Vancouver, B.C. and Lima, Peru, March 17, 2008. Panoro Minerals Ltd. (the Company) is pleased to announce that it has granted Cosorcio Minero Horizonte (CMH), a privately owned gold mining company of Peru, an option to earn a 50% interest in two projects in the Apurimac region of Peru, south of Cuzco which the Company had acquired as part of the purchase of Cordillera de las Minas from CVRD (Vale) and Antofagasta in 2007. Cochasayhuas is a vein type gold project with historically reported production of 401,000 ounces of gold and 480,000 ounces of silver while Checca is an early stage exploration project with potential to host epithermal gold mineralization.
The following are the principal terms of the Option Agreement:
- CMH will have to spend a total of US$2 million to earn a 50% interest in the two projects or in one of the two projects if CMH abandons one property.
- CMH is firmly committed to spend a minimum of US$1.1 million on Cochasayhuas including a minimum of 3000m diamond drilling and CMH is also firmly committed to a minimum expenditure of US$500,000 on Checca. If CMH does not wish to drill Checca after their US$ 500,000 program, Checca is returned to Panoro.
- After CMH has earned its 50% interest a joint venture company will be formed in which Panoro can elect to maintain its 50% interest or allow CMH to earn an additional 10% interest for an incremental expenditure of US$ 3 million in a Phase II program funded solely by CMH. Panoro can defer its election to maintain its 50% interest until CMH has also carried out a 3,000m drill program on Checca, unless Checca has been returned to Panoro.
- If Panoro elects to maintain its 50% interest during Phase II CMH will either lend Panoro its share of US$ 1.5 million, to be recovered with interest from production, or subscribe to US$ 1.5 million worth of Panoro’s treasury shares, the proceeds of which will be committed to Panoro’s share of the costs for this phase. The share price of the subscription will be the volume weighted average of the ten days preceding CMH’s election of this alternative and be subject to TSX approval.
The term of the Option is for 16 months starting after the necessary permits with the affected communities for the surface rights and the authorities have been obtained.
CONSORCIO MINERO HORIZONTE S.A (CMH). is a highly respected Peruvian gold producer, owned by the Navarro - Grau family, who has managed the company during the past 30 years. Its principal operation is an underground gold mine, located in the District of Parcoy, Province of Pataz, La Libertad Region (Peru north central). The CMH - Parcoy mining site is situated in the Batholith of Pataz, one of the most productive mining districts in Perú.
CMH has been awarded International OHSAS 18001 Certification for compliance with International Safety and Occupational Health Standards. CMH has also been awarded International ISO 14001 Certification for compliance with international environmental standards in its operations.
The following information has been supplied by the management of CMH:
“During its productive life, CMH has processed ore with grades between 10 and 15 grams gold per tonne, which are processed in its 1500 tonnes per day plant. In 2007, CMH has produced 155,554 ounces of gold, for a total of 1,703, 996 ounces since 1986. In December 2007, the company has reported resources and reserves for 5 years of operation. For 2008, the company plans to produce 161,000 ounces of gold.
Since 2000, the company has invested more than US$50 million in fixed assets and civil works aimed mainly at the expansion of the Parcoy facility and the deepening of the mine in order to assure the mine life to at least 2017.
A second CMH operations unit is located in the province of Sandia, Puno region (South Eastern Peru), where the company has been producing 60 kilograms of gold concentrate per month in its 350 tonne per day plant since January 2007. During last year, this unit has produced 21,800 ounces gold and plans to produce 27,800 ounces in 2008 by means of a plant expansion program.
CMH mining group has also carried out exploration programs on several properties inside and near the batholith of Pataz and other gold regions in the north and south of the country. One of the most developed projects is Minaspindo (a region considered the extension of the batholith of Pataz and a new mining district), which in the last geological report shows a potential of 2.3 million ounces of gold in 2 of the 25 targeted zones.”
The Board of Panoro is particularly pleased to have found such a respected and experienced miner as partner for these two projects.
On behalf of the Board of
Panoro Minerals Ltd.
Helmut H. Wober, P. Eng.,
President and Director
Panoro Minerals Ltd. is a Canadian mineral exploration company trading on the TSX Venture Exchange (PML) and on the Frankfurt Stock Exchange (PZM, WKN 914959) and on the Junior Board of the Lima Exchange. Panoro’s strategic focus is on exploring for large-potential gold and copper/gold deposits in countries with the corresponding geological potential and where the right political and economic conditions are present. For investor inquiries please call 604-684 4246, or send an e-mail to firstname.lastname@example.org or visit the company’s website at www.panoro.com.
This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.