Resource World Magazine

40 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 Panoro Minerals Ltd. [PML-TSXV, Lima; PZM-FSE] has been increasing mineral resources at its two 100%-owned flagship proj- ects – the Antilla porphyry copper-molybdenum project and the Cotabambas porphyry copper-gold-silver project – both located in southern Peru. The company engaged independent consultant Tetra Tech to conduct the resource estimates. In mid December 2013, Panoro released its Base Case indicated resource for the Antilla Project that was based on 9,130 metres of drilling results (49 holes) by the company that were available by June 11, 2013 as well as 5,162 metres of drilling (39 holes) done by others. The resources include supergene and hypogene sulphides from the East block deposit contained within a single conceptual pit shell. The Base Case indicated resource is pegged at 188.5 million tonnes grading 0.40% copper and 0.009% molybdenum at a cut-off grade of 0.20% copper equivalent (Cueq) while the Base Case inferred resource stands at 145.9 million tonnes grading 0.28% copper and 0.009% molybdenum at a cut-off grade of 0.20% Cueq. At the 0.20% Cueq cut-off grade, this equates to 1.7 billion lbs of copper and 36 million lbs molybdenum. The new resource estimates reflect a 38% increase in contained copper and a 53% increase in contained molybdenum. In addition, the strip ratio (waste:ore) of the conceptual pit shell used to constrain the mineral resource is reduced to 1:1 from 2.5:1 as was reported in the 2012 resource estimate. There is also potential to increase resources in several directions and below the current pit shell through additional drilling on the basis of strong copper-molybdenum mineralization as well as new exploration targets that have been identified on the Antilla property. In late October 2013, Panoro received the mineral resource estimate for the Cotabambas Project that was based on drill results available to June 20, 2013 including 56,813 metres of drilling by Panoro and 9,923 metres of drilling from legacy campaigns. The mineral resource estimate includes hypogene and supergene sulphides and oxide cop - per and gold mineralization from the Ccalla and, to a lesser extent, the Azulccacca zones contained within a single conceptual pit shell. The Cotabambas Base Case indicated resource totaled 117.1 mil- lion tonnes grading 0.42% copper, 0.23 g/t gold, 2.74 g/t silver and 0.0013% molybdenum at a cut-off grade of 0.20% Cueq. The Base Case inferred resource totaled 605.3 million tonnes grading 0.31% copper, 0.17 g/t gold, 2.33 g/t silver and 0.0019% molybdenum at a cut-off grade of 0.20% Cueq. At the cut-off grade of 0.20% Cueq, this equates to 1.09 billion lbs copper, 0.86 million oz gold, 10.30 million oz silver and 3.45 million lbs molybdenum. The new resource reflects a 40% increase in contained copper, a 41% increase in contained gold and a 51% increase in contained silver. The strip ratio of the conceptual pit shell used to constrain the mineral resource is reduced to 1.3:1 from 3.0:1 as was reported in the 2012 resource estimate. There remains potential to increase resources in several directions and below the current pit shell through addi - tional drilling on the basis of strong copper-gold mineralization and multiple new exploration targets identified on the Cotabambas property. As an example of the strong copper-gold mineralization at Cotabambas, Panaoro reported drill results in July 2013 for hole CB-139 of 128.9 metres of primary copper mineralization grading 1.29% copper, 0.96 g/t gold and 9.4 g/t silver, including 59.7 metres averaging 1.64% copper, 1.30 g/t gold and 10.3 g/t silver, underlain by a second interval of 198.6 metres of primary copper mineralization grading 0.48% copper, 0.24 g/t gold and 4.7 g/t silver, including 48.0 metres grading 0.82% copper, 0.41 g/t gold and 8.3 g/t silver. Luquman Shaheen, President and CEO, said, "We are pleased that the updated resource for the Antilla Project demonstrates key improvements to the project's metrics that provide a strong basis on which to commence a Preliminary Economic Assessment in the near future. The upgrade of 188.5 million tonnes to indicated resources, the addition of 145.9 million tonnes of inferred resources and the strip ratio decrease to 1:1 are significant improvements from the previous 145 million tonnes of inferred resources with a strip ratio of 2.5:1. This Antilla Project resource update together with the Cotabambas resource update announced in October gives Panoro a resource base which has grown over 400% since 2007." Panoro owns 13 copper and gold properties in the prolific Andahuaylas-Yauri copper-gold province in southern Peru as well as one polymetallic project in the northwest part of the country. n Edwin Mayta geological mapping of the open pit resource area at the Antilla Project, Peru. Photo courtesy Panoro Minerals Ltd. Panoro Minerals increasing Peruvian resources By Ellsworth Dickson

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