Mr. Guy Goulet reports
CERRO DE PASCO RESOURCES ANNOUNCES $2.5M OFFERING TO ADVANCE TAILINGS RETREATMENT PROJECT IN PERU
Cerro de Pasco Resources Inc. intends to complete a $2.5-million non-brokered private placement offering issuing up to 7,142,857 units of the corporation, with each unit consisting of one common share and one-half of one share purchase warrant, at a price of 35 cents per unit. Each warrant will entitle its holder to purchase one additional share at a price of 50 cents per share for a period of 24 months from the date of closing of the offering.
The amount raised under the offering (further defined herein) will be used for general and working capital purposes in advancing the company's Quiulacocha tailings retreatment project in Peru.
Quiulacocha tailings -- permit to drill
In line with process requirements, Cerro de Pasco Resources has received authorization from the Ministry of Energy and Mines to proceed with a workshop with the local community on April 18, 2021. The date has been officially approved by the rural community of Quiulacocha and preparations for the workshop are continuing.
Cerro de Pasco Resources will submit a completed environmental impact statement (DIA) by the end of April, 2021, for review and approval by the environmental branch of the ministry (DGAAM).
The DIA provides the details and co-ordinates for the 40-hole drilling program that Cerro de Pasco Resources intends to carry out across the Quiulacocha tailings storage facility (TSF), within the boundaries of its El Metalurgista concession. The Quiulacocha TSF is estimated to contain approximately 70 million tonnes of material with recoverable silver, zinc, lead, copper, gold and other strategic metals.
CDPR maintains the social licence with the Quiulacocha rural community, and the terms of the surface rights contract signed in 2019 remain fully intact.
About the tailings
The Quiulacocha TSF covers approximately 115 hectares and contains tailings deposited between 1921 and 1992. The tailings comprise processing residues from the Raul Rojas open pit and underground mine. Research indicates that tailings were first deposited on the eastern side of the TSF from January, 1921, and were derived from processing of high-grade copper-silver-gold ore, with reported historical head grades of up to 10 per cent copper, four grams per tonne gold and over 300 grams per tonne silver, sourced from east-west-striking veins in the underground mine. The main period of tailings deposition at Quiulacocha came after 1943 when the Paragsha plant was put into commission, first treating copper ore and later processing zinc-lead-silver ore. According to historical records, the Cerro de Pasco mine processed approximately 58.3 million tonnes of zinc-lead-silver ore between 1952 to 1992 from the open pit and underground workings with average historical grades of 8.6 per cent zinc, 3.3 per cent lead and 98 grams per tonne silver.
The drilling program will focus on the central and deeper section of the tailings deposit and will be executed with sonic or other suitable drilling equipment to collect PQ-size core. Drilling will be conducted on a 100-metre-by-100-metre grid and will reach the base of the deposit. The intent of the drill program is to confirm the grades already established in the upper portion of the tailings while also intersecting the expected higher-grade tailings in the deeper sections of the deposit. The sampling and assaying program will comprise a quality assurance/quality control program, which includes the insertion of blanks, standards, twin samples, duplicate pulps, coarse rejects and a selection of sample pulps, all of which will be sent to an independent laboratory. After completing the sampling and assaying program and mineralogical studies, composites will be generated to undertake detailed metallurgical studies.
Reprocessing the Quiulacocha tailings and storing the residue in a responsible manner in an approved modern facility forms part of an integral solution to remediate the greater Cerro de Pasco mining complex while restoring economic activity.
Shane Whitty, CGeol, vice-president of exploration and technical services for Cerro de Pasco Resources, has reviewed and approved the scientific and technical information regarding the technical information contained in this news release. Mr. Whitty is a qualified person within the meaning of National Instrument 43-101.
About the offering
Any securities issued pursuant to the offering will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the date of closing of the offering.
The corporation has not engaged an agent to assist in completing the offering. However, the corporation may pay finders' fees in connection with certain subscriptions.
Closing of the offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the Canadian Securities Exchange.
About Cerro de Pasco Resources
Cerro de Pasco Resources is a resource management company with a focus on applying the latest technology in the production of commodity metals through the treatment and reprocessing of all material resources, dumps, tailings and mining waste in the Cerro de Paco region in Peru. The company's ambition is to secure long-term economic prosperity. The company's ambition is to restore long-term sustainability to the mining activity in the Cerro de Pasco region, in harmony with a healthy and motivated local population. The company's team brings first-hand experience and ideas based on innovative solutions and a holistic approach, aiming to create numerous opportunities in a circular economy.
We seek Safe Harbor.
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