Canada NewsWire
VANCOUVER, BC, Jan. 15, 2024
VANCOUVER, BC, Jan. 15, 2024 /CNW/ - Panoro Minerals Ltd. (TSXV: PML) (Lima: PML) (Frankfurt: PZM) ("Panoro", the "Company") Panoro is pleased to announce that it has received the mineral resource estimate for its 100% owned Cotabambas porphyry copper-gold-silver Project located in southern Peru from AGP Mining Consultants, based in Toronto, Canada. The updated mineral resources at a 0.15%CuEq cut-off grade include:
Luquman Shaheen, President & CEO, states, "The Cotabambas Project resource has achieved many important milestones. The South Pit now has the potential to be a high grade starter pit for the project. The high grade component of the resource, at 0.91% Cueq, is included in the South Pit. Most of the added high grade at the South Pit is located outside the open pit modelled in the 2015 PEA. An updated PEA will incorporate the additional high grade resource into the mine plan. The updated PEA will also incorporate a number of the already completed trade-off studies and serve as a snap-shot of the prefeasibility study. The high grade in the South Pit is open to the southwest and to the northeast in the area between the North and South Pit. The potential to further expand the high grade along strike and at depth looks very promising. In addition, the South Pit resource has a higher component of precious metals, both Gold and Silver. The Gold resource of 6.0 million ounces is already significant. A significant reduction in the waste:ore ratio will also have a meaningful impact on the project economics. Now with over 500 million tonnes at indicated category, the project is ready for the prefeasibility study to incorporate the new resource and completed trade-off studies which will first be incorporated into an update on the Preliminary Economic Assessment. The Cotabambas Project has more total, indicated and high-grade resource, lower waste:ore ratio and expanded exploration potential for high grade. The precious metals' grades have the potential to grow with added resource from the South Pit potential. The current achievements in the project resources, together with planned improvements to the metallurgical recoveries, infrastructure and increased commodity prices have the potential to significantly enhance the projects economics. We look forward to continuing to advance the Cotabambas Project."
Mineral Resource Estimate
AGP Mining Consulting discloses a new resource estimate for the Cotabambas copper and gold deposit, prepared in accordance with the CIM Best Practices and disclosed in accordance with NI 43-101. The mineral resource estimate utilized all drill and assay results available to June 23, 2023, including 73,938 meters of drilling by Panoro distributed in 148 drillholes and 9,923 meters of drilling from legacy campaigns distributed in 27 drillholes. The mineral resource estimate includes hypogene and supergene sulphides and mixed/oxide copper-gold and oxide gold mineralization contained within a single conceptual pit shell that has been modelled to include that portion of the mineral resource block model having a reasonable prospect for economic extraction.
The wireframes for the Cotabambas deposit were developed based on mineralization to constrain the interpreted mineralized domains. Latite dikes were clipped from the principal mineralized domains and separated into latite oxide and latite sulfide domains.
The mineral resource estimate in the Indicated and Inferred Categories are summarized in Tables 1 and 2 below. See links to following Figures for illustration:
Mineral Resource Statement
The Mineral Resources for the Cotabambas deposit are reported by copper equivalent cut-off grade of 0.15 %CuEq within an optimized pit constraint. The effective date of the Mineral Resources is 20 November 2023.
The principal metals grades were estimated by the ordinary kriging interpolation method on capped composite copper, gold, silver and molybdenum grades. No recoveries have been applied to the interpolated in-situ estimated grades.
Tables 1 and 2 present the mineral resources by domain for Indicated and Inferred mineral resources, respectively, within the optimized pit constraint.
Table 1: Mineral Resource in Indicated Category Classified by Mineralization Type
Zone | Cut-Off | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
Leach | 0.15 | 17.0 | 0.19 | 0.22 | 1.80 | 0.0017 | 0.28 | 71 | 0.12 | 0.98 | 0.64 |
Oxide Cu* | 0.15 | 24.7 | 0.31 | 0.22 | 2.26 | 0.0014 | 0.41 | 169 | 0.17 | 1.79 | 0.76 |
Oxide Cu-Au* | 0.15 | 17.3 | 0.43 | 0.15 | 1.79 | 0.0015 | 0.50 | 164 | 0.08 | 1.00 | 0.57 |
Mixed | 0.15 | 32.3 | 0.46 | 0.22 | 2.29 | 0.0014 | 0.58 | 330 | 0.23 | 2.38 | 1.00 |
Supergene | 0.15 | 3.6 | 1.36 | 0.34 | 3.51 | 0.0015 | 1.53 | 109 | 0.04 | 0.41 | 0.12 |
Hypogene | 0.15 | 412.5 | 0.32 | 0.20 | 2.48 | 0.0023 | 0.42 | 2,910 | 2.65 | 32.89 | 20.92 |
Total | 0.15 | 507.3 | 0.33 | 0.20 | 2.42 | 0.0021 | 0.43 | 3,753 | 3.29 | 39.45 | 24.02 |
Note: Base case in bold. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Summation errors may occur due to rounding. Open pit mineral resources are reported within optimized constraining shell. Reported open pit cut-off grade is 0.15%CuEq. Breakeven open pit cut-off grade is 0.07% CuEq. Mineral Resources have an effective date of November 20, 2023. The Qualified Person responsible for this resource statement is Paul Daigle, P.Geo. (APGO, 1592). . Copper equivalent ( CuEq) is calculated using the equations: Oxide: CuEq = Cu + 0.4126*Au + 0.0038*Ag + 0.000*Mo; Mixed: CuEq = Cu + 0.5819*Au + 0.0063*Ag + 0.0003*Mo; Supergene: CuEq = Cu + 0.4498*Au + 0.0054*Ag + 0.0002*Mo; and Hypogene: CuEq = Cu + 0.4373*Au+0.0053*Ag+0.0002*Mo, based on the differentials of long range metal prices net of selling costs and metallurgical recoveries for gold and copper and silver. Metal prices for the CuEq formulas are: US$ 4.25/lb Cu, US$ 1,850 /Oz Au; US$ 23.00 /Oz Ag; and US$ 20.00 /lb Mo. Metal recoveries for the CuEq formulas are for Oxide: 0.0% Cu, 65% Au, 48% Ag, and 0.0% Mo; for Mixed: 60% Cu, 55% Au, 48% Ag, 40% Mo; for Supergene: 87.5% Cu, 62% Au, 60.4% Ag, 40% Mo; and for Hypogene: 90% Cu, 62% Au, 60.4% Ag and 40% Mo. Capping of grades varied between 0.50 %Cu and 3.7%Cu, 0.33 g/t Au and 2.3 g/t Au, and between 0.029%Mo and 0.060%Mo; on 6m composites by domain. The density varies between 2.20 g/cm3 and 2.66 g/cm3. Mineralization would be mined from open pit and treated using conventional flotation. Rounding in accordance with reporting guidelines may result in summation differences. *Oxide Cu - amenable to leaching; Oxide Cu-Au amenable to blending with sulphides (Au >0.25 g/t). |
Table 2: Mineral Resource in Inferred Category Classified by Mineralization Type
Zone | Cut-Off | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
Leach | 0.15 | 5.1 | 0.15 | 0.10 | 1.72 | 0.0016 | 0.19 | 17 | 0.02 | 0.28 | 0.18 |
Oxide Cu* | 0.15 | 12.6 | 0.24 | 0.12 | 1.82 | 0.0015 | 0.30 | 67 | 0.05 | 0.74 | 0.42 |
Oxide Cu-Au* | 0.15 | 8.7 | 0.37 | 0.10 | 1.59 | 0.0018 | 0.42 | 71 | 0.03 | 0.44 | 0.34 |
Mixed | 0.15 | 7.1 | 0.18 | 0.15 | 4.57 | 0.0013 | 0.29 | 29 | 0.04 | 1.04 | 0.20 |
Supergene | 0.15 | 1.90 | 0.82 | 0.46 | 3.95 | 0.0018 | 1.05 | 35 | 0.03 | 0.24 | 0.08 |
Hypogene | 0.15 | 460.6 | 0.27 | 0.17 | 2.54 | 0.0028 | 0.36 | 2,742 | 2.52 | 37.61 | 28.43 |
Total | 0.15 | 496.0 | 0.27 | 0.17 | 2.53 | 0.0027 | 0.36 | 2,961 | 2.69 | 40.86 | 29.49 |
Note: Base case in bold. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Summation errors may occur due to rounding. Open pit mineral resources are reported within optimized constraining shell. Reported open pit cut-off grade is 0.15%CuEq. Breakeven Open pit cut-off grade is 0.07% CuEq. Mineral Resources have an effective date of November 20, 2023. The Qualified Person responsible for this resource statement is Paul Daigle, P.Geo. (APGO, 1592). Copper equivalent ( CuEq) is calculated using the equations: Oxide: CuEq = Cu + 0.4126*Au + 0.0038*Ag + 0.000*Mo; Mixed: CuEq = Cu + 0.5819*Au + 0.0063*Ag + 0.0003*Mo; Supergene: CuEq = Cu + 0.4498*Au + 0.0054*Ag + 0.0002*Mo; and Hypogene: CuEq = Cu + 0.4373*Au+0.0053*Ag+0.0002*Mo, based on the differentials of long range metal prices net of selling costs and metallurgical recoveries for gold and copper and silver. Metal prices for the CuEq formulas are: US$ 4.25/lb Cu, US$ 1,850 /Oz Au; US$ 23.00 /Oz Ag; and US$ 20.00 /lb Mo. Metal recoveries for the CuEq formulas are for Oxide: 0.0% Cu, 65% Au, 48% Ag, and 0.0% Mo; for Mixed: 60% Cu, 55% Au, 48% Ag, 40% Mo; for Supergene: 87.5% Cu, 62% Au, 60.4% Ag, 40% Mo; and for Hypogene: 90% Cu, 62% Au, 60.4% Ag and 40% Mo. Capping of grades varied between 0.50 %Cu and 3.7%Cu, 0.33 g/t Au and 2.3 g/t Au, and between 0.029%Mo and 0.060%Mo; on 6m composites by domain. The density varies between 2.20 g/cm3 and 2.66 g/cm3. Mineralization would be mined from open pit and treated using conventional flotation. Rounding in accordance with reporting guidelines may result in summation differences. *Oxide Cu - amenable to leaching; Oxide Cu-Au amenable to blending with sulphides (Au >0.25 g/t). |
The Mineral Resources of the Project are also reported to demonstrate the sensitivity to various copper equivalent cut-off grades within the optimized pit constraint. The domains have not been separated and the following is for comparison only.
The mineral resources estimation was constrained by a Break-even pit with a cut-off grade of 0.07%CuEq with a stripping ratio (waste: resources) of 1.02:1; however, the Base Case open pit is reported at a cut-off grade of 0.15%CuEq with a stripping ratio (waste: resources) of 0.65:1. This represents a significant improvement compared with the previous resources estimation where the stripping ratio was 2:1 (waste: resources).
Tables 3 and 4 present the mineral resources within the optimized pit constraint for Indicated and Inferred Mineral Resources, respectively.
Table 3: Sensitivity of Indicated Mineral Resource to Cut-off Grade
Cut-Off Grade | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
0.07 | 648.3 | 0.28 | 0.16 | 2.18 | 0.0021 | 0.36 | 4,023 | 3.39 | 45.37 | 29.42 |
0.10 | 579.5 | 0.30 | 0.18 | 2.29 | 0.0022 | 0.39 | 3,882 | 3.41 | 42.62 | 27.47 |
0.15 | 507.3 | 0.34 | 0.20 | 2.42 | 0.0021 | 0.43 | 3,753 | 3.29 | 39.45 | 24.02 |
0.20 | 417.7 | 0.38 | 0.23 | 2.61 | 0.0020 | 0.49 | 3,468 | 3.09 | 35.00 | 18.13 |
0.30 | 254.0 | 0.49 | 0.32 | 3.14 | 0.0017 | 0.65 | 2,745 | 2.60 | 25.62 | 9.50 |
0.40 | 166.9 | 0.61 | 0.39 | 3.72 | 0.0014 | 0.81 | 2,250 | 2.10 | 19.97 | 5.15 |
0.50 | 129.0 | 0.70 | 0.44 | 4.12 | 0.0014 | 0.91 | 1,985 | 1.83 | 17.09 | 3.96 |
Note: Base case in bold. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Summation errors may occur due to rounding. |
The previous mineral resources (Tetra Tech, 2014) contained 46.3 Million tonnes averaging 0.70%Cu, 0.38 Au g/t, 3.82 Ag g/t and 0.0002%Mo at 0.50%CuEq cut-off. At similar grades, the new resource demonstrates a 296% increase in high-grade resource, including higher gold and silver grades, reflecting the high precious metals content in the South pit.
Table 4: Sensitivity of Inferred Mineral Resource to Cut-off Grade
Cut-Off Grade | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
0.07 | 1,101.2 | 0.16 | 0.10 | 1.87 | 0.0023 | 0.22 | 3,841 | 3.45 | 66.10 | 55.87 |
0.10 | 760.4 | 0.21 | 0.13 | 2.13 | 0.0026 | 0.28 | 3,492 | 3.12 | 52.15 | 43.54 |
0.15 | 496.0 | 0.27 | 0.17 | 2.53 | 0.0027 | 0.36 | 2,961 | 2.69 | 40.35 | 29.65 |
0.20 | 362.9 | 0.32 | 0.21 | 2.86 | 0.0028 | 0.42 | 2,569 | 2.40 | 33.33 | 22.47 |
0.30 | 202.1 | 0.42 | 0.28 | 3.68 | 0.0029 | 0.56 | 1,869 | 1.82 | 23.88 | 12.86 |
0.40 | 118.1 | 0.54 | 0.37 | 4.73 | 0.0026 | 0.72 | 1,403 | 1.39 | 17.95 | 6.83 |
0.50 | 93.1 | 0.59 | 0.41 | 5.31 | 0.0025 | 0.80 | 1,217 | 1.23 | 15.90 | 5.23 |
Note: Base case in bold. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Summation errors may occur due to rounding. |
The new Mineral Resource Estimate demonstrates the presence of an increase in the higher grade component mineralization within the base case conceptual pit shell. Tables 5 and 6 show the Mineral Resources at a 0.5 %CuEq cut-off grade classified by mineralization type.
Table 5: Indicated Mineral Resources at a 0.5 %CuEq Cut-off Grade by Mineralization Domain within optimized pit constraint
Zone | Cut-Off | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
Leach | 0.5 | 1.4 | 0.48 | 0.33 | 2.50 | 0.0014 | 0.62 | 15 | 0.02 | 0.11 | 0.04 |
Oxide Cu | 0.5 | 6.1 | 0.62 | 0.32 | 3.36 | 0.0012 | 0.77 | 83 | 0.06 | 0.65 | 0.16 |
Oxide Cu-Au | 0.5 | 6.4 | 0.66 | 0.15 | 1.80 | 0.0015 | 0.74 | 93 | 0.03 | 0.37 | 0.21 |
Mixed | 0.5 | 16.8 | 0.66 | 0.30 | 2.79 | 0.0014 | 0.82 | 245 | 0.16 | 1.51 | 0.50 |
Supergene | 0.5 | 3.6 | 1.36 | 0.34 | 3.51 | 0.0015 | 1.53 | 109 | 0.04 | 0.41 | 0.12 |
Hypogene | 0.5 | 94.7 | 0.69 | 0.50 | 4.61 | 0.0014 | 0.93 | 1,440 | 1.52 | 14.03 | 2.92 |
Total | 0.5 | 129.0 | 0.70 | 0.44 | 4.12 | 0.0014 | 0.91 | 1,985 | 1.83 | 17.09 | 3.96 |
Note: Summation errors may occur due to rounding. Higher Grade Mineral Resources are included within the Indicated Mineral Resources listed in Table 2. |
Table 6: Inferred Mineral Resources at a 0.5 %CuEq Cut-off Grade by Mineralization Domain within optimized pit constraint
Zone | Cut-Off | Million | Cu | Au | Ag | Mo | CuEq | Cu | Au | Ag | Mo |
Leach | 0.5 | 0.06 | 0.44 | 0.30 | 2.58 | 0.0015 | 0.58 | 1 | 0.001 | 0.01 | 0.002 |
Cu | 0.5 | 1.0 | 0.53 | 0.15 | 2.24 | 0.0016 | 0.60 | 12 | 0.005 | 0.07 | 0.04 |
Oxide Cu-Au | 0.5 | 1.8 | 0.57 | 0.10 | 1.53 | 0.0018 | 0.61 | 23 | 0.01 | 0.09 | 0.07 |
Mixed | 0.5 | 0.4 | 0.44 | 0.25 | 2.77 | 0.0011 | 0.57 | 4 | 0.003 | 0.04 | 0.01 |
Supergene | 0.5 | 1.9 | 0.82 | 0.46 | 3.97 | 0.0018 | 1.05 | 35 | 0.03 | 0.24 | 0.08 |
Hypogene | 0.5 | 87.8 | 0.59 | 0.42 | 5.47 | 0.0026 | 0.80 | 1,143 | 1.19 | 15.45 | 5.04 |
Total | 0.5 | 93.1 | 0.59 | 0.41 | 5.31 | 0.0025 | 0.80 | 1,217 | 1.23 | 15.90 | 5.23 |
Note: Summation errors may occur due to rounding. Higher Grade Mineral Resources are included within the Inferred Mineral Resources listed in Table 4. |
In order to satisfy reasonable prospects for eventual economic extraction, the Mineral Resources are reported within a constraining shell. The block model was imported into Datamine NPV Scheduler software where AGP generated the optimized pit constraint. Table 7 summarizes the parameters that were applied to develop the optimized pit constraint.
Table 7: Optimized Pit Parameters for the Cotabambas Deposit
Parameters | Units | Oxide, Leach | Mix | Supergene | Hypogene |
Metal Prices | |||||
Copper | $US/lb | 4.25 | 4.25 | 4.25 | 4.25 |
Gold | $US/oz | 1850 | 1850 | 1850 | 1850 |
Silver | $US/oz | 23 | 23 | 23 | 23 |
Molybdenum | $US/lb | 20 | 20 | 20 | 20 |
Metal Recoveries | |||||
Copper | % | - | 60 | 87.5 | 90 |
Gold | % | 65 | 55 | 62 | 62 |
Silver | % | 48 | 48 | 60.4 | 60.4 |
Molybdenum | % | - | 40 | 40 | 40 |
Other Costs | |||||
Mining Cost | $US/t | 2.00 | 2.00 | 2.00 | 2.00 |
Processing Cost | $US/t | 4.79 | 4.79 | 4.79 | 4.79 |
G&A Cost | $US/t | 0.41 | 0.41 | 0.41 | 0.41 |
Pit Slope | |||||
Overall Slope Angle | degrees | 47 | 47 | 47 | 47 |
Dilution | |||||
Mine Dilution | % | 3 | 3 | 3 | 3 |
Ore Loss | % | 3 | 3 | 3 | 3 |
The property hosts a number of Copper-Gold porphyry/skarn type deposits aligned into 3 structural corridors crossing the property in the Southwest-Northeast direction as shown on Plan 2. The most studied corridor is located to the east part of the property. Along strike from the South pit to the North pit and including the Maria Jose targets, over 6 km of mineralization have been identified and drilled with the first two targets hosting the mineral resources.
The drilling results of 2022-2023 have delineated the existence of two individualized Cu-Au Porphyries into the mineral resources area. The porphyry stock in the North Pit is emplaced from depth to surface from east to west, developing in the cupula a quartz stockwork with Potassic alteration hosting >1.0 %CuEq which extends to 800 m depth along plunge, with 250m width and along 700m strike following the structural control in the Northeast direction. In the South pit, the porphyry demonstrates a feeder shape hosting a body of 0.80 %CuEq sizing some 600m at depth and 150m width and striking 400m along the structural corridor, where the stock is hope open to the east and at depth.
The average copper:gold ratio, in terms of contained metal value, in the South Pit is 1:1 demonstrating a higher gold content than in the North Pit, where the average ratio is 2.7:1. The silver:gold ratio in the South pit is 6:1 while in the North pit it is 14:1.
The Cotabambas Project has a number of areas with significant exploration potential:
The exploration programs in the area of the mineral resources and at the other targets identified on the property, are supported always by constant collaboration with the local communities under a spirit of respect and mutual respect. Over more than one decade, five drilling campaigns have been completed which continue to demonstrate a strengthening relationship with the local communities and the Company.
The Company's plan is complete a Prefeasibility Study for the Cotabambas Project. The updated resource estimate will be used to update the mine plan, prioritizing the mining of the high-grade component of the resource within a starter pit. The updated mine plan will illustrate if any additional infill drilling is required to upgrade additional high-grade resource to indicated category. The completed trade-off studies related to process, infrastructure and waste storage will be incorporated into an updated PEA which will serve as a snapshot of the Prefeasibility study targets and identify priority areas to optimize the prefeasibiity study
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:
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:
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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SOURCE Panoro Minerals Ltd.
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