Pan American Silver (TSX:PAAS) has approved a C$146 million ($147.3 million) first phase development at its Timmins operations in Ontario to support production growth and mine life extension.
The board has approved a 625m shaft extension at the Bell Creek mine, an 814m drift to access the Vogel deposit, and a 1.3km exploration drift to access the Samson deposit, following successful exploration programs that identified new mineral resources.
Pan American Silver CEO Michael Steinmann says existing infrastructure allows the Bell Creek shaft extension and Vogel and Samson drifts to unlock new resources, boosting production and extending the mine life.
“The potential phased development and integration of the satellite deposits would transform Timmins into a long-life Canadian production platform,” Steinmann adds.
Initial spending on the first phase was included in the company’s 2026 guidance of C$40 million to C$43 million in project capital at Timmins, with no changes to annual guidance.
The Bell Creek shaft extension will deepen the existing shaft by 625m to 1,705m below surface, enabling access to deeper mineralisation identified through recent exploration.
Drill results and resource upside
On-site activities commence in July 2026, with the three-year project expected to be commissioned in the first half of 2029.
Recent drilling at Bell Creek has demonstrated strong continuity of mineralisation to the 2,600 level, including 18.6m at 3.06 grams per tonne gold and 9.8m at 5.00g/t gold.
The Vogel project, located 1.5km east-southeast of Bell Creek, contains 61,000 ounces of indicated gold mineral resources and 135,000 ounces of inferred gold mineral resources as of 30 June 2025.
Recent drilling identified down-dip extensions and higher-grade mineralisation, with highlights including 19.9m at 8.11g/t gold.
The Samson project contains 118,000 ounces of gold inferred mineral resources, with Pan American developing a 1.3km underground exploration drift to support drilling and future development.
Pan American plans to drill approximately 118,000m at Timmins in 2026 with a focus on near-mine exploration and mineral resource conversion.
The company anticipates publishing updated mineral reserves and resources for Timmins, Vogel, and Gold River in Q3 2026.
Write to JC Villarba at Mining.com.au
Images: Pan American Silver
