Chaupec Target Exploration Delineating Skarn and Porphyry Mineralization at Cotabambas Project, Peru.
Page 1 of 5
Chaupec Target Exploration Delineating Skarn and Porphyry Mineralization
at Cotabambas Project, Peru.
Vancouver, B.C., August 28, 2018 – Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM)
(“Panoro”, the “Company”) is pleased to announce results of the exploration work at Zones 1, 2 and 3
of the Chaupec target . The Chaupec Target is a Cu, Au, Ag Skarn and porphyry target area located at
the 100% owned Cotabambas Copper and Gold Project.
Panoro’s mapping and sampling work at the Chaupec Target in 2018 is delineating sixteen anomalies
within the three zones of mineralization. The anomalies in Zones 1 and 2 are in Skarn mineralization with
grades at surface of up to 1.65% Cu in Zone 1 and up to 0.59% Cu in Zone 2. The anomalies in Zone 3
are within quartz monzonite porphyry (QMP) mineralization with grades of up to 0.67% Cu.
The mineralization at Chaupec has high continuity over an area of 1 km by 3.5 km, elongated in the
North-South direction. Panoro has completed detail mapping at 1:1,000 sc ale, collected and tested 1,626
rock samples, and completed geophysics surveys including 72 km of IP, 85 km of Magnetometry and 67
km of self potential. See map attached here.
“The geologic work being completed at the Chaupec target is furt her delineating the potential for high
grade near-surface mineralization at the Cotabambas Project. This potential presents the opportunity for
important enhancements to the project design and economics. In addition, the possible porphyry body
underlying the near surface high grade anomalies is further expanding the project growth potential. The
expanded area of the EIAsd, recently approved by the Peruvian Ministry of Energy and Mines, includes
the Chaupec Target. The company expects to be ready to comme nce the first drilling at the Chaupec
Target as soon as the mapping, sampling and detailed geophysics is completed”, says Luquman
Shaheen, President & CEO of Panoro Minerals.
Panoro is preparing a tightly spaced geophysics survey to test the north side o f the Zone 1, including 21
km Magnetics, 1 1km IP -3D and 110 dots gravimetry. The Company is planning a diamond drilling
exploration program following the completion of the geophysical surveys . In parallel , the Company is
planning to continue with mapping a nd geochemistry survey around other skarns/porphyry tar gets in the
Cluster 2, such as Jean Louis, Chuyllullo, Cullusayhuas, Rosario and Añarqui.
Chaupec Target Zone One
There are two mineralization events in a 600 m by 1 ,600 m area. The first is related to sills, skarns
following the limestone layers in north-south direction, and the second related to irregular bodies/breccias
following a east-west structural control. The associated copper mineralization is made up of chalcopyrite,
bornite, overprinted by galena, tetrahedrite, and marmatite. The geochem istry survey and mapping
identified nine copper anomalies, summarized in the following table. See cross section 1 attached.
Anomaly
#
Large
(m)
Width
(m)
Samples
# Cu % Au g/t Ag g/t Pb % Zn %
1 320 90 40 0.47 0.02 4.9 0.033 0.037
2 290 90 32 0.22 0.03 3.7 0.027 0.027
3 160 75 22 1.65 0.02 11 0.041 0.014
4 900 120 123 1.02 0.03 6.6 0.025 0.05
5 430 90 36 1.01 0.02 3.3 0.007 0.014
6 400 60 41 0.36 0.04 5 0.074 0.161
Page 2 of 5
Anomaly
#
Large
(m)
Width
(m)
Samples
# Cu % Au g/t Ag g/t Pb % Zn %
7 580 80 95 0.37 0.06 17.7 0.071 0.138
8 130 40 15 0.15 0.01 0.8 0.003 0.012
9 260 130 37 0.27 0.04 3.2 0.036 0.182
Chaupec Target Zone Two
The main mineralization is spread in 600 m by 600 m area containing six skarn bodies including garnet
andradite, pyroxenes and magnetite, in contact with small stocks and dikes of QMP composition. Typical
minerals are copper oxides, pitch limonite, chalcopyrite and bornite . Four copper anomalies have been
delineated as summarized in the table below. See cross section 2 attached.
Anomaly
#
Large
(m)
Width
(m)
Samples
# %Cu g/t Au g/t Ag %Pb %Zn
1 430 60 68 0.44 0.14 4.6 0.004 0.013
2 270 60 18 0.21 0.03 0.8 0.002 0.008
3 260 60 11 0.59 0.02 2.5 0.012 0.035
4 150 40 4 0.58 0.03 2.8 0.004 0.013
Chaupec Target Zone Three
The mineralization is associated with a QMP outcropping over an area of 400 m by 500 m containing Cu
Oxides, malachite, brochantite, chalcopyrite and bornite. The phyllic and argillic alteration
overprint/destroys the potassic event. Three copper anomalies have been delineated a s summarized in
the table below.
Anomaly
#
Large
(m)
Width
(m)
Samples
#
%Cu g/t Au g/t Ag %Pb %Zn
1 170 30 25 0.67 0.04 71.2 0.156 0.021
2 220 20 5 0.21 0.01 6.7 0.068 0.009
3 160 30 6 0.36 0.03 18.8 0.100 0.022
The Cotabambas system hosts two princ ipal styles of copper -gold-silver sulphide mineralization. In
Cluster 1, the mineralized quartz monzonite porphyries (QMP) and di kes within igneous and volcanic
rocks of the Andahuaylas-Yauri Batholith. In Cluster 2, the mineralized skarn, sills and brecc ias within
Cretaceous calcareous sediments of the Ferrobamba formation, associated with QMP.
The geology at the Chaupec Target is formed by a 350 m thick sill of diorite over -trusting from east to
west the limestones and skarn zones. Along this contact the QMP intrudes like narrow sills and dikes, that
could be responsible for the Cu, Au, Ag mineralization into the skarn zones over a package of 460 m to
600 m thickness. The Geologic deformation occurs along 3.5 km where the three Zones were identified.
The spaced geophysics survey registered a possible and undiscovered QMP that could be located from
100 m to 200 m below the package of skarn, sills and dikes outcroppings in Zone 1 and Zone 2. This
porphyry has a quartz monzonite composition and outcrops wi th Cu, Au, Ag mineralization in Zone 3, at
the southern extreme of Chaupec. The low magnetic susceptibility, low resistivity and moderated
chargeability typically constrain the potential extent of this porphyry.
Page 3 of 5
About Panoro
Panoro Minerals is a unique ly positioned Peru focused copper exploration and development company .
The Company is advancing its flagship project, Cotabambas Copper -Gold-Silver Project and its Antilla
Copper-Molybdenum Project, both located in the strategically important area of sout hern Peru. The
Company is well financed to expand, enhance and advance its projects in the region where infrastructure
such as railway, roads, ports, water supply, power generation and transmission are readily available and
expanding quickly. The region b oasts the recent investment of over US$15 billion into the construction or
expansion of four large open pit copper mines.
Since 2007, the Company has completed over 80,000 m eters of exploration drilling at these two key
projects leading to substantial inc reases in the mineral resource base for each, as summarized in the
table below.
Summary of Cotabambas and Antilla Project Resources
Project Resource
Classification
Million
Tonnes
Cu (%) Au (g/t) Ag (g/t) Mo (%)
Cotabambas Cu/Au/Ag Indicated 117.1 0.42 0.23 2.74 0.001
Inferred 605.3 0.31 0.17 2.33 0.002
@ 0.20% CuEq cutoff, effective October 2013, Tetratech
Antilla Cu/Mo Indicated 291.8 0.34 - - 0.01
Inferred 90.5 0.26 - - 0.007
@ 0.175% CuEq cutoff, effective May 2016, Tetratech
Preliminary Ec onomic Assessments (PEA) have been completed for both the Cotabambas and Antilla
Projects, the key results are summarized below.
Summary of Cotabambas and Antilla Project PEA Results
Key Project Parameters Cotabambas Cu/Au/Ag
Project1
Antilla Cu
Project2
Process Feed, life of mine million tonnes 483.1 118.7
Process Feed, daily Tonnes 80,000 20,000
Strip Ratio, life of mine 1.25 : 1 1.38: 1
Before
Tax1
NPV7.5% million USD 1,053 520
IRR % 20.4 34.7
Payback years 3.2 2.6
After
Tax1
NPV7.5% million USD 684 305
IRR % 16.7 25.9
Payback years 3.6 3.0
Annual
Average
Payable
Metals
Cu thousand tonnes 70.5 21.0
Au thousand ounces 95.1 -
Ag thousand ounces 1,018.4 -
Mo thousand tonnes - -
Initial Capital Cost million USD 1,530 250
1. Project economics estimated at commodity prices of; Cu = US$3.00/lb, Au = US$1,250/oz, Ag = US$18.50/oz, Mo =
US$12/lb
2. Project economics estimated at long term commodity price of Cu = US$3.05/lb and Short term commodity price of Cu =
US$3.20, US$3.15 and US$3.10 for Years 1,2 and 3 of operations, respectively.
The PEAs are considered preliminary in nature and include Inferred Mineral Resources that are
considered too speculative to have the economic considerations applied that would enable classification
as Mineral Reserves. There is no certainty that the conclusions within the updated PEA will be realized.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Page 4 of 5
Luis Vela, a Qualified Person under National Instrument 43 -101, has reviewed and approved the scientific
and technical information in this press release.
On behalf of the Board of Panoro Minerals Ltd.
Luquman Shaheen. PEng, PE, MBA
President & CEO
FOR FURTHER INFORMATION, CONTACT:
Panoro Minerals Ltd.
Luquman Shaheen, President & CEO
Phone: 604.684.4246 Fax: 604.684.4200
Email: [email protected]
Web: www.panoro.com
Renmark Financial Communications Inc.
Laura Welsh
Tel.: (416) 644-2020 or (416) 939-3989
www.renmarkfinancial.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS : Information and statements contained
in this news release that are not historical facts are “forward -looking inform ation” within the meaning of
applicable Canadian securities legislation and involve risks and uncertainties.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other
factors which could cause actual events or results to differ materially from those expressed or implied by
the forward-looking statements, including, without limitation:
• risks relating to metal price fluctuations;
• risks relating to estimates of mineral resources, production, capital and operating costs,
decommissioning or reclamation expenses, proving to be inaccurate;
• the inherent operational risks associated with mining and mineral exploration, development, mine
construction and operating activities, many of which are beyond Panoro’s control;
• risks relating to Panoro’s ability to enforce Panoro’s legal rights under permits or licenses or risk
that Panoro’s will become subject to litigation or arbitration that has an adverse outcome;
• risks relating to Panoro’s projects being in Peru, including poli tical, economic and regulatory
instability;
• risks relating to the uncertainty of applications to obtain, extend or renew licenses and permits;
• risks relating to potential challenges to Panoro’s right to explore and/or develop its projects;
• risks relating to mineral resource estimates being based on interpretations and assumptions
which may result in less mineral production under actual circumstances;
• risks relating to Panoro’s operations being subject to environmental and remediation
requirements, which may increase the cost of doing business and restrict Panoro’s operations;
• risks relating to being adversely affected by environmental, safety and regulatory risks, including
increased regulatory burdens or delays and changes of law;
• risks relating to inadequate insurance or inability to obtain insurance;
• risks relating to the fact that Panoro’s properties are not yet in commercial production;
• risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates; and
• risks relating t o Panoro’s ability to raise funding to continue its exploration, development and
mining activities.
This list is not exhaustive of the factors that may affect the forward -looking information and statements
contained in this news release. Should one or mor e of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those described in
Page 5 of 5
the forward-looking information. The forward -looking information contained in this news release is based
on beliefs, expectations and opinions as of the date of this news release. For the reasons set forth
above, readers are cautioned not to place undue reliance on forward -looking information. Panoro does
not undertake to update any forward -looking i nformation and statements included herein, except in
accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibil ity for the adequacy or accuracy of this
release.