Panoro Minerals Commences 2018 Drilling Program at Cotabambas Project, Peru
VANCOUVER, British Columbia, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Panoro Minerals Ltd. (TSXV:PML) (Lima:PML) (Frankfurt:PZM) ("Panoro", or the "Company") is pleased to announce the commencement of the Company’s 2018 drilling program at the Cotabambas Project in Peru. Panoro Minerals has contracted Lima-based drilling contractor, Bradley-MDH, to conduct the proposed 2018 drilling campaign. Two diamond drill rigs are being mobilized with drilling expected to begin on February 22, 2018.
The 2018 drilling program will commence at the Maria Jose and Petra-David targets at Cluster 1 and continue until April 2018 with 5,000 m of drilling budgeted. The drilling program will then expand into the Chaupec Skarn Target in Cluster 2 in August with an additional 5,000 m budgeted for completion by the end of 2018.
Drilling at the Maria Jose Target will focus on the further delineation of oxide and sulphide copper zones identified during the 2017 drill program, where 15 drillholes confirmed continuity of mineralization over an area of 400 m by 1200 m, and to over 450 m depth.
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.
The Chaupec target is an area of skarn and porphyry mineralization exposed at surface along approximately 3 km by 1km. The copper grades sampled at surface are some of the highest grades sampled to date at the Cotabambas Project. The area has never been drilled.
The mineralization at the Maria Jose Target consists of quartz monzonite porphyry dikes hosted within andesite volcanics. Drillholes CB-161 and CB-165 intercepted near surface copper oxides mineralization intervals of 39.7 m averaging 0.54% Cu and 13.2 m averaging 0.41% Cu, respectively. Drillhole CB-183 intercepted 127.6 m of hypogene copper mineralization grading 0.41% Cu, 0.06 g/t Au and 2.0 g/t Ag, including intervals with 0.67% Cu and 0.74% Cu, with mineralization open below 477 m depth. Drillhole CB-157 intercepted 195.2 m of hypogene copper mineralization averaging 0.34% Cu 0.06 g/t Au and 1.6 g/t Ag, including intervals with 0.42% Cu and 0.51% Cu, with mineralization open below 468 m depth. The drillholes of the 2017 campaign and the geochemistry and geophysics signatures at surface indicate the mineralization to be open to the northeast and north where the 2018 campaign will be focused.
The principal results at the Petra-David Target included Drillhole CB-171 intercepting 25.0 m averaging 0.32% Cu, including 10.8 m grading 0.44% Cu, 0.12 g/t Au and 12.2 m grading 0.40% Cu, 0.09 g/t Au. Drillhole CB-173 intercepted 61.4 m averaging 0.38% Cu, including 27.1 m with 0.58% Cu and 0.14 g/t Au. Drillhole CB-172 intercepted 78.8 m grading 0.32% Cu including 20.4 m averaging 0.48% Cu, 0.12 g/t Au and 10 m grading 0.57% Cu and 0.14 g/t Au. Drillhole CB-175 intercepted 87.6 m averaging 0.20% Cu, including intervals with grades of 0.29% Cu to 0.39% Cu. The 2018 drilling campaign will target expansion to the north and south.
The Chaupec Target includes exposures at surface of different skarn type mineralization, such as pyroxenes, garnets and magnetite, containing mineralization of bornite, chalcopyrite, minor pyrite, and expanded copper oxides. The quartz-monzonite porphyry outcrops in the south part of the Chaupec Target with potassic alteration and quartz stockwork also contain hypogene/oxides copper mineralization. The mineralization at the Chaupec Target is similar to the skarns at the Las Bambas Copper Mine, located 40 km to the south, specifically with the skarn exposed in the Ferrobamba open pit. A team of geologists will start the predrilling works at Chaupec by the end of February.
“We look forward to continuing the drill program at our flagship Cotabambas Project, following up on the delineation of near surface mineralization at the satellite targets in Cluster 1 during 2017. The proximity to surface, potential of higher grades and presence of oxide mineralization can add more value to the Cotabambas Project. Stepping out into the Chaupec Skarn Target in Cluster 2 is scheduled for the middle of this year, after the approval of the expanded EIA. The Chaupec Skarn Target has the potential to further expand the already significant growth potential and value of Cotabambas during 2018. The growth potential is significant with multiple targets to be drilled in 2018, all of which is funded. Additional funding is in place to expand the 2018 drill program and/or continue through 2019. We look forward to announcing results of the drilling program as results are received,” stated Luquman Shaheen, President & CEO.
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 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
| 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 Project | Antilla Cu/Mo Project | ||
| Mill Feed, life of mine | million tonnes | 483.1 | 350.4 | |
| Mill Feed, daily | Tonnes | 80,000 | 40,000 | |
| Strip Ratio, life of mine | 1.25 : 1 | 0.85 : 1 | ||
| Before Tax1 | NPV7.5% | million USD | 1,053 | 491 |
| IRR | % | 20.4 | 22.2 | |
| Payback | years | 3.2 | 3.3 | |
| After Tax1 | NPV7.5% | million USD | 684 | 225 |
| IRR | % | 16.7 | 15.1 | |
| Payback | years | 3.6 | 4.1 | |
| Annual Average Payable Metals | Cu | thousand tonnes | 70.5 | 36.8 |
| Au | thousand ounces | 95.1 | - | |
| Ag | thousand ounces | 1,018.4 | - | |
| Mo | thousand tonnes | - | 0.9 | |
| Initial Capital Cost | million USD | 1,530 | 603 | |
| 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 | ||||
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: info@panoro.com Web: www.panoro.com | Renmark Financial Communications Inc. Laura Welsh Tel.: (416) 644-2020 or (416) 939-3989 blwelsh@renmarkfinancial.com 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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