PML.V · 2021-08-12 12:00:00

Panoro Minerals and JOGMEC Agree to Terminate JV on Humamantata Project, Peru

Partnerships & JV

Panoro Minerals and JOGMEC Agree to

Terminate JV on Humamantata Project, Peru

VANCOUVER, BC

Aug. 12, 2021

/CNW/ -

Panoro Minerals Ltd

. (TSXV: PML) (Lima: PML)

(Frankfurt: PZM) (OTCQB: POROF) ("Panoro" or the "Company") announces that it has agreed with

its JV partner, Japan Oil, Gas and Metals National Corporation (JOGMEC), to terminate the interim

Agreement for the joint venture of the Humamantata Project. The agreement was completed in

2018 providing for JOGMEC to earn up to a 60% project interest. Exploration at the project has

identified four porphyry, hydrothermal breccia and skarn targets with anomalous grades of copper,

silver and gold extending for more than 1.5 km along strike. Permitting completed at the project

includes approval of the environmental permit, water permit and archeological permit. Access

agreements with private land owners are also complete.

"We are pleased that Panoro and JOGMEC worked together to identify very prospective

mineralized targets while substantially completing the permitting required to start drilling.

Unfortunately, budget constraints and schedule delays, resulting from the Covid-19 pandemic, do

not permit JOGMEC to continue funding the next phase of exploration. Approximately

USD 2.4

million

has been invested in the exploration work to date and we look forward to advancing the

project in the near future.",

stated Luquman Shaheen, President & CEO.

The Humamantata Project is strategically located in Southern Peru, in the vicinity of the Las Bambas

Copper Mine (MMG), the Constancia Copper Mine (Hudbay) and other important copper projects

such as Haquira (First Quantum), Antilla (Panoro) and Cotabambas (Panoro).

The Company retains a 100% interest in the Humamantata Project and will be assessing other joint

venture or partnership agreements to continue advancing the exploration programs.

To date the Company has completed the following field activities:

Geologic mapping at 1:1,000 scale over an area covering 1,200 hectares of the total 3,600

hectares of concessions comprising the Humamantata Project;

647 samples from surface outcrops have been collected over the target areas for geochemical

analysis;

68 fresh and mineralized rock samples for Mineragraphy and Petrography studies;

130 fresh and mineralized rock samples for a Lithogeochemistry study;

496 rock samples by PIMA Spectrometry for a mineral alterations study;

53.2 km of ground Induced Polarization geophysical surveys; and

80 km of ground Magnetic Resonance surveys.

The exploration program has identify four targets:

Target 1, Cu/Au/Ag porphyry mineralization located to the north of the property;

With grades up to 2.69% Cu, 69.5 g/t Ag, 0.82 g/t Au, 374 ppm Mo

Target 2, Ag Hydrothermal Breccia Mineralization located to the south of Target 1;

With grades up to 332 g/t Ag, 0.42 g/t Au, 1,151 ppm Mo

Target 3, Ag Hydrothermal Breccia and Ag-Cu Stockwork Mineralization in the south property;

and

With grades up to 0.57% Cu, 210 g/t Ag, 0.091 g/t Au, 240 ppm Mo

Target 4. Ag Hydrothermal Breccia and Cu-Au Skarn Mineralization located to the north of

Target 2.

With grades up to 1.19% Cu, 501 g/t Ag, 0.12 g/t Au, 160 ppm Mo

About Panoro

Panoro 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

Panoro has completed strategic partnerships at three of its projects:

Wheaton Precious Metals - Precious Metals Purchase Agreement, Cotabambas Project;

Hudbay Minerals – NSR Royalty and Cash sale, Kusiorcco Project; and

Mintania – NSR Royalty and Cash sale, Cochasayhuas Project.

At the Cotabambas Project, the Company is focused on delineating the growth potential while

optimizing the project economics. Exploration and step-out drilling from 2017, 2018 and 2019 have

identified the potential for both oxide and sulphide resource growth.

Summary of Cotabambas and Antilla Project Resources

Project

Resource

Classification

Million

Tonnes

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

CuEq

Cotabambas

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

Antilla Cu/Mo

Indicated

291.8

0.34

0.01

0.38

Inferred

90.5

0.26

0.007

0.29

@ 0.175% CuEq cutoff, effective May 2016, Tetratech

Preliminary Economic 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

Project

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

Tax

NPV

7.5%

million USD

1,053

520

IRR

20.4

34.7

Payback

years

3.2

2.6

After

Tax

NPV

7.5%

million USD

684

305

IRR

16.7

25.9

Payback

years

3.6

3.0

Annual

Average

Payable

Metals

thousand tonnes

70.5

21.0

thousand ounces

95.1

thousand ounces

1,018.4

thousand tonnes

Initial Capital Cost

million USD

1,530

250

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

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.

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:

acceleration of payments by Wheaton Metals to match third party financing by Panoro targeted

for exploration at the Cotabambas Project;

payment by Wheaton Metals of

US$140 million

in installments;

Panoro weathering the current depressed equity and commodity markets, minimizing dilution to

existing shareholders and making targeted investments into exploration at the Cotabambas

Project;

mineral resource estimates and assumptions;

the PEA, including, but not limited to, base case parameters and assumptions, forecasts of net

present value, internal rate of return and payback; and

copper concentrate grade from the Cotabambas Project.

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 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

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.

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 16:00e 12-AUG-21

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