t silver, 6.19 g/t gold, 2.62% lead, and 5.67% zinc.

Exploration Progress and New Zones Identified

Pan American Silver is continuing with intensive infill and extensional drilling to further delineate and expand the mineralized zone. A new exploration crosscut on Level 588 had progressed by 170 meters as of the end of January 2026, while an additional crosscut on Level 448 was started in early 2026 to enhance access and drill coverage in the area.

The exploration efforts have also identified La Chona Breccia as a newly delineated brecciated zone within the southeastern structural corridor, with widths varying between 10 meters and 65 meters. This zone has shown potential for elevated silver and base metal grades.

Drilling along the eastern extensions of the Mariana and NC2 veins in the northeastern part of the mine has extended high-grade mineralization by around 200 meters. Notable results from this area include hole S-147-25, which intercepted 1.90 meters at grades of 1,297 g/t silver, 0.43 g/t gold, 2.66% lead, and 8.87% zinc. Hole U-207-25 yielded an intercept with grades reaching up to 10,305 g/t silver, 0.66 g/t gold, 9.99% lead, and 16.00% zinc.

Impact on Resource Estimates and Future Exploration

Pan American Silver senior vice-president of exploration and geology Christopher Emerson said, “Exploration at La Colorada continues to deliver exceptional results, highlighted most recently by the discovery of at least four new high-grade veins in the southeastern Candelaria zone.”

The newly discovered veins and zones will be included in an update of mineral reserves and resources as of 30 June 2026. These findings are expected to significantly boost the company’s resource base, potentially increasing its production capacity and long-term profitability.

The exploration efforts at La Colorada follow the company’s acquisition of all of MAG Silver’s issued and outstanding common shares in September 2025. This acquisition positioned Pan American Silver as the sole owner of the La Colorada mine, allowing for more focused and strategic exploration activities.

The discoveries are not only significant for the company but also for the local economy in Zacatecas, as increased mining activity can lead to job creation and infrastructure development. However, environmental and community concerns remain, particularly regarding the impact of expanded mining operations on the surrounding area.

With the upcoming resource update, the company will provide more clarity on the potential of the La Colorada mine, which is one of the largest and most productive silver mines in Mexico. The results from the recent drilling campaign are expected to influence investment decisions and future operational strategies for Pan American Silver.