Panoro Minerals Announces Commencement of Cotabambas Project Prefeasibility Work
Panoro Minerals Announces Commencement
of Cotabambas Project Prefeasibility Work
VANCOUVER, BC
,
Feb. 7, 2022
/CNW/ -
Panoro Minerals Ltd
. (TSXV: PML) (Lima: PML)
(Frankfurt: PZM) (OTCQB: POROF) ("Panoro" or the "Company") is pleased to provide an update
on the Company's plans for the Cotabambas Project in 2022. In the first quarter of 2022 Panoro will
commence the studies to support the prefeasibility study for the Cotabambas Project. This work will
begin with the step-out and infill drilling programs and includes technical and environmental studies.
The work programs will commence soon and continue to the end of the year with additional drilling
contemplated in 2023. Additionally in 2022, technical studies including an update to geologic
modelling, geo-metallurgical modelling, metallurgical testing, geotechnical and hydrogeological
studies will be commenced. An updated resource study will be completed as a part of the planned
prefeasibility study.
The infill drilling program goal is to upgrade 100% of inferred category resource included in the
Preliminary Economic assessment ("PEA") mine plan to the indicated category. The infill drilling will
include an estimated 12,200 meters at both the proposed North and South Pits.
Step-out drilling of approximately
4,400 m
will target the growth of both the copper oxide and
sulphide resource for inclusion into the mine plan for the prefeasibility study. The additional oxide
resource, together with oxide resources in the current PEA, will be evaluated for the addition of a
heap leach and SX/EW circuit to the project, resulting in increased copper production at a lower
operating to the PEA processing plan.
Metallurgical testing will focus on three key objectives:
1
.
Improve flotation recoveries from the transition material in the PEA mine plan. Low recoveries
in the PEA were a result of a lack of sampling and testing,
2
.
Optimize flotation recoveries with additional testing, and
3
.
Design leach process and estimate recoveries for the copper oxides.
Luquman Shaheen, President & CEO, states, "
It is an important new phase for both Panoro and the
Cotabambas Project with the funding to be focused on the completion of a prefeasibility study.
There is much work to be completed in 2022 with the infill and step out drilling, metallurgical
testing, and other technical studies. After additional drilling in 2023, we plan to have the
prefeasibility study completed later in 2023. Our objectives at Cotabambas are two-fold. After
completing the prefeasibility study, we will also add important new value to the project with
additional oxide and sulphide resource target areas, improved metallurgical recoveries, and the
addition of cathode production from the SX/EW circuit.
We have succeeded in funding the prefeasibility study without diluting our shareholders and are
now focused on the execution of the PFS
."
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
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 r
elease.
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 09:20e 07-FEB-22