Increase of 52%

The polymetallic Quiulacocha Tailings Project in Peru, one of the country’s most important mining initiatives, could contain far more unprocessed residual metal from historical production than previously thought. This is at least suggested by initial laboratory analyses that Cerro de Pasco Resources Inc. (CSE: CDPR; OTCPK: GPPRF; FWB: N8HP) has now released from its 40-hole drilling program on the project.

Drill hole SPT04 intersected 19 meters grading 1.91 ounces/ton (59 g/t) silver, 1.80% zinc, 0.77% lead, 0.07% copper and 0.07 g/ton gold. The metal grades of SPT04 are thus higher than those reported by Brophy (2012) for near-surface drill hole samples from the northern and central areas of the tailings, which showed average grades of 1.26 ounces silver/ton, 1.44% zinc and 0.79% lead. Of particular interest is the silver content, which is 52% higher than in historical samples. Copper-silver mineralization is expected to be more pronounced in the southern zone. Assay results for additional drill holes are expected in the next 2 to 3 weeks. As of October 14, 32 of 40 drill holes had been completed.

Figure 1: 40-hole drilling program Quiulacocha with completed and pending drill holes. Cerro de Pasco will collect over 1,000 samples to analyze a significant portion of the Quiulacocha tailings deposit.

CDPR CEO Guy Goulet commented: “We are very encouraged by these initial results, particularly regarding the silver grades. This is the first time that the Quiulacocha tailings have been systematically drilled and analyzed. In addition to zinc, lead, silver, copper and gold, the focus on metals such as gallium and indium offers the potential for payable by-product metal credits that can be incorporated into the planned concentrates.”

To date, 430 samples from 21 drill holes, up to 42 meters deep, have been safely transported in freezer containers to the laboratory for analysis.

Representative composite samples will undergo metallurgical testing to be incorporated into a study. Based on the results of the ongoing drilling campaign, Cerro de Pasco plans to prepare further drilling, which is expected to begin in the second quarter of 2025 in the remaining tailings.

The laboratory results were obtained from a combination of multi-element ICP (detection of 60 elements), atomic absorption (to determine upper limits of metals Zn, Pb and Cu) and fire assays for Au. They provide the first indications of the extent and continuity of metal concentrations at depth. The iron values also indicate a consistent presence of pyrite throughout the deposit. Pyrite (estimated at 50% of the tailings) could represent a valuable by-product for the project. The upcoming metallurgical test program will also evaluate the potential for pyrite recovery, including probable grades, by-products, and impurities.

The drilling campaign is nearing completion and is expected to be finished before the rainy season at the end of October.

Conclusion: CDPR is the holder of the “El Metalurgista” concession in Peru, which grants the company the right to explore and exploit the Quiulacocha tailings within the assigned area. The General Mining Bureau of the Peruvian Ministry of Energy and Mining has officially confirmed the enforceability of these rights. The Quiulacocha tailings deposit covers an area of approximately 115 hectares and is estimated to contain about 75 million tons of material processed from the 1920s to the 1990s. Originally, these tailings came from the mining of more than 16 million tons 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 more than 58 million tons of zinc, lead and silver-bearing material with average historical grades of 7.41% Zn, 2.77% Pb and 90.33 g/t Ag. With minimal mining costs due to near-surface material and current reprocessing capacity in neighboring facilities, CDPR’s Quiulacocha project is one of Peru’s most important mining initiatives. This project combines economic benefits with the goal of eliminating environmental damage and creating employment opportunities tailored to the needs of the local community.