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PAN AMERICAN GOLDFIELDS LTD ANNOUNCES CIENEGUITA GOLD-SILVER PROJECT PRE-CONCENTRATE/CONCENTRATE SHIPMENTS ON TARGET

November 29, 2010

Producing gold, silver and lead in concentrates

BROOMFIELD, CO, Nov. 29 /PRNewswire/ – Further to its press release of November
9, 2010
, Pan American Goldfields Ltd (OTCBB:”MXOM”) (the “Company”) is
pleased to announce that the company’s partner Minera Rio Tinto (MRT) 
continues to increase production and optimize operations at the 
Cieneguita project mill in Chihuahua, Mexico as projected
previously. Pre-concentrate produced at the Cieneguita mill is shipped
for further processing at MRT’s mill at Choix, Mexico, where final
concentrates are produced and shipped to the Trafigura warehouse in
Manzanillo for sale under a contract with Trafigura.

Prior to the recent installation and commissioning of the ball mill and
additional flotation cells, bulk sulfide pre-concentrate production
included 380 tonnes in July, 462 tonnes in August, and 499 tonnes in
September of 2010. In October, over 1,000 tonnes were produced,
although only 702 tonnes were shipped due to the installation schedule
associated with the filtration/drying equipment, which is now fully
installed and operating. It is estimated that over 1,500 tonnes will be
shipped in November, including the unshipped October production. 

Following further treatment at Choix, final lead and zinc concentrates
are shipped for sale to Trafigura in Manzanillo, Mexico. Final
concentrates produced and shipped to Trafigura during October and the
first 10 days of November are summarized in the table below::

FINAL CONCENTRATE SHIPMENTS SENT FOR SALE TO TRAFIGURA
                         
Date of Shipment          Tonnes       Gold grams/tonne   Silver grams/tonne   Lead Content %
                         
October 10                       59.6       62   4,445   24
                         
October 22                    36.0       54   4,220   23
                         
November 4                  30.3       61   4,630   27
                         
November 10                 33.2       54   3,450   23

Another 100 tonnes is being readied for shipment as of the date of this
press release.

“We are very pleased with progress to date as the initial production
following the installation of the ball mill is as forecast,” said Mario
Ayub
Chairman, Pan American Goldfields. 

MRT, the company’s partner, has advised the Company that it expects to
continue increasing pre-concentrate production at Cieneguita along with
improved metal recoveries as the ball mill grinding process is
fine-tuned. The amount of ore material mined and processed at
Cieneguita is currently about 500 tons per day and it is intended to
increase this amount to 600 tons per day by year end. This amount of
ore production would relate to the production of approximately 260 tons
of concentrate per month with metal contents similar to current
concentrate shipments.  

About Cieneguita

The Cieneguita mill makes a bulk sulfide flotation concentrate that is
sent to the MRT owned mill at Choix where it is then reground and
separate lead and zinc concentrates produced. These concentrates are
then shipped to the port at Manzanillo where they are sold under
contract to the trading company Trafigura. Most of the gold and silver
report to the lead concentrate. The anticipated increase in the
production capacity at Cieneguita will not require any modifications to
the plant at Choix. Pan American currently has a joint venture
agreement with MRT under which MRT can earn 60% of the project by
successfully initiating production on a small scale, followed by the
funding of an additional $4 million toward the completion of a bankable
feasibility study. With the completion of the construction start-up
phase at Cieneguita, the focus will now be the acceleration of the
feasibility study. This study will evaluate a full-scale operation
which will target a production rate of about 5,000 tonnes of material
processed per day along with saleable metal production directly from
the Cieneguita site.

The technical information in this release has been prepared by Gary A.
Parkison
, CPG, a Director of the Company and a Qualified Person as
defined by NI43-101.

About Pan American Goldfields/MexoroMinerals

Pan American Goldfields is a Chihuahua, Mexico based precious metal
producer and exploration company. It is a specialist in exploration,
mine development and production in Mexico’s booming Sierra Madre
Gold-Silver Belt
. The company’s most advanced project is its now
producing Cieneguita Gold Mine where a feasibility study to
significantly increase the mine’s already growing production profile is
underway. 

On behalf of the Board of Directors,

Mario Ayub, Chairman

Safe Harbor Disclosure

The information in this press release contains forward-looking
statements regarding future events or the future financial performance
of the Company. Please note that any statements that may be considered
forward-looking are based on projections; that any projections involve
judgment, and that individual judgments may vary. Moreover, these
projections are based only on limited information available to us now,
which is subject to change. Although those projections and the factors
influencing them will likely change, we are under no obligation to
inform you if they do. Actual results may differ substantially from any
such forward looking statements as a result of various factors, many of
which are beyond our control, including, among others, the timing and
outcome of our feasibility study on our Cieneguita Project; the costs
and results of our initial production activities on our Cieneguita
Project; the future financial and operating performances of our
projects; the timing and amount of funds received from the sale of our
Guazapares Project the estimation of mineral resources and the
realization of mineral reserves, if any, on our existing and any future
projects; the timing of exploration, development, and production
activities and estimated future production, if any; estimates related
to costs of production, capital, operating and exploration
expenditures; requirements for additional capital and our ability to
raise additional capital on a timely basis and on acceptable terms;
government regulation of mining operations, environmental risks,
reclamation and rehabilitation expenses; title disputes or claims
against our existing and any future projects; and the future price of
gold, silver, or other minerals. These and other factors can be found
in our filings with the SEC. The Company undertakes no obligation to
release publicly the results of any revision to these forward-looking
statements to reflect events or circumstances following the date of
this release.

SOURCE Pan American Goldfields Ltd.


Source: newswire



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