Cerro de Pasco Resources receives Green Light on Land Easement Application Process for Quiulacocha Tailings - Seite 2

Supreme Decree

On confirmation of study results, the DGM would continue the assessment of CDPR’s request for a Supreme Decree which releases AMSAC from its responsibility to perform closure of the Quiulacocha Tailings and granting CDPR rights to reprocess the entire tailings resource, beyond the current El Metalurgista boundaries.

Exploration program

The program will include drilling geophysical studies, a 40-hole sonic drilling program, laboratory testing, minerology studies, resource estimation and economic assessment, with the objective of filing a technical report compliant with NI 43-101. Funding for the program is covered by a US$ 2 Million loan from Glencore International Ag. Funds will be disbursed in accordance with a schedule of milestones and repayment will occur within 12 months from the start of commercial production. CDPR has not provided any off-takes commitments on its Quiulacocha Project.

Activos Mineros SAC (“AMSAC”)

Activos Mineros SAC (“AMSAC”) is a state-owned entity formed in 2006, originally mandated to carry out closure and remediation of state environmental liabilities stemming primarily from the privatization of Centromin, the state mining company, in 1994.

The Quiulacocha Tailings 

The Quiulacocha Tailings Storage Facility covers approximately 115 hectares and is estimated to hold approximately 75 million tonnes of tailings deposited from the 1920s to 1990s, with tailings deposited in the Quiulacocha Tailings Storage Facility from the early 1920´s to 1992. 

The Quiulacocha Tailings Storage Facility is comprised of processing residues that came from the Cerro de Pasco open pit and underground mine. Initially these tailings resulted from the mining of copper-silver-gold mineralization with reported historical grades of up to 10% Cu, 4/gt Au and over 300g/t Ag and later from the mining of zinc-lead-silver mineralized material with average historical grades of 7.41% Zn, 2.77% Pb and 90.33 g/t Ag.

The most recent Historical Mineral Resource Estimate for the Quiulacocha tailings, prepared by JA Brophy in 2012, contained 7.4 million tonnes at 1.35% to 1.55% Zn, 0.55% to 1.00% Pb and 1.20 to 1.35 oz/t Ag. This estimate was based on a shallow surface auger sampling program which is estimated to represent only 10% of the expected tonnes of the tailings. Historical Mineral Estimates are historical in nature and cannot be relied upon for economic evaluations.