Panoro Minerals Update on Exploration at Humamantata Project, Peru
Panoro Minerals Update on Exploration at Humamantata Project, Peru
VANCOUVER, British Columbia, Aug. 26, 2020 -- Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) (“Panoro”,
the “Company”), is pleased to provide an update on the progress and results from exploration activities in 2020 at the
Humamantata Project in southern Peru.
Work at the Humamantata Project was suspended in March 2020 in accordance with Peruvian regulations pertaining to the
Covid-19 pandemic. The Stage 2 reactivation of economic activities in Peru includes permission for exploration activities to
recommence with approved Covid-19 protocols. Panoro’s protocols have been submitted to and approved by the Peruvian
Ministry of Health. Panoro’s health and safety and community relations team has mobilized to site and the geology team will
be arriving this week.
With the work in progress (see previous press release), three Targets have been identified over the Humamantata Project:
• Target 1 includes an Intrusive and a Skarn with oxides, secondary and primary copper sulfides in the contact between a
porphyry and the Ferrobamba limestones.
• Target 2 includes hydrothermal breccias with Ag, Au and Cu, Mo anomalies, hosted in the contact between a porphyry
environment and limestones/sandstones packages.
• Target 3 includes hydrothermal breccias and quartz stockwork with high Ag and low Au anomalies, hosted in
sandstone layers in an epithermal environment.
In 2020 the main fieldwork was concentrated in Target 2, where the mapping identified a complex lithologic setting requiring
further 1:1000-scale mapping and oriented rock chip sampling by mineral structure to complement the Induced Polarization
and Magnetics surveys to determine and review a possible connection with Target 1.
In Target 2, we have identified a hydrothermal breccia (the “BX-7”) - 750m in length by 60 to 300m in width, striking in a N45E
direction along the north contact of a porphyry of Tonalite composition located at the southeast side. To the west side is an
outcrop of a second hydrothermal breccia (the “BX-6”) in the contact between the limestone and sandstone packages (see
linked geologic map).
In the Target 2 area there is a mineral outcropping continuity along the 1.2 km length, from the intrusive to the BX-6, passing
through the BX-7. There is a metal zoning from a porphyry environment with Cu, Mo, Au in the intrusive domain to an
epithermal environment in the BX-6 with high anomalies of Ag, Pb, Zn; passing through a mesothermal environment with high
Ag and minor Au values in the BX-7.
The BX-7 shows silver grades from 0.5 to 7.5 ounces/tonne with anomalies of gold, in spite of the pervasive supergene
oxidation and argillization. The mineralization is conformed by pyrite, pyrrhotite, magnetite, chalcopyrite, galena acantite-
argentiferous, hematite, goethite and jarosite, all in replacement and dissemination textures into the breccia matrix. This
information is supported with mineralogy, petrography and spectrometry studies. The chargeability and magnetics geophysics
signatures suggest certain continuity of the BX-7 at depth, below the intrusive contacts. This breccia is emerging as one of
the best targets for the drilling campaign.
Exploration with mapping and rock sampling will continue during the next 3 months to define specific areas for drilling in
Targets 1 and 2.
The completion of the process to obtain the FTA, environmental permit for proposed exploration drilling program has advanced,
receiving the authorization of all private land owners around the project. In addition, the FTA will be completed and approved in
a few weeks after the workshop with public authorities is completed.
The Permit to Start Drilling Operations is expected to be approved in time to commence the proposed exploration drilling
program during the last quarter of 2020. The next stage of the exploration program will be finalized in conjunction with
Panoro’s partner, JOGMEC, after the completion of mapping, geochemistry and geophysical surveys.
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
Key Project Parameters Cotabambas Cu/Au/Ag Project 1 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 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 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 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 policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.