Panoro Minerals Reports Results of the Drilling Program at Cotabambas Project, Peru
Panoro Minerals Reports Results of the Drilling Program at Cotabambas Project, Peru
VANCOUVER, British Columbia, June 18, 2018 -- Panoro Minerals Ltd. (TSXV:PML) (Lima:PML) (Frankfurt:PZM) (“Panoro”, the
“Company”) is pleased to report additional assays results for six drill holes from its 100% owned Cotabambas porphyry copper-gold-silver
project located in southern Peru.
The drillholes have intersected additional oxide and primary sulphide mineralization at the Maria Jose 1 & 2 Targets and the Petra Target.
The intersection of skarn mineralization at the Petra Target has been newly identified. Additional drilling is planned in these areas in 2018.
The drill results are from the recently completed first phase of the 2018 drill program to further test the Maria Jose 1 and 2 and Petra David
Targets following up on the discoveries made during 2017. The six drillholes include four drill holes at the Maria Jose 2 Target, 1 from the
Maria Jose Target and 1 from the Petra David Target.
Luquman Shaheen, President and CEO states, “The 2018 drilling to date has intercepted additional near-surface oxide copper mineralization
at both Petra and Maria Jose adding to the potential to include a heap leach and SX/EW component to the Cotabambas Project. The
underlying primary mineralization requires additional drilling to target the higher grade areas intercepted in 2017. The interception of skarn
mineralization is a new component to the geologic potential within Cluster 1. The potential for connection with the Cluster 2 Skarn
mineralization opens a new corridor for exploration potential. The drill permit expansion to include Cluster 2 is well advanced and we expect
to have final approval soon. The Company has expanded the mapping and sampling campaign in this area to define additional drill targets.”
Maria Jose 1 Target
The 2017 drill campaign identified a potential copper oxide blanket over an area of 420 m by 150 m. A total of 663 m of drilling in three
drillholes was completed in 2017. The oxide blanket was intercepted from surface to125 m depth with grades varying between 0.23% Cu and
0.28% Cu.
In 2018, drillhole CB-188 was collared 150 m to the southwest of drillhole CB-180, and oriented to the northeast. CB-188 intersected 130.3 m
of oxide copper averaging 0.20% Cu, 0.03 g/t Au and 1.65 g/t Ag, including one interval of 20.3 m grading 0.33% Cu, underlain by 125.7 m of
primary copper mineralization, grading 0.25% Cu, 0.02 g/t Au and 1.03 g/t Ag, including one interval of 24 m averaging 0.35% Cu. The Maria
Jose Target mineral potential remains open for additional drilling in multiple directions.
Maria Jose 2 Target
The 2017 drill campaign identified three parallel mineral bodies over an area of 550 m by 250 m. The potential copper oxides blanket was
intercepted to 75 m depth and the primary copper mineralization to 350 m depth, with grades varying between 0.20% Cu to 0.40% Cu. The
copper mineralization was intruded by quartz monzonite dikes from 10 to 50 m width, expanded and hosted mainly in andesite volcanics.
This mineralization was identified with 3,573 m of drilling distributed in 11 drillholes.
During the 2018 drilling campaign, four additional drillholes were completed, three stepping out to the north and one to the south. To the
north, drillhole CB-184 intersected two copper oxide blankets of 10.3 m and 6.4 m width grading 0.20% Cu and 0.23% Cu, respectively.
Drillhole CB-186 intersected copper oxide mineralization from surface to 44.7 m depth averaging 0.22% Cu, and a second interval of 35.9 m
of primary copper mineralization averaging 0.29% Cu, 0.07 g/t Au, and 1.85 g/t Ag, including two intervals of 10.1 m and 7.2 m, grading
0.51% Cu and 0.30% Cu, respectively. To the south, drillhole CB-189 intersected primary copper mineralization at different intervals to 522.4
m depth and the mineralization remains open. In Maria Jose 2 the mineralization potential remains open to the south and at depth for
additional drilling.
Petra Target
In 2017, 8 drillholes were completed at the Petra-David target confirming copper oxides mineralization continuity over an area of 600 m by 150
m along a structural control in northeast direction, hosted in quartz monzonite porphyries and diorite rocks.
In 2018 the exploratory drillhole CB-185 was collared 200 m to the southeast of previous drillhole CB-172 in Petra. CB-185 was oriented to
the northwest intersecting 10 m of copper oxide blanket averaging 0.22% Cu, 0.03 g/t Au and 1.77 g/t Ag, underlain by an interval of primary
copper mineralization of 23 m grading 0.27% Cu. At depth, two intervals of skarn type mineralization were intersected in a package of
marbled limestones. The first interval of 4.0 m width include massive magnetite with andradite garnets averaging 0.35% Cu, 0.02 g/t Au, 3.95
g/t Ag, including 1.3 m grading 0.94% Cu, 0.04 g/t Au and 6.55 g/t Ag and a second interval of 1.0 m width with the similar mineralogy
grading 0.38% Cu, 0.33 g/t Au, and 21.22 g/t Ag. The potential of skarn is open to the west towards the Guaclle target for additional drilling.
Previous drilling at the Guaclle target has also intersected skarn mineralization indicating a potential connection with the skarn mineralization
mapped at the Chaupec Target in Cluster 2.
Additional mapping, rock chip and soil sampling has commenced in this area to define additional drillholes to be completed during 2018.
A location plan can be found here.
The following table details the more significant intersections:
Drillhole From (m) To (m) Metres (m) Cu % Au g/t Ag g/t Mo % Zone
CB-184 7.7 18.0 10.3 0.20 0.01 1.32 0.0005 Oxides
" " 43.1 66.2 23.1 0.17 0.02 1.44 0.0004 Oxides
Include 45.2 51.6 6.4 0.23 0.03 2.01 0.0005 Oxides
" " 285.1 342.0 56.9 0.14 0.04 0.88 0.0017 Primary
CB-185 23.1 33.2 10.1 0.22 0.03 1.77 0.0029 Oxide
" " 94.5 141.0 46.5 0.21 0.02 1.56 0.0036 Primary
Including 107.0 130.0 23.0 0.27 0.03 1.89 0.0029 Primary
" " 228.7 232.7 4.0 0.35 0.02 3.95 0.0009 Skarn
Including 229.3 230.7 1.3 0.94 0.04 6.55 0.0019 Skarn
" " 239.0 240.0 1.0 0.38 0.33 21.22 0.0010 Skarn
CB-186 0.0 44.7 44.7 0.22 0.04 1.78 0.0004 Oxide
Including 5.5 18.7 13.2 0.26 0.06 1.90 0.0003 Oxide
Including 30.5 33.5 3.1 0.41 0.06 3.31 0.0004 Oxide
" " 117.3 153.2 35.9 0.29 0.07 1.85 0.0029 Primary
Including 119.0 129.0 10.1 0.51 0.09 3.94 0.0028 Primary
Including 141.0 148.2 7.2 0.30 0.15 1.38 0.0028 Primary
" " 209.5 262.3 52.8 0.15 0.02 0.96 0.0028 Primary
Including 226.5 237.5 11.0 0.22 0.03 1.21 0.0042 Primary
CB-187 No significant intersections
CB-188 3.8 130.3 126.5 0.19 0.03 1.65 0.0006 Oxide
Including 110.0 130.3 20.3 0.33 0.03 2.07 0.0014 Oxide
Including 121.5 130.3 8.8 0.39 0.03 1.78 0.0016 Oxide
" " 130.3 255.9 125.7 0.25 0.02 1.03 0.0029 Primary
Including 130.3 192.3 62.1 0.30 0.01 1.06 0.0024 Primary
Including 168.3 192.3 24.0 0.35 0.02 1.21 0.0023 Primary
CB-189 80.8 94.1 13.3 0.19 0.02 1.41 0.0005 Oxide
" " 164.8 188.3 23.5 0.15 0.02 0.95 0.0051 Primary
" " 243.4 262.9 19.5 0.17 0.02 0.87 0.0046 Primary
" " 320.8 326.8 6.0 0.32 0.18 1.77 0.0047 Primary
" " 383.2 478.0 94.8 0.20 0.03 1.50 0.0033 Primary
Including 402.6 442.5 39.9 0.27 0.05 2.46 0.0049 Primary
Including 420.7 435.9 15.2 0.39 0.06 2.62 0.0033 Primary
" " 489.5 524.6 35.2 0.21 0.04 1.75 0.0011 Primary
Including 509.5 522.4 13.0 0.31 0.06 3.15 0.0018 Primary
The first phase of the 2018 drilling campaign was focused in Cluster 1, in the igneous rock environment and a total of 2,172 m has been
completed. The second phase will be initiated in August in Cluster 2 and the Chaupec Skarn Target.
About Panoro
Panoro Minerals 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 Project, both located in the strategically
important area of southern Peru. 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 80,000 meters 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
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
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
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 1.37 : 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. PEng, PE, MBA
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
Renmark Financial Communications Inc.
Laura Welsh
Tel.: (416) 644-2020 or (416) 939-3989
www.renmarkfinancial.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.
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.
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