Drilling Intersects More High Grade Zones at South Pit, Cotabambas Project, Peru
Drilling Intersects More High Grade Zones at
South Pit, Cotabambas Project, Peru
VANCOUVER, BC
,
June 21, 2022
/CNW/ -
Panoro Minerals Ltd.
(TSXV: PML) (Lima: PML)
(Frankfurt: PZM) (OTCQB: POROF) ("Panoro", the "Company") is pleased to announce the results
from an additional drill hole from its
16,970m
drill program at the Company's Cotabambas Cu/Au/Ag
Project in southern
Peru
, the aim of which is to expand the current resource and upgrade inferred
resource to indicated.
The step out Hole CB-196 is successful in expanding the footprint of the high grade mineralization
and provides further evidence to the company's theory that the newly identified high grade zone is
open to the northeast of the South Pit. This second hole included intersections of two intervals of
primary copper sulfides of
57.9m
grading 0.43% Cu, 0.43 g/t Au, 2.58 g/t Ag (0.74% Cueq) and
23.2m
averaging 0.60% Cu, 0.49 g/t Au, 3.41 g/t Ag (0.96%Cueq) within
148.6m
averaging 0.36%
Cu, 0.34 g/t Au and 2.51 g/t Ag (0.61 % Cueq). Assay results from CB-196 included intersections
of up to 2.30% Cu, 1.29 g/t Au and 8.60 g/t Ag where the high grades of Cu and Au/Ag are
positively correlated occurring in the same mineralized zones.
Luquman Shaheen, President & CEO, stated:
"The results from CB-196, together with the recently
announced results from CB-195 indicate that the potential to delineate a corridor of high grade
mineralization within, and potentially to the outside of, the currently defined South Pit is promising.
CB-195 and CB-196 are approximately
275m
apart along the NE-SW strike of local faulting. The
location of high grade intersects at the South Pit, similar to the high grade intersects at the North
Pit, appear to be controlled by the local faulting which strikes in the NE-SW direction. The results
from CB-195 also indicate that the high grade zone is continuous from near surface to over
300m
depth. The primary mineralization intersected in CB-196 is contained within the diorite host rock,
indicating close proximity of a porphyry stock. Additional drillholes near CB-195 and CB-196 are
planned to further delineate the continuity of the high grade zone at depth and along strike and to
identify the nearby porphyry stock. These results indicate the potential to increase the high grade
near surface component of the project resource which could add materially to the early life of mine
production and the value of the project
".
The drilling program, started
April 2022
, and is underway in collaboration with Energold Drilling and
ALS Chemex Laboratory.
Discussion of Results
The purpose of CB-196 was to confirm continuity of the high grade intersected in drillhole CB-195,
but outside the northeast limit of the South Pit. This new area was explored in 2012 with exploratory
hole CB-59, drilled from west to east without significant results, but with some evidence of potassic
alteration in the diorite host rock. Hole CB-196 was drilled in the opposite direction over the hanging
wall of Hole CB-59
(
See Link
1
)
, intersecting the intervals listed in the table below. The location of
this hole can be found on this link (
See Link
2
).
Drillhole
From (m)
To (m)
Metres
Cu (%)
Au g/t
Ag g/t
Cueq
1
(%)
Zone
CB-196
164.8
348.4
148.6
0.36
0.34
2.51
0.61
including
164.8
222.7
57.9
0.43
0.43
2.58
0.74
Primary
" "
194.2
214.7
20.5
0.65
0.73
3.91
1.18
Primary
" "
257.7
348.4
90.7
0.31
0.28
2.46
0.52
Primary
including
257.7
280.8
23.2
0.60
0.49
3.41
0.96
Primary
1.
Cu equivalent grade estimated at spot prices of Au=USD 1842/oz, Ag=USD 22.10/oz and Cu=USD 4.37/lb
The hole begins in diorite intrusive with propylic and sericite-chlorite-clay (SCC) alterations,
overprinted by supergene argillization until
164.8m
at depth, hosting a profile of leach cap, copper
oxides and mixed mineralization with variable grades below 0.10% Cu, 0.10 g/t Au and 1.0 g/t Ag
(0.18 %Cueq).
The hypogene mineralization was intersected from 164.8 to
348.4m
depth, crosscut by almost
35m
of barren latite dike splitting the copper-gold mineralization in two intervals.
From
164.8m
to
222.7m
the hole intersected
57.9m
of diorite intruded by dikes of late quartz
monzonite and quartziferous porphyries generating potassic (orthoclase-magnetite-biotite) and SCC
alterations hosting chalcopyrite and pyrite mineralization disseminated and into quartz veinlets
averaging 0.43% Cu, 0.43 g/t Au, 2.58 g/t Ag (0.74 % Cueq), including
20.5m
grading 0.65% Cu,
0.73 g/t Au, 3.91 g/t Ag (1.18 % Cueq).
From
257.5m
to
348.4m
CB-196 intersected
90.7m
of the same lithology with potassic and phyllic
alterations hosting quartz veinlets and thin dissemination of chalcopyrite and pyrite , averaging
0.31% Cu, 0.28 g/t Au, 2.46 g/t Ag (0.52 % Cueq), including
23.2m
grading 0.60% Cu, 0.49 g/t Au,
3.41 g/t Ag (0.96 %Cueq).
The drillhole was completed to
382.4m
with the final
34.05m
averaging 0.20% Cu, 0.16 g/t Au, 1.31
g/t Ag (0.32 % Cueq).
Further Work
The results of hole CB-196 indicate the potential for the extension of the high grade zone beyond the
northeast limits of the current resource model at the South Pit. Additional drilling will test the
extension of the high grade zone to upgrade the confidence to indicated category with infill holes at
platforms 10 and 11
(
See Link
3
)
.
The principal quartz monzonite porphyry hosting the most Cu-Au high grades in hole CB-195 was not
intercepted by Hole CB-196 but the results indicate its close proximity. The next step out hole will be
at platform S-2 (CB-197), located
150m
to the east of CB-196 and proposed to explore the same
structural control intercepted by holes CB-195 and CB-196.
Approximately
622.6m
(holes CB-195, CB-196) have been completed in the 2022 drilling program to
date, also an additional
472.5m
(CB-197), with sampling and assays in process, and drilling is in
progress at hole CB-198.
About Panoro
Panoro is a uniquely positioned
Peru
-focused copper development company. The Company is
advancing its flagship Cotabambas Copper-Gold-Silver Project located in the strategically important
area of southern
Peru
.
The Company's objective is to complete a Prefeasibility study in 2023 with work programs
commencing in Q1 2022.
At the Cotabambas Project, the Company will first focus on delineating resource growth potential
and optimizing metallurgical recoveries. These objectives are expected to further enhance the
project economics as part of the Prefeasibility studies during 2022 and 2023. Exploration and step-
out drilling from 2017, 2018 and 2019 have already identified the potential for both oxide and
sulphide resource growth.
Summary of Cotabambas Project Resources
Project
Resource
Classification
Million
Tonnes
Cu (%)
Au (g/t)
Ag (g/t)
Mo (%)
CuEq %
Cotabambas
1
Cu/Au/Ag
Indicated
117.1
0.42
0.23
2.74
0.001
0.59
Inferred
605.3
0.31
0.17
2.33
0.002
0.44
@ 0.20% CuEq cutoff, effective October 2013, Tetratech
1. Cotabambas Project, Apurimac, Peru, NI 43-101 Technical Report on Updated Preliminary Economic Assessment, amec foster
wheeler and Moose Mountain Technical Services, 22 September 2015
A PEA has been completed for the Cotabambas Project, the key results are summarized below:
Summary of Cotabambas Project PEA Results
Key Project Parameters
Cotabambas Cu/Au/Ag Project
1
Process Feed, life of mine
million tonnes
483.1
Process Feed, daily
tonnes
80,000
Strip Ratio, life of mine
1.25 : 1
Before Tax
1
NPV
7.5%
million US$
1,053
IRR
%
20.4
Payback
years
3.2
After
Tax
1
NPV
7.5%
million US$
684
IRR
%
16.7
Payback
years
3.6
Annual Average
Payable
Metals
Cu
thousand tonnes
70.5
Au
thousand ounces
95.1
Ag
thousand ounces
1,018.4
Mo
thousand tonnes
-
Initial Capital Cost
million US$
1,530
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
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 PEAs will be
realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic
viability.
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. M.B.A., P.Eng, P.E.
President & CEO
CAUTION REGARDING FORWARD LOOKING STATEMENTS
: Information and statements
contained in this news release that are not historical facts are "forward-looking information" within
the meaning of applicable Canadian securities legislation and involve risks and uncertainties.
Examples of forward-looking information and statements contained in this news release include
information and statements with respect to:
Panoro delineating growth potential at the Cotabambas Project, while optimizing project
economics;
mineral resource estimates and assumptions; and
the PEAs, including, but not limited to, base case parameters and assumptions, forecasts of net
present value, internal rate of return and payback.
Various assumptions or factors are typically applied in drawing conclusions or making the forecasts
or projections set out in forward-looking information. In some instances, material assumptions and
factors are presented or discussed in this news release in connection with the statements or
disclosure containing the forward-looking information and statements. You are cautioned that the
following list of material factors and assumptions is not exhaustive. The factors and assumptions
include, but are not limited to, assumptions concerning: metal prices and by-product credits; cut-off
grades; short and long term power prices; processing recovery rates; mine plans and production
scheduling; process and infrastructure design and implementation; accuracy of the estimation of
operating and capital costs; applicable tax and royalty rates; open-pit design; accuracy of mineral
reserve and resource estimates and reserve and resource modeling; reliability of sampling and
assay data; representativeness of mineralization; accuracy of metallurgical test work; and
amenability of upgrading and blending mineralization.
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 or its partners' ability to enforce legal rights under permits or licenses
or risk that Panoro or its partners will become subject to litigation or arbitration that has an
adverse outcome
risks relating to Panoro's or its partners' projects being in
Peru
, including political, 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 or its partners' right to explore or develop
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 or its partners' operations being subject to environmental and
remediation requirements, which may increase the cost of doing business and restrict
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 and its partners' properties are not yet in commercial
production;
risks relating to fluctuations in foreign currency exchange rates, interest rates and tax rates
risks relating to Panoro's ability to raise funding to continue its exploration, development, and
mining activities; and
counterparty risk under Panoro's agreements.
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 more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially
from those described in 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 information
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 responsibility for the adequacy or accuracy of
this release.
(CNW Group/Panoro Minerals Ltd.)
SOURCE
Panoro Minerals Ltd.
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For further information:
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. Scott Logan, Account Manager, Phone: 416.644.2020 /
212.812.7680, Email:
[email protected], Web: www.renmarkfinancial.com
CO: Panoro Minerals Ltd.
CNW 06:20e 21-JUN-22