Cerro de Pasco Resources Prepares for Next Phase as Technical and Permitting Work Advances at the Quiulacocha Project

Rhea-AI Summary

Cerro de Pasco Resources (OTCMKTS: GPPRF) reports technical, environmental and permitting progress at the Quiulacocha tailings reprocessing project and the transition from Phase 1 into Phase 2.

Key facts: completion of a 40-hole sonic drill program; planned combined Phase 1+Phase 2 dataset to support the first Mineral Resource Estimate; Phase 2 to include ~116 drillholes; integrated metallurgical program completing in Q1 2026; rheology tests show tailings pumpable at 65–75% solids; November 2025 Mining Council resolutions clarified the administrative path for tailings reprocessing rights; company says it is fully funded to complete Phase 2 drilling and ongoing test programs.

Positive

• Completed 40-hole sonic drill program confirming grades
• Phase 2 to expand dataset to ~116 drillholes for resource estimate
• Integrated metallurgical program scheduled to finish in Q1 2026
• Rheology tests: tailings pumpable at 65–75% solids
• November 2025 Mining Council resolutions clarified permitting path
• Company reports fully funded for Phase 2 drilling and tests

Negative

• Phase 2 drilling and resource estimate contingent on regulatory approval
• Feasibility-level locked cycle and variability tests deferred to Q2 2026

News Market Reaction

-2.45%

1 alert

-2.45% News Effect

On the day this news was published, GPPRF declined 2.45%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income: $24.6M Prior-period loss: $29.3M Gain on Santander sale: $35.9M +5 more

8 metrics

Net income $24.6M Fiscal year 2025

Prior-period loss $29.3M Previous fiscal year comparison

Gain on Santander sale $35.9M Santander mine divestiture

Liabilities eliminated Over $70M From Santander transaction

Cash balance $11.5M Fiscal 2025 year-end

Capital raised CAD $4.1M Post year-end warrants and options

Phase 1 drillholes 40 holes Completed sonic drill program at Quiulacocha

Planned total drillholes 116 drillholes Combined Phase 1 & 2 program at Quiulacocha TSF

Market Reality Check

Price: $0.5960 Vol: Volume 371,967 is above t...

normal vol

$0.5960 Last Close

Volume Volume 371,967 is above the 20-day average of 262,205, indicating elevated trading interest ahead of this update. normal

Technical Price at $0.3725 is trading above the 200-day MA of $0.30, despite recent weakness.

Peers on Argus

While GPPRF was down 2.45%, key peers like OMZNF, AAGFF, MLPNF, SRAFF, and RGLSF...

While GPPRF was down 2.45%, key peers like OMZNF, AAGFF, MLPNF, SRAFF, and RGLSF showed gains between 2% and 7.33%, pointing to a stock-specific move rather than a sector-wide decline.

Common Catalyst At least one peer, AAGFF, also reported drilling-focused project news, suggesting ongoing project advancement headlines across select metals explorers.

Historical Context

2 past events · Latest: Jul 30 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Jul 30	Earnings & strategy	Positive	-6.3%	Reported profitable FY 2025 and balance sheet repair driven by Santander sale.
Jul 23	New exchange listing	Positive	-3.2%	Began trading on Lima Stock Exchange to broaden regional investor base.

Pattern Detected

Recent history shows GPPRF trading lower following positive corporate developments, indicating a pattern of negative price reactions to constructive news.

Recent Company History

Over the past months, Cerro de Pasco Resources reported a major turnaround, with $24.6M net income for fiscal 2025 driven by the Santander mine sale and elimination of over $70M in liabilities. The company strengthened its balance sheet with a cash balance of $11.5M and additional CAD $4.1M raised, then expanded market visibility via a July 17, 2025 listing on the Lima Stock Exchange. Both events were strategically positive yet followed by short-term share price declines, similar to today’s constructive project update on Quiulacocha.

Market Pulse Summary

This announcement details significant Phase 1 progress at Quiulacocha, including a completed 40-hole...

Analysis

This announcement details significant Phase 1 progress at Quiulacocha, including a completed 40-hole drill program, extensive environmental baselines, and preparation for an integrated metallurgical program concluding in Q1 2026. It also outlines a planned 116-hole Phase 2 program to support a first Mineral Resource Estimate. In context with earlier financial strengthening and a Lima listing, investors may watch permitting milestones, feasibility-level work, and future resource disclosures as key checkpoints.

Key Terms

tailings reprocessing, liDAR, photogrammetry, magnetometry, +4 more

8 terms

tailings reprocessing technical

"The Quiulacocha Project represents the most strategically important tailings reprocessing"

Tailings reprocessing is the practice of reworking leftover material from past mining operations to extract additional valuable metals or minerals and to clean up waste storage sites. For investors, it can turn a liability into an asset by creating new revenue from existing material, reducing environmental and regulatory risks, and potentially extending a project's life — much like sifting an old pile of scraps to find usable items while making the pile safer to store.

liDAR technical

"These include drone-based LiDAR, magnetometry, and photogrammetry, as well as water"

Lidar, which stands for Light Detection and Ranging, is a technology that uses laser beams to create detailed, three-dimensional maps of the environment. It works like a sophisticated eye that measures distances by bouncing light off objects, helping machines see and understand their surroundings. For investors, lidar is important because it enables advancements in autonomous vehicles, robotics, and mapping, which can drive innovation and growth in related industries.

photogrammetry technical

"These include drone-based LiDAR, magnetometry, and photogrammetry, as well as water"

Photogrammetry is a method of creating accurate measurements and 3D models from multiple overlapping photographs, using the differences between images to calculate distances, sizes and positions. For investors it matters because it turns routine photos into precise maps and digital replicas used to inspect assets, monitor construction or environmental changes, assess damage and reduce surveying costs — helping companies reveal risks, prove progress and save time and money.

magnetometry technical

"These include drone-based LiDAR, magnetometry, and photogrammetry, as well as water"

Magnetometry measures tiny magnetic fields around objects or areas using instruments, like using a compass to map invisible forces. Investors care because it reveals hidden features or problems — for example locating mineral deposits in exploration, checking components in manufacturing, or validating performance of medical sensors — which can reduce uncertainty, guide spending decisions and affect a project’s or company’s value.

rheology technical

"Rheology and abrasivity testing confirm that Quiulacocha tailings can be efficiently"

Rheology is the study of how materials flow and deform under force, covering liquids, creams, gels and soft solids. Investors care because a product’s rheology affects manufacturing consistency, shelf life, how a drug or cosmetic is applied or absorbed, and quality control costs—think of it like how ketchup’s thickness determines whether it pours smoothly or clogs a bottle, which can impact sales and regulatory approval.

hydrogeological technical

"These datasets feed into the hydrogeological model and Digital Elevation Model"

Relating to the distribution and movement of groundwater beneath the surface and the properties of the soils and rocks that hold or transmit that water. For investors, hydrogeological information matters because it affects water supply, pollution risks, construction foundations, mining and energy projects, and cleanup costs — think of it as the earth’s plumbing system that can make projects work smoothly or create costly surprises.

geotechnical technical

"Plate load testing, geotechnical sampling, and SCPTu measurements define the requirements"

"Geotechnical" relates to the study of Earth's materials and how they behave, especially soil and rock, to assess how stable and suitable land is for construction or development. For investors, understanding geotechnical conditions helps evaluate the safety, feasibility, and potential costs of building projects or infrastructure, influencing the value and risk associated with real estate and development ventures.

environmental impact assessment regulatory

"These datasets will form the foundation of the project’s Environmental Impact Assessment."

An environmental impact assessment is a process that evaluates how a planned project or development might affect the natural environment, including air, water, land, and wildlife. It helps identify potential risks and suggests ways to minimize harm before the project begins. For investors, it matters because projects with significant environmental risks may face delays, increased costs, or restrictions, affecting their overall viability and returns.

AI-generated analysis. Not financial advice.

MONTRÉAL, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (TSXV: CDPR) (OTCMKTS: GPPRF) (BVL: CDPR) is pleased to provide a comprehensive update on the progress achieved at the Quiulacocha Tailings Reprocessing Project. This update reflects the significant advancement of technical, environmental, geotechnical, and permitting work completed under Phase 1 and the transition into Phase 2. The Quiulacocha Project represents the most strategically important tailings reprocessing and remediation initiatives in Peru, with the potential to deliver both substantial resource value and long-term environmental benefits.

Phase 1 Achievements to Date

Drilling and Mineral Resource

Completion of a 40-hole sonic drill program confirming metal grades and continuity across the drilled area. Tendering and technical assessment of international contractors for Phase 2 drilling is underway. The combined Phase 1 and Phase 2 datasets will support the mineral resource estimate for the Quiulacocha tailings.

Mineralogy & Metallurgy

Extensive mineralogical and metallurgical test work is progressing across multiple international laboratories to determine the most effective flowsheet for recovering metals into marketable products.

Environmental Baseline Studies

Completion of wet season baseline studies and ongoing dry season assessments. These include drone-based LiDAR, magnetometry, and photogrammetry, as well as water quality, biological, geochemical, geotechnical, and hydrogeological monitoring.

Hydrogeology and Geotechnics

High resolution LiDAR, photogrammetry, and magnetometry surveys have been incorporated into hydrogeological models and stability assessments. These results guide mine planning, re mining method selection, and Phase 2 drilling infrastructure requirements.

Tailings Re-mining and final storage

Initial trade off assessments for long-term storage sites and re-mining methods have been completed. Rheology and abrasivity testing confirm that Quiulacocha tailings can be efficiently dredged and pumped at low cost.

Permitting and Approvals

Submission of the Phase 1 Results Report to initiate the regulatory process for Phase 2 drilling and the formalization of tailings reprocessing rights beyond the El Metalurgista concession.

CDPR is fully funded to complete Phase 2 drilling and all ongoing metallurgical test programs following its most recent financing.

Upcoming Milestones

• Formalization of claim on entire tailings footprint
• Completion of integrated metallurgical program in Q1 2026
• Submission and approval of DIA or FTA for Phase 2 drilling
• Commencement of Phase 2 drilling
• Completion of hydrogeological and geotechnical models
• Selection of preferred long term tailings storage solution
• Advancement into pre-feasibility study
  
  

Executive Commentary

Guy Goulet, Chief Executive Officer, commented:

“Our team has made significant progress across the most comprehensive technical and environmental program ever undertaken on the Quiulacocha Tailings Project. The results provide strong confirmation of the project’s potential and position us well for the next stages of engineering and development. With multiple laboratories, technical partners, and specialist teams contributing to this effort, we are building a robust technical foundation for a long-term value generating operation.

Few projects globally offer the combination of metal endowment, environmental benefit, and development potential that we see at Quiulacocha. With the remaining administrative steps moving forward, CDPR is preparing to advance into the feasibility phase and remains fully committed to delivering this transformational project for our shareholders and for Peru.”

Permitting and Approvals

In November 2025 the independent Mining Council, Peru’s highest administrative authority for mining matters, issued two resolutions that provide a clear and affirmative basis for advancing the final stages of the permitting process for the Quiulacocha Project. encompassing the entire tailings footprint to achieve a comprehensive reprocessing and remediation solution. The Council’s decisions formally set out the requirement for agreement between CDPR, owner of the core tailings concession, and the State, holder of legacy environmental responsibilities in the area. They also clarify the administrative path for the Ministry of Energy and Mines to proceed with the evaluation and formalization of CDPR’s Tailings Reprocessing Application. This recent clarification creates alignment among the relevant authorities and supports a timely conclusion of the remaining administrative steps. CDPR is engaging closely with the Ministry and anticipates continued momentum as the permitting process advances toward completion.

Technical Program Update

The Quiulacocha Project continues to advance as a large-scale, long-life development supported by a rigorous technical work program. Metallurgical and mineralogical testing across international laboratories is defining the most effective multi product processing route. With the integrated metallurgical program scheduled to conclude in the first quarter of 2026, CDPR is assembling the technical foundation required for feasibility level engineering and economic evaluation.

Mineralogical and Geochemical Program

The mineralogy program includes quantitative mineralogy, sequential extractions, electron microprobe work, laser ICP MS, flotation product mineralogy, and hydro separation for trace mineral analysis. These tests help determine mineral associations, metal deportment, and factors influencing metallurgical recoveries. The work has been conducted across LTU in Sweden, Montana Tech, Chilean laboratories, and Peruvian facilities.

Metallurgical Test Work Program

The metallurgical program aims to recover silver, zinc, lead, copper, and pyrite into saleable concentrates, with additional focus on gold and gallium recovery pathways. The initial phase centers on flotation and selective leaching to maximize metal recoveries.

Representative composite samples were generated based on metallurgical domains defined through the 40-hole drilling campaign. Bench scale flotation tests have successfully produced base metal concentrates followed by pyrite, with silver reporting across these products. Cleaner stage testing is underway to optimize recoveries and concentrate grades.

The fine-grained nature of the tailings requires minimal grinding, offering potential operating cost advantages. Specialized fine particle flotation technologies are being evaluated to enhance recovery and grade.

Preliminary leaching tests demonstrate the potential to selectively recover silver and gold into a distinct product stream. Pyrite concentrate optimization continues to support its potential saleability or downstream processing into sulphuric acid.

The initial metallurgical phase is expected to conclude in Q1 2026, after which locked cycle tests and variability testing will begin in Q2 2026.

Collectively, the results to date support the potential for a multi-product flowsheet designed to maximize metal recovery while significantly reducing final tailings volumes.

Environmental Baseline Program

CDPR has completed its wet season environmental baseline and advanced dry season work, including water quality monitoring, geochemical sampling, biological surveys, and physical assessments. These datasets will form the foundation of the project’s Environmental Impact Assessment.

Reprocessing the Quiulacocha tailings has the potential to reduce long term environmental liabilities, improve water and land conditions, and provide lasting remediation benefits to the region.

In parallel with technical programs, CDPR continues to advance an equally rigorous environmental workstream.

Hydrogeological and Geotechnical Studies

Drone based surveys across more than 5,000 hectares include high resolution LiDAR, detailed photogrammetry, and regional magnetometry. These datasets feed into the hydrogeological model and Digital Elevation Model of the region.

Preliminary stability assessments, including analysis of historical data and new measurements, have been completed. Plate load testing, geotechnical sampling, and SCPTu measurements define the requirements for Phase 2 drilling, infrastructure planning, and long-term tailings management.

This growing geotechnical and hydrogeological foundation is essential for mine planning, re-mining method selection, and feasibility level design.

Re-mining and Final Tailings Storage Trade Offs

Technical studies continue across re-mining methods, material handling, hydrogeological and geotechnical interpretation, and overall site layout planning. Laboratory work for rheology, abrasivity, density, and geotechnical behavior was completed for ten composite samples from the Phase 1 drilling program. These tests confirmed that the Quiulacocha tailings are pumpable within an optimal solids concentration range of 65 to 75 percent by weight, supporting the implementation of low cost dredging based extraction methods and providing meaningful advantages for operational efficiency and water balance management.

Tailings storage trade off studies have evaluated storage capacity, land suitability, hydrology, environmental considerations, and long-term operational requirements across several regional locations. These evaluations will guide the selection of a preferred long term storage solution and are key inputs for determining the optimal combination of re-mining, processing, and final tailings placement strategies.

Phase 2 Drilling Program

The next drilling campaign will complete the geological, hydrogeological, and geotechnical datasets required for feasibility level engineering. The combined Phase 1 and Phase 2 drilling program includes approximately 116 drillholes across the Quiulacocha TSF, providing one-meter samples and laboratory assays that will support the first Mineral Resource Estimate.

International drilling contractors have submitted proposals featuring amphibious platforms and sonic capable rigs. Drilling will commence following approval of the Tailings Reprocessing Application that grants tailings reprocessing rights beyond the El Metalurgista concession.

This drilling is a critical step toward feasibility level engineering and will complete the technical dataset required for mine planning.

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 is focused on the development of its one hundred percent owned El Metalurgista mining concession in central Peru. The concession hosts silver-rich tailings and stockpiles accumulated over more than a century of mining. The Company’s strategy is to reprocess and remediate historic mining waste, unlocking value while supporting sustainable development.

CDPR is committed to advancing Quiulacocha as a model for responsible tailings reprocessing, environmental remediation, and sustainable value creation in Peru.

For more information, please visit www.pascoresources.com.

Further Information

Guy Goulet, CEO
Telephone: +1 579 476 7000
Mobile: +1 514 294 7000
Email: info@pascoresoures.com

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 execution of the technical, environmental and engineering programs and timing on when the proceeds will be used to meet the Corporation’s objectives at the Quiulacocha Tailings Project, 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 risk 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.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

FAQ

What did Cerro de Pasco Resources announce about Quiulacocha drilling (GPPRF) on December 10, 2025?

The company completed a 40-hole sonic drill program and plans a combined Phase 1+Phase 2 dataset supporting a first Mineral Resource Estimate, with Phase 2 including ~116 drillholes.

When will the integrated metallurgical program for Quiulacocha (GPPRF) finish?

The integrated metallurgical program is scheduled to conclude in Q1 2026.

What permitting progress did Cerro de Pasco (GPPRF) report in November 2025?

The Mining Council issued resolutions in November 2025 that clarified the administrative path for the Ministry of Energy and Mines to evaluate the Tailings Reprocessing Application.

Are Quiulacocha tailings suitable for dredging and pumping according to GPPRF tests?

Yes; rheology and abrasivity testing indicate tailings are pumpable at an optimal solids range of 65–75% by weight.

Does Cerro de Pasco (GPPRF) have funding to complete Phase 2 drilling?

The company states it is fully funded to complete Phase 2 drilling and ongoing metallurgical test programs following its most recent financing.

What are the next technical milestones and timing for the Quiulacocha project (GPPRF)?

Near-term milestones include formalizing tailings claim, completing metallurgical program in Q1 2026, submitting/obtaining DIA or FTA for Phase 2 drilling, and commencing Phase 2 drilling.