Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) (CDPR) said it is excited by the results of its drilling and exploration campaign at its 100%-owned Santander Mine in Peru, including the identification of a new potential zone which could be a significant contributor to the project.
The company said the new La Cuñada zone in the Santander Pipe starts at the surface of the historic open pit and continues downward to the historic underground operation at level 4220, where the Upper-Zone starts.
Recent re-logging and digitalization of historical data including drill results and modelling related to this zone yielded positive results, the company added.
It believes the zone involves vertical mineralization of approximately 200 metres and has the potential to add 2 million to 3 million tons to the project with between 3% to 4% zinc grade, 0.3% to 0.4% lead, 0.6 to 0.7 ounces per ton (opt) of silver and 0.10% to 0.12% copper.
CDPR said it intends to develop an exploration ramp from the surface in the third quarter of 2023 until it reaches the heart of the Santander Pipe resource.
It expects to have access to exposed Skarn mineralization inside the open pit by the fourth quarter of 2024.
The company also plans to conduct 2,500 to 3,000 metres of underground exploration drilling per month as the ramp progresses downwards.
Meanwhile, CDPR said it conducted eight drill holes totalling 2,208 metres at the Puajanca prospect, located about 3 kilometres from the Santander Pipe.
Overall, the campaign intercepted 61.8 meters of mineralization with average grades of 2.96% zinc, 0.98%, lead, 0.03% copper, and 1.8 opt silver, the company reported.
"The new discoveries at Puajanca which is within close proximity to the existing operation and the addition of La Cuñada potential zone to the Santander Pipe package are exciting developments, that not only benefit our Pipe Project but also show the potential of our 56,000-hectare land package,” commented CDPR CEO Guy Goulet.
CDPR COO Jorge Lozano added: "Delineating further zones of underground mineral resources potential and providing access for future mining, while at the same time improving on the overall CAPEX requirement for the Pipe project will add significant value to an already attractive project.”
“The exposed Skarn material at the bottom of La Cuñada open pit will allow us to significantly optimize the timing of Pipe production, as well as optimizing the project economics for 2024, improving Santander´s current outlook in the current market environment and through the construction phase,” Lozano noted.
CDPR is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru.
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