Panoro Minerals' Drilling Program Identifying Expansion Potential at Cotabambas Project, Peru
Panoro Minerals' Drilling Program Identifying
Expansion Potential at Cotabambas Project,
Peru
VANCOUVER
, BC
,
Nov. 21, 2022
/CNW/ -
Panoro Minerals Ltd.
(TSXV: PML) (Lima: PML)
(Frankfurt: PZM) (OTCQB: POROF) ("Panoro", the "Company") is pleased to announce results of
additional drill holes from its 16,970 m drill program, the aim of which is to expand the total resource
with emphasis on the high-grade component and upgrade the inferred category resources to
indicated category at the Company's Cotabambas Cu/Au/Ag Project in southern
Peru
. The principal
conclusion from the results of Drillholes CB-201, CB-202 and CB-203 are summarized as follows,
see Figure 1 for drillhole locations:
Drillhole CB-201 results delineate the continuity of mineralization approximately
150 m
to the
north of the South Pit in the gap area between the two pits as well as extending mineralization
continuity from approximately
200 m
depth to near surface;
Drillhole CB-202 results delineate the extension to approximately
250 m
depth of previously
intersected mineralization and extends mineralization to the south of the current South Pit limits.
The mineralization is open at depth with the potential for increasing grades at depth and
proximity to the porphyry stock; and
Drillhole CB-203 extends mineralization to approximately
500 m
depth and extends
mineralization to the eastern limit of the South Pit.
Discussion of Results
The purpose of drillholes CB-202 and CB-203 was to add new mineral resources to the south-
eastern and north-eastern extremes of the South Pit, respectively and at depth. The scope of CB-
201 was to explore the possible connection between the South and North pits. See locations of the
holes on the map in
Figure 1
. The principal mineralization intersections are listed in the table below.
Drillhole
From (m)
To (m)
Metres
Cu (%)
Au g/t
Ag g/t
Cueq %
1
Zone
CB-201
12.0
40.5
28.5
0.11
0.08
1.11
0.18
Oxide
" "
48.4
71.3
22.9
0.17
0.22
8.16
0.42
Mixed
" "
122.6
162.4
39.8
0.10
0.06
0.68
0.15
Primary
CB-202
187.6
425.2
237.6
0.25
0.20
1.65
0.43
Primary
Including
284.1
392.4
108.3
0.36
0.31
2.50
0.63
Primary
Including
287.6
340.4
52.8
0.48
0.44
3.50
0.87
Primary
CB-203
112.6
706.4
593.8
0.21
0.15
1.33
0.34
Primary
including
270.8
608.3
337.4
0.26
0.22
1.68
0.45
Primary
including
379.7
569.3
189.6
0.29
0.23
1.72
0.49
Primary
1.
Cu equivalent grade estimated at spot prices of Au=USD 1771/oz, Ag=USD 20.13/oz and Cu=USD 3.52/lb
Drillhole
CB-201
is a step out hole executed to explore the western and near surface continuity of
the mineralization previously intersected by CB-05 (
106.5 m
averaging 0.44% Cueq, including
68.5m
averaging 0.62% Cueq). The hole CB-201 intersected
22.9 m
of mixed mineralization grading 0.40%
Cueq suggesting the higher grades may be expanded at depth and below CB-05. The plan is to
complete a new drillhole from platform S-17 to explore the mineral continuity below CB-05. This
battery of drillholes is targeting the expansion of the mineral resources to join the South and the
North Pits. See
Figure 2
.
Drillhole
CB-202
was a step out hole directed to explore the high-grade continuity at depth, targeting
the area
100 m
below the mineralization intersected in previous hole CB-20. The hole intersected
copper primary mineralization along
237.6 m
averaging 0.25% Cu, 0.20 g/t Au and 1.65 g/t Ag
(0.43% Cueq) including
108.35 m
grading 0.36% Cu, 0.31 g/t Au and 2.50 g/t Ag (0.63% Cueq), and
including also
52.8 m
averaging 0.48% Cu, 0.44 g/t Ag, 3.50 g/t Ag (0.87% Cueq). The
mineralization in both drillholes is developed into a quartz monzonite dike of
35 m
width and
extending into the diorite in the footwall host rock. The potassic alteration is developed also in both
lithologic domains. The primary mineralization is composed of chalcopyrite and minor pyrite into a
pervasive quartz stockwork.
Figure 3
shows the copper and gold grades increasing at depth. A new
step out hole is planned from the platform S-5, targeting the cupula of the porphyry stock and
potential for wide high-grade zones of mineralization. CB-202 represents the furthest south drillhole
in the South Pit, intersecting new mineralization, the extension of which will be tested with additional
drilling.
Drillhole
CB-203
is a step out hole located
100 m
to the east of the previously executed CB-196.
and represents the northern most mineralization intersected in the north extreme of the South Pit.
The hole CB-203 intersected a copper primary mineralization within the diorite host rock from depths
of
112.6 m
to
706.4 m
, including an interval of almost
190 m
averaging 0.29% Cu, 0.23 g/t Au, 1,72
g/t Ag (0.49% Cueq). The higher copper and gold grades were intersected within the diorite located
near the cupula of the quartz monzonite porphyry stock and intersected at depth with chalcopyrite
stockwork and potassic alteration. See
Figure 4
.
The bottom of the PEA South Pit is located between 230 and
300 m
below ground surface. Drilling
to date indicated the potential to incorporate new mineral resources at depth and along strike
related with the structurally controlled porphyry mineralization. The intersections shown in Figure 2
and Figure 3 extend to the north and southern extremes of the South Pit. The previously intersected
mineralization in the area was at elevations between
3400 m
and
3500 m
whereas CB-203, shown in
Figure 4, intersected mineralization down to elevations of
3100 m
. The results are confirming the
interpretations in the current exploration model indicating the potential to expand the resource at
depth and along strike. The South pit is interpreted as an early and different porphyry pulse of Cu-
Ag mineralization rich in gold, as suggested by geochronology studies and the lower copper
:
gold
and silver:gold ratios than in the North pit.
The Company started the 2022 campaign in April and continues drilling in the South and North pits
with three drill rigs, targeting the addition of new mineral resources and the upgrade of inferred
resources to indicated category. The re-logging for the geologic modelling update and the expansion
of the South pit still in progress.
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
Key Project Parameters
Cotabambas Cu/Au/Ag Project
1
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 release.
Web:
www.panoro.com
Web:
www.renmarkfinancial.com
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]; Renmark Financial Communications
Inc., Scott Logan, Account Manager, Phone: 416.644.2020 / 212.812.7680, Email:
CO: Panoro Minerals Ltd.
CNW 09:20e 21-NOV-22