================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of, March 2006
------------------------------------ ---------------
Commission File Number 000-13727
------------------------------------ ---------------
Pan American Silver Corp
--------------------------------------------------------------------------------
(Translation of registrant's name into English)
1500-625 Howe Street, Vancouver BC Canada V6C 2T6
--------------------------------------------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40F:
Form 20-F Form 40-F X
---------------- ----------------
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
------------------ ------------------
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
82-_______________
================================================================================
DOCUMENTS INCLUDED AS PART OF THIS REPORT
1 Material Change Report, dated March 28, 2006.
This Report on Form 6-K is incorporated by reference into the Registration
Statement on Form F-10 of the Registrant, which became effective upon filing of
Amendment No. 1 thereto with the Securities and Exchange Commission on February
10, 2005 (File No.
333-122152)
DOCUMENT 1
FORM 51-102F3
MATERIAL CHANGE REPORT
ITEM 1. Name and Address of Company
Pan American Silver Corp. (the "Company")
1500 - 625 Howe Street
Vancouver, British Columbia V6C 2T6
ITEM 2. Date of Material Change
March 23, 2006
ITEM 3. News Release
A press release was issued by the Company on March 23, 2006 at
Vancouver, British Columbia and distributed through the
facilities of Canada NewsWire.
ITEM 4. Summary of Material Change
The Company announced that it has received clearance from the
Province of Santa Cruz Argentina for the Environmental Impact
Assessment on its 100% owned Manantial Espejo silver project
and plans to immediately proceed with the development and
construction of the mine.
ITEM 5. Full Description of Material Change
The Company announced that it has received clearance from the
Province of Santa Cruz Argentina for the Environmental Impact
Assessment on its 100% owned Manantial Espejo silver project
and plans to immediately proceed with the development and
construction of the mine. In addition, the Company also signed
an agreement with the Federal Government of Argentina and the
Province of Santa Cruz to bring grid electrical power to the
town of Gobernador Gregores with a sub-connection to Manantial
Espejo.
The recently completed feasibility study for Manantial Espejo
estimates that the project will produce on average 4.3 million
ounces of silver and 62,000 ounce of gold annually over a mine
life of 8.5 years. Capital costs for the project are expected
to be $112.3 million including working capital and normal
construction contingencies, plus $18.1 million in Argentine
Value Added Tax, which will be refundable once the mine is in
production.
At the feasibility study price assumptions of US$6.75 per
ounce for silver and US$475 per ounce for gold, the mine will
generate an undiscounted after tax net present value of $72.6
million, an internal rate of return of 12% and a capital
payback of 3.5 years. Average life of mine cash costs will be
$0.02 per ounce, net of gold byproduct credits. At today's
prices, the undiscounted net present value of the project
would be $169 million, the internal rate of return increases
to 25% and the capital payback period would be approximately
2.3 years.
Basic engineering for the project has been initiated and
construction is expected to take 18-20 months. Mineralization
is concentrated in four zones: the Maria, Karina Union,
Melissa and Concepcion deposits, which will be developed using
both open pit and underground mining methods. Silver and gold
recovery will be by conventional milling and leaching at a
rate of 2,000 tonnes per day. The feasibility study estimates
that the recovery rates for silver and gold will be 93% and
94%, respectively. The Company is currently exploring
financing options for the project.
*Mineral Reserves and Resources as at December 31, 2005
------------------------------------------------------------------------------------------------------------
Tonnes Grade Grade Silver
(000s) (g/t Ag) (g/t Au) (ounces)
------------------------------------------------------------------------------------------------------------
Proven Mineral Reserves 2,743 176 2.47 15,522,000
Probable Mineral Reserves 2,848 211 3.18 19,271,000
Total 5,591 194 2.83 34,793,000
------------------------------------------------------------------------------------------------------------
Measured Mineral Resources 108 1.22 4,248,000
Indicated Mineral Resources 1,224
118 1.22 6,332,000
Total 1,670
2,894 114 1.22 10,580,000
------------------------------------------------------------------------------------------------------------
Inferred Mineral Resources 1,042 133 1.20 4,468,000
------------------------------------------------------------------------------------------------------------
*Michael Steinmann, P.Geo., Senior Vice-President Geology and
Exploration for Pan American Silver, has estimated the mineral
resources and is the Qualified Person for the resources.
Martin Wafforn, P.Eng, Director of Mine Engineering for Pan
American Silver is the Qualified Person for the
proven/probable mineral reserves. The proven and probable
reserves were calculated using a silver price of US $6.25 per
ounce and a gold price of US $425 per ounce.
ITEM 6. Reliance on Subsection 7.1(2) or (3) of National Instrument
51-102
Not applicable.
ITEM 7. Omitted Information
No significant facts have been omitted from this report.
ITEM 8. Executive Officer
Brenda Radies, Vice President Corporate Relations
Phone: (604) 684-1175
ITEM 9. Date of Report
March 28, 2006.
/s/ ROBERT PIROOZ
------------------------
ROBERT PIROOZ,
General Counsel and Secretary
- 2 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PAN AMERICAN SILVER CORP.
---------------------------------------
(Registrant)
Date: March 29, 2006 By: /S/ ROSS BEATY
------------------------- ----------------------------------
Name: Ross Beaty
Title: Chairman