Surface Access Deal Finalized for Major Silver Tailings Project in Peru

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Cerro de Pasco Resources Inc. (CDPR:TSXC; GPPRF:OTCQB; N8HP:FSE) formalized a surface use agreement with the Community of Quiulacocha on December 11, marking a key advancement for the company's tailings reprocessing initiatives at its flagship Quiulacocha project in Peru. The agreement, approved by the community assembly and notarized publicly, provides a defined framework for Cerro de Pasco to conduct technical activities, including drilling, environmental monitoring, engineering studies, and other fieldwork required for project advancement.

The company emphasized that the agreement reinforces its long-standing working relationship with the community and strengthens its social license to operate. The two-year renewable agreement includes provisions for community engagement, local participation, and social responsibility.

"We are fortunate to enjoy a highly collaborative relationship with the Community of Quiulacocha, who have a long historic attachment to the mineral business and a clear understanding of the environmental, social, and economic merits of our project," said CEO Guy Goulet in a company news release. "This agreement responds to the needs of the community and provides long-term stability as we advance our technical and engineering programs."

The Quiulacocha tailings reprocessing project, located in the Pasco region of Peru, has been recognized by the country's Ministry of Economy and Finance as a priority infrastructure initiative. The ministry first included it on its specialized project list in March 2023, noting its potential for environmental remediation, economic activity, and social benefits.

Cerro de Pasco holds a 100% interest in the El Metalurgista mining concession, which covers 95.74 hectares and includes mineral rights to 57 hectares of the Quiulacocha tailings site. The site contains an estimated 423 million ounces silver equivalent based on historic production balances. Drilling programs conducted by the company reported an average grade of 5.5 ounces per ton silver equivalent, including strategic metals such as gallium and indium.

Reprocessing Tailings in a Booming Metals Market

Bloomberg reported on December 22 that "gold and silver soared to all-time highs, as escalating geopolitical tensions and bets on further US rate cuts added momentum to the best annual performance in more than four decades." Bullion surpassed its previous record, while silver rallied as much as 3.4%, placing both metals on course for their strongest year since 1979. The article also noted a surge in ETF inflows and highlighted that "Trump's aggressive moves to reshape global trade — as well as his threats to the U.S. central bank's independence — added fuel to the scorching rally earlier this year."

Two days later, Bloomberg wrote that "gold rose to an all-time high above US$4,500 an ounce on escalating tensions in Venezuela and expectations for more US rate cuts." The report stated that "gold has gained more than 70% this year and silver has risen by 150%," while platinum advanced beyond US$2,300 for the first time since Bloomberg began tracking it in 1987. John Feeney of Guardian Vaults said, "The dominant drivers for both gold and silver right now are the combination of sustained physical demand and renewed sensitivity to macro risk." He added, "We're seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth."

Also on December 24, Excelsior Prosperity provided further context on the sector's performance, stating that "gold has had a fantastic year up about 69%" and "silver has had a stellar year up about 141%." On December 23, silver set a new all-time high daily closing price of US$71.137 and reached an intraday peak of US$72.75. Gold closed at a record US$4,505.70 and peaked intraday at US$4,530.80. The report observed that "we are seeing so many new all-time highs in sequence on the metals charts that it is easy to get desensitized to just how bullish this period has been day after day."

Platinum also reached a new all-time high daily close of US$2,287.40, with an intraday peak of US$2,394.75. Copper rose to a multi-month high of US$5.55 per pound on December 23, closing out a year that saw it gain approximately 40%. Excelsior Prosperity concluded that "this highlights the rotation of capital into tangible hard assets, and also underscores the loss of purchasing power in the fiat dollar monetary unit."

Third-Party Analysis: Strengthening Support and Strategic Positioning

On December 15, analyst Ted Butler of Silver Advisor positively highlighted Cerro de Pasco Resources Inc.'s progress in reinforcing its operational foundation through a formalized surface use agreement with the Community of Quiulacocha. Butler noted that the agreement, which was approved by the community assembly and notarized on December 11, "provides a clear framework for coordinated surface access at Quiulacocha." He stated that it covered technical and environmental work such as drilling, hydrogeological programs, baseline studies, and engineering efforts.

Butler added that the agreement "confirms alignment between CDPR and the community, with provisions covering communication, local participation, and broader social responsibility commitments." He also emphasized that the project's continued listing on Peru's Ministry of Economy and Finance's Specialized Priority Projects List further supported the company's collaborative development model. According to Butler, "Together, the agreement and continued government recognition underscore CDPR's collaborative approach to balancing economic incentives with environmental remediation."

In addition to this operational progress, Butler referenced recent financial developments for the company, including the closing of an upsized CA$22.7 million financing round, which included participation from billionaire mining investor Eric Sprott. He reported that Cerro de Pasco was "fully-funded to complete an upcoming phase II drill program, as well as a metallurgical program set to conclude in Q1 2026." Butler and fellow analyst Peter Krauth reaffirmed their overweight position in the company.

On December 24, Chen Lin of What's Chen Buying? What's Chen Selling? commented on the company's momentum by referencing recent market performance. While discussing CDPR's affiliated company, he stated, "Same for CDPR," in reference to expectations of potential positive developments. Though brief, the mention served as a signal of Chen's continued interest in the company's strategic trajectory, following previous periods of anticipation around deal-making and expansion. 

Building Stability at the Core of a Reprocessing Strategy

The new surface rights agreement adds a critical layer of operational certainty as Cerro de Pasco continues to position itself within the tailings reprocessing sector. Unlike traditional mining, the project does not require blasting or hauling, which significantly reduces operating costs and environmental impact. According to the company's presentation, tailings extraction at Quiulacocha is expected to operate with lower dilution, minimal dust, and no use of explosives.

Cerro de Pasco has already completed assays from a 40-hole drill campaign, which support the presence of recoverable silver, zinc, lead, gold, copper, gallium, and indium. The company projects a potential 20-year mine life based on a 3.6 million tonne per annum processing capacity. Processing plans include a floating pump system to move the slurry from tailings to the plant without trucks or blasting, adding to the project's low-impact profile.

The company also highlighted broader national support and community benefits as key differentiators. With Quiulacocha located in a historically mining-focused region, the project aligns with local economic goals and environmental cleanup efforts. 

Ownership and Share Structure¹

About 8% of the company is held by insiders and management. About 30% is held by other strategic entities, and about 8% is held by institutions. The rest is retail.

Top shareholders include 2176423 Ontario Ltd. with 16.21%, Gordaldo Ltd. with 5.81%, LH Financial Services Corp. with 5.32%, Steven Zadka with 4.68%, and Guy Goulet with 1.8%.

Its market cap is CA$251.84 million with 493.39 million shares outstanding. It trades in a 52-week range of CA$0.225 to CA$0.60.