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The project has two defined targets arising from surface showings, geochemical, geological and geophysical work, and a limited amount of drilling on each target. The "El Rosal Target" is the most advanced, having seen drilling of nine holes in two campaigns (2000 and 2004), which together with other data indicates the presence at depth of a polymetallic porphyry (+ skarn) system of potentially large size. The "La Ramada Target", identified by geology, geochemistry, geophysical surveys and copper-gold showings, with four drill holes to date, represents a potential second system with large tonnage potential and with the added attraction of a significant gold component. While it is expected that other targets will be identified on this Project, Panoro's conclusion has been that this project requires a substantial amount of deep drilling to fully test its potential and before a discovery can be made. In consideration of Panoro's current resources and priorities, the Company has decided to seek a financially and technically strong joint venture partner for this project. Discussions with potential joint venture candidates are ongoing. View 43-101 Technical Report (PDF, 11.2 Mb)
A Gold Copper Porphyry Project With Large Tonnage Potential The El Rosal property in Lambayeque and Cajamarca Departments, northwestern Peru, is a porphyry Cu-Au prospect with related Cu-Zn-Ag and Cu-Au skarn mineralization. Panoro Minerals Ltd. has acquired a one hundred percent clear interest in the property since beginning work in 1998. It consists of eleven mineral concessions that encompass an area of fifty-seven square kilometres. The property is seventy-five kilometres east of the major city of Chiclayo at elevations ranging from 350 to 1300 metres with most of the area of interest between 400 and 800 metres. It is accessible by a main paved road from Chiclayo followed by some shorter earth roads to the east of the town of Chongoyape to the village of La Ramada. Geology The El Rosal property is underlain by Mesozoic sedimentary and volcanic strata, by Tertiary volcanic rocks, and by intrusive rocks of Early Tertiary age. The thickest of the carbonate units, the Pariatambo Formation, is >350 m thick and is composed of interlaminated limestone, felsic tuff and cherty siltstone. Stocks and sills of predominantly tonalitic composition, and probable Early Tertiary age, intrude the sequence, and are in turn intruded by porphyritic granitic bodies. Early Tertiary contractional deformation produced upright folds and thrusts that affect the entire lithologic sequence. Tertiary extension and strike slip faults with predominantly northwest trends are widespread in the area. The property area is structurally complex on a regional scale, reflected in an abundance of faults and fold patterns discordant to regional trends. It comprises a block that is bounded by north-south trending faults and east-northeast striking lineaments.  Targets The El Rosal - Project is characterized by two principal targets with associated large tonnage potential, the El Rosal and La Ramada targets. The mineralized systems identified by Panoro's work represent a new discovery of this type of system in this area of northern Peru. The El Rosal target contains copper - zinc - silver mineralization of a type called "skarn" mineralization, hosted by >350 m thick interlaminated limestone, felsic volcanic tuffs and cherty siltstones overlying and intruded by tonalite (quarzdiorite) intrusive bodies, associated "endoskarn" and, significant for its tonnage potential, porphyry style alteration/mineralization, as well as polymetallic veins. The largest showings on the property and on this target, the El Rosal and Zona Central showings form the exposed portions of a 50-200m thick contact aureole above the El Rosal stock. Within the El Rosal-Zona Central system, copper, zinc and silver mineralization occur. The most significant mineralization occurs in the El Rosal showing, where representative surface sampling has commonly returned values >1% combined Copper + Zinc over widths ranging from 1-3 m to >10 m. Significant Copper and Zinc grades (>0.2%) occur disseminated and in veinlets within bands immediately above the top of El Rosal stock as well as within in the upper portions of the stock. While continuous intersections of potentially economic mineralization were not identified during the first drilling program in 2000, it had tested only a small part of the northwestern parts of the system. Of significance for the large tonnage potential is the fact that the El Rosal stock underlying the El Rosal and Zona Central showings is affected by porphyry and calc-silicate style alteration with associated anomalous copper - molybdenum mineralization. Surface exposures, dimensions of an associated geophysical Induced Polarization chargeability anomaly, and exposures of a showing 1 km to the east that is probably contiguous with the system, the Calabozo showing, suggest minimum dimensions of the intrusion and associated mineralization/alteration system of approximately 2.5 km long by 2 km wide. Peripheral veins form an outer lead-zinc zone that is consistent with, and may expand, the overall dimensions of the system. On the second target, the La Ramada Copper-Gold target, three other skarn showings, Calabozo, La Ramada and La Ramada Sur, have been identified 1-2.5 km to the east of the El Rosal and Zona Central showings. Surface exposures of these are smaller than the El Rosal-Zona Central system, although their extent has not been fully defined. These also occur in the limestone-tuff-siltstone formation present at El Rosal and are spatially associated with intrusive "tonalite" (quartz diorite) sills and dykes similar to those at the El Rosal target . Significant copper and zinc grades (1-3%), and in this case also anomalous gold concentrations (ranging from less than 1 gram/tonne to greater than 1gram/tonne over 5m width and locally exceeding 5 grams/tonne) have been obtained from rock chip and channel samples from all three showings. Several significant and unexplained gold. e.g. 178 and 138 ppb (100ppb = 0.1 gram/tonne) gold and anomalous copper stream sediment sample results have also been obtained from this area. The showings and anomalous geochemical values in this area may be associated with a distinctive intrusive center that is similar to, but separate from, the El Rosal Stock. Work in 2003, consisting of additional geochemical and geophysical surveys outlined a 800 x 1200 m Induced Polarization anomaly in the southern part of the La Ramada area, supported by anomalous gold values in soils and anomalous copper values in stream sediments. ) Results of the 2003/04 exploration campaign The aim of the 2004 drill program was to test the El Rosal target for a "blind", unexposed zone of economic mineralization to the south of the drill holes of the year 2000 under an overlying rock cover. The exploration programs of 2003 and 2004 were aimed at two principal targets. The El Rosal target, which had seen a seven holes drill program in 2000, was explored by two additional drill holes which were in part reported on in an earlier news release. Drill hole ER08-04 (270m) was aimed at a deep Induced Polarization anomaly in the southeastern part of the target as presently defined. After passing through wollastonite garnet skarn it entered the intrusive at 51.5m. Sections of the hole are anomalous in copper and zinc. The intrusive in this drill hole exhibits weak propylitic alteration. A quartz epidote chalcopyrite vein/fault was intersected at 154.3m, assaying 1.17% copper over 3m or 0.84% copper over 5.74m. The hole is located at the fringe of the target. Drill hole ER09-04 ((349m) is located 550m east of year 2000 drill hole ER02-00 and 550m south east of ER04-00. It is a step out from the more felsic sections of the El Rosal stock along the El Rosal anticline and was aimed at the centre of the stock where a cluster of quartz epidote chalcopyrite (copper) veins were cutting through the rocks hosting the intrusive. While the top of the intrusive stock was intersected at elevations of 520m in ER02 and 650m in ER04, drill hole ER09-04 was still in highly siliceous calc silicate hornfels and skarn at the end of the hole (349m) at an elevation of 525m. Prior to reentering hornfels the drill hole intersected 41m of an intrusive section with anomalous values in copper and molybdenum. The hornfels/skarn is highly anomalous in zinc (and copper) from 279.9m to 296.6 m above the contact with the intrusive. (0.6% zinc over 16m, including 2.69% zinc over 2.35m). The significance of the alteration and mineralization lies in its indication of a strong system below it. A very strong and thick (220m) hydrothermally altered thermal aureole of hornfels and calc silitate-wollastonite skarn was intersected in ER09-04. In conclusion the results of the two drill holes on the El Rosal target indicate the continuation and strengthening of the system to the south of drill holes ER02 and ER04 of the year 2000, albeit at greater depth below surface and beyond the capacity of the man portable drills that were used in this campaign. At the La Ramada target geological, geochemical and geophysical surveys carried out in 2003 led to the definition of several drill targets that were tested in 2004. The drill program was accompanied by further detailed geological mapping with specific attention to structural complexities. Mapping and surface sampling at the La Ramada and La Ramada Sur occurrences confirmed the strong gold component of this mineralization with a thickness of up to 15m. The strike length of the La Ramada Zone is indicated to extend over 200m with a possible fault limiting it to 300m. Results of Surface Channel Sampling at La Ramada and La Ramada Sur
The La Ramada Sur showing occurs on the western slope of the mountain ridge forming the La Ramada Target. The eight east - west streams draining this slope into the main Calabozo drainage are all clearly anomalous in copper values in stream sediments over an north - south distance of over two kilometers. Source of this anomaly may be a diatreme breccia zone that has been traced from the Ramada Sur showing south in intermittent outcrops over a distance of 700 meters with widths ranging from 50 to 100 meters. This breccia and the northern extension of the Ramada Sur showing represent a new exploration target on the project. The La Ramada target was tested in four drill holes of which one had to be abandoned when the drill sting broke and got stuck in a fault zone. The northern part of the target was explored by RA01-04 and RA02-04(abandoned). The objective of the holes was to test the area between the La Ramada and La Ramada Sur showings at depth and at their contacts with the underlying intrusive. Drill hole RA01-04, aimed at the area between the La Ramada and La Ramada Sur showings intersected short high grade sections of copper and copper - zinc mineralization contained in an intrusive diatreme like breccia ( 21.10m to 46.05m) as indicated in the Company's news release of March 24, 2004. This was the first time that this rock type has been encountered on the property. A short assay interval within the breccia, representing a breccia fragment from a mineralized zone at unknown depth, assayed 3.1%copper, 12.25% zinc and 48.6 grams silver/tonne over 0.7 meters. A second interval of intrusive breccia and adjoining skarn assayed 0.57% copper over 6.0 meters, including 1.0% copper and 14.6 grams silver/tonne over 2.65 meters. The carbonate rocks above the intrusive section at the bottom of the hole exhibited moderate hydrothermal alteration from 52 to about 166 meters depth, with increasing wollastonite and garnet contents and became strongly altered from 166 to 310.75 meters, when the hole entered a dioritic intrusive at the bottom of the hole at 340.45meters. Anomalous copper values in the range of 0.15% to 0.4% and anomalous zinc values in the range of 0.2% to 0.98%were encountered over intervals from less than 1meter to over 6 meters scattered over the more intensely altered sections of the hole. Drill hole RA02-04 did not reach target depth and was abandoned as indicated above. Detailed surface mapping around the La Ramada and La Ramada Sur showings revealed steep dipping structural controls at both showings. The strike -, as well as the down dip extensions of both showings to their inferred contact with the underlying intrusive, represent further drill targets. Drill hole RA03-04 and RA04-04 were aimed at testing the strong (24-34 mV/V) and extensive Induced Polarization (IP) anomaly in the southern part of La Ramada outlined by the 2003 geophysical survey. The IP-anomaly was in its western portion supported by geochemical anomalies in soil for gold, lead, zinc, bismuth and arsenic and for copper in stream sediment samples. RA03-04 (277.85 meters) intersected a sequence of lime-stones and shales alternating with sills of diorites and intrusive breccias. High contents of pyrite and pyrrhotite appear to be responsible for the IP-anomaly. The drill core was strongly anomalous in zinc content between 94 meters and 259 meters, with narrow veins of lead, zinc, silver and lesser gold mineralization at 236 meters and 251meters. Indications in the drill hole and from detailed surface mapping indicate that the geochemical response on surface may come from a faulted off block of ground to the west of the drill hole. RA04-04 (220.7 meters) intersected a post mineral feldspar porphyry dike from about 74 to 180 meters. The sulphide content in the entire hole was low, indicating that the drill hole did apparently not test the IP-anomaly. At this stage the exploration on the El Rosal project was halted to allow receiving the assay results for all drill hole and surface samples and to review the results in conjunction with new information and data obtained in a simultaneous detailed geological/structural surface mapping program. As a result of the final review management has concluded that the project remains to be one with large tonnage potential. The breccias discovered in the 2004 campaign represent a new target and should be subject of initial surface exploration by trenching and possibly shallow drilling. While it is expected that other targets will be identified on this Project, Panoro's conclusion has been that this project requires a substantial amount of deep drilling to fully test its potential and before a discovery can be made. Considerations of prudent management of risk and of Panoro's current resources and priorities have led the Company to the decision to seek a financially and technically strong joint venture partner for this project. Discussions with potential joint venture candidates have been ongoing for some time. Maps
 Peru covers an area of approximately 1,290,000 square kilometres on the western coast of South America. The country has a population of approximately 24.8 million. Lima is the capital and principal city with a population of approximately 6.46 million. Peru is recovering from a 25 year period of political instability and economic hardship and is now considered to be one of the premiére mining countries in South America, particularly for copper and gold.Peru is a democratic republic governed by an elected government headed by a president who serves a five-year term and who, under the new Constitution which was approved by national referendum held on October 31, 1993, is eligible to run for one consecutive second term. The new Constitution also provides for a one-chamber legislative body or Congress. During the past 27 years, Peru has had a history of political instability under both civilian and military governments. These governments have pursued various policies, including frequent intervention in the economy and social structure. Past governments have imposed controls on prices, exchange rates, local and foreign investment and international trade, restricting the ability of companies to operate. From 1985 to 1990, inflation was significant and the country was subject to a series of nationwide general strikes. The problems were exacerbated by the terrorism of the Sendero Luminoso (the Shining Path), a Maoist group intent on creating a socialist government.  In September of 1992, the leader of the Shining Path and most of his top officials were captured by the Peruvian military and since then hundreds of Shining Path terrorists have surrendered and been captured. This has resulted in a dramatic decrease in terrorist activities throughout the country. Terrorist activity now appears to be restricted to very few isolated pockets in the northeast border region of the country and is not always distinguishable from fights between drug traffickers. Panoro has a policy of avoiding areas where terrorists are active.Alberto Fujimori was first elected President in 1990 and immediately implemented a broad-based reform of Peru's political system, economy and social conditions. The reforms were aimed at stabilizing the economy, restructuring the national government by reducing bureaucracy, privatizing state owned companies, promoting private investment, developing and strengthening free markets, institutionalizing democratic representations, and enacting programs for the strengthening of basic services related to education, health, housing and infrastructure. Congress was dissolved in April 1992 and a democratically elected congressional body was re-established. A new Constitution was enacted and ratified in the fall of 1993. Mr. Fujimori was re-elected as President for a second five year term in April 1995 and at the same time a new 120 member single chamber Congress was elected to replace the Constituent Assembly. The electorate was 12 million. President Fujimori was re-elected by 64.42% of votes cast. A referendum was held on October 31, 1993 to approve the twelfth constitution, including a provision for the President to serve a consecutive second term, and 52.24% of votes were cast in favour. The constitution was promulgated on December 28, 1993. In August, 1996, Congress voted for the eligibility of the President to serve a third consecutive term of office. Elections for President were held in April, 2000. Opposition parties and other candidates for the Presidency have claimed fraud in the conduct of the elections and were supported in this view by the international community. Even though the principal opponent claimed to have withdrawn from the second ballot for the Presidency in May 2000, Fujimori was elected and confirmed by Congress for a third term. Fujimori assumed the office of the Presidency late in July 2000. Subsequent events that started with the disclosure of videotapes recorded by V.Montesinos, Fujimori's head of the Secret Service, showing the bribing of opposition members of the Congress, followed by many more, involving the military and almost all of the "establishment" of Peru, culminated in the disappearance of Montesinos and the announcement by Fujimori on September 2000 of new elections in April 2001, in which Fujimori would not be a candidate. Under the impact of the widening scandal surrounding Montesinos, Fujimori fled to Japan in November 2000, from where he resigned from his office. Congress subsequently indicted him for abandoning his office and declared him morally unfit for office (Peruvian Presidents cannot resign under the Constitution). After both Vice Presidents resigned, Congress installed a new, but transitional government under the highly respected Valentin Paniagua. The first ballot in the Presidential elections took place on April 9th, 2001. No candidate received an absolute majority. A run off election between the two leading candidates Alejandro Toledo and Alan Garcia were held in early June, 2001. Toledo won the run off election with a vote of 53.1% and was sworn in on July 28, 2001. The election was considered clean and legitimate by international observers. The official monetary unit of Peru is the Peruvian New Sol. The currency has been freely floating since March 27, 1991 and the country has no currency exchange restrictions. The exchange rate as of March 11, 2003 was approximately Sol $0.42075 to the Canadian Dollar and is relatively stable when compared to March 27, 2000 @$0.4160. The above information was prepared using a variety of sources including "The Statesman's Yearbook (2003)" and "Analysts' View of the Peruvian Economy (Commission for the Promotion of Peru - December, 1999)".  Peru has a long history of mining which predates the Spanish conquistadors. Although political unrest and instability have slowed the development of some of Peru's ore bodies in past years, mining continues to be an important contributor to the national economy and exploration by foreign companies is accelerating due to the abundance of mineral resources. Peru is already a substantial producer of at least six metals and may have unexplored and unexploited reserves in these and other metals. The mining sector produces almost 50% of the country's total exports. Peru has now become Latin America's largest gold producer (taking over from Brazil) and has consequently gained the recognition of the global mining community. For several years it has been Latin America's number one copper producer.Concessions in Peru Under Peruvian law, the right to explore for and exploit minerals is granted by way of concessions. A Peruvian mining concession is a property-related right, distinct and independent from the ownership of land on which it is located, even when both belong to the same person. The rights granted by a mining concession are defensible against third parties, transferable, chargeable and, in general, may be the subject of any transaction or contract. Participating interests in mining concessions can be optioned or transferred. Buildings and other permanent structures used in a mining operation are considered real property accessory to the concession on which they are situated. The term of a mining concession is indefinite if it is properly maintained by payment of annual rental duties.  Mining concessions applied for, and awarded title according to the Grid Based System ("Sistema de Cuadrículas"), are single concessions for exploration and exploitation.1 They can be granted for metallic or non-metallic minerals, and no overlap between them is allowed. Exploration and exploitation works may be initiated once title to concession has been granted, except in those areas of overlap with pre-existing claims or concessions applied for before December 15, 1991.2 Mineral rights are granted in units of 100 hectares with a maximum of 10 units (1000 hectares) or 100 units (10,000) in territorial waters, in a rectangular shape north-south east-west orientated UTM coordinates. However, in areas defined urban or urban expansion, mineral rights are granted in units of 10 hectares with a maximum of 100 hectares.3As of 19924 concession holders must pay an annual rental ("derecho de vigencia") by June 30th of each year. The following table shows the evolution of the annual rental since 1992:
The concession holder must reach a minimum level of annual production of at least US$100 per hectare in gross sales within six years from the time the title to concession is granted ("Minimum Required Production"). Mineral rights held by State-owned companies under the privatization process, are exempted from the Minimum Required Production until January 1 of year following their transfer to the private sector.5 If the concession has not been put into production within that period, then the concession holder must make an additional payment called Penalty ("Penalidad") of US$6.00 per hectare for the 7th through 11th year following the granting of the concession, and of US$20.00 per hectare thereafter.6 The concession holder shall be exempted from the Penalty if the investment made during the previous year was 10 times the Penalty (i.e. US$60 per hectare per year 7th through to 11th).7 Prior to November 2, 1996, failure to pay the annual rental or the Penalties for two consecutive years or three alternate years resulted in the termination of the mineral right ("caducidad"). To date, failure to pay the annual rental for two consecutive years or the Penalty, will result in the termination of the mineral right.8 Ownership, Income Tax and Repatriation of Profits In 1992 Peru enacted a new mining law which:
Under the Peruvian income tax law, the corporate tax payable is:
Government Protection Agreements have been signed by the government of Peru with affiliates of the World Bank and with the Overseas Private Investment Corporation to insure foreign investors against such non-commercial risks as expropriation and abrogation of contracts. Peru has signed the Agreement for the Constitution of the Multinational Investment Guarantee Agency, a World Bank agency, and The Agreement for Investment Insurance with the United States Overseas Private Investment Corporation ("OPIC") and the World Bank Convention on the Settlement of Investment Disputes. Although these agreements, as ratified by the Peruvian Congress, allow investors to insure against non-commercial risks such as expropriation and abrogation of contracts, subsequently elected governments could revoke these agreements. These multinational agencies provided their backing, and the backing of their governments, in petitioning governmental compensation in the event of expropriation. As a result of these agreements, agencies such as OPIC are able to provide specific project risk insurance and project financing at the time of development. Environmental Laws The Environmental Code, the Law for the Sustainable Use of Natural Resources, and the General Mining Law of Peru are the primary body of laws with regard to mining environmental issues. The Ministry of Energy and Mines (the "MEM") designs and implements the environmental policy, and enforces the environmental regulations applicable to the mining industry. There are Maximum Permissible Limits ("LMP") for air and liquid emissions applicable to the mining industry. Environmental Adjustment and Management Programmes ("Programas de Adecuacion y Manejo Ambiental" or "PAMA") have been set up for ongoing mines as the mechanism for them to comply with the environmental laws and regulations and meet the LMP. PAMAs must include expenditures of at least one percent of annual sales on the environmental program. New developments or the increase of more than 50% of the installed capacity in ongoing projects require an Environmental Impact Study ("EIS"). EIS comprise monitoring, remediation, closing and post-closing programmes. Mining companies are also subject to periodic environmental audits. Pursuant to the Environmental Regulations for Mineral Exploration (Supreme Decree 38-98-EM approved on November 30, 1998), in order to carry out exploration activities, titleholders must request an environmental permit before the MEM. For purposes of qualification and approval of environmental permits, exploration projects have been classified into three categories, namely "A", "B" and "C", according to the size and extent of activities, and to the area directly disturbed as a result of the exploration works. In the case of on-going exploration activities by November 30 1998, their title holders were required to report the activities carried out and apply for an environmental permit not later than May 30, 1999. Public participation by means of workshops and public audiences are required during the preparation of EIS and Exploration Permits category "C". The above information was prepared using a variety of sources including "The Statesman's Yearbook (2003)" and "Analysts' View of the Peruvian Economy (Commission for the Promotion of Peru - December, 1999)". Footnotes View 43-101 Technical Report (PDF, 11.2 Mb) Please use the "click here" for hi-res option to see map detail:
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