Antilla

Vancouver, B.C., June 26, 2018 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) (“Panoro”, the “Company”) is pleased to announce the filing of the Technical Report for the Antilla Copper Project Preliminary Economic Assessment Technical Report (PEA) on SEDAR. The results of the PEA were announced in a May 14, 2018 news release. The technical report was authored by Moose Mountain Technical Services Ltd., Tetra Tech Inc. and Panoro Minerals Ltd. The report is available on the Company‚Äôs website at www.panoro.com and on SEDAR at www.sedar.com.

The Antilla project is a copper-molybdenum porphyry deposit, located 140 km south west of the city of Cuzco in the Apurimac region in Southern Peru. The PEA results are highlighted as follows:

Highlights

  • Pre-Tax Estimates:
    • NPV (7.5%) of US$ 519.8 million;
    • IRR of 34.7%; and
    • Payback of 2.6 years.
  • After-tax Estimates:
    • NVP (7.5%) of US$ 305.4 million;
    • IRR of 25.9%; and
    • Payback of 3.0 years.
  • Conventional open pit mine focused on supergene copper sulphides;
  • Heap Leach and Solvent Extraction Electrowinning (SX/EW) process;
  • Design throughput of 20,000 tonnes per day with an operational mine life of 17 years;
  • Low waste to process feed ratio of 1.38:1;
  • Average annual payable copper of 46.3 million pounds, as Cathodes;
  • Average direct cash costs (C1) of US$1.51 per pound of payable copper;
  • Initial Project capital costs of US$250.4 million, including contingencies; and
  • Good potential for discovery of additional supergene mineralization adjacent to the current mineral resource area.

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

ProjectResource
Classification
Million
Tonnes
Cu
(%)
Au
(g/t)
Ag
(g/t)
Mo
(%)
Cotabambas Cu/Au/AgIndicated117.10.420.232.740.001
Inferred605.30.310.172.330.002
@ 0.20% CuEq cutoff, effective October 2013, Tetratech
Antilla Cu/MoIndicated291.80.34--0.01
Inferred90.50.26--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 minemillion tonnes483.1118.7
Process Feed, dailyTonnes80,00020,000
Strip Ratio, life of mine 1.25 : 11.38: 1
Before
Tax1
NPV7.5%million USD1,053520
IRR%20.434.7
Paybackyears3.22.6
After
Tax1
NPV7.5%million USD684305
IRR%16.725.9
Paybackyears3.63.0
Annual Average Payable
Metals
Cuthousand tonnes70.521.0
Authousand ounces95.1-
Agthousand ounces1,018.4-
Mothousand tonnes--
Initial Capital Costmillion USD1,530250
  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.

The PEA Technical report is found on SEDAR an is also available here.

Luis Vela, a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

The Antilla Copper-Molybdenum project is located 140 km southwest of the City of Cusco in the Apurimac Region of Southern Peru. The centre of the project area lies at UTM coordinates 8,414,000N and 718,500E. The project is accessed via the main Cusco to Nazca highway and the unpaved main access road to the small village of Antilla. The project was acquired by Panoro in 2007 and is 100% owned by the Company.

The Antilla project resource estimate reported by AMEC on June 18, 2009 had an inferred resource of 154 million tonnes at 0.47% copper, 0.009% molybdenum at 0.25% copper cutoff. An updated resource estimate completed by Tetratech on December 16, 2013 reported an indicated resource of 188.5 million tonnes at an average grade of 0.40% copper, 0.009% molybdenum at 0.20% cutoff plus an inferred resource of 145.9 million tonnes at 0.28% copper, 0.009% molybdenum at 0.20% cutoff. The current Antilla project resource estimate was updated by Tetra Tech and reported in the PEA by SRK Consulting on June 16, 2016, including an indicated resource of 291.8 million tonnes at 0.34% copper, 0.009% molybdenum; and an inferred resource of 90.5 million tonnes at 0.26% copper, 0.007 molybdenum; estimates at 0.175% Cueq with metallurgical recoveries.

The resource estimate has been completed utilizing all drill and assays results available to June 11, 2013, based on the results of 9,130 meters of drilling by Panoro (49 drill holes) and 5,162 meters of drilling (39 drill holes from drilling by others). The high grade mineralization defined before by AMEC has been upgraded to Indicated status in the Tetra Tech studies and could be amenable in a potential starter pit within the conceptual life-of-mine. However, a new pit optimization process is included in a Preliminary Economic Assessment completed in June 11, 2018 by Moose Mountain Technical Services Ltd. and Tetra Tech.Inc.

The potential to increase the resource at the Antilla project includes a number of targets. Firstly, the potential for the extension of the supergene sulphide mineralization in the East Block to the north and northwest was identified by five holes where the mineralization remains open for future exploration. Secondly, in the West Block, located 2.5 km from the East Block, the potential exist for additional supergene sulphide mineralization similar to the East Block based on the presence of chalcocite in the previously drilled holes in the area with some drill intervals assaying above 0.3% copper particularly in Drillhole ANT-13, 15, 16S and 6B. Thirdly, the new geochemistry survey in rocks shows an extended anomaly of molybdenum (>100ppm Mo) and copper that suggest the mineralization continuity and a possible connection of the East block with the West block. Fourthly, the geochemistry anomalies are extending also to the east of the current resources area, to the Chabuca zone, extending the potential to a global area of 3km by 5km, east west direction. Fifthly, in the western extreme of the property a new exploration target named Piste was recently discovered, consisting of outcropping porphyry and skarn-type mineralization hosted by sediments.

View Resource Estimate and the PEA 2016 for Antilla Property here.

Luis Vela, P. Geo., Vice President of Exploration for Panoro and a “qualified person” under National Instrument 43-101, has reviewed and approved the scientific and technical information.



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