Project Overview
The Navidad project is owned by Pan American Silver and is one of the largest undeveloped silver deposits in the world. Navidad is located in Chubut, Argentina and comprises eight individual mineral deposits in three separate mineralized trends (Navidad, Esperanza and Argenta trends). The six deposits of the Navidad Trend occur along strike over a distance of about 5.8 kilometres and are essentially continuous.. Wheaton Precious Metals holds a debenture convertible into an agreement to purchase 12.5% of the life of mine silver production from the Loma de La Plata zone, which is one of the highest grade zones within the Navidad deposit and represents approximately 25% of the project’s measured and indicated silver resources. Loma de La Plata is silver-rich, but is sulphide-poor and contains very low levels of lead, zinc, and copper. Metallurgical testing has indicated that this zone is receptive to conventional flotation processing with forecast silver recoveries of approximately 72%.
There are material governmental and legal factors that affect the mineral resources at Navidad and the conversion of the mineral resources to mineral reserves. Legislation in place in the Province of Chubut currently prohibits open pit mining and the use of cyanide in the entire province. According to Pan American, no cyanide will be used to process the material anticipated to be mined at Navidad, but given the depth and orientation of the deposits, the economic mine plan involves open pit mining. Because of these governmental and legal factors, the otherwise economically viable portions of the deposit cannot be estimated as mineral reserves at this time.
In December 2021 lawmakers in Chubut voted in favor of a zoning law allowing open pit mining in the Gastre Telsen zone of the province. However, this vote sparked blockades on major roads and the provincial legislature ultimately reversed the decision.
Stream Details
| Date of Contract |
05-Jun-07 |
| Term of Stream |
Life of Mine |
| Stream Parameters |
12.5% of silver production |
| Upfront Consideration |
$43M |
| Delivery Payment Per Ounce |
$4.00 Ag (annual 1% inflation adjustment starting in 4th year) |
For more information on the Navidad Project, please visit: panamericansilver.com(opens in new tab)