Cerro de Pasco Resources is Granted Historic Authorization and Starts Drilling Quiulacocha Tailings

Rhea-AI Summary

Cerro de Pasco Resources Inc. (GPPRF) has received historic authorization to begin drilling at the Quiulacocha Tailings Project in Peru. This marks the first-ever authorization granted for a new mining exploration project within a tailings storage facility in Peru. The company has started installing its first drill rig for the Phase I drilling program and completed a geophysical study.

Key points:

• 40 drill holes planned to collect over 1,000 tailings samples
• Geophysical surveys indicate tailings depth exceeding 40 meters in some areas
• Quiulacocha Tailings estimated to contain 75 million tonnes of processed material
• Historical grades: up to 10% Cu, 4 g/t Au, 300 g/t Ag, and later 7.41% Zn, 2.77% Pb, 90.33 g/t Ag
• Project aims for economic benefits, environmental restoration, and job creation

Positive

• First-ever drilling authorization granted for a new mining exploration project over tailings in Peru
• Geophysical surveys indicate tailings depth exceeding 40 meters, surpassing original expectations
• Quiulacocha Tailings estimated to contain 75 million tonnes of processed material with high historical grades
• Minimal mining costs due to surface-level material and current reprocessing capacity at adjacent plants

Negative

• None.

First Phase Geophysics Study completed

MONTRÉAL, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Company”) is pleased to inform that it has received the required authorization for the Initiation of Exploration Activities from the Peruvian Ministry of Energy and Mines. This represents the first-ever such authorization to be granted in Peru for a new mining exploration project within a tailings storage facility.

Accordingly, the Company is now installing its first drill rig to begin its Phase I drilling program at the Quiulacocha Tailings Project (“QT Project”).

The Company has in parallel completed first phase Geophysical Studies to outline the bottom surface of the tailings deposit.

Guy Goulet comments: “This is a significant milestone for the country: This is the first ever drilling authorization granted for a new mining exploration project over tailings in the history of Peru, not related to a beneficiation concession. It is also a very exciting stage for CDPR as we will finally discover the true value of the QT tailings and be able to produce a Master Plan for the entire Quiulacocha tailings resource. CDPR will update the market with drill results as soon as they become available."

Drilling Program

CDPR has hired Ingetrol Comercial S.A.C., a Peruvian subsidiary of Grupo Ingetrol, to perform the Phase I Drilling campaign. Over a period of approximately eight weeks, Ingetrol will carry out 40 drill holes to gather more than 1,000 tailings samples, facilitating comprehensive data acquisition throughout the entire depth of the Quiulacocha tailings.

Laboratory Testing

Inspectorate Services Perú S.A.C., a Peruvian subsidiary of Bureau Veritas, will conduct the geochemical and metallurgical testing program in Lima, Peru and Antofagasta, Chile. The tailings samples, taken at every meter, will be dispatched to the Bureau Veritas lab in Lima for a 60-element ICP Analysis and other assays. Subsequently, the tailings samples will be combined into representative composites and sent to Antofagasta, Chile, for metallurgical testing.

This extensive laboratory program will determine the mineral resource estimate and metallurgical methods for the reprocessing of the Quiulacocha tailings.

Geophysics

CDPR has enlisted Geomain Ingenieros S.A.C., a Peruvian company specializing in geophysical applications for mineral exploration and engineering, to conduct Phase 1 geophysics. Geomain Ingenieros S.A.C. has successfully completed over 9,000 m of geophysical surveys on the dry portion of the Quiulacocha tailings. The preliminary interpretation of the geophysical profiles indicates that the tailings deposit surpasses 40 meters in depth in certain locations, exceeding the original expectations.

The Quiulacocha Tailings

CDPR is the titleholder of the concession located in Peru called “El Metalurgista”, 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.

The Quiulacocha Tailings Storage Facility covers approximately 115 hectares and is estimated to hold approximately 75 million tonnes of material processed from the 1920s to 1990s.

Initially these tailings resulted from the mining 16+ million tonnes of copper-silver-gold mineralization with reported historical grades of up to 10% Cu, 4 g/t Au and over 300 g/t Ag and later from the mining of 58+ million tonnes of zinc-lead-silver mineralized material with average historical grades of 7.41% Zn, 2.77% Pb and 90.33 g/t Ag.

With minimal mining costs due to surface-level material and current reprocessing capacity at adjacent plants, CDPR's Quiulacocha Project stands out as one of Peru's key mining initiatives. This endeavor not only promises economic benefits but also aims to restore the environment and create employment opportunities, aligning with the local community's needs.

Technical Information

Mr. Alfonso Palacio Castilla, MIMMM/Chartered Engineer (CEng) and Project Superintendent for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Palacio 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 focused on the development of its principal 100% owned asset, the El Metalurgista mining concession, comprising silver-rich mineral tailings and stockpiles extracted over a century of operation from the Cerro de Pasco open pit mine in Central Peru. The company’s approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste and the creation of numerous opportunities in a circular economy. The asset is one of the world’s largest above-ground resources.

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”, “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 the expectations of CDPR’s management regarding the realization, timing and scope of its drilling program, the completion of a resource report as well as the business and the expansion and 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 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 relevant assumptions and risks factors set out in CDPR’s public documents, available 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.

Further Information

Guy Goulet, CEO
Telephone: +1-579-476-7000
Mobile: +1-514-294-7000
ggoulet@pascoresources.com

FAQ

What is the significance of the drilling authorization granted to Cerro de Pasco Resources (GPPRF) for the Quiulacocha Tailings Project?

It's the first-ever authorization granted in Peru for a new mining exploration project within a tailings storage facility, marking a significant milestone for both the company and the country.

How many drill holes are planned for the Phase I drilling program at the Quiulacocha Tailings Project by Cerro de Pasco Resources (GPPRF)?

Cerro de Pasco Resources plans to carry out 40 drill holes to gather more than 1,000 tailings samples during the Phase I drilling program.

What are the estimated contents and historical grades of the Quiulacocha Tailings owned by Cerro de Pasco Resources (GPPRF)?

The Quiulacocha Tailings are estimated to hold 75 million tonnes of processed material with historical grades of up to 10% Cu, 4 g/t Au, 300 g/t Ag, and later 7.41% Zn, 2.77% Pb, 90.33 g/t Ag.

What did the geophysical surveys reveal about the Quiulacocha Tailings depth for Cerro de Pasco Resources (GPPRF)?

The geophysical surveys indicated that the tailings deposit surpasses 40 meters in depth in certain locations, exceeding the original expectations.