Panoro awaits US$4M cheque from Centauro

While results from Panoro Minerals’ (PML-V) infill drilling program at the Antilla copper-molybdenum project in Peru were in line with company expectations, the behaviour of its Peruvian joint-venture partner has been anything but that.

Vancouver-based Panoro signed a joint-venture agreement with Lima-based Centauro in early April 2010 that saw Centauro step in as operator of the project.

The deal called for Centauro to pay Panoro US$8 million in cash and invest US$17 million into Antilla in order to earn a 70% interest over a 30-month period.

At the time of the deal, Panoro’s president and CEO Luquman Shaheen had nothing but praise for its new partner, heralding Centauro as a “successful Peruvian mining company with a proven track record.”

He went on to say that the partnership was “a great example of Canadian exploration and Peruvian mining companies working together.”

But Panoro likely has a bitter taste in its mouth now that the privately held Centauro has missed a key payment deadline. Centauro was due to pay Panoro US$4 million as part of the joint-venture agreement on July 16 but no money was forthcoming.

“Panoro is working to resolve the matter as quickly as possible,” the company said in a statement.

On Aug. 20, Panoro released assay results from the second batch of four drill holes that were drilled as part of its infill drill program at the East Block of Antilla’s main zone.

Highlights include 39.8 metres grading 0.84% copper and 0.028% molybdenum, 58.4 metres of 0.69% copper and 0.013% molybdenum and 73.5 metres of 0.46% copper and 0.005% molybdenum.

While those wide intercepts were anticipated, the company says the results point to the possibility that the average grade of the deposit will increase in the next resource update.

The high-grade zone at Antilla currently has an inferred resource of 70 million tonnes grading 0.56% copper and 0.011% molybdenum.

Overall, however, Antilla has an inferred resource of 154 million tonnes grading 0.47% copper and 0.009% molybdenum.

The company says mineralization consists of a tabular blanket of supergene sulphide mineralization dominated by chalcocite and molybdenite and is open to the north and northeast.

In Toronto, the day the assay results were released, Panoro’s shares were off 8% or 2¢ to 24¢ on 50,000 shares traded.