Santander Mine Exploration and Drilling Campaign Update
Santander Mine Exploration and Drilling Campaign Update
MONTRÉAL, QUÉBEC, CANADA — (June 19, 2023) Cerro de Pasco Resources Inc. (CSE:CDPR) (OTCPK: GPPRF) (FRA:
N8HP) (“CDPR” or the “Company”) is pleased to report and update on its drilling and exploration campaign at its
wholly owned Santander Mine in Peru.
HIGHLIGHTS
• New La Cuñada Zone in the Santander Pipe. The zone starts at the surface of the historic open pit (4580
masl) down to the bottom of the pit ( 4380 masl), and then continue s downward to the historic
underground operation at level 4220 (where the Upper-Zone starts).
• Positive results were achieved from recent relogging and digitization of historical data relating to the La
Cuñada Zone, comprising 12 historic drill holes totaling 1380 meters and 123 composites, together with
32 historic plans; and modeling of mineralized domains (High-grade, Low-grade, Skarn core) as well as
depletion solids from previous mining.
• The La Cuñada Zone in the Santander Pipe involves vertical mineralization of approximately 200 meters
and has the potential to add 2-3M tonnes with between 3-4% Zn grade 0.3-0.4% Pb, 0.6-0.7 oz/tn Ag and
0.10-0.12% Cu. The La Cuñada Zone, for practical purposes, is divided into two zones: (1) Superficial Zone
“La Isla”, consisting of a remnant volume from old open pit mining, and; (2) “La Cuñada-underground”,
which corresponds to historic underground mining.
• The Company plans to develop an exploration ramp from the surface whereby the cost will be offset over
time through replacement of the previously planned shaft/winch for the Santander Pipe area. Through
this exploration ramp, CDPR expects to have access to exposed Skarn mineralization inside the open pit
by Q4 2024.
• The 2023 Puajanca Drilling campaign comprised 8 boreholes totaling 2,208 meters of drilling. Highlights
include:
o The drill holes SAN-0295 and SAN-0297 intersected 39.6 meters grading 2.92% Zinc 0.81% Lead,
0.02% Copper and 1.60 opt Silver.
o Overall, the Puajanca drilling campaign intercepted 61.8 meters of mineralization with average
grades of 2.96% Zinc 0.98% Lead, 0.03% Copper and 1.8 opt Silver.
Guy Goulet, CDPR’s C EO commented, “The new discoveries at Puajanca which is within close proximity to the
existing operation and the addition of La Cuñada potential zone to the Santander Pipe package are exciting
developments, that not only benefit our Pipe Project but also show the potential of our 56,000ha land package.”
Jorge Lozano, CDPR’s COO commented, “Delineating further zones of underground mineral resources potential
and providing access for future mining, while at the same time improving on the overall CAPEX requirement for
the Pipe project will add significant value to an already attractive project . The exposed Skarn material at the
bottom of La Cuñada open pit will allow us to significantly optimize the timing of Pipe production, as well as
optimizing the project economics for 2024 , improving Santander´s current outlook in the current market
environment and through the construction phase.”
THE SANTANDER PIPE - LA CUÑADA ZONE
• In the 2023 Santander Pipe PEA, the Upper -Zone was recognized as a highly important target with
significant potential to add 3-4M tons of resource with 4-6% Zn grade. The Upper-Zone is supported by
extensive drilling information that is 44.5% higher in drilling density than the main Santander Pipe.
However, due to the water levels in the Upper-Zone the validation of the depletion sold from previous
mining activities under 43-101 standards was not possible.
• An area with similar potential to the Upper-Zone of the Santander Pipe that was not included in the PEA
is the La Cuñada Zone. The Zone starts at surface of the historic open pit (4580 masl) down to the bottom
of the pit (4380 masl), and then continues downward to the historic underground operation at level 4220
(where the Upper-Zone starts). As shown in Fig. 1, we have the new La Cuñada zone, the Upper zone,
Main Pipe and Pipe North Extension.
• Recent information supporting the La Cuñada Zone includes (new to the Santander Pipe Project):
- Digitization of 32 historical plans (Fig. 2.)
- Compilation and re-logging of data from 12 historical drill holes, 1380 meters, 123 composites.
- Modeling of mineralized domains (High-grade, Low-grade, Skarn core) as well as depletion solid
from previous mining.
Fig.1. Pipe zone, ore domain.
Fig.2. Historic plans, La Cuñada project.
• The La Cuñada project can be seen in satellite images, for practical purposes, La Cuñada is divided into
two zones: (1) Superficial Zone “La Isla” (Fig. 3), consisting of a remnant volume of the old open -pit
mining, and (2) “La Cuñada-underground” (Fig. 4), which corresponds historic underground mining.
Regarding “La Isla”, which is primarily the exposed Skan core is located at the bottom of the old open pit
which was developed of annular form, concentrating on high -grade ore bod ies ( >8.0 Zn%) leaving a
massive core of skarn, in addition to relicts in sectors of the periphery, this material (on the surface)
involves approximately 160,000 tons of accessible material.
Fig.3. La Cuñada project, “La Isla” zone.
• The La Cunada Zone drillhole data is summarized as follows:
Open Pit Exposed Core “La Isla”:
Skarn Zone (between 140,000 to 160,000 tonnes)
Hole Width Zn% Pb% Ag oz Cu%
K-85-W#4 21.00 0.67 0.23 0.70 0.06
I-10-W 75.28 2.60 0.47 0.79 0.07
J-26-W#4 3.00 0.40 0.21 0.91 0.32
J-26-W#4 0.80 25.25 0.21 0.80 0.42
J-26-W#4 59.00 0.92 0.24 0.46 0.09
1.79 0.35 0.66 0.08
High-grade Zone (between 18,000 to 22,000 tonnes)
Hole Width Zn% Pb% Ag oz Cu%
K-85-W#4 20 7.34 2.94 2.67 0.18
K-85-W#4 9.5 24.62 0.25 0.47 0.12
12.9 2.07 1.96 0.16
• This superficial new zone (“La Isla”) has the POTENTIAL to add 150,000 – 170,00 tons with between 3-
4% Zn grade 0.3-0.4% Pb, 0.6-0.7 oz/t Ag and 0.10-0.12% Cu.
Fig.4. La Cuñada project, underground zone.
Underground zone:
High-grade Zone (between 630,000 to 660,000 tonnes)
Hole Width Zn% Pb% Ag oz Cu%
7-20-S#2 17.60 14.70 1.21 4.95 0.92
7-20-S#2 13.30 14.04 1.13 2.94 0.13
7-20-S#2 3.99 7.20 2.74 3.10 0.06
7-20-S#1 3.00 4.45 0.21 1.28 0.04
7-20-S#1 28.80 17.30 0.20 1.98 0.09
7-20-S#1 3.30 5.70 1.16 1.80 0.04
7-20-S#1 4.81 5.80 4.06 2.00 0.06
8-6-S#1 4.10 6.45 1.75 2.30 0.18
9-6-N#1 6.00 32.55 0.34 0.90 0.18
9-6-N#1 21.68 24.08 0.33 2.07 0.52
9-6-N#3 7.91 32.15 0.34 0.55 0.26
9-6-N#2 5.69 22.35 0.26 0.45 0.10
9-6-N#2 4.50 6.15 0.15 0.75 0.30
9-6-N#2 6.00 28.15 0.26 0.35 0.08
9-6-N#2 4.00 4.90 0.29 0.50 0.04
9-6-N#2 43.38 20.25 0.26 0.83 0.06
10-20-N 7.97 13.56 2.69 2.20 0.20
10-20-N 5.36 15.35 0.32 1.14 0.16
N-4220_E-2W 3.00 1.39 0.05 1.20 0.30
N-4220_E-2W 3.70 6.96 0.11 0.60 0.20
N-4220_E-2W 3.37 1.28 0.11 0.00 0.18
N-4240_E-1E 3.28 3.96 0.76 0.52 0.43
209.58 16.65 0.66 1.70 0.23
Lower-grade Zone (between 40,000 to 50,000 tonnes)
Hole Width Zn% Pb% Ag oz Cu%
8-5-S 0.40 0.91 0.38 0.54 0.07
8-5-S 0.10 21.45 2.64 1.11 0.30
8-6-S#1 1.30 3.70 2.89 0.98 0.04
9-6-N#1 1.39 1.25 0.28 0.53 0.06
9-6-N#3 1.09 32.15 0.34 0.55 0.26
9-6-N#3 0.61 0.99 0.27 0.15 0.14
N-4220_E-1W 0.86 9.84 0.16 1.00 0.23
N-4220_E-1W 2.79 18.19 0.16 0.70 0.20
N-4220_E-1W 2.4 3.1 0.16 0.60 0.08
N-4220_E-1W 1.191 8.99 0.11 0.96 0.20
12.32 9.90 0.50 0.68 0.14
La Cuñada Zone (between 2,000,000 to 2,500,000 tonnes)
Hole Width Zn% Pb% Ag oz Cu%
7-20-S#2 27.00 1.10 0.23 0.01 0.05
7-20-S#2 31.20 1.64 0.26 0.56 -
7-20-S#1 8.78 4.55 3.11 0.55 0.04
8-6-S#1 40.80 0.50 0.19 0.32 0.04
8-6-S#1 40.00 1.08 0.22 0.35 0.05
8-6-S#1 7.97 3.05 0.21 1.20 0.04
9-6-N#1 72.36 1.25 0.28 0.53 0.06
9-6-N#1 3.32 24.08 0.33 2.07 0.52
9-6-N#3 72.96 0.99 0.27 0.15 0.14
9-6-N#2 9.46 6.55 0.29 0.65 0.18
10-20-N 5.12 0.99 0.46 0.41 0.12
10-20-N 5.96 0.99 0.46 0.41 0.12
10-20-N 33.72 0.99 0.46 0.41 0.12
10-20-N 7.03 3.90 3.06 0.92 0.05
4340K-101E 5.00 1.01 0.22 0.17 0.02
4340K-101E 5.00 1.82 0.25 0.47 0.04
4340K-101E 3.09 2.22 0.27 0.87 0.03
M4220W-1E 4.00 0.86 0.11 0.00 0.03
M4220W-1E 3.00 0.75 0.11 0.00 0.05
N-4220_E-1W 4.09 1.93 0.05 0.00 0.10
N-4240_E-1E 3.10 2.99 0.16 1.02 0.25
N-4240_E-1E 3.10 1.07 0.22 0.36 0.30
453.38 1.50 0.37 0.40 0.08
• In summary, the new La Cuñada Zone has the potential to add 2.5-3.0M tonnes between 3-4% Zn grade
0.3-0.4% Pb, 0.6-0.7 oz/t Ag and 0.10-0.12% Cu, which would make it comparable in size to the Upper -
Zone with slightly lower grades.
• 2023 La Cuñada Outlook:
CDPR considers the La Cuñada Zone as a significant contributor to the initial CAPEX optimization of the
Santander Pipe Project. The CAPEX tradeoff of the ramp from surface versus the proposed shaft/winch
clearly lies in favor of the ramp whereby the new po tential resource can provide initial CAPEX relief for
the Pipe Project while in construction phase.
CDPR requested in the Technical Sustainability Report (ITS) the exploration authorization for the projects:
“La Cuñada” and “Pipe North Extension”, with this authorization . The Company plans to develop an
exploration ramp from the surface , and expects to start in Q3-2023 (Fig. 5), the engineering and
conceptual designs are multipurpose (services and exploratory drilling), this will offset the cost of the
project’s shaft/winch, thus optimizing the Santander Pipe mining in cost and time.
Fig.5. La Cuñada Project, exploration ramp proposed.
2024 La Cuñada Outlook:
By 2024 the plan is to set up the water -management system for the Santander Pipe which includes
rehabilitating the existing drainage tunnel at the bottom of the open pit. With the infrastructure in place,
we will continue to develop the ramp downward until reaching the heart of the in-situ Pipe resource.
As the ramp progresses downwards, CDPR plans to execute 2,500 - 3,000 meters of underground
exploration drilling per month. This cost is offset by the reduction of in-fill drilling at Magistral.
Fig.6. Pipe project, Mine design proposed.
PUAJANCA DRILLING CAMPAIGN
• The Puajanca prospect is located approximately 3 km NNW of the Santander Pipe and approximately 800
meters of the Magistral area. Mineralization is strongly controlled by the axial plane of an anticline that
also hosts the mineralization in the Santander Pipe. This feature is observed at different scales, where
fluid circulation is focused along the axial plane of the folds.
Fig.7. Puajanca Project location.
• 2023 Puajanca Drilling campaign comprised of 8 new boreholes totalling 2,208 Meters of new drill ing
information.
Puajanca, Campaign 2023
Hole ID Depth Target
SAN-0295-23 137.05
Puajanca
SAN-0296-23 222.25
SAN-0297-23 308.8
SAN-0298-23 395.45
SAN-0299-23 138.8
SAN-0300-23 172.7
SAN-0301-23 370.75
SAN-0302-23 462.65
Total 2,208.45