|April 03, 2017|
Panoro Delineating Expanded Gold Oxide Mineralization at the Cotabambas Project, Peru
|Vancouver, B.C., April 3, 2017- Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro", the "Company") is pleased to announce identification of an expanded area of gold oxide mineralization at its Cotabambas Project.|
Current mapping, trenching and sampling work has identified fourteen gold oxide anomalies extending from the northern pit limit, as outlined in the Preliminary Economic Assessment (PEA), to approximately 900 m (see accompanying map), towards the northeast along the local faulting structures. The zone encompassing the fourteen anomalies corresponds to an area of pervasive argillic alteration extending over a total of approximately 1.3 km along strike. Eleven of these gold oxide anomalies have been identified outside the PEA pit limit over an area of approximately 1.0 km by 1.4 km.
The current project resource includes gold oxides of 220,000 tonnes averaging 0.64 g/t Au and 3.8 g/t Ag classified as indicated plus 1.2 Million tonnes averaging 0.61 g/t Au and 3.27 Ag g/t classified as inferred, at a 0.5 g/t Au cut-off. This zone of mineralization was intercepted previously in four drillholes, see table below, collared at the northern limit of the project resource. However, processing of this zone was not included in the mine plan in the PEA due to limited quantities of gold oxides.
Table 2: Drill hole sampling results.
The delineation of additional gold oxide mineralization opens the potential to add a gold oxide leach operation to the project plan included in the PEA. The newly defined gold oxides and the gold oxides included in the project resource contain low Cu grades, presenting favorable conditions for potential leaching of the contained gold and silver. The location of the anomalies, to the north of the PEA pit and at relatively shallow depths from surface, can lead to potential mining and processing in the early part of the Cotabambas Project mine life with potential material increases to the project cash flow, decreased operating costs and increased project economic indicators of NPV and IRR.
The Company is commencing a 19,000 m drill program this month. Mapping, trenching and geophysics work was commenced in January 2017, following the completion of the Community Agreement, and is nearing completion. The 2017 drill program will be targetting the newly identified near-surface, gold oxide mineralization zone; as well as the previously identified targets of:
Panoro's 2017 exploration plans at these targets are funded with financings completed by the Company in 2016. Panoro is also pleased to announce that they have received the third scheduled Early Deposit payment of US$750,000 as part of the Precious Metals Purchase Agreement (the "Cotabambas Early Deposit Agreement") with Silver Wheaton (Caymans) Ltd., a wholly owned subsidiary of Silver Wheaton Corp. ("Silver Wheaton") (TSX:SLW) (NYSE:SLW) in respect of the Cotabambas project located in Peru.
"The Cotabambas Project continues to unfold as a target-rich environment. The impacts on the project economic indicators can be significant with the potential addition of high grade near-surface sulphides at the Maria Jose zone, the low cost near-surface copper oxides and gold oxides at the Cochapata zone and the large-scale high grade skarn targets at the Chaupec zone. The combination of a strong Cotabambas PEA, a target-rich setting and funding to the end of 2018, position Panoro at the top of very short list of exploration companies. We are poised to deliver a new Copper project to a market looking to confront a looming worldwide shortage of copper", stated Luquman Shaheen, President & CEO.
Panoro Minerals is a uniquely positioned Peru focused copper exploration and development company. The company is advancing a significant project portfolio in the strategic Andahuaylas-Yauri belt in south central Peru, including its advanced stage Cotabambas Copper-Gold-Silver-Molybdenum and Antilla Copper-Molybdenum Projects. 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 70,000 m 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
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
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
Renmark Financial Communications Inc.
Tel.: (416) 644-2020 or (416) 939-3989
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