Panoro Minerals Completes Terms of Community Agreement for Cotabambas Project, Peru
Panoro Minerals Completes Terms of Community Agreement
for Cotabambas Project, Peru
VANCOUVER, British Columbia, Jan. 16, 2017 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSX -
V:PML) (Lima:PML) (Frankfurt:PZM) ("Panoro", the "Company") is pleased to announce the completion of
an agreement with the Community of Cochapata at its 100% owned Cotabambas Project in Peru. The
completion of the community agreement together with the already approved semi detailed environmental
impact assessment permits the Company to continue the planned exploration program into the next stage,
which will include:
Step-out drilling to expand the oxide copper resource and assessment of the potential to
incorporate a heap leach SX/EW process into the project plan;
Exploration geophysics and drilling at the Maria Jose zone targeting near surface high grade
mineralization for potential mill feed; and
Metallurgical testing to test for potential improvement in recoveries from all four
mineralogical types in the current resource.
The completion of the community agreement marks the second such agreement completed with the
community of Cochapata since Panoro acquired the Cotabambas Project and is the sixth such agreement
completed with the three communities in the vicinity of the Cotabambas Project. The agreement includes
commitments similar in nature to those of the prior agreements with the principal component being the
acquisition of land for existing community members in the rural area of Anta, near the city of Cuzco and
approximately 100 km from the Cotabambas Project location.
Luquman Shaheen, President & CEO, states “We are very pleased to have completed this agreement with
the Community of Cochapata, again demonstrating the Company ’s commitment to work with our local
communities to advance the Cotabambas project. The Company can now continue the current exploration
activities into the drilling stage. We plan to mobilize the field teams before the end of January. ”
Panoro has been completing detailed geological mapping in the area of proposed step out drilling at the
Ccalla zone where the Company is targeting the delineation of additional oxide resources. Furthermore,
additional mapping has been completed at the Maria Jose Target area where a program of Induced
Polarization and Magnetic geophysical surveys will be completed prior to final drill targeting. A total of
14,000 m of drilling is planned for these two areas in 2017.
In addition to the above works Panoro will also be conducting further metallurgical testing at the
Cotabambas Project.
At the Antilla Project, Panoro will be commencing scoping level engineering studies to review potential
optimizations of the project plan in order to reduce capital and operating costs and further improve project
economics. This scoping work at the Antilla Project will also begin in January.
About Panoro
Panoro Minerals is a uniquely positioned Peru focused copper exploration and development company. The
Company is advancing a significant project portfolio in the strategic Andahuaylas -Yauri belt in south central
Peru, including its advanced stage Cotabambas Copper -Gold-Silver-Molybdenum and Antilla Copper -
Molybdenum Projects. 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 70,000 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.
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
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
Key Project Parameters Cotabambas Cu/Au/Ag Project Antilla Cu/Mo Project
Mill Feed, life of mine million tonnes 483.1 350.4
Mill Feed, daily tonnes 80,000 40,000
Strip Ratio, life of mine 1.25 : 1 0.85 : 1
Before
Tax1
NPV7.5% million USD 1,053 491
IRR % 20.4 22.2
Payback years 3.2 3.3
After
Tax1
NPV7.5% million USD 684 225
IRR % 16.7 15.1
Payback years 3.6 4.1
Annual Average Payable
Metals
Cu thousand tonnes 70.5 36.8
Au thousand ounces 95.1 -
Ag thousand ounces 1,018.4 -
Mo thousand tonnes - 0.9
Initial Capital Cost million USD 1,530 603
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
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
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
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.
Bettina Filippone
Tel.: (514) 939-3989 or (416) 644 -2020
www.renmarkfinancial.com
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.