Cerro De Pasco Resources Files Preliminary Economic Assessment for the Santander Pipe Project
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Cerro De Pasco Resources Files Preliminary Economic Assessment for the
Santander Pipe Project
MONTRÉAL, CANADA – (April 11, 202 3) Cerro de Pasco Resources Inc. (CSR: CDPR)
(OTCMKTS: GPPRF) (Frankfurt: N8HP) (“CDPR” or the “Company”) announces it has filed on
SEDAR an independent Preliminary Economic Assessment (“PEA”) for its brownfield Pipe
Project (“the Project” or “the Santander Pipe”). The Project forms a strategic cornerstone
for CDPR’s 100% owned Santander Mine, located in central Peru. The PEA report is entitled
“NI 43-101 Technical Report Cerro de Pasco Resources Preliminary Economic Assessment
Santander Pipe Deposit, Huaral, Lima, Peru ”, dated April 11th, 2023 (effective date January
31st, 2023) and was prepared by DRA Global, an international mining consultancy, in
accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects
(“NI 43-101”).
Highlights of the PEA are tabled below, with additional details of the NI 43 -101 Technical
Report filed on www.sedar.com under CDPR´s profile and on the Company's website at
www.pascoresources.com.
Table 1. PEA Highlights
Unit TOTAL
Throughput Rate (tonne-per-day processed) tpd 2,500
Estimated Production Period years 5
Tonnes Processed Million tonnes 3.85
Head Grade Zn % 4.67
Metallurgical Recovery Zn % 89.0
Head Grade Cu % 0.11
Metallurgical Recovery Cu % 70
Zn Concentrate Production Thousand tonnes 313.6
Cu Concentrate Production Thousand tonnes 13.8
Revenues (less by product cost)(1) MUSD 388.6
Total OPEX MUSD 182.14
Initial + Sustaining CAPEX MUSD 67.96
EBITDA MUSD 167.6
Pre-Tax Free Cash Flow (FCF) MUSD 99.6
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Unit TOTAL
Operating Cost ($/t processed) $/t 47.35
Total Cash Cost C1(2) ($/lb Zn) $/lb 0.82
All-In Sustaining Cost(2) (“AISC”)1 ($/lb Zn) $/lb 1.05
Pre -Tax - Net Present Value (6%) MUSD 71.3
Pre-Tax Internal Rate of Return % 46.6
After-Tax - Net Present Value (6%) MUSD 31.2
After-Tax Internal Rate of Return % 25.1
After-Tax Payback years 2.6
(1) Long-term metal price assumptions are: US$2,800/t of Zn, US$1,820/t of Pb, US$9,002/t
of Cu, and US$22.0/oz of Ag
(2)Total cash cost C1 and AISC are non-GAAP measures; these parameters were estimated by
CDPR in accordance with its cost structure, the r emaining parameters in the table come
directly from the PEA Financial Model prepared by DRA.
Table 2. Project Economics Sensitivity to Zinc Price
% of Zn
Price 80% 85% 90% 100%(1) 110% 115% 120%
US$/t Zn 2,240 2,380 2,520 2,800 3,080 3,220 3,360
Pre-Tax
NPV 6%
(MUSD) 9.9 25.3 40.6 71.3 102.1 117.5 132.9
NPV 8%
(MUSD) 6.5 20.8 35.1 63.7 92.4 106.7 121.1
IRR (%) 12.6 22.0 30.7 46.6 61.2 68.2 75.0
After-Tax
NPV6%
(MUSD) -10.4 0.1 10.5 31.2 51.7 61.6 71.7
NPV 8%
(MUSD) -12.5 -2.7 7.0 26.3 45.4 54.7 64.0
IRR (%) -1.4 6.1 12.9 25.1 36.2 41.3 46.2
(1) Base Case (Pre-Tax NPV 6% and After-Tax 6%)
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by:
• Mr. Graeme Lyall (FAusIMM), an independent consulting geologist with over 30 years of
professional experience in precious and base metals exploration, geological modelling and
mineral resource estimation for the purposes of reporting in compliance with NI 43-101.
• Mr. Martin Mount (FGS CGeol, FIMMM CEng), an independent consultant and geoscientist,
is a professional geoscientist and engineer in the fields of geology, Mineral resource and
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Mineral Reserve estimation and classification, geotechnical engineering, geometallurgy,
and mine planning. Mr. Mount is a Qualified Person for the purposes of reporting in
compliance with NI 43-101.
• Mr. David Frost (FAusIMM), DRA Americas VP Process Engineering, consulting metallurgical
engineer with more than 27 years of technical and manage ment experience in plant
operations, process plant design, commissioning, due diligence review, laboratory
supervision and consulting. Mr. Frost is a Qualified Person for the purposes of reporting in
compliance with NI 43-101.
• Mr. Javier Aymachoque Tincusi (MAusIMM CP (Min)), consulting mine engineer and project
infrastructure specialist, is a professional engineer in the fields of mine engineering, mine
operations, site wide mine and infrastructure design, environmental permitting, capital and
operating cost estimation, and mineral economics. Mr. Aymachoque is a Qualified Person
for the purposes of reporting in compliance with NI 43-101.
• Mr. Pete Ferreira (FSAIMM), DRA South Africa Principal Mining Engineer, with nearly 40
years of international experience in the mining sector, including backfill design and
installation, raise boring, mine management, flat raise boring, and classified backfill. Mr.
Ferreira is a Qualified Person for the purposes of reporting in compliance with NI 43-101.
Jorge Lozano, MMSAQ P and Chief Operating Officer for CDPR, has reviewed and approved the
scientific and technical information contained in this news release. Mr. Lozano is a Qualified Person
for the purposes of reporting in compliance with NI 43-101.
Note on Assumptions
The PEA results are based on important assumptions made by the Qualified Persons who prepared
the PEA. These assumptions, including those mentioned above, and the justifications for them, are
described in the PEA.
The PEA is preliminary in nature and inclu des inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a resource management company, founded in 2012 with the
original purpose of developing the El Metalurgista mining concession comprising mineral tailings
and stockpiles extracted from the Cerro de Pasco open pit mine in central Peru. Our strategic
strength lies in our extensive team experience and knowledge of the opportunities and challenges
in and around Cerro De Pasco. The company is founded on clear objectives, to engender long-term
economic sustainability and benefit for the local population, from an economic, social and health
point of view. The Company’s approach at El Metalurgista entails the reprocessing and
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environmental remediation of mining waste and the creation of numerous opportuni ties in a
circular economy.
About DRA Americas Peru
DRA Americas Peru is a subsidiary of DRA Global Limited and is responsible the PEA report entitled
“NI 43 -101 Technical Report Cerro de Pasco Resources Preliminary Economic Assessment
Santander Pipe De posit, Huaral, Lima, Peru”, dated April 11 th, 2023 (effective date January 31 st,
2023). DRA Global Limited (ASX: DRA | JSE: DRA) is a diversified global engineering, project delivery
and operations management group, headquartered in Perth, Australia. It has more than 4,500
professionals and a proven track record in undertaking independent assessments of Mineral
Resources and Mineral Reserves, project evaluations and audits, technical reports and independent
evaluations on behalf of exploration and mining companies, and financial institutions worldwide.
Forward-Looking Statements and Disclaimer
Certain information contained herein may constitute “forward -looking information” under
Canadian securities legislation. Generally, forward -looking inf ormation can be identified using
forward-looking terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”,
“anticipates”, “believes”, “could”, “might”, “likely” or variations of such words, or statements that
certain actions, events or results “may”, “will”, “could”, “would”, “might”, “will be taken”, “occur”,
“be achieved” or other similar expressions.
Forward-looking statements, including estimates and assumptions underlying the PEA , projected
production, cost estimates , capex estimates , projected recovery, projected gross revenue and
taxes, future results, the significance of the results disclosed in this news reléase, the expectations
of CDPR’s management regarding the completion of the project as well as the business and the
expansion a nd growth of CDPR’s operations, are based on CDPR’s estimates and are subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of CDPR to be materially different f rom those expressed
or implied by such forward-looking statements or forward-looking information.
Such factors include, among others, risks relating to the ability of CDPR’s activities to accurately
predict mineralization; errors in management's geological modelling; key assumptions, parameters
or methods used to prepare the PEA becoming untrue or unachievable; the ability of the Company
to obtain required approvals; the results of exploration activities; title deficiencies; risks relating to
mining activities; the global economic climate; metal prices; environmental risks; community and
non-governmental actions as well as other assumptions and risks factors set out in CDPR’s public
documents, available on SEDAR at www.sedar .com. There can be no assurance t hat such
statements will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Although CDPR believes that the assumptions and
factors used in preparing the forward -looking statements a re reasonable, undue reliance should
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not be placed on these statements and forward -looking information. Except where required by
applicable law, CDPR disclaims any intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
Further Information
Guy Goulet, CEO
Telephone: +1-579-476-7000
Mobile: +1-514-294-7000