Vancouver, B.C., October 5, 2011 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) (“Panoro”, the “Company”) Panoro is pleased to announce that it has recently completed a 162 line km magnetic survey and an 85 line km Induced Polarization Survey while advancing a 24,400 m drillhole program at its 100% owned Cotabambas Copper-Gold Project in the south of Peru.
Drilling earlier this year confirmed the continuity of mineralization over a 500-metre strike length along the east flank of the Ccalla zone and that it extended a further 200 metres to depth where drilled. Mineralization remains open to the north, south and to depth. In addition to the lateral and depth extensions of mineralization, there is also potential to add resources within the current deposit limits with infill drillholes targeting gaps in the geologic model resulting from the relatively wide 200 m drillhole spacing of historical drilling.
In July, the 2011 exploration program was increased from 5,000 to 24,400 metres of drilling aimed mainly at expanding the resource at the Ccalla deposit. Three drill rigs are currently operating with a fourth expected to arrive soon.
The recently completed magnetic and induced polarization (IP) surveys covered extensions of earlier surveys into areas governed by the third and final community agreement which was obtained earlier this year. The results of the IP survey suggest that rather than being related to a single trend, the Ccalla and Azulccaca zones are actually part of two separate mineralized trends, significantly increasing the area with potential for additional copper-gold mineralization.
The current drill program will require approximately six months to complete and assay results will be released periodically. Upon the completion of drilling, the Company will carry out preliminary metallurgical test work on selected samples of core and commission an updated resource estimate.
Panoro’s strategic focus is to move its advanced stage Copper and Copper/Gold projects to the feasibility and development stages and to explore its other projects. Panoro’s strong cash position following the recent completion of a $7.8 million brokered private placement puts the Company in a good position to continue developing its significant portfolio of exploration projects. The Company’s large portfolio includes the advanced Cotabambas Copper-Gold and Antilla Copper-Molybdenum Projects which include NI 43-101 inferred level resources of:
90 million tonnes @ 0.77% Cu and 0.42 g/t Au @ 0.4% Cu cutoff, SRK 2007 (in situ content of 1.5 billion pounds of Cu and 1.2 million ounces of Au)
154 million tonnes @ 0.47% Cu and 0.009% Mo @ 0.25% Cu cutoff, AMEC 2009 (in-situ content of 1.6 billion pounds of Cu and 30 million pounds of Mo)
In addition to the exploration program at the Cotabambas Project, the Company will also be carrying out exploration work at the Antilla Copper-Molybdenum Project, Kusiorcco Copper Project and Cochasayhuas Gold Project in 2011. Panoro has ten other exploration properties in Peru and is currently evaluating investment alternatives including joint ventures.
Panoro’s significant portfolio of projects is located primarily in the south-eastern region of Peru. This region contains a number of important copper and copper/gold deposits including Xstrata’s Las Bambas and Antapaccay Copper Projects and the Tintaya Copper Mine. In September 2010, Xstrata announced US$5.7 billion of investment to develop the Las Bambas and Antapaccay projects. The region also includes First Quantum Minerals’ Haquira Copper Project and Hudbay Minerals’ Constancia Copper Project.
Christiaan Staargaard, P.Geo., a Director of the Company and 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, M.B.A., P.Eng., P.E.
President & CEO
This release was prepared by management of the Company who takes full responsibility for its contents. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.