Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) has received authoritization to proceed with the easement process, gaining access to the El Metalurgista concession and the Quiulacocha tailings project.
The company said it had a definitive resolution from the independent Mining Council, endorsing its application for a Legal Easement.
The Mining Council's resolution addresses concerns raised by Activos Mineros (AMSAC), ensuring Cerro de Pasco’s right to pursue the Easement and conduct a 40-hole sonic drilling program for confirmatory exploration.
The General Mining Bureau (DGM) will now draft the Supreme Resolution, expected in the first quarter of 2024, enabling drilling during the Andean dry season.
“Our perseverance and meticulous adherence to process has finally paid off," CEO Guy Goulet told shareholders in a statement.
"The Mining Council resolution should lead to rapid unfolding of actions and events leading to the confirmation of a very large above-ground resource and a prosperous future for the city of Cerro de Pasco."
Cerro de Pasco holds the concession known as 'El Metalurgista' in Peru, providing the company with the authorization to explore and extract resources from the Quiulacocha Tailings within the designated area.
Goulet noted that Forced Easements are "rare" in Peru. "(W)e are grateful to the authorities for securing our rights and for recognizing the merits of our project.”
Cerro de Pasco plans to complete the drilling program and the first phase of the Quiulacocha Tailings preliminary economic assessment by 3Q 2024, it said in a statement. The Easement terms involve a payment of approximately US$1 million to AMSAC, allowing access for drilling over a two-year period.
Upon confirmation of study results, Cerro de Pasco aims for a Supreme Decree, releasing AMSAC from tailings closure responsibility and granting the company reprocessing rights beyond El Metalurgista boundaries.
The exploration program, funded by a US$2 million loan from Glencore, includes geophysical studies, laboratory testing, resource estimation, and economic assessment.
The Quiulacocha tailings storage facility, covering 115 hectares, holds an estimated 75 million tonnes of tailings. Historical estimates indicate significant mineralization, according to Cerro de Pasco.