Pan Am Silver reports on Q1 silver and gold production Consolidated silver production was 3% behind 2010's forecast for the first quarter, whereas gold production was almost 8,000 ounces above plan. Cash costs for the first three months of 2010 were approximately $4.50 per ounce, well below the Company's forecast of $6.40 per ounce(1) for the full year. Better than expected gold production primarily from the Manantial Espejo mine in Argentina and higher than predicted gold prices were the key contributors to the lower cash costs. Based on the first quarter's performance, Pan American still expects to achieve its full year silver production forecast of 23.4 million ounces. It is expected that production from Huaron will continue to be adversely affected by the difficult ground conditions until the third quarter of the year and thus the mine will likely fall short of its full year silver production target. However, better than anticipated silver ore grades at Alamo Dorado and San Vicente are also likely to continue and should entirely offset Huaron's shortfall for the year.
