Pan American Silver (NYSE:PAAS) announced Thursday its recent exploration success at the La Colorada mine in Mexico.

The stock’s positive movement comes as the company reported new high-grade veins discovered in their drilling campaign, which may enhance their mineral resource potential.

Photo via Shutterstock

Details

Recent drilling results from Pan American Silver have revealed at least four new veins with high silver, gold, and base metal grades at the La Colorada mine.

The drilling is conducted between November 2025 and January 2026 covering 17,774 meters. It highlighted significant mineralization, with silver assays exceeding 1,000 grams per tonne in 40% of the reported holes.

These veins trend roughly west-northwest, creating a combined strike length of about 2,500 meters between the previously identified Cristina and San Gerónimo veins.

Christopher Emerson, Senior Vice President of Exploration and Geology added, “With silver assays exceeding 1,000 g/t in 40% of the reported drill holes, many with attendant high base-metal and gold grades, the discovered structures indicate the potential to add to the mineral resources at La Colorada, which we look forward to reporting in our mineral reserve and mineral resource update as at June 30, 2026.”

”Importantly, these exploration results further substantiate our revised approach for a phased development plan at La Colorada that targets the higher grade zones of the vein mine and skarn deposit.”

The company is actively expanding its exploration efforts, with ongoing drilling campaigns and underground development programs aimed at defining these newly discovered mineralized zones in the first quarter of 2026.

This includes a new exploration crosscut on Level 588, which has already advanced 170 meters by end-January, and another crosscut on Level 448 initiated to improve access and drill coverage.

Technical Analysis

The broader market experienced a mixed performance on the previous trading day, with the Nasdaq closing down 0.00% and the S&P 500 gaining slightly by 0.04%. This backdrop suggests that while Pan American Silver is gaining traction from its positive news, broader market dynamics were relatively subdued, indicating that the stock’s movement is primarily driven by company-specific developments.

The stock is currently trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have increased significantly and are currently positioned closer to their 52-week highs than lows, reflecting a strong upward trend.

The RSI is at 44.45, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum for the stock.

• Key Resistance: $69.50
• Key Support: $60.00

Earnings & Analyst Outlook

PAAS is slated to provide its next financial update on May 6, 2026.

• EPS Estimate: $1.02 (Up from 42 cents)
• Revenue Estimate: $1.17 billion (Up from $773.20 million)
• Valuation: P/E of 24.2x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $39.75. Recent analyst moves include:

• Scotiabank: Sector Outperform (Raises Target to $64.00) (Jan. 26)
• Jefferies: Hold (Lowers Target to $54.00) (Jan. 21)
• B of A Securities: Buy (Raises Target to $51.00) (Dec. 1, 2025)

PAAS Price Action: Pan American Silver shares were down 1.87% at $60.69 during premarket trading on Thursday, according to Benzinga Pro data.