UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER TO RULE 13A or 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of: January, 2008		File No.: 000-13727

PAN AMERICAN SILVER CORP.

(Translation of Registrant’s Name into English)

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20F or Form 40F:                     Form 20F o      Form 40F þ

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).                     Yes o      No þ

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).                     Yes o      No þ

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.                                              Yes o      No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with rule 12g-3-2(b): 82 -                     .

 

 

Submitted herewith:

1.

Form 43-101 Technical Report for the La Colorada Property.

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.
Date: January 30, 2008		“Robert Pirooz”
		General Counsel

TECHNICAL REPORT

FOR THE

LA COLORADA PROPERTY

ZACATECAS, MÉXICO

Effective Date: September 30, 2007

PREPARED BY:

Andrew Sharp, AusIMM

Michael Steinmann, P.Geo

Martin Wafforn, P.Eng

TABLE OF CONTENTS

1.0 TITLE PAGE			1
2.0 TABLE OF CONTENTS			1
3.0 SUMMARY			1
3.1. Background			1
3.2. Property Ownership, Location and Description			1
3.3. Geology and Mineralization			2
3.4. Exploration and Development			2
3.5. Mineral Resource and Reserve Estimates as at Sep. 30, 2007			3
3.6. Mining Operations			5
3.7. Authors’ Conclusions			5
3.8. Author’s Recommendation			6
4.0 INTRODUCTION			6
5.0 RELIANCE ON OTHER EXPERTS			7
6.0 PROPERTY DESCRIPTION AND LOCATION			8
6.1. Mineral Tenure			8
6.2. Permits and Agreements			10
6.3. Environmental Issues			11
7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY			12
8.0 HISTORY			13
9.0 GEOLOGICAL SETTING			14
9.1. Regional and Local Geology			14
9.2. Structural Geology			16
10.0 DEPOSIT TYPES			17
11.0 MINERALIZATION			17
11.1. Ore Zones			18
12.0 EXPLORATION			19
13.0 DRILLING			20
14.0 SAMPLING METHOD AND APPROACH			31
15.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY			32
16.0 DATA VERIFICATION			33
17.0 ADJACENT PROPERTIES			34
18.0 MINERAL PROCESSING AND METALLURGICAL TESTING			34
18.1. Mineral Processing			34

  ii

18.2. Lab Sampling and Analysis			35
18.3. Metallurgical Testing			36
19.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES			42
19.1. Mineral Reserves			45
19.2. Mineral Resources			45
20.0 OTHER RELEVANT DATA AND INFORMATION			46
21.0 INTERPRETATION AND CONCLUSIONS			47
22.0 RECOMMENDATIONS			47
23.0 REFERENCES			48
24.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES			49
24.1. Underground Mine Operations			49
24.2. Milling			54
24.3. Environmental Considerations			56
24.4. Exploration Expenditures			58
24.5. Inflation and Taxes			58
24.6. Capital and Operating Costs			62
24.7. Markets			65
24.8. Revenues			66
24.9. Economic Model			66
24.10.Life of Mine			70
25.0 DATE AND SIGNATURE PAGE			71
26.0 FIGURES			72

LIST OF FIGURES

Figure 1 Location of the La Colorada mine in central Mexico			72
Figure 2 Claim map of the La Colorada mine			73
Figure 3 Claim map of the La Colorada mine — El Conjuro and San Cristobal			74
Figure 4 Claim map of the La Colorada mine with surface installations and access roads			75
Figure 5 Surface map of the La Colorada mine site with installations			76
Figure 6 Geological map of the La Colorada mine			77
Figure 7 Simplified geological cross section			78
Figure 8 Long section of the La Colorada mine with development			79
Figure 9 NCP HW Vein			80
Figure 10 NCP HW2 Vein			81
Figure 11 NCP Vein			82
Figure 12 NCP Inverse Vein			83
Figure 13 NCP Split Vein			84
Figure 14 NC2 Vein			85
Figure 15 Recompensa Vein			86
Figure 16 Estrella Vein			87
Figure 17 Mining method, stope access from ramp			88
Figure 18 Applied mining method (Cut and Fill)			89
Figure 19 Processing Flowsheet — Oxide Circuit			90
Figure 20 Processing Flowsheet — Sulphide Circuit			91

  iii

LIST OF TABLES

Table 1 La Colorada Mineral Reserves			3
Table 2 La Colorada Mineral Resources			4
Table 3 Mining concessions registered for exploitation (mining)			9
Table 4 Chalchihuites Statistics on Rain & Evaporation			12
Table 5 List of Drilling Campaigns by Year:			20
Table 6 La Colorada Drill Hole Collars			22
Table 7 Predicted Metal Recoveries for La Colorada Ores			34
Table 8 Predicted Head Grades			34
Table 9 Actual Metal Recoveries of Oxide Ore Achieved from 2005 - Sep 30, 2007			35
Table 10 Actual Metal Recoveries of Sulphides Ore Achieved from 2005-Oct 17, 07			35
Table 11 Predicted Metal Recoveries of Oxide Ore			37
Table 12 Bottle Roll Test Results (Oxide Ore Above 295 Level)			37
Table 13 Flotation Results: Stage 1			38
Table 14 Flotation Results: Stage 2			38
Table 15 Projected Typical Sulphide Metallurgical Balance			39
Table 16 Drill Core Scoping Bottle Roll Tests			39
Table 17 Locked Cycle Results			40
Table 18 Gold Recoveries in Locked Cycle Testing			40
Table 19 Flotation Results on NCP Oxide Ore			41
Table 20 Flotation Results on NCP Mixed Ore			41
Table 21 Specific Gravity Testwork			42
Table 22 Metal Price Assumptions			43
Table 23 Value per Tonne Factors for Oxide Ore			44
Table 24 Value per Tonne Factors for Sulphide Ore			44
Table 25 La Colorada Mineral Reserves			45
Table 26 La Colorada Mineral Resources			46
Table 27 Long range mine plan based on Sep 30, 2007 reserves			54
Table 28 Closure Cost Estimate			58
Table 29 Tax Depreciation Rates			60
Table 30 Tax on Mining Concessions			61
Table 31 Corporate & Employee Profit Sharing Calculation			62
Table 32 Estimated Life of Mine Capital Costs			63
Table 33 Estimated Life of Mine Operating Costs			64
Table 34 Mining Operating Cost Details			64
Table 35 Processing Operating Cost Detail			65
Table 36 Economic Model			68
Table 37 NPV Price Sensitivity			69
Table 38 NPV Price Sensitivity Parameters			69
Table 39 Grade Sensitivity			70
Table 40 Capital Cost Sensitivity			70
Table 41 Operating Sensitivity			70

  iv

1.0 TITLE PAGE

This Technical Report has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and the contents herein are organized and in compliance with Form 43-101F1 — Contents of the Technical Report (“Form 43-101 F1”). The first two items are the Title Page and the Table of Contents presented previously in this report. They are mentioned here simply to maintain the specific report outline numbering required in Form 43-101F1.

2.0 TABLE OF CONTENTS

See discussion in Section 1.

3.0 SUMMARY

3.1. Background

Pan American Silver Corp. (“PAS”) prepared this Technical Report in support of its public disclosure of mineral reserve and mineral resource estimates as of September 30, 2007, as required by NI 43-101.

Mr. Andrew Sharp, AusIMM member, Planning Manager Mexico Operations of Minera Corner Bay S.A. de C.V. (“Minera Corner Bay”), a wholly-owned subsidiary of PAS, Dr. Michael Steinmann, P. Geo., Senior Vice President of Exploration and Geology of PAS, and Mr. Martin Wafforn, P.Eng., Vice President of Mine Engineering of PAS, are authors of this Technical Rreport. Each of Mr. Sharp, Dr. Steinmann and Mr. Wafforn is a Qualified Person (“QP”) as that term is defined in NI 43-101.

3.2. Property Ownership, Location and Description

The La Colorada property was acquired by PAS in April 1998 through its wholly owned subsidiary Plata Pan Americana S.A., de C.V. (“Plata”).

The La Colorada property is located in the Chalchihuites district, Zacatecas State, México, approximately 99 km south of the city of Durango and 156 km north-west of the city of Zacatecas. The district’s general co-ordinates are longitude 23°23’N and latitude 103°46’W. The La Colorada mine-site is accessible by road approximately 2¹/2 hours south-east of the city of Durango. The road consists of 120 km of a paved two-lane highway (Highway 45), and 23 km of public, all weather gravel road. The access from Zacatecas takes approximately the same time on similar types of roads. Durango and Zacatecas are serviced by daily flights from México City, other major centers in México and direct flights from some cities in the United States.

The La Colorada property is comprised of 37 exploitation claims totalling 2,864.1 ha (figures 2, 3 and 4). In addition, PAS also has control over approximately 571 ha of surface rights covering the main workings, namely the Candelaria, Campaña, Recompensa and Estrella mines.

3.3. Geology and Mineralization

The La Colorada property is located on the eastern flanks of the Sierra Madre Occidental at the contact between the Lower Volcanic Complex and the Upper Volcanic Supergroup. The La Colorada property lays 16km southeast of Chalchihuites and 30km south-southwest of Sombrerete, two mining camps with significant silver and base metal production from veins and associated skarn deposits (San Martin and Sabinas mines).

The oldest rocks exposed in the mine area are Cretaceous carbonates and calcareous clastic rocks of the Cuesta del Cura and Indidura formations. Overlying the calcareous rocks is a conglomerate unit containing clasts derived mostly from the subadjacent sedimentary rocks. In the Chalchihuites district this unit is called the Ahuichila Formation and is of Early Tertiary age.

Most of the outcrop in the mine area is represented by intermediate to felsic volcanic rocks of the regional Lower Volcanic Complex. This unit is identified as a trachyte in older mine data, although recent petrography indicates that it is actually an altered dacite. There are several subgroups within this unit, including plagioclase porphyry, crystal to crystal-lapilli tuffs, and volcanic breccias. Generally these sub-units do not form mappable units.

East to northeast striking faults form the dominant structures in the project area and play a strong role in localizing mineralization. Most of these faults dip moderately too steeply to the south and juxtapose younger hangingwall strata against older footwall rocks. Evidence suggests down-dip motion on these faults; however, most of the faults have been reactivated at some point so the movement direction during the initial formation is uncertain. Stratigraphic contacts are displaced from ten to over a hundred metres lower on down-dropped blocks.

The mineralized veins at La Colorada contain both oxide and sulphide material. The depth below surface and the permeability of the mineralized zone controls the level of oxidation in the veins. The most common sulphide minerals are galena, sphalerite, tetrahedrite, argentite, and pyrite.

3.4. Exploration and Development

The bulk of PAS’ exploration on the La Colorada property has been surface and underground diamond drilling and underground drifting on the veins and mineralized zones. Exploration work conducted by PAS as of September 30, 2007 includes 53,253 metres of surface and underground diamond drilling and approximately 22,600 metres of underground drifting. The drifting was completed along the vein for stope extraction, ramp and stoping access, drifting in mineralized structures has been mapped for geology and sampled. NQ and HQ sized core was obtained from surface drilling and underground diamond drilling is typically done with BQ sized core. In certain cases, HQ sized core was used in underground drilling in an attempt to improve drill core recovery. Prior to PAS’ involvement in the La Colorada project, previous operators had drilled 131 holes for a total of 8,665 metres. These holes were not used in PAS’ reserve or resource calculation, with the exception of four holes where the original core was found and assayed by PAS. Drill holes generally range in length from 100 to 300 metres with dips of plus 45º to minus 90º. Standard logging and sampling processes have been used to record information from the holes drilled by PAS.

There are on-going development and exploration programs in place in order to secure the future production from the mine. In 2008, PAS plans to complete 18,232 metrrs of surface and underground exploration and definition diamond drilling. PAS also plans approximately 6,300 metres of underground development (1,750 metres in ore sills) during 2008.

3.5. Mineral Resource and Reserve Estimates as at Sep. 30, 2007

The proven and probable mineral reserves at the La Colorada mine as at September 30, 2007 were estimated to be as shown in Table 1. This mineral reserve estimate was calculated using a price of $11.00 per ounce of silver, $600 per ounce of gold, $2,100 per tonne of zinc, $1,700 per tonne of lead and was prepared under the supervision of and reviewed by Andrew Sharp, AusIMM member, Planning Manager of Mexican Operations of Minera Corner Bay, and Dr. Michael Steinmann, P. Geo., Senior Vice President of Exploration and Geology of PAS. Each of Mr. Sharp and Dr. Steinmann is a QP as that term is defined in NI 43-101.

Table 1 La Colorada Mineral Reserves

		Tonnage				Grade
Category		kT				Ag g/t				Au g/t				Pb %				Zn %
Proven			449.40				421.57				0.46				0.01				0.01
Probable			566.50				460.12				0.53				0.01				0.01
Total Reserve			1,015.90				443.07				0.50				0.01				0.01

Notes:

1.		Total grades of silver and zinc are shown as contained metal before mill recoveries are applied.
2.		La Colorada’ mineral reserves have been estimated at a cut off value per tonne of $66.53 in the Calendaria Mine and $58.31 in the Estrella Mine for oxide ore and $58.48 per tonne in sulphide ore.
3.		The geological model employed for La Colorada involves geological interpretations on sections and plans derived from core drill hole information and channel sampling.
4.		Mineral reserves have been estimated using the O’Hara dilution formula, which typically adds 20% to 50% dilution at zero grade depending on dip angle and vein width. As a result of reconciliation to actual production the mining dilution is increased by a further 13%.
5.		Mineral reserves have been estimated using a mining recovery of 85-94% (pillars are left in some thicker zones leading to lower mining recovery). A further 7.5% subtracted from the grade with no change in tonnage to further account for other mining losses.
6.		Mineral reserves were estimated based on the use of cut and fill mining methods. The mining rate is projected to be a maximum of 940 tpd ore for the full year of 2008. The processing plants have the capacity to process more than this and are assumed to process all of the ore produced by the mine in each year.
7.		Mineral reserves are estimated using polygonal methods on longitudinal sections.
8.		Mineral reserves were estimated using a price of $11.00 per ounce of silver, $600 per ounce of gold, $2,100 per tonne of zinc and $1,700 per tonne of lead.
9.		Environmental, permitting, legal, title, taxation, socio economic, political, marketing or other issues are not expected to materially affect the above estimate of mineral reserves.

The measured, indicated and inferred mineral resources at the La Colorada Mine as of September 30, 2007 were estimated to be as shown in Table 2. This mineral resource estimate was calculated using a price of $11.00 per ounce of silver, $600 per ounce of gold, $2,100 per tonne of zinc, $1,700 per tonne of lead and was prepared under the supervision of and reviewed by Andrew Sharp, AusIMM member, Planning Manager of Mexican Operations of Minera Corner Bay, and Dr. Michael Steinmann, P. Geo., Senior Vice President of Exploration and Geology of PAS. The mineral resources shown in Table 2 are in addition to the mineral reserves shown in Table 1.

Table 2 La Colorada Mineral Resources

		Tonnage				Grade
Category		k tonne				Ag g/t				Au g/t				Pb %				Zn %
Measured			186.79				329.66				0.51				0.01				0.01
Indicated			547.33				243.62				0.30				0.01				0.01
Total Resource			734.11				265.51				0.36				0.01				0.01
Inferred			1701.18				346.46				0.39				0.02				0.02

Notes:

1.		PAS reports mineral resources and mineral reserves separately. Reported mineral resources do not include amounts identified as mineral reserves.
2.		The geological model employed for La Colorada involves geological interpretations on sections and plans derived from core drill hole information and channel sampling.
3.		Mineral resources have been estimated using the O’Hara dilution formula, which typically adds 20% to 50% dilution at zero grade depending on dip angle and vein width. .As a result of reconciliation to actual production the mining dilution is increased by a further 13%.
4.		Mineral resources have been estimated using a mining recovery of 85-94% (pillars are left in some thicker zones leading to lower mining recovery). A further 7.5% is subtracted from the grade with no change in tonnage to further account for other mining losses.
5.		Mineral resources were estimated based on the use of cut and fill mining methods. The mining rate is projected to be a maximum of 940 tpd ore for the full year of 2008. The processing plants have the capacity to process more than this and are assumed to process all of the ore produced by the mine in each year.
6.		Mineral resources are estimated using polygonal methods on longitudinal sections.
7.		Mineral reserves were estimated using a price of $11.00 per ounce of silver, $600 per ounce of gold, $2,100 per tonne of zinc and $1,700 per tonne of lead.
8.		Environmental, permitting, legal, title, taxation, socio economic, political, marketing or other issues are not expected to materially affect the above estimate of mineral resources.
9.		Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The mineral resource estimation has been done using the polygonal method and corrections for mining method, mining recovery, dilution from wall rocks and dilution from backfill have been taken into account. Mining blocks were created from the variograms and classified as measured, indicated or inferred based on the relative confidence of the supporting data for each evaluated block.

Erratic high Ag values have been corrected for the mineral resource calculation. The La Colorada mineral deposit contains high grade, minable ore shoots and a simple arithmetic top cut to the database would eliminate entire high grade areas. In order to prevent that, the spatial location of a sample has been taken into account. Samples are collected along a structure and are plotted as silver gram per tonne (“g/t”) grade, width (m) of the vein and Ag grade multiplied by the width in order to identify minable ore shoots along the veins. For an easy method to locate the ore shoots, trend lines are plotted over the three datasets. Single outliers, or non-minable small ore shoots, are visually identified and the grades are replaced by the grades of the predicted trend line. The corrections are applied before the vein samples and mineralized footwall / hangingwall samples are composited. Although this method represents a rather unusual way of applying a top cut, the authors of this Technical Report agree that it represents a valid method for the La Colorada deposit, eliminating high grade outliers and with that reducing risk from the mineral resource estimation.

3.6. Mining Operations

Two operating mines exist within La Colorada: Candelaria Mine and La Estrella Mine. The underground Candelaria Mine has various veins that are currently in production. There are two types of ore (sulphide and oxide ore) that are processed separately in the processing plant within the Candelaria Mine. Ore that is favourable to flotation produces a lead / silver and zinc concentrates. Other ore (mostly highly oxidized but includes transitional and sulphide ore) is processed through a separate cyanide leach plant (termed the oxide plant) and produces dorè bars. The Estralla Mine has a single oxide vein that is also currently being mined and processed through the oxide plant.

A third mine, the Recompensa mine is currently the subject of an exploration project that includes surface and underground diamond drilling from a ramp to the surface.

The 2008 La Colorada mine plan is based on providing 540 tpd of ore to the oxide circuit (maximum capacity 650 tpd) that was commissioned in 2004 and a further 400 tonnes per day (“tpd”) of ore to the sulphide circuit which was recently expanded from 100 tpd production. Of the 540 tpd of oxide ore that is planned to be produced during 2008, it is estimated that 390 tpd will be mined from the Candelaria Mine and 150 tpd from the Estrella Mine. The expansion to the sulphide plant was commissioned in June 2007 and the plant now has a maximum capacity of 450 tpd. All of the sulphide production is scheduled to be mined from the Candelaria Mine at a rate of 400 tpd. The mining method used in both mines is mechanized cut and fill using waste rock as backfill.

The mines are being developed to permit fast and efficient movement of equipment, personnel and materials via a system of ramps that connect back to the shaft for haulage of ore and some waste to the surface. Main ramps that are used by haulage trucks are developed 3.6 metres wide by 3.6 metres high with the face drilling normally done by a one boom jumbo and bolting done either using hand held drills from the muck pile or using the one face jumbo that is equipped with a boom capable of drilling holes for split set bolts. The waste is removed using 3.5 cubic yard scooptrams, and where possible, is taken to a stope that is being backfilled for disposal. Stope accesses are typically 2.4 metres wide by 2.4 metres high to permit 2 cubic yard capacity scooptrams into the stopes. These accesses are normally drilled and bolted using hand held drills.

3.7. Authors’ Conclusions

This Technical Report demonstrates that the mineral reserves and mineral resources presented in this Technical Report will be economic with the forecast metal prices and other assumptions presented herein. Based on the current mineral reserve estimates, the mine is projected to operate until the end of 2011. This projected mine life may increase if future resources are converted to reserves. The undiscounted net present value (“NPV”) for the La Colorada mine is $9.77M based in the mineral reserves and mineral resources. The current realized metal prices are higher than those used for the mineral reserve and mineral resource calculations and for the economic analysis presented in this Technical Report.

In the opinion of the authors of this Technical Report, the diamond drilling and channel sampling information that has been collected is of sufficient density for mineral resource and mineral reserve estimation.

The QA/QC programs are conducted under the direct supervision of PAS’ geology staff and periodically revised by Michael Steinmann, P.Geo. The authors of this Technical Report have relied on the data verification work conducted by the geology staff at La Colorada Mine. Summary results used in the resource estimation have been verified by the authors of this Technical Report.

This report details the methodology employed and demonstrates why the authors of this Technical Report conclude that the continued operation of the La Colorada Mine is technically feasible and economically viable. It is the authors’ opinion that the data contained herein is of sufficient quality and reliability to make the conclusions stated.

3.8. Author’s Recommendation

As the mine is currently in operation, the work programs necessary to maintain annual updates to the mineral reserve estimates are in place and being conducted on a daily basis by a full complement of technical and operating staff at the mine. The costs for these work programs are included in the annual operating budgets, mine plan and life of mine (“LOM”) plan that are shown in section 25.6 — Capital and Operating Costs. Martin Wafforn and Michael Steinmann visit the La Colorada Mine on a regular basis throughout the year and make any necessary revisions or improvements to the estimation methodologies. Mr. Andrew Sharp has been based at the La Colorada mine for the last year and has worked there on a daily basis. It is recommended that PAS continues to follow the life of mine plan and make the capital investments that are detailed in that plan. It is further recommended to continue to follow the current sampling and quality control programs as may be revised from time to time by Michael Steinmann, P.Geo. It is also recommended to continue with the diamond drilling program and the related sampling and quality control programs in order to assure sufficient data density for future new resource estimations in deeper or lateral parts of the mine as well as for satellite deposits. The mine has a budget in 2008 of US $1.5M in order to conduct exploration and definition drilling programs in an attempt to convert resources to reserves and locate new ore bodies. These exploration programs are closely supervised and revised by the Senior V.P. of Geology and Exploration for PAS, Dr. Michael Steinmann, P.Geo.

The authors of this Technical Report recommend that the mine should continue to operate and that the mineral reserve and mineral resource statement presented herein be adopted.

4.0 INTRODUCTION

This Technical Report has been prepared for filing in accordance with NI 43-101 and the format and contents of this Technical Report are intended to conform to Form 43-101 F1. This Technical Report has been prepared for PAS for the purpose of updating the mineral reserve and mineral resource estimates for the La Colorada property. Mr. Andrew Sharp, AusIMM member, Planning Manager Mexico Operations of Minera Corner Bay, serves as the Qualified Person responsible for preparing sections 3, 4, 5, 6, 7, 8, 18, 20, 21, 22, 23, and 24 and Figures 8, 9, 10, 11, 12, 13, 14, 15 and 16 of this Technical Report. Dr. Michael Steinmann, P.Geo., Senior Vice President Geology and Exploration for PAS, serves as the Qualified Person responsible for sections 1, 2, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 19 and Figures 1, 2, 3, 4, 5, 6, and 7 of this Technical Report. Mr. Martin Wafforn, P.Eng., Vice President of Mine Engineering for PAS, serves as the Qualified Person responsible for section 25 and figures 17, 18, 19 and 20.

Andrew Sharp has worked at the La Colorada Mine since November 2006 and Michael Steinmann and Martin Wafforn continuously supervise projects at La Colorada and visit the site on a regular basis.

Data, reports, and other information used for the compilation of this Technical Report were obtained from personnel in the PAS offices in Vancouver, British Columbia, the Plata office in Durango, México and from the La Colorada Mine offices in Zacatecas, México. This Technical Report is based on work conducted by PAS geologists, engineers and metallurgists, as well as third party consultants retained by PAS. Specifically, information and data for the mineral resource and mineral reserve estimates were obtained from La Colorada geology department personnel in México and information and data for matters pertaining to metallurgy and processing, cost estimates, environmental and geotechnical investigations, and economic analyses were provided by PAS.

Information and data was also obtained from certain corporate documents, including:

	•		Feasibility Study, La Colorada Mine, México, June 22, 2000 (the “Feasibility Study”);
	•		La Colorada Project, México. Feasibility Update, February 2002 (the “Updated Feasibility Study”);
	•		La Colorada Mine Project, Zacatecas, Technical Report, August 29, 2003
	•		Annual Information Forms of Pan American for 1999, 2000, 2001, 2002, 2003, 2004, 2005 and 2006; and
	•		La Colorada Mine Project, Zacatecas, Technical Report, March 17, 2006

The Feasibility Study and the Updated Feasibility Study relied on various documents prepared by third party engineering and consulting firms, including:

	•		Structural Analysis, La Colorada Mine, Lewis Geoscience, October 1998
	•		La Colorada Project — Geologic Modeling and Resource Estimation Report, MRDI, May 2000
	•		Flotation and Cyanidation Study on Samples from La Colorada, Process Research Associates Ltd., May 2000
	•		Estudio de Cianuración, Luismin Labs, April 2000
	•		Updated Basic Engineering Report for the La Colorada Project, Agra Simons, May 2000
	•		Hoisting System Evaluation, Beacon Hill Consultants, June 2000
	•		Mining Calculations Detail, Beacon Hill Consultants, June 2000
	•		Mina La Colorada Environmental Impact Assessment, Dew Point International, LLC, May 2000
	•		Tailings Facility — Design Report and Addendum, AGRA Earth and Environmental, May 2000
	•		Mina la Colorada Environmental Action Plan, Dew Point International LLC, August 2002
	•		Dewatering Requirements La Colorada Mine — Golder Associates, July 2004
	•		Dewatering Requirements November 2004, update La Colorada Mine — Golder Associates, December 2004

All tonnages stated in this Technical Report are dry metric tonnes (“dmt”) unless otherwise specified. Ounces pertaining to silver metal content are expressed in troy ounces.

All dollar values stated in this report are U.S. dollars.

5.0 RELIANCE ON OTHER EXPERTS

Andrew Sharp, Michael Steinman and Martin Wafforn, as authors of this Technical Report, have relied upon the references, opinions and statements from various Qualified and Non-Qualified Persons contained within the reports referenced in Section 23 — References. These reports, documents, and statements were found to be generally well organized and presented, and where applicable, the conclusions reached are judged to be reasonable.

It is assumed that these reports and documents were prepared by technically qualified and competent persons. It is also assumed that the information and explanations given verbally to the QPs by the employees of both PAS and Plata, and the various consultants and contractors who provided the reports listed in Section 23.0 during the time of preparation of this Technical Report were essentially complete and correct to the best of each employee’s, contractor’s, or consultant’s knowledge, and that no information was intentionally withheld. It is the authors’ opinion that the referenced materials are prepared and presented according to Mining and Engineering Industry Standards.

6.0 PROPERTY DESCRIPTION AND LOCATION

The La Colorada property is located in the Chalchihuites district, Zacatecas State, México, approximately 99 km south of the city of Durango and 156 km north-west of the city of Zacatecas (Figure 1). The district’s general co-ordinates are longitude 23°23’N and latitude 103°46’W. The following figures show the location of the La Colorada Mine:

	•		Figure 1 Location of the La Colorada Mine in Mexico
	•		Figure 2, 3 & 4 La Colorada Mine, Mining Concessions
	•		Figure 5 La Colorada Mine, Mine Site General Layout (view of the mine area)
	•		Figure 6 La Colorada Mine, Geology Map

Property boundaries are defined by field surveys. A survey starting point is established on each property to be claimed. This survey starting point must be constructed of concrete and have a base of at least 60 cm by 60 cm. From the starting point the property boundaries are surveyed by a surveyor registered by Direccion General de Minas (“DGM”) and the property to be claimed filed with DGM.

The locations of all know mineralized veins and structures containing the mineral reserves and mineral resources are shown in Figures 2, 3 and 4. The plant site, tailings facility, mine workings and other infrastructure are shown in Figure 5.

6.1. Mineral Tenure

The La Colorada property is comprised of 37 exploitation claims (7 awaiting title) totalling 2,864.1 ha. The Mexican law has changed as of last year pertaining to designation of the claims as either exploration or exploitation claims. The Mexican government has removed the exploration claim status and everything is currently listed under an exploitation claim. The extent of the mineral tenure is shown in Figures 2, 3 and 4. In addition, Plata also has control over approximately 571 ha of surface rights covering the main workings, namely the Candelaria, Campaña, Recompensa and Estrella Mines. Table 3 lists the mining concessions owned by Plata. The concessions have been legally surveyed.

Table 3 Mining concessions registered for exploitation (mining)

										PESOS PER				TOTAL				TOTAL PESOS				DATE OF
NAME OF THE CLAIM		TITLE				HECTARES				HECTARE				PESOS				ADJUSTED				EXPIRATION
UNIF VICTORIA EUGENIA			188078				285.6230				100.79				28,787.94				28,788.00				11/21/2040
VICTORIA EUGENIA I			204862				23.3187				100.79				2,350.29				2,350.00				5/12/2047
VICTORIA EUGENIA II			211166				49.0000				28.64				1,403.36				1,403.00				4/10/2050
VICTORIA EUGENIA III			204756				1.1262				100.79				113.51				114.00				4/24/2047
VICTORIA EUGENIA IV			217627				36.9357				28.64				1,057.84				1,058.00				8/5/2052
MARIETA			171833				9.0000				100.79				907.11				907.00				6/14/2033
CRUZ DEL SUR			170155				11.0977				100.79				1,118.54				1,119.00				3/16/2032
UNIFICACION CANOAS			211969				18.5052				100.79				1,865.14				1,865.00				3/15/2023
SAN CRISTOBAL			170095				10.0000				100.79				1,007.90				1,008.00				3/15/2023
AMPL DE SN CRISTOBAL			170097				29.1223				100.79				2,935.24				2,935.00				3/15/2023
UNIF EL CONJURO			170592				44.8750				100.79				4,522.95				4,523.00				6/1/2023
TEPOZAN SEGUNDO			163260				13.5400				100.79				1,364.70				1,365.00				9/3/2028
AMPL. AL TEPOZAN			182730				10.7804				100.79				1,086.56				1,087.00				8/15/2038
VICTORIA 2			217628				16.7307				14.24				238.25				238.00				8/5/2052
VICTORIA 3 FRACC A			217629				459.3262				14.24				6,540.81				6,541.00				8/5/2052
VICTORIA 3 FRACC B			217630				14.1635				14.24				201.69				202.00				8/5/2052
EL REAL			214498				20.0000				28.64				572.80				573.00				10/1/2051
NUEVA ERA			214659				29.7151				28.64				851.04				851.00				10/25/2051
LA REFORMA			218667				135.5786				14.24				1,930.64				1,931.00				12/2/2052
PLATOSA			216290				41.0406				14.24				584.42				584.00				4/29/2052
SAN FRANCISCO			206567				7.7525				100.79				781.37				781.00				1/29/2048
VICTORIA 5			226310				693.4344				6.88				4,770.83				4,771.00				12/5/2055
VICTORIA EUGENIA			211587				36.0864				28.64				1,033.51				1,034.00				6/15/2050
SN FCO I FRACC 1			223953				165.5461				100.79				16,685.39				16,685.00				3/14/2055
SN FCO I FRACC 2			223952				3.3363				100.79				336.27				336.00				3/14/2055
LA CRUZ			211085				8.5121				28.64				243.79				244.00				3/30/2050
CRESTON			213594				9.0000				28.64				257.76				258.00				5/17/2051
ESCALERA FRACC 1		Awaiting Title					2.4573				0.00				0.00				—				—
ESCALERA FRACC 2		Awaiting Title					2.9544				0.00				0.00				—				—
ESCALERA FRACC 3		Awaiting Title					1.7926				0.00				0.00				—				—
ESCALERA FRACC 4		Awaiting Title					1.1399				0.00				0.00				—				—
ESCALERA FRACC 5		Awaiting Title					6.5872				0.00				0.00				—				—
ESCALERA FRACC 6		Awaiting Title					6.0759				0.00				0.00				—				—
ESCALERA FRACC 7		Awaiting Title					5.7413				0.00				0.00				—				—
EL REAL 2			228945				561.2590				4.60				2,581.79				2,582.00				2/20/2057
MELISA			217670				69.5670				14.24				990.63				991.00				8/5/2052
LIZETTE			221172				23.3852				14.24				333.01				333.00				12/2/2053
TOTAL							2,864.11								87,455.06				87,457.00

The concession Unificada Victoria Eugenia contains all of the mineral resources and mineral reserves, most of the mine workings, part of the mine plant, buildings and offices, the San Fermin Mine portal, the Candelaria Mine portal, the Recompensa Mine portal, the Estrella Mine workings, and the El Aguila shaft.

The Veta Dos portal, and some of the mine workings are located on Victoria 2. Victoria 3 Fraccion B contains some of the mine workings.

The tailings dam and storage area are located on Victoria 5 and Victoria 3 Fraccion A. The remainder of the mine plant, buildings and offices are located on Victoria 3 Fraccion A.

Concessions Escalera Fracc 1, 2, 3, 4, 5, 6 and 7 have been staked and are awaiting title from the Mexican government. The concession titles are expected within the following year after which PAS plans to explore and potentially develop the concessions.

6.2. Permits and Agreements

General Mining Office

To the best of the authors’ knowledge, all of the annual work commitments, payment of duties, and all other requirements to maintain the mining concessions held by Plata have been duly complied with.

Foreign Trade Services Department

On September 19, 2005, Plata was designated by the Ministry of Economy an “ALTEX”, or high level exporting company, and was registered as such with the Ministry of Economy under Certificate No. 2005/5838. As an ALTEX, Plata is entitled to carry out importing and exporting activities in relation to its operations and to obtain fiscal benefits and refunds related to such activities.

National Registry of Foreign Investment

To the best of the authors’ knowledge, Plata is in compliance with the quarterly and annual filing requirements of this registry.

Federal Labour Delegation

To the best of the authors’ knowledge, Plata is in compliance with the requirements of the applicable labour laws of Mexcio, and all registrations, as required, for the Federal Labour Delegation, in the State of Zacatecas, have been filed.

Federal Board of Conciliation and Labour Arbitration

To the best of the authors’ knowledge, there are no labour lawsuits against Plata.

Real Estate

To the best of the authors’ knowledge, title to the concessions held by Plata associated with La Colorada have been registered in the Public Registry of Property of Sombrerete, Zacatecas and are free of any liens or encumbrances.

Ministry of Finance

To the best of the authors’ knowledge, all filings with the Ministry in respect of income and sales taxes have been made on time and as prescribed.

Mexican Social Security Institute (“IMSS”)

To the best of the authors’ knowledge, Plata is in compliance with the payment of dues to IMSS in respect of both employer and employee withholdings.

Agreements

To the best of PAS’ knowledge, the La Colorada property is not subject to any royalties, back-in rights or encumbrances.

General Management of the Federal Registry of Firearms and Explosives (SECRETARIA DE LA DEFENSA NACIONAL (“SEDENA”)

Plata was granted General Permit (2917-Zacatecas) in 2000 authorizing the purchase, storage and use of explosives subject to Plata continuing to meet permit requirements. This is revalidated on an annual basis. To the best of the authors’ knowledge, Plata is in compliance with the monthly reporting requirements of this permit.

Federal Bureau of Environmental Protection (Secretaria de Medio Ambiente y Recursos Naturales: SEMARNAT) and National Ecology Institute (Institutio Nacional de Ecología: DIRECCION GENERAL DE ORDENAMIENTO ECOLOGICO E IMPACTO)

Following submission of an environmental impact statement, named the Manifestación de Impacto Ambiental-Modalidad General (“EIS”) and environmental risk assessment study, named the Estudio de Riesgo Ambiental Modalidad Análisis de Riesgo, the federal environmental authority granted approval (“the Dictamen”) for new project construction under D.O.O.DGOEIA.- 007244 on November 11, 1999. In October 2000, Plata received authorization by way of a change in use of soils (Cambio de Uso de Suelos) permit to construct a new tailings dam on land not previously impacted by historic mining operations.

National Water Commission (Comisión Nacional del Agua: Conagua)

Mining generates tailings, which are materials considered to be potentially hazardous wastes. Plata filed an application to become a hazardous waste generator in January 1999 and the required permit was received March 26, 2001.

Plata holds a permit (Concesión 03ZAC103761/11EQGE02) dated September 19, 2002, which permits the discharge of waters into the subsurface of the La Colorada property. Pursuant to a new National Waters Law (Ley de Aguas Nacionales), Plata is permitted to make use of waters obtained from the exploitation of a mine without having to apply to the National Water Commission for a permit or authorization.

6.3. Environmental Issues

An EIS and risk assessment was approved by the Mexican federal environmental authority in November of 1999. To the best of the authors’ knowledge, Plata is currently in compliance with all applicable environmental laws. Known environmental liabilities are associated with mining disturbances. The cost of closure of the La Colorada Mine is discussed in section 25.3.

7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The closest municipality to the La Colorada property is the city of Chalchihuites, which is 16-km north-west of La Colorada Mine, with a population of approximately 1,000.

The La Colorada Mine site is accessible by road approximately 2¹/2 hours south-east of the city of Durango. The road consists of 120 km of a paved two-lane highway (Highway 45), and 23 km of public, all weather gravel road. Access from Zacatecas takes approximately the same time on similar types of roads. Durango and Zacatecas are serviced by daily flights from México City, other major centers in México and direct flights from some cities in the United States.

The physiography of the region is characterized by wide flat valleys and narrow, relatively low mountains ranges and hills. Topographic relief near the Candelaria, Recompensa and Campaña Mine sites is between 2,100 m and 2,550 m.

The climate is arid to semi-arid and vegetation typically includes mesquite and cactus. The rainy season is from July to September. Table 4 gives the precipitation statistics measured at the local government weather station. Winter temperatures are around freezing during the night. The mine operates throughout the entire year.

Table 4 Chalchihuites Statistics on Rain & Evaporation

Averages from 1962 to 1997 in millimetres.

		Max rain in				Max rain per
Month		24 hours				month				Evaporation
January			5.77				5.13				135.4
February			4.50				6.37				140.0
March			2.17				2.90				184.4
April			1.56				2.23				192.9
May			5.77				11.81				214.9
June			21.58				65.38				177.2
July			25.30				135.18				147.2
August			27.04				140.91				137.3
September			27.70				93.13				131.6
October			13.34				27.90				141.4
November			7.51				11.42				131.0
December			7.77				16.37				132.4

A long history of silver mining in Zacatecas State has resulted in an adequate infrastructure and an experienced workforce in the region. Two out of five of the largest silver mines in México are located in the area (San Martín, 6500 t/d, 35 km north of La Colorada and Fresnillo, 3800 t/d, 100 km south-east of La Colorada). There is another Zn-Pb-Cu-Ag mine 35 km north of La Colorada, Sabinas, 3,300 t/d. Durango and Zacatecas are the major industrial and supply centers in the area. Both are serviced by air and land routes. All facilities and services are available in these cities to support a mining operation.

The area is widely but not densely populated. The majority of the people engage in subsistence farming of predominately bean and corn crops.

Water sufficient to support the mining operation is available on site and is supplied from an underground source. As permitted by Mexican law, underground water is pumped to surface head tanks and used in the milling process, as well as for domestic services. The tailings dam and storage pond were approved in October of 2000 by the Federal Bureau of Environmental Protection and the construction was completed in June 2003. Power supply contracts for up to 3.5 MW are in place and operating. A new 9.0 MW power line is currently being installed from the town of Sombrerete and project completion is scheduled for the end of 2007 with start-up in January 2008. The contracts are already in place and the additional power in conjunction with the already installed the 3.5 MW power line will be sufficient for the mine and processing plant. The location of the tailings storage area, plant location, site buildings mine portals and mine shaft are shown in Figure 5.

8.0 HISTORY

The production history of the Chalchihuites district began during Pre-Colonial times when natives produced silver and malachite. During the 16th century Spanish colonization, the village of Chalchihuites was founded and intermittent exploitation of the mineral deposits in the area commenced. By the 19th century, the Spanish mines were operating continuously and important silver production was recorded. The War of Independence curtailed production from this and many other silver producing areas between 1910 and 1920.

Recent mining on the La Colorada property began in 1925. The Dorado family mined the La Colorada, Negrillas and Paloma breccia pipes.

In 1929, Candelaria y Canoas S.A. (“Candelaria Co.”), a subsidiary of Fresnillo S.A., started a 100 tpd flotation plant, processing dumps from the nearby San Rafael mine which was said to have produced ore containing 350 to 400 g/t Ag. The company also exploited the upper levels of the Candelaria mine with the main area of mining being the 252 level. The Candelaria Co. activities were suspended in 1955.

In 1935, a mining company, La Campaña de Industrias Peñoles, began operations on the Campaña breccia pipe, which lasted to the end of World War II.

In 1949, Compañía Minas Victoria Eugenia S.A. de C.V. (“Eugenia”), began mining activities and operated continuously until December 1993. In 1956, production reached 7,500 tonnes per month (“tpm”) with an average grade of 500 g/t Ag from various areas of the property. Eugenia exploited the mining properties Colorada, Campaña, Candelaria, Canoas, Dulces Nombres, El Conjuro, San Cristobal and San Fermín. All these properties returned high production grades, including Campaña where 400 g/t Ag was obtained in approximately 250,000 tonnes from the 60 level to surface. In the Colorada mine, breccia pipes reportedly produced lead ore containing between 55% and 60% lead (“Pb”) in addition to 1,250 to 1,500 g/t Ag.

In 1994, the properties of Eugenia were acquired by Minas La Colorada S.A. de C.V. (“Minas”) which operated three of the old mines, namely the Candelaria, Recompensa and Campaña. Production was at a rate of about 6,000 tpm up until March 1998.

PAS acquired the La Colorada property from Minas in April 1998, through Plata, its wholly owned subsidiary.

In 2000, development work at La Colorada included surface and underground diamond drilling for reserve definition, the preparation of a bankable feasibility study, negotiation with banks for project financing, independent engineering review, repairs to the existing shaft and rehabilitation of the existing mill to restart operation in 2001. In the fall of 2000 repairs involving shotcrete and steel were made on the existing shaft.

A bankable feasibility study was completed in June 2000 using H.A. Simons Ltd. for mill design, Agra Earth and Environmental Ltd. for tailing design, and Beacon Hill Consultants and R. Barnes Consultant for mine design. An environmental impact study (“EIS”) was prepared to World Bank standards by Dew Point International, LLC and reviewed by Clifton Associates Ltd.

PAS decided to rehabilitate the existing mill at La Colorada to allow for limited production in 2001. Limited production commenced in January 2001 at approximately 90 tpd, which increased to approximately 120 tpd as of March 2001 and reached a consistent production rate of 150 tpd in June 2001. In January 2002, the mill operating capacity was increased to 200 tpd following the addition of another small ball mill and additional lead flotation capacity. The feed for the mill consisted of underground sulphide ore from the La Colorada property.

In January 2002, PAS prepared the Updated Feasibility Study, which recommended the construction of a 210,000 tonne per year underground mining operation for oxide ore in conjunction with the continued mining of 70,000 tonnes per year of sulphide ore.

Construction of the new oxide mill commenced in July 2002 and produced the first dorè bars in August 2003. The rest of the facilities, including the surface areas and sulphides plant rehabilitation, road upgrades and the first phase of the tailings dam construction were 95% complete by December 31, 2003. Total project construction work, including the second phase of the tailings dam, was completed during 2004. The sulphide mill was expanded from its 2003 rehabilitation phase in 2007 to allow for a zinc flotation circuit.

Production continued during 2003 on sulphide ore. From 2003 to 2005, 408,061 tonnes of oxides with an average grade of 498 g/t Ag, 0.56 g/t gold (Au), and 74,063 tonnes of sulphides with an average grade of 482 g/t Ag, 0.46 g/t Au, 1.04% Pb and 1.45 % Zn were produced. From 2005 to 2007, 580,825 tonnes of oxides were mined with an average grade of 512.5 g/t Ag and 0.589 g/t Au. 100,062 tonnes of sulphide ore was also mined during 2005 to 2007 with average grades of 466 g/t Ag, 0.50 g/t Au, 0.84% Pb and 1.5% Zn. A new flotation circuit was added in 2007 to the sulphide circuit to recover zinc; therefore, only 79,504 tonnes of the sulphide ore was processed recovering Zn in a zinc concentrate.

The new information about ground conditions in the mine stopes and the ground water inflows led to changes of the mining assumptions, which were reflected in the last Technical Report. The mineral resource and mineral reserve estimates contained in this Technical Report replace the previous estimates.

9.0 GEOLOGICAL SETTING

9.1. Regional and Local Geology

The La Colorada property is located on the eastern flanks of the Sierra Madre Occidental at the contact between the Lower Volcanic Complex and the Upper Volcanic Supergroup. The La Colorada property lays 16km southeast of Chalchihuites and 30km south-southwest of Sombrerete, two mining camps with significant silver and base metal production from veins and associated skarn deposits.

The oldest rocks exposed in the mine area are Cretaceous carbonates and calcareous clastic rocks of the Cuesta del Cura and Indidura Formations (Figure 6). Overlying the calcareous rocks is a conglomerate unit containing clasts derived mostly from the subadjacent sedimentary rocks. In the Chalchihuites district this unit is called the Ahuichila Formation and is of Early Tertiary age.

Most of the outcrop in the mine area is represented by intermediate to felsic volcanic rocks of the regional Lower Volcanic Complex. This unit is identified as a trachyte in older mine data, although recent petrogrophy indicate that it is actually an altered dacite. There are several subgroups within this unit, including plagioclase porphyry, crystal to crystal-lapilli tuffs, and volcanic breccias. Generally these sub-units do not form mappable units.

The stratigraphically highest rocks in the mine area are felsic tuffs correlated with the Upper Volcanic Sequence. These tuffs unconformably overlie the trachyte along the southern property boundary and are distinctly maroon coloured and show varying degrees of welding.

Thirteen breccia pipes have been mapped at surface or in underground workings. All of the pipes are located along or to the south of the No Conocida Poniente (NCP/NC2) vein complex. The pipes are round to ovoid in shape, up to 100 metres in diameter, and can extend vertically more than 400 metres below the surface. The breccias contain clasts of limestone and trachyte (often mineralized) in an altered trachyte matrix. The ratio of limestone to trachyte clasts varies from pipe to pipe. Clasts of vein material have been found in the breccias suggesting that they postdate the vein emplacement.

CHRONOLOGY OF GEOLOGICAL EVENTS AT LA COLORADA

9.2. Structural Geology

The structures present at La Colorada represent a deformational sequence comprising at least three significant events:

	•		Laramide folding and faulting;
	•		Post-Laramide, east to northeast-striking faults; and
	•		Regional tilting events.

Regional deformation during the Laramide Orogeny is expressed by the widespread development of folds and contractional faults within the Cretaceous stratified sequence. These units show an abundance of folds and faults cutting shallowly to steeply across bedding where the rocks are exposed in the western portion of the La Colorada property and in the underground workings.

East to northeast striking faults form the dominant structures in the project area and play a strong role in local mineralization. Most of these faults dip moderately to steeply to the south and juxtapose younger hangingwall strata against older footwall rocks. Evidence suggests down-dip motion on these faults; however, most of the faults have been reactivated at some point so the movement direction during the initial formation is uncertain. Stratigraphic contacts are displaced from ten to over a hundred metres lower on down dropped blocks.

The trachyte unit displays an eastward tilting that may reflect displacements on regional, orogenparallel structures outside of the project area. This tilting probably reflects the final episode of deformation.

Dr. Peter Lewis, structural geology consultant, has proposed a structural model for La Colorada that suggests mineralization and alteration occurred in a tectonic regime dominated by gravitational forces and low horizontal stresses (Lewis, 1998). In this regime, the pre-existing steeply dipping structures were favourably orientated for re-activation and subsequent emplacement of mineralizing hydrothermal fluids. The dominantly eastern strike of the veins indicates slightly greater extension in a northerly direction. The north and north-easterly dipping faults accommodated mostly transverse movement associated with the dilation of the steeply dipping, easterly striking structures.

10.0 DEPOSIT TYPES

La Colorada represents a typical epithermal silver/gold deposit, with a transition in the lower reaches of the deposit to a more base metal predominant system. The geological model used for exploration as well as the mineral resource estimation is that of an epithermal vein deposit. There are indications of what might be skarn style mineralization in the deepest holes on the property. A local analogy of this type of deposit would be the San Martin Mine, where earlier in the mine life epithermal veins were mined and now the mine production comes from skarn mineralization hosted by the same limestone unit found in La Colorada Mine.

11.0 MINERALIZATION

There are 4 dominant styles of mineralization at La Colorada:

1		breccia pipes;
2		vein-hosted mineralization;
3		replacement mantos within limestone; and
4		deeper seated transitional mineralization (transition zone).

Mineralization in the breccia pipes generally has lower silver values and elevated base metal values. The core of the Campaña Breccia was bulk mined in previous years with reported grades of 80 g/t Ag and 5% combined Pb/Zn. Mineralization is associated with intense silicification and occurs as disseminated galena and sphalerite with minor chalcopyrite and bornite. Sulphides are found in the clasts and the matrix.

Most mineralized veins on the property strike east to northeast and dip moderately to steeply to the south (Figure 7). Veins occur in the trachyte and limestone units and cut across the bedding and contacts with little change in the width or grades of the vein. Mineralized widths in the veins are generally less than 2 metres, but may be wider if there is a halo of replacement or brecciated material. The No Conocida Poniente (“NCP”) Corridor strikes east west and dips moderately to the south, with average widths up to 15 metres, but most of the economic mineralization is located in quartz veins which are on average 1 to 2 m wide. In some cases the vein fillings consist of quartz, calcite, and locally barite and rhodochorosite. Where the veins are unoxidized, galena, sphalerite, pyrite, native silver and silver sulfosalts are present. The major mineralized veins, including the NCP Corridor, are strongly brecciated and locally oxidized, obscuring original textural features. Less deformed veins show mineralogical layering, crystal-lined open vugs, and hydrofracture vein breccias, indicating typical multi-stage growth.

The depth to the surface and the permeability of the mineralized zone control the level of oxidation in the veins. These factors result in an uneven, but generally well-defined redox boundary.

Manto style mineralization is found near vein contacts where the primary host rock is limestone. This style of mineralization was mined at Recompensa, but can also be seen in areas of the Candelaria Mine. At Recompensa the mantos appear to be controlled by thrust faulting adjacent to the veins and can form bodies up to 6 metres wide. Most commonly, they occur in the footwall north of the steeply dipping vein, but depending on the orientation of the fault they can occur in the footwall, the hangingwall, or both. The mineralogy of the mantos is characterized by galena and sphalerite with minor pyrite and chalcopyrite. Gangue minerals are quartz, rhodochorosite, pyrolusite and other manganese oxides.

The deep seated transition mineralization, also known as NC2E Deep, consists of both vein type mineralization and more diffuse stockwork and breccia zones. Peter Lewis (Lewis Geoscience, 1998) has suggested that there are 7 distinct zones within the transitional zone, and these can be sub-grouped into 3 main categories:

1.

vein mineralization, including the down dip extension of NC2E and veins in the hangingwall and footwall of NC2E;

2.		a peripheral stockwork vein zone that envelopes the NC2E structure; and
3.		sub-horizontal mantos-like stockwork zones in the NC2E hangingwall.

At the time of the 1998 Lewis Geoscience report, due to limited drilling access, there was only 7 holes that intersected all or part of the sub-groups in the transition zone. During 2007 a new drill campaign was started to define this deeper mineralization. This work is in progress and is not yet reported.

11.1. Ore Zones

Candelaria System

NCP and NCP Corridor - Average orientation 75/60S 60deg dip. The Corridor consists of the NCP footwall and NCP hangingwall structures. There are currently 3 hangingwall structures defined named HW1, HW2 and Split. These zones are characterized by a broad mineralized shear within limestone containing one or more quartz veins parallel to the orientation of the shear. The majority of the silver mineralization is found in the quartz veins which in the NCP footwall vein are on average 2.9 metres wide and in the NCP hangingwall vein HW1 are on average 2.4 metres wide. HW2 vein is on average 2.0m wide and Split is 2.2m wide. Mining is in progress on various sublevels down to the 438 level.

NC2 - Average orientation 45/70S 60 deg dip. NC2 is a narrow (one-to-two metre) sulphide vein that contains an important part of the current sulphide resources. It has a strike length of over 700 metres and is open to the east where there is a wedge of inferred material below the east mine fault. NC2 is developed down to the 390 level and has been drilled to below the 495 level where inferred resources have been estimated.

NC2W - Average orientation 35/65S 60deg dip. NC2W is, in the opinion of Dr. Michael Steinmann, P.Geo., the faulted, western extension of NC2E. The western portion of NC2W is oxidized and averages 2.1 metres wide. The eastern portion is sulphide and averages 1.1 metres wide. This structure holds oxide reserves between the 150 and 220 levels and inferred sulphide resources between 220 and 270 levels.

4235 - Average orientation 90/75N dip 65deg. 4235 is a narrow (approximately one metre wide) vein which occurs in the hangingwall of the NCP and NC2 vein systems counter to the orientation of these major veins. It has a strike length of approximately 140 metres and has been exposed by development on the 295 level and by drilling above and below that level. The western half of 4235 is sulphide and the eastern half is oxide. Only resources have been estimated in this structure.

Inversa - this vein is a smaller version of the counter vein orientation V4325. Vein widths are around 2.3 metres. This vein has been defined by mining development on the 335 and 355 levels and has been partially mined in 2007.

Recompensa / Estrella System

The Estrella system was formerly referred to as the Amolillo system in the document titled “La Colorada Mine Project, Zacatecas, Technical Report, March 17, 2006”. The Amolillo system will be referred to as the Estrella system within this Technical Report.

Recompensa - Average orientation 90/80N dip 75deg. Recompensa is a combination of vein and manto mineralization located more than one kilometre northwest of the NC2 and NCP vein complex. The vein mineralization is narrow (less than one metre and averages 1.8 metres for the economic zone). Recompensa contains a minor amount of oxide but mostly sulphide material.

Estrella - Average orientation 45/70S dip 59deg. Estralla is an oxide vein located 500 metres north of the NC2 and NCP vein complex and to the east (approximately along strike) of the Recompensa vein with an average width of 2.2 metres. The vein lies mostly within the trachite host rock and the limestone at depth.

12.0 EXPLORATION

The bulk of PAS’ exploration effort has been conducted through diamond drilling (surface and underground) and underground drifting on the veins and mineralized zones. Table 4, set out below, summarizes the drilling conducted by PAS from 1998 to September 2007 and by the previous owner in 1997. All drilling from 1998 to 2007 has been performed under the supervision of the PAS geology department. In 2007, approximately 7,056 metres of drilling was completed by REDRILLMEX — REDRILSA Mexico S.A. D.E. CU. (Peru, Lima). All other drilling was preformed by PAS employees.

Table 5 List of Drilling Campaigns by Year:

		Surface Drilling								Underground Drilling								Total Drilling
Year		# of Holes				Metres				# of Holes				Metres				# of Holes				Metres
1997			6				1,026				8				1,477				14				2,503
1998			28				8,026				28				7,853				56				15,879
1999			11				2,650				49				5,104				60				7,754
2000			—				—				42				5,228				42				5,228
2002			4				963				—				—				4				963
2005			17				2,380				—				—				17				2,380
2006			46				7,446				20				1,437				66				8,883
2007 (Sep)			33				4,608				61				5,056				94				9,664
Total			145				27,099				208				26,155				353				53,254

Underground drifting along the mineralized structures is the second method of exploration. By September 2007, approximately 18,550 metres of horizontal and ramp development was done in NC2W, NC2E, 4235, and San Fermin areas. The drifting allowed detailed mapping and structural interpretation of the ore zones, as well as providing key grade information. While some of the underground development is shown in Figure 8, the total mine development is too extensive to represent legibly in a simple plan view.

Drifting samples are taken in 3 metre intervals within the first sill drift. After the initial sill has been established, samples are expanded to every 5 metres on subsequent cuts above / below the original sill drift. In 2008, 1,750 metres of underground ore development are planned within Candelaria and Estrella Mines.

In 2008 another 18,232 metres of exploration and definition drilling are planned. 9,865 meters of underground exploration are planned to be drilled within the sulphide section of Candelaria Mine and 4,370 metres of underground exploration and definition drilling are planned for the oxide zone of the Candelaria Mine. A total of 3,997 metres of surface drilling is planned for 2008 in the San Fermin, Candelaria oxides and the La Estrella zones. The diamond drill patterns are variable and are dependent on the structural continuity and regularity of the vein system.

Dr. Peter Lewis did two structural studies at La Colorada by drill core analysis. The first one was done in September 1998, the objectives being a general evaluation of structural events and their relationship to vein emplacement; determination of controls on both grade and thickness of vein mineralization and the development of conceptual specific exploration targets. The authors of this Technical Report believe these objectives were successfully met. The second study (2000) targeted specific structural questions within the mine and structural controls on the oxidation boundary.

13.0 DRILLING

From 1997 to September 2007, Plata drilled 145 surface holes and 208 underground holes. Surface drilling was done with NQ sized core and underground was done with BQ sized core, except for the drilling in the NCP Corridor in 2000, which was done with HQ sized core in an attempt to improve recovery. Contractors under the direct supervision of Plata geologists performed all drilling for both surface and underground.

Prior to PAS’ involvement in the project, previous operators had drilled 131 holes for a total of 8,665 metres. Drill hole locations for these holes were scaled from plan maps. Assay information was taken from drill logs. These holes were not used in the resource calculation, with the exception of 4 holes, where the original core was found and assayed by PAS.

The holes generally range in length from 100 to 300 metres with dips from +45 degrees to -90 degrees. Standard logging and sampling processes were used to record information from the holes drilled by PAS. Intervals sampled were cut with a diamond saw and the entire remaining core is stored on-site. Hole collars were surveyed by a total station survey instrument.

La Colorada contracts out some of the exploration drilling to REDRILLMEX — REDRILSA Mexico S.A. D.E. CU. (Peru, Lima). In 2007 the contractor was responsible for drilling approximately 7,056 metres. The contractor was under the direct supervision of Plata geologists. All other drilling was completed by Plata employees.

A listing of the La Colorada drill hole collars is given in Table 6:

Table 6 La Colorada Drill Hole Collars

																										Down hole				True
Hole#		Easting				Northing				Elevation				Dip				Azimuth				Length				intersect				width				Ag g/t				Au g/t				Pb %				Zn %
BCH-1			5381.9				5409.9				2538.3				-55				230				286				5				3.67				264				0.43				0.22				0.05
BCH-2			5381.9				5409.4				2538.3				-55				190				N/A				N/A				N/A				N/A				N/A				N/A				N/A
BCH-3			5492.5				5127.5				2519.7				-50				260				346				23.57				10.5				14				0.1				1.34				0.09
BCH-4			5334				5229.4				2547.4				-55				220				143.5				23				14				104				0.37				5.38				1.24
BCH-5			5469.4				5045.7				2543.8				-55				270				N/A				N/A				N/A				N/A				N/A				N/A				N/A
BCH-6			5469.4				5145.7				2543.8				-65				75				178				23				21.24				84				0.18				0.89				0.21
BCH-7			5242				5220				2562				-55				210				335				N/A				N/A				N/A				N/A				N/A				N/A
BCH-8			5242				5220				2562				-50				240				316				68.51				62				22				0.11				0.67				0.42
BCH-9			5229.4				2547.4				2547.4				-65				210				N/A				N/A				N/A				N/A				N/A				N/A				N/A
BCH-9A			5334				5229.4				2547.4				-65				225				186.5				12				5				30				0.27				0.44				0.29
BH99-2			5151				3988.3				2400.2				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
CAM-01			4963.8				4969				2197				-49				314				403.86				0.71				0.65				318				0.17				2.82				6.02
CAM-02			4963.8				4969				2197				-30				299				312.15				0.9				0.69				205				0.4				3.31				12.8
CAM-03			4961.8				5057.6				2185				-52				346				457.5				2.8				2.42				85				0.14				2.68				14.84
CAM-04			4961.8				5057.6				2185				-63				319				550.3				8.62				7.46				31				0.11				2.61				3.49
CAM-05			4963.8				4969				2197				-60				308				545.59				0.18				0.16				4				0.14				27.4				14.9
CAM-06			5004				4834.4				2216.7				-70				175				495				64.7				41.59				13				0.07				0.16				2.2
CAM-07			4963.8				4969				2197				-34				289				307.83				0.3				0.3				617				0.24				4.47				9.67
CAM-08			5067				4784				2217.8				-82				111				240.79				8.88				5.34				5				0.06				0.19				1.03
CAM-09			4961.8				5057.6				2185				-45				346				393.8				2.79				2.62				417				0.07				0.89				1.74
CAM-10			4961.8				5057.6				2185				-75				346				432.81				10.23				7.72				32				0.08				1.02				4.85
CAM-11			4961.8				5057.6				2185				-56				322				429.77				1.87				1.76				97				0.07				5.85				11.24
CAM-12			4951.4				5107				2182				-45				75				435.25				4.65				4.65				36				0.12				0.5				1.63
LIB-01			3472.4				4733.3				2401.5				-70				344				250.75				N/A				N/A				N/A				N/A				N/A				N/A
LIB-02			3593.7				4753				2405.7				-60				325				210.85				2.3				1.63				178				0.38				0.03				0.04
LIB-03			3593.7				4753				2405.7				-85				325				250.7				2.8				2.14				251				0.08				0.25				0.18
LIB-04			3472.4				4733.3				2401.5				-86				345				269.4				5.8				2.45				246				0.57				0.22				0.32
MW98-1*			4984.8				3549.2				2359.4				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
MW98-2*			5380.1				3623.6				2362				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
MW98-3*			4448.6				4195.7				2424.4				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
MW98-4*			4910.9				3869.9				2368.7				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
MW-99-1*			5097.1				3213.5				2343.5				-90				0				N/A				N/A				N/A				N/A				N/A				N/A				N/A
PIC-01			4220.9				4937.1				2187.1				-90				0				76.15				N/A				N/A				N/A				N/A				N/A				N/A
PIC-02			4374.7				5038.4				2186.1				-50				156				237.85				0.35				0.33				1,105				0.24				1.1				3.67
PIC-03			4458				4981.7				2186				-66				346				185.15				2.6				2.13				805				0.19				1.1				0.92
PIC-04			4612.1				5020.4				2184.3				-70				310				200.25				0.8				0.57				430				0				0.2				0.3
PIC-05			4612.1				5020.4				2184.3				-50				5				149.8				2.62				2.27				1,355				0.13				1.46				3.31
PIC-06			4822.9				5229.1				2186.1				-81				275				185.35				3				2.45				466				0.03				0.81				2.41
PIC-07			4822.9				5229.1				2186.1				-67				306				121.7				1.95				1.69				585				0.09				0.98				0.88
PIC-08			4966.5				5302				2186.3				-67				295				183.5				1				0.77				128				0.31				1.39				0.67
PIC-09			4845.7				5217.1				2186.2				-90				0				242.25				2.1				1.82				1,985				0.19				15.19				16.22
PIC-10			4845.4				5216.8				2186.1				-45				315				201.2				1				0.96				268				0.08				0.17				0.29
PIC-11			4845.4				5217.4				2186.1				-75				315				224.1				2.7				1.74				734				2.3				1.57				4.44
PIC-12			4845.4				5216.8				2186.1				-60				350				181.4				2				1.73				786				0.2				1.93				12.11
PIC-13			4968.5				5301.6				2186.4				-50				349				181.4				1.2				1.09				344				0.73				0.22				0.88

																										Down hole				True
Hole#		Easting				Northing				Elevation				Dip				Azimuth				Length				intersect				width				Ag g/t				Au g/t				Pb %				Zn %
PIC-14			4968.5				5301.6				2186.4				-40				295				172.3				2.7				2.68				469				0.15				0.47				1.94
PIC-15			4747.2				5282.3				2184.5				-1				315				182.9				0.8				0.69				540				0.36				1.53				1.21
PIC-16			4848.3				5219.2				2186.1				-75				55				320.1				2.5				0.86				186				0.16				5.27				2.06
PIC-17			4218.4				4929.7				2188.9				0				165				301.8				1.3				1.13				4,232				11.65				2.88				3.91
PIC-19			4610.5				5019.9				2184.3				-50				310				134.15				1.5				1.48				179				0.03				0.69				1.17
PIC-20			4222.2				4922.2				2185.5				-51				342				165.7				5.25				4.87				1,039				0.02				1.26				1.22
PIC-21			4823.2				5336.1				2185.6				-90				0				288.04				2.36				1.67				3,706				2.89				8.95				19.14
PIC-22			4917				5379				2186.3				-90				0				246.89				0.9				0.45				1,326				1.1				8.44				35.6
PIC-23			4658				5022.3				2182.7				-65				5				234.69				2.31				1.89				382				0.39				0.69				1.98
PIC-24			4600.8				4968.5				2181.6				-60				270				195.68				2.21				1.81				963				0.07				4.35				11.14
PIC-25			4658				5022.3				2182.7				-90				0				499.87				3.3				1.89				207				0.09				0.37				1.62
PIC-26			4823.2				5336.1				2185.6				-60				315				219.46				0.51				0.37				112				0.07				0.44				0.57
PIC-27			4917				5379				2186.3				-60				315				242.31				2.1				1.54				320				0.32				0.13				0.29
PIC-28			4254.7				4812.2				2188.2				0				143				176.78				N/A				N/A				N/A				N/A				N/A				N/A
PIC-29			4254				4817.5				2189.4				-33				34				287.42				2.63				1.19				614				1.88				0.75				1.09
PIC-30			4254.7				4812.2				2189.2				10				154				208.48				2.22				2.12				820				2.5				0.62				1.59
PIC-31			4230				4911				2185.5				-40				42				184.4				N/A				N/A				N/A				N/A				N/A				N/A
PIC-32			4225.5				4911.8				2185				-70				328				201.17				0.6				0.4				276				0.21				0.84				3.68
PIC-33			4123.8				4903.7				2187.1				-77				303				167.64				5				3.54				346				0.47				0.97				1.33
PIC-34			3998.8				4899.8				2187.9				-65				0				105.16				1.28				1.05				1,289				0.25				3.09				4.44
PIC-35			3998.9				4897.7				2187.9				-90				0				145.08				13.38				6.7				589				0.23				0.29				0.48
PIC-36			4048				4910.5				2185				-62				0				100.58				3				2.46				349				0.14				0.95				2.71
PIC-37			4044.1				4900.2				2187.1				-86				0				158.49				4.92				3.8				654				0.29				0.54				1.65
PIC-38			4043.5				4896.2				2188.7				0				176				76.2				0.26				0.21				184				0.13				0.05				0.08
PIC-39			4123				4904.1				2187.1				-51				337				129.54				4.68				4.24				543				0.15				0.25				0.94
PIC-40			4144.4				4916.1				2187.1				-71				0				156.67				7.06				5.4				426				0.24				0.83				1.26
PIC-41			4145.4				4916				2187.1				-41				0				124.97				4.57				4.5				1,258				0.37				1.45				1.13
PIC-42			4226.7				4915.7				2188.5				-46				173				91.44				2.13				0.7				649				0.27				0.23				0.39
PIC-43			4312.5				5029.5				2186.1				-16				168				201.16				0.45				0.42				385				0.1				0.99				2.47
PIC-44			4262				4705				2187.5				32				343				161.24				0.36				0.27				45				0.04				1.81				1.5
PIC-45			3829.2				4927.6				2189.7				0				348				54.86				0.68				0.59				286				0.15				0.22				1.8
PIC-46			4047				4918.3				2187.8				-7				0				70.1				0.9				0.71				796				0.2				0.56				0.84
PIC-47			4043.7				4917.7				2187.8				-7				327				118.87				3.05				2.76				357				0.2				0.77				3.58
PIC-48			4144.8				4916.6				2187.8				-5				0				137.16				8.64				5.55				658				1.77				0.42				0.41
PIC-49			4192.8				4917				2187.8				-5				3				150.88				6.97				4				650				0.11				0.89				0.38
PIC-50			3952.3				4875.4				2188.1				-56				0				112.78				2.63				2.01				385				0.18				0.29				0.32
PIC-51			3952.1				4876.3				2188.1				-90				0				195.07				10.65				6.85				608				0.22				0.44				1.33
PIC-52			3952.3				4875.4				2190.8				11				0				141.73				4.39				2.08				286				0.12				0.34				0.61
PIC-53			4065.4				4849.1				2187.7				-90				0				309.37				0.83				0.5				227				0.51				1.1				10
PIC-54			4142.7				4916.7				2189.6				-6				335				135.65				9.91				7.59				642				1.11				0.71				1.32
PIC-55			4047.4				4918.2				2187.8				-7				2				13.11				N/A				N/A				N/A				N/A				N/A				N/A
PIC-56			4047.2				4818.2				2190.1				11				0				131.06				2.19				2.08				483				0.2				0.17				0.75
PIC-57			4142.1				4916.7				2188.8				-6				309				135.33				2.98				2.28				252				0.07				0.47				2.23
PIC-58			3898.7				4854.2				2188.7				-35				0				126.49				1.41				1.39				634				0.25				0.7				0.76
PIC-59			3898.7				4854.2				2188.7				-70				0				155.45				2.96				2.72				721				0.17				0.84				2