Vancouver, B.C., December 12, 2011 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro", the "Company") Panoro is pleased to note that Strait Gold Corp. (Strait Gold) has signed a binding agreement with Teck Peru S.A. (Teck), a wholly owned subsidiary of Teck Resources Limited, giving Teck an option to earn up to a 75% interest in the Alicia copper-gold property. Panoro currently holds a 45% interest in the Alicia Project with Strait Gold holding an option to earn in a 100% interest and Panoro retaining a 2% NSR royalty.
Strait Gold has earned in a 55% interest in the Alicia Property having completed the minimum $US 650,000 investment in exploration and the payment of 600,000 Strait Gold shares. A 100% interest can be earned by Strait Gold with the completion of an additional $US 600,000 investment into exploration and the payment of 400,000 additional Strait Gold shares to Panoro. Upon Strait Gold earning a 100% interest, Panoro will retain a 2% NSR royalty with Strait Gold holding the right to purchase half of the NSR royalty with the payment of $US 2.3 million within six months of completing the 100% earn in interest.
Cotabambas Copper/Gold Project Progress
Panoro is currently focused on its Cotabambas Copper-Gold Project located in southern Peru from which the company recently announced results of its on going 24,400 m drill program. To date the company has completed approximately 16 drillholes for a total of 8,595 m of the program. The results from the first 8 drillholes have been announced while other results are pending receipt of assay results from the laboratory. The turn around time for receipt of assay results is being affected by the significant demand for assaying services for laboratories in Peru.
The ongoing drill program is targetting an expansion of the resource from the main Ccalla porphyry with both infill and stepout drillholes. The deposit is open both laterally and at depth and with good potential for expansion into Area 1 and Area 2 along the northeast-southwest trends identified by the recently completed geophysical program. The drillhole program also includes exploration drilling targetting an expansion of the Azulccaca Deposit into Area 3 along a parallel geophysical trend.
The completed drillholes continue to intercept mineralization, confirming the growth potential for the Ccalla deposit. Additional assay results will be announced as they are received.
Panoro is pleased to announce the appointment of Mr. Yves Barsimantov to the position of Vice President of Operations of the company. Mr. Barsimantov joined Panoro in 2010 and has very successfully led the organization and growth of the Company's Peruvian subsidiaries since he joined Panoro. Yves will also continue in his role as General Manager of Panoro's subsidiary Panoro Apurimac.
"The appointment of Yves to Vice President of Operations is firstly recognition of the capabilities and success Yves has brought to Panoro and also of the Company's commitment to grow its business with a strong management team based in Peru" says Panoro's President & CEO, Luquman Shaheen.
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:
|Cotabambas:||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)
|Antilla:||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 is also planning to carry out exploration work at the Antilla Copper-Molybdenum Project, Kusiorcco Copper Project and Cochasayhuas Gold Project in 2012. Panoro has ten other exploration properties in Peru and is currently carrying out technical reviews of these projects and reviewing 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.
Chris Staargaard, M.Sc., 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.