PML.V · 2020-10-27 12:00:00

Panoro Minerals Delineating New Porphyry Discovery at Humamantata Project, Peru

Exploration Programs

VANCOUVER, B.C., October 27, 2020 – Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM)

(“Panoro” or the “Company”) is pleased to provide an update on the progress and results from exploration

activities at the Humamantata Project in Southern Peru.

The Company has identified a new copper porphyry with anomalous grades of copper, gold and silver at the

Humamantata Project. The porphyry mineralization is outcropped in a number of zones over an area of

approximately 1800 m by 700 m. In addition, eighteen hydrothermal breccias have been identified over the

length of the project with anomalous grades of silver.

Four Target areas over the Humamant ata Project were identified in earlier mapping and sampling programs.

The porphyry mineralization is contained within Target 1, where the Company has mapped and sampled three

sub areas, T1-1, T1-2 and T1-3, of new Cu, Au and Ag porphyry outcroppings with potassic alteration over an

area of 600 m by 300 m. The highest copper grades of up to 2.7% Cu have been mapped with abundant and

different generations of early (A -type) quartz veinlets including magnetite, chalcopyrite and bornite, with

secondary feldspar and biotite alterations. Additionally, a breccia texture filled with bornite and chalcopyrite

was also recognized. The table below summarizes the average assays results for the three porphyry

outcroppings.

Alteration

Zone

# Rock

Samples

(g/t)

(%)

(g/t)

T1-1 15 0.030 0.42 2.1

T1-2 33 0.150 0.50 1.7

T1-3 18 0.084 0.21 1.1

The porphyries are made up of tonalite and monzonite composition, with the copper mineralization extending

up to 100 m inside the diorite host rock and to the phyllic alteration, with the progressive appearance of the

propylitic alteration. In the diorite domain the copper sulfides overprint an extended secondary biotite

dissemination and fill sheeting quartz veinlets with K feldspar in early halo.

Targets 2 and 4 cover an area of 3 km x 3 km and are located to the south of Target 1. They include a group

of ten hydrothermal breccias crosscutting the sedimentary sequences of the Velille and Hualhuany sandstones

and the Ferrobamba limestones suggesting the high vertical continuity crosscutting over all the cretassic

sequence in the area. The breccias have lo ng structural control containing high silver anomalies with grades

measured as high as 332 g/t Ag . The Breccias are exposed at surface with dimensions ranging from 150 m

by 15 m to 750 m by 300 m.

Breccia

Structure

# Rock

Samples

(g/t)

BX-1 16 32

BX-6 5 73

BX-7 46 44

BX-8 15 36

BX-9 8 102

A possible connection with a blind Cu -Au, Ag porphyry at depth and laterally is being evaluated. There are 8

other groups of hydrothermal breccias extending the mineral continuity an additional 4 km to the south of

Target 3.

2 | Oct 27, 2020 PR

Luquman Shaheen, President & CEO, states, “We are encouraged by the results of the exploration work to

date at the Humamantata Project. The identification of a new porphyry looks promising as the surface grades,

potential size and style of mineralization all point towards a target worthy of further exploration including drilling

to test potential vertical extension and grade distribution. The breccia pipes located throughout the property

are indicative of the potential to further delineate porphyry mineralization in the areas adjacent to and at depth

to the breccias. We look forward to planning the drilling program with our partner JOGMEC as soon as the

review and analyses of the exploration results is complete.”

During September, a 24.3 km I nduced Polarization survey was completed over Targets 1 and 4,

complementing the 29.1 km completed over Target 2 from February to March 2020 and the 80.4 km

Magnetometry survey completed in 2019 over all the targets. The analysis of the new porphyry zone and

breccias is underway with the results to come from the mineralogical characterization, geochemistry and

geophysics studies. The next stage of the explor ation program will be finalized in conjunction with Panoro’s

partner, JOGMEC, after this analysis is completed during November and December.

The process to obtain the permit s for the proposed exploration drilling program is being advanced in parallel

with above outlined exploration works.

The exploration work at the Humamantata Project is fully financed by JOGMEC pursuant to the joint venture

agreement, whereby JOGMEC has an option to earn up to 60% indirect beneficial interest after the investment

of US$8.0 Million.

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 four of its projects:

1. Precious Metals Purchase Agreement with Wheaton Precious Metals at the Cotabambas Project;

2. Joint Venture with JOGMEC at the Humamantata Project;

3. Sale to Hudbay Minerals of the Kusiorcco Project for cash and NSR royalty; and

4. Sale to Mintania of the Cochasayhuas Project for cash and NSR royalty.

These partnerships would provide, if all received, US$ 15.5 million of funding to Panoro from 2020 to 2024 ,

not including the potential NSR royalties from the Kusiorcco and Cochasayhuas Projects.

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 has 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

3 | Oct 27, 2020 PR

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.

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

FOR FURTHER INFORMATION, CONTACT:

Panoro Minerals Ltd.

Luquman Shaheen, President & CEO

Phone: 604.684.4246 Fax: 604.684.4200

Email: [email protected]

Web: www.panoro.com

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

4 | Oct 27, 2020 PR

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 operat ing 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 fr om 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 rel ease 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.

5 | Oct 27, 2020 PR

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.

← Back to feed