Cerro de Pasco Resources (CSE:CDPR) Nears Completion of Initial Drilling Phase at Quiulacocha Tailings Project, Reports Promising Metal Concentrations

Cerro de Pasco Resources Inc. (CSE:CDPR) has announced that its Phase 1 drilling program at the Quiulacocha Tailings Project in Peru is nearly complete. The program includes 40 drill holes, and the company has reported the initial results from its analysis, revealing valuable insights into the composition of the tailings.

CDPR’s CEO, Guy Goulet, commented in a press release: “We are very encouraged by these initial results, particularly as they relate to silver grades. This is the first time the Quiulacocha tailings have been systematically drilled and analyzed. Beyond zinc, lead, silver, copper and gold, the focus on metals such as gallium and indium provide the potential for payable by-product metal credits to be included in the planned concentrates. Representative composite samples will also undergo metallurgical testing to allow for inputs into a study. Based on the results of this campaign, we will prepare Phase 2 drilling, which is expected to commence in the second quarter of 2025 across the remainder of the tailings.”

The Quiulacocha Tailings Project, a part of the El Metalurgista concession, spans approximately 115 hectares and contains about 75 million tonnes of processed mining material dating back to the 1920s. This material, extracted from copper-silver-gold deposits and later from zinc-lead-silver deposits, provides a significant source of metals like silver, zinc, and lead. Cerro de Pasco Resources is working on reprocessing these tailings to recover valuable metals, an effort that aligns with the company’s focus on environmental remediation and creating economic opportunities in the local community.

Initial Drill Results

The first drill hole, designated SPT04, reached a depth of 19 meters and provided initial geochemical assay results from the shallow northwestern area of the tailings. These assays, conducted by Inspectorate Services Perú S.A.C., a subsidiary of Bureau Veritas, showed concentrations of silver, zinc, and lead. The analysis used multiple methods, including Inductively Coupled Plasma (ICP) to detect 60 elements, Atomic Absorption for upper metal limits, and Fire Assay to test for gold. The results suggest the presence of pyrite, which makes up an estimated 50% of the tailings. CDPR plans to evaluate the potential recovery of pyrite as part of its metallurgical test work program.

Drilling and Sample Collection

CDPR has partnered with Ingetrol Comercial S.A.C. and ConeTec Peru for the drilling process, utilizing percussion and sonic drilling techniques to improve accuracy. As of October 14, the company had completed 32 out of the planned 40 drill holes, with depths reaching up to 42 meters. A total of 430 samples from 21 drill holes have been collected and sent for analysis, with the program scheduled for completion by the end of October, ahead of the rainy season.

Samples from the drilling are transported in freezer containers to prevent oxidation and maintain integrity. Once in Lima, they undergo testing at Bureau Veritas’ laboratories. The company has also sent composite samples to Bureau Veritas’ facility in Antofagasta, Chile, for further metallurgical testing. This testing will inform the project’s mineral resource estimate and the feasibility of metal and pyrite recovery.

Geophysical Studies

The company has also completed Phase 1 of its geophysical studies, which focused on dry areas of the Quiulacocha Tailings. Conducted by Geomain Ingenieros S.A.C., these studies included depth readings ranging from 20 to over 40 meters. These findings contribute to understanding the tailings’ physical characteristics, which will support further exploration and eventual recovery efforts.

Project Background and Concession Rights

CDPR holds the title to the El Metalurgista concession, which gives it exploration and exploitation rights for the Quiulacocha Tailings. The Peruvian Ministry of Energy and Mines has confirmed these rights. The tailings storage facility at Quiulacocha, formed from decades of mining, initially contained high-grade copper, silver, and gold, which transitioned to zinc, lead, and silver in later years. The company’s ongoing work at Quiulacocha involves reprocessing the tailings, an effort that could provide economic benefits and environmental remediation in line with local community needs.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.