Cerro de Pasco Resources Advances Tailings Retreatment and Removal Project in Peru
CSE:CDPR
Cerro de Pasco Resources Advances Tailings Retreatment and
Removal Project in Peru
MONTREAL, QUÉBEC, CANADA — (July 30, 2019) Cerro de Pasco Resources Inc. (CSE:CDPR) (Frankfurt:
N8HP) (“CDPR”, or the “ Corporation“) reports that an environmental impact declaration ( Declaracion
Impacto Ambiental) (the “DIA”) for the Quiulacocha tailings deposit located in the Simon Bolivar District
of Pasco, Peru has been presented on July, 26, 2019 to the Peruvian Ministry of Energy a nd Mines (the
“MINEM”) for evaluation and approval.
The DIA provides the details and coordinates for the 40-hole Drilling Program that CDPR intends to carry
out on its El Metalurgista Concession located within the Quiulacocha tailings deposit . The Quiulacocha
tailings deposit covers 115 hectares and is estimated to hold approximately 70 million tonnes of tailings
which contain recoverable metals such as silver, zinc, lead, copper, gold and other strategic metals.
Cerro de Pasco mining operations started in 1630 and are still operational today. The tailings, comprised
of processing residues, come from the Cerro de Pasco open pit and underground mine and have been
deposited in Quiulacocha since the early 1900’s. Initially these tailings resulted from the mining of copper-
silver-gold ores with reported historical head grades of up to 10% Cu, 4g/t Au and over 300g/t Ag and later
from the mining of zinc-lead-silver orebodies with average historical grades of 7.41% Zn, 2. 77% Pb and
90.33g/t Ag. The most recent historical Mineral Resource Estimate 1 by BO Consulting in 2012 reports
2.9 Mt at 1.43% Zn, 0.79 % Pb, 43.1 g/t Ag, and 0.04% Cu. This estimate was based on a shallow surface
auger sampling program and represented only 4% of the expected tonnes of the deposit.
The Drilling Program will focus on the center and deeper section of the tailings deposit and will be
executed through the use of sonic or other suitable drilling equipment to collect PQ size core. Drilling will
be conducted on a 100 x 100 meter grid and will reach the bottom of deposit. The drilling will confirm the
grades already established in the upper portion of the tailings while also intersecting the expected higher-
grade tailings in the deeper sections of the deposit. The Sampling and Assaying Program from the drilling
will be comprised of a Quality Assurance/Quality Control program which includes the insertion of blanks,
standards, twin samples, duplicate pulps and coarse rejects and a selection of sample pulps to be sent to
a secondary laboratory. After completing the Sampling and Assaying Program and Mineralogical Studies,
composites will be generated to undertake detailed metallurgical studies.
1 These estimates are detailed and discussed in the technical r eport titled The Excelsior Mineral Pile (EMP) and Quiulacocha
Tailings (QT) associated with the Cerro de Pasco Mine, Cerro de Pasco District, Altiplano Region, North-Central Peru dated July 24,
2018. They are treated as historic information and have not been verified for economic evaluation by the Corporation. These are
considered Historical Mineral Resources and do not refer to any category of sections 1.2 and 1.3 of the Canadian Securities
Administrator's National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (" NI 43 -101") such as Mine ral
Resources or Mineral Reserves as stated in the 2010 CIM Definition Standards on Mineral Resources and Mineral Reserves. A
Qualified Person (within the meaning of NI 43 -101) has not done sufficient work to classify the historical estimate as current
Mineral Resources or Mineral Reserves. The explanation lies in the inability by the Qualified Person to fully verify the data
acquired by the various historical drilling campaigns and other sampling works. Further drilling would be required to upgrade or
verify the historical resources. However, the Qualified Person has read the documents pertaining to historical evaluation of the
Mineral Resources and is of the opinion that they need to be updated to fully conform to the NI 43-101 or CIM norms.
CDPR has proposed for MINEM to grant rights to the tailings areas which surround CDPR’s El Metalurgista
Concession. It is important for CDPR to have full access to the entire tailings area in order for CDPR to
conduct a comprehensive analysis and develop an effective retreatment and remediation plan. In this
regard CDPR has offered to provide MINEM with an irrevocable performance guarantee with respect to
its activities on the surrounding Quiulacocha tailings. Senior management at CDPR stated: “We are
confident that MINEM wil l see the merits of our Project. Once we are granted the rights to the
surrounding tailing area, we will extend the boundaries set forth in the DIA and prepare an EIA for the
retreatment of both the tailings located within our Concession and for the remai ning tailings which
surround us, in accordance with mining environmental regulations.”
The safe removal of tailings is one of CDPR’s main priorities. The tailings will be removed by water
monitors and slurry pumps on barges that will pump the material to the adjacent processing plants for
safe retreatment . Furthermore, CDPR plans to deposit the tailings in specifically designed and lined
tailings storage facilities thereby removing the environmental risk to the Lago Junin biosphere.
Subsequent to the tailing’s removal, the Quiulacocha area will be rehabilitated and returned to the
communities.
CDPR has the full technical capability to conduct the tailings retreatment and removal in a responsible
manner. Additionally, CDPR’s management has extensive experience in the retreatment of tailings in
Africa and South America. Tailings retreatment operations have successfully been conducted throughout
the globe including:
• New Century Resources zinc tailings retreatment operation in Australia
• Minsur B2 tin tailings retreatment operation in Peru
• DRD Gold tailings retreatment operation in South Africa
• Amerigo Resources copper tailings retreatment operation in Chile
CDPR’s retreatment Project provides a sustainable solution for the local popula tion as well as multiple
economic benefits for Cerro de Pasco’s government . Specifically, the Project will enhance Cerro de
Pasco’s economy by creating employment opportunities, offering special royalties to the communities
and by generating tax income for the local and national government. The Project will also provide a
permanent and effective remediation to safeguard Quiulacocha’s tailings environment. CDPR
understands this effort to be beneficial for both the local communities and Project Stakeholders involved.
CDPR Commitments to Internationally -Accepted Industry Practices for Environmental, Community,
Safety, Anti-Corruption, and Corporate Social Responsibility (CSR) Matters
CDPR’s key focus is the environmental remediation through the extraction of remaining valuable minerals
from the stockpiles and deposits generated by previous local mining activities. CDPR endorses and
conducts responsible mining practices. CDPR will utilize up-to-date technology and industrial
development solutions to secure long-term economic sustainability and a healthy and prosperous local
population at Cerro de Pasco.
CDPR clearly recognizes that the communities and the environments in which it operates in are inter-
dependent and that it may be held accountable for any effects and potential consequences. The proper
management of these inter -connecting activities is essential to the economic well -being of CDPR.
Therefore, CDPR is totally committed to having first -rate programs for: protection of the environment ;
providing safe workplaces for its employees and contractors; responsibly and ethically managing our
relationships with its Project stakeholders and in the local communities where it operates; and, ensuring
that CDPR is one that readily accepts and promotes itself as following the principles of corporate social
responsibility or CSR.
CDPR has a rigorous commitment to the principles of corporate social responsibility, anti -corruption
ethics, sound environmental practic es, safe working conditions for our employees, and positive
community involvement in its Projects. To that end, CDPR has strong, formal policies on these matters,
which conform to generally -accepted international standards, that have been formally adopted by the
CDPR Board.
CDPR’s development of the Cerro de Pasco Project will be guided by internationally -accepted core
principles and strategic goals. As such, CDPR will be driven by the Principles of Performance (listed below)
of the International Council on Mining and Metals (ICMM), a well -respected international organization
dedicated to a safe, fair, and sustainable mining and metals industry. The ICMM is comprised of 26 of the
world’s leading mining and metals companies and 35 regional and commodities associations.
1. Apply ethical business practices and sound systems of corporate governance and transparency to
support sustainable development
2. Integrate sustainable development in corporate strategy and decision-making processes
3. Respect human rights and the interests, cultures, customs and values of employees and
communities affected by our activities
4. Implement effective risk-management strategies and systems based on sound science and which
account for stakeholder perceptions of risks
5. Pursue continual improvement in health and safety performance with the ultimate goal of zero
harm
6. Pursue continual improvement in environmental performance issues, such as water stewardship,
energy use and climate change
7. Contribute to the conservation of biodiversity and integrated approaches to land-use planning
8. Facilitate and support the knowledge -base and systems for responsible design, use, re -use,
recycling and disposal of products containing metals and minerals
9. Pursue continual improvement in social performance and contribute to the social, economic and
institutional development of host countries and communities
10. Proactively engage key stakeholders on sustainable development challenges and opportunities in
an open and transparent manner. Effectively report and independently verify progress and
performance
Update on Trading Halt
On April 10, 2019, a temporary trading halt was requested by CDPR in anticipation of potential material
transactions. The Corporation expects to be able to announce such transactions in the near future. The
Corporation will disclose any transactions as soon as they occur, at which point it is expected that trading
of CDPR shares will resume.
Technical Information
Donald E. Hulse, P. E., SME -RM and principle mining engineer with Gustavson Associates in Denver, has
reviewed and approved the scientific and technical information regarding the technical information
contained in this news release. Mr. Hulse is a Qualified Person within the meaning of NI 43-101.
About Cerro de Pasco Resources Inc.
Cerro de Pasco Resources Inc. is a resource mana gement company attuned to the most demanding
environmental, social and legal compliance required by global institutions and investors. The key strategic
strength of the Corporation is an unparalleled knowledge of the challenges and opportunities presented
by the minerals endowment within the city of Cerro de Pasco combined with a highly experienced and
practical team of both Peruvian and international management. The key focus of the Corporation will be
on developing the El Metalurgista mining concession using advanced geo-resource and industrial
development solutions in order to secure long-term economic operational sustainability in harmony with
a healthy and prosperous local population.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under Canadian securities
legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such
as, “will be”, “expected” or variations of such words and phrases or statements that certain actions, events or results
“will” occur. Forward -looking statements are based on the Corporation’s estimates and are subject to known and
unknown risks, uncertainties and other factors that may cause th e actual results, level of activity, performance or
achievements of the Corporation to be materially different from those expressed or implied by such forward -looking
statements or forward -looking information. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward -looking statements and forward -looking
information. The Corpo ration will not update any forward -looking statements or forward -looking information that
are incorporated by reference herein, except as required by applicable securities laws.
Contact Information
Cerro de Pasco Resources Inc.
Guy Goulet, President and CEO
Tel.: 579 476-7000
Email: [email protected]