EXHIBIT 99.1

                                                             [PAN AMERICAN LOGO]

                                 NEWS RELEASE

November 8, 2002


            PAN AMERICAN ACQUIRES PERUVIAN SILVER ASSETS FROM VOLCAN

Vancouver, British Columbia ...(all currency amounts in US dollars)... Pan
American Silver Corp. (NASDAQ: PAAS; TSE: PAA) announces that it has entered
into two agreements with Volcan Compania Minera, a major Peruvian mining company
regarding two large silver-bearing stockpiles located adjacent to Volcan's Cerro
de Pasco operation in central Peru, about 36 km from Pan American's Huaron mine.

The first agreement grants Pan American the right to acquire a 60 percent
interest in the stockpiles by spending $2 million on the project over a
three-year period. In the twelve months following this period, Pan American can
increase its interest to 100 percent by paying Volcan $3 million and granting
Volcan a seven percent royalty on commercial production from the stockpiles. The
first phase of Pan American's work will be a detailed definition drilling
program to confirm historic resources estimated by Volcan to be 26 million
tonnes of stockpiles grading 227 g/t silver (a contained silver resource of more
than 180 million ounces). The second phase will comprise detailed metallurgical
studies and economic evaluation designed to determine the economics of
commercial extraction. Historic studies indicate that a silver price in excess
of $6.50 would be required to profitably recover the contained silver. Pan
American's work will investigate this in detail and seek to improve project
economics.

The second agreement grants Pan American the right to mine and sell 600,000
tonnes of the richest silver stockpiles to a nearby smelter, which will use them
as flux in its smelting operation. A ten-year contract has been negotiated with
the smelter and stockpile sales are expected to average approximately 46,000
tonnes per year resulting in annual silver production of approximately 500,000
ounces at an estimated total production cost of less than $2 per ounce. The
purchase price will be $4.0 million, payable in Pan American common shares
valued at current prices, plus a one-third production bonus to Volcan after Pan
American has recovered its acquisition costs, operating costs, deemed taxes and
interest on the acquisition cost.

Ross Beaty, Pan American's Chairman and CEO, said, "This set of agreements will
give Pan American an excellent return from increased very low cost silver
production over an estimated ten-year period. In addition, Pan American will
hold a low-cost right to acquire what is probably the largest aboveground
stockpile of silver-bearing mineralized material in the world, and time to
conduct a thorough evaluation of the potential for commercial production from
this material. These deals satisfy both of our corporate objectives: they will
increase our immediate low-cost silver production, and they will give our
shareholders great leverage to the silver price by materially increasing our
silver resource holdings that can be produced from if silver prices increase in
the future."

                                     - End -

Ross J. Beaty, Chairman and C.E.O. or Anthony Hawkshaw, C.F.O.

CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such
as estimates of future production levels, expectations regarding mine production
costs, expected trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. Actual results and developments
may differ materially from those contemplated by these statements depending on
such factors as changes in general economic conditions and financial markets,
changes in prices for silver and other metals, technological and operational
hazards in Pan American's mining and mine development activities, uncertainties
inherent in the calculation of mineral reserves, mineral resources and metal
recoveries, the timing and availability of financing, governmental and other
approvals, political unrest or instability in countries where Pan American is
active, labor relations and other risk factors listed from time to time in Pan
American's Form 40-F.

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                            www.panamericansilver.com