Cerro de Pasco Resources receives Green Light on Land Easement Application Process for Quiulacocha Tailings
Cerro de Pasco Resources receives Green Light on Land Easement
Application Process for Quiulacocha Tailings
MONTRÉAL, QUÉBEC, CANADA — (January 11, 2024) Cerro de Pasco Resources Inc.
(CSE:CDPR) (OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Company”) is pleased to
announce that, following the special session held on 30th November 2023, the independent
Mining Council has issued a definitive resolution effectively endorsing CDPR’s application
for a Legal Easement (“Easement”).
The Mining Council Resolution
The resolution addresses in detail the numerous observations raised by Activos Mineros
(“AMSAC” described below), via an appeal filed in September 2023 and during the special
session itself. Thus, it secures CDPR’s right to continue the procedure for the attainment
of the Easement to gain access to the surface areas corresponding to the Company’s El
Metalurgista Concession and the Quiulacocha Tailings Project (“QT Project”) and its ability
to perform confirmatory exploration via a 40-hole sonic drilling program.
Supreme Resolution
Accordingly, the General Mining Bureau (“ DGM”) will now begin the final step of the
easement procedure, namely the drafting of the Supreme Resolution leading to
authorization to begin drilling in the second quarter this year, during the Andean dry
season. The Supreme Resolution will require signatures from the Ministry of Energy and
Mines, the Ministry of Agriculture and the President of the Country and is expected to be
complete during the first quarter this year.
Timeline
CDPR expects to complete the 40 -hole drilling program and the first phase of the QT
preliminary economic assessment (PEA) by Q 3 of 2024, leading to the preparation of a
technical report on Mineral Resources , compliant with NI 43 -101 (as defined herein) for
the Quiulacocha tailings within our “El Metalurgista” concession.
Guy Goulet, CEO of Cerro De Pasco Resources, “ Our perseverance and meticulous
adherence to process has finally paid off. The Mining Council resolution should lead to
rapid unfolding of actions and events leading to the confirmation of a very large above-
ground resource and a prosperous future for the city of Cerro de Pasco. As stated before,
Forced Easements are rare in Peru and we are grateful to the authorities for securing our
rights and for recognizing the merits of our project.”
Terms of the Easement
CDPR will pay AMSAC approximately US$1 million (3.7M soles) for the Easement and will
be permitted to access and perform drilling inside its own concession area over a period
of two years, providing access to the surface areas corresponding to CDPR’s El Metalurgista
Concession and the QT Project. The Easement will enable the Company to perform
confirmatory exploration via a 40-hole sonic drilling program.
Supreme Decree
On confirmation of study results, the DGM would continue the assessment of CDPR’s
request for a Supreme Decree which releases AMSAC from its responsibility to perform
closure of the Quiulacocha Tailings and granting CDPR rights to reprocess the entire
tailings resource, beyond the current El Metalurgista boundaries.
Exploration program
The program will include drilling geophysical studies, a 40 -hole sonic drilling program,
laboratory testing, minerology studies, resource estimation and economic assessmen t,
with the objective of filing a technical report compliant with NI 43 -101. Funding for the
program is covered by a US$ 2 Million loan from Glencore International Ag. Funds will be
disbursed in accordance with a schedule of milestones and repayment will occur within
12 months from the start of commercial production. CDPR has not provided any off-takes
commitments on its Quiulacocha Project.
Activos Mineros SAC (“AMSAC”)
Activos Mineros SAC (“AMSAC”) is a state -owned entity formed in 2006, originally
mandated to carry out closure and remediation of state environmental liabilities
stemming primarily from the privatization of Centromin, the state mining company, in
1994.
The Quiulacocha Tailings
The Quiulacocha Tailings Storage Facility covers approximately 115 hectares and is
estimated to hold approximately 75 million tonnes of tailings deposited from the 1920s to
1990s, with tailings deposited in the Quiulacocha Tailings Storage Facility from the early
1920´s to 1992.
The Quiulacocha Tailings Storage Facility is comprised of processing residues that came
from the Cerro de Pasco open pit and underground mine. Initially these tailings resulted
from the mining of copper-silver-gold mineralization with reported historical grades of up
to 10% Cu, 4/gt Au and over 300g/t Ag and later from the mining of zinc -lead-silver
mineralized material with average historical gr ades of 7.41% Zn, 2.77% Pb and
90.33 g/t Ag.
The most recent Historical Mineral Resource Estimate for the Quiulacocha tailings,
prepared by JA Brophy in 2012, contained 7.4 million tonnes at 1.35% to 1.55% Zn, 0.55%
to 1.00% Pb and 1.20 to 1.35 oz/t Ag. This estimate was based on a shallow surface auger
sampling program which is estimated to represent only 10% of the expected tonnes of the
tailings. Historical Mineral Estimates are historical in nature and cannot be relied upon
for economic evaluations.
Background
CDPR is the titleholder of the concession located in Peru called “El Metalurgista” (“the
Concession”), which grants it the right to explore and exploit the Quiulacocha Tailings
located within its assigned area. The enforceability of these rights has been formally
confirmed by the General Mining Bureau of Peruvian Ministry of Energy and Mines.
CDPR has obtained most of the certifications and authorizations required to start
exploration activities at the Concession, including an environmental certification (“DIA”),
and an agreement with the Quiulacocha Community providing certain surface rights. The
Company is fully committed to applying the highest standards in community relations and
endorses guidelines set out by the International Organization for Standardization (ISO), in
its 26000:2010 Standard that defines Corporate Social Responsibility.
Technical Information
Mr. Jorge Lozano, MMSAQP 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.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is a mining and resource management company with
unparalleled knowledge of the mineral endowment in the city of Cerro de Pasco and its
surroundings. Initially, the Company will unlock the useful life of the mine and extend the
concession areas in its Santander mining operation, applying the highest safety,
environmental, social and governance standards. The key focus of the growth for the
Company is on the development of the El Metalurgista mining concession, one of the
world's largest surface mineralized resources, applying the latest techniques and
innovative solutions to process tailings, extract metals and convert the remaining waste
into green hydrogen and derivatives.
Further Information
Guy Goulet, CEO
Telephone: +1-579-476-7000
Mobile: +1-514-294-7000
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
using forward -looking terminology such as “plans”, “seeks”, “expects”, “estima tes”,
“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 the expectations of CDPR’s
management regarding the anticipated use of the proceeds raised under the Offering, the
signature of a definitive ruling in favor of the Easement, the terms of such Easement and
the timing of such signature, the projected timeline of the exploration program described
herein, the commencement of the first phase of the QT PEA and of the preparation of a
report compliant with NI 43-101, 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 from those
expressed or implied by such forward-looking statements or forward-looking information.
Forward-looking statements are subject to business and economic factors and
uncertainties and other factors that could cause actual results to differ materially from
these forward -looking statements, including the risks associated with exploration,
development and mining activities; the impact of macroeconomic events, and any
material adverse effect on the business, properties and assets of CDPR, as well as the
relevant assumptions and risks factors set out in CDPR’s public documents, av ailable on
SEDAR+ at www.sedarplus.ca. 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. Although CDPR believes that the assumptions and factors
used in preparing the forward-looking statements are reasonable, undue reliance should
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.