Re: News Release - Monday, March 17, 2008
Panoro Grants Consorcio Minero Horizonte Option to earn 50% in
Cochasayhuas and Checca Projects
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:
1. 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.
2. 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.
3. 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.
4. 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
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 Per�.
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
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
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
Copyright (c) 2008 PANORO MINERALS LTD. (PML) All rights reserved.
For more information visit our website at http://www.panoro.com/ or