Geophysical Survey at Cotabambas Identifying Porphyry and Skarn Potential at Cotabambas Project, Peru
Geophysical Survey at Cotabambas Identifying Porphyry and Skarn Potential at
Cotabambas Project, Peru
VANCOUVER, British Columbia, March 12, 2019 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM)
("Panoro", or the "Company") is pleased to announce the completion of the 2019 geophysical survey at the Cotabambas Project. The
completed program has yielded a number of principal advancements for the planning of the proposed drill program:
1. Identified a large chargeability anomaly underlying porphyry mineralization exposed at surface, indicative of the potential for a new
porphyry target at depth (see Figure 1);
2. indicating the potential for skarn mineralization at depth where a high gravimetric zone is located in close proximity of the high
chargeability anomaly and also in close proximity to the limestone formation exposed at surface corresponding to the outcroppings of
skarn mineralization mapped at surface with high grades (see Figure 2); and
3. High magnetics response over and to the sides of the zone of high chargeability, indicative skarn mineralization potential at the
contact between a potential porphyry and the limestone unit.
Luquman Shaheen, President & CEO of Panoro states, “The results of the 3-D interpretation of the geophysical survey are demonstrating
some interesting growth and scale potential for the Cotabambas Project. Both, or either of, the Porphyry and Skarn potential at Zone 1 of
the Chaupec Target could yield important enhancements to the scale, grade profile and mine life for the current plan for the Cotabambas
Project. We are hopeful that this potential will be further delineated with the drill program to commence immediately.”
The detailed ground geophysics testwork was completed at the Chaupec Target, in Cluster 2 of the Cotabambas Project. The survey
covered an area of 0.5 km by 1.0 km and focussed on the northern extreme of Zone 1. The area covered by the geophysical program
encompassed only a portion of the approximately 3 km long zone of outcropped skarn and porphyry mineralization at the Chaupec Target of
Cluster 2. Magnetometry, IP and Gravimetry surveys were completed by Deep Sounding EIRL of Lima, Peru.
The area tested contains surface exposures of Skarn bodies of garnets and piroxenes intercalated with narrow porphyry dikes of quartz
monzonite composition hosting copper minerals such as chalcocite, covellite, chalcopyrite, bornite and copper oxides reporting copper
grades of up to 5.0% Cu. This geologic environment covers an area of approximately 400 m by 600 m elongated in northwest direction and
remains open to the south.
The highest chargeabilities measured from 8 to 11 mV/V and are located from 120 m to 350 m depth below the skarn/porphyry dikes
outcroppings, covering an area of 240 m by 550 m with the same strike of the copper mineralization. Areas of high magnetics (>0.116n.T.)
are located next to and around the high chargeability zone. The high resistivity signatures (1800 to 3,000 Ohm/m) overlap the front of
limestones with a smooth increase into the main chargeability zone. Finally the gravimetry found a high density zone (1.2 to 1.9 grms/cm3)
in east-west direction crosscutting the high chargeability and magnetics.
The sharp change in strike in the outcropped Skarn overlaps the area of high density, high magnetics and high chargeability that may
suggest the possible stock porphyry location as the principal source of the copper mineralization, skarns and porphyry dikes exposed in
surface.
The main Cu-Au-Ag skarn bodies may be located near the porphyry stock in contact with the limestones. Panoro is planning a first phase
drilling program of 2,000 m to 2,400 m to test the areas of surface exposures of skarn and porphyry mineralization and the underlying
geophysical anomalies. The drill program will commence in March 2019.
About Panoro
Panoro Minerals is a uniquely 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 Projects located in the strategically important
area of southern 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 boasts
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 of exploration drilling at these two key projects leading to substantial increases in
the mineral resource base for each, as summarized in the table below.
Summary of Cotabambas and Antilla Project Resources
Preliminary Economic Assessments (PEA) have been completed for both the Cotabambas and Antilla Projects, the key results are
summarized below.
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
Summary of Cotabambas and Antilla Project PEA Results
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.
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:
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.
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 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 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
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.
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.
Melanie Barbeau
Tel.: (514) 939.3989
www.renmarkfinancial.com
risks relating to 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 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.