Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) is set to begin drilling at its Quiulacocha tailings project in Peru following the attainment of a Legal Easement in May.
On May 24, the Peruvian government granted CDPR a Legal Easement, allowing the company to proceed with engineering studies and a 40-hole drilling program at the Quiulacocha site.
CDPR has allocated approximately US$1 million to the Peruvian National Bank as part of the easement formalities, which it said will allow the company to initiate site studies by late July.
These studies will include geophysical surveys, laboratory testing, mineralogy assessments, and resource estimation, all aimed at completing a Preliminary Economic Assessment (PEA).
CDPR is also seeking additional authorization to expand its exploration beyond the El Metalurgista concession.
The Quiulacocha Tailings storage facility, covering 115 hectares, holds an estimated 75 million tonnes of material processed from the 1920s to 1990s, containing significant amounts of silver, zinc, copper, lead, and gold, along with other valuable metals like germanium and indium.
CEO Guy Goulet told investors that the company is “excited” to start on-site studies.
“Our preferred contractors are signed up and prepared to begin. Our application has undergone rigorous scrutiny, and the merits of our project, including economic, environmental, and social benefits, now speak for themselves,” he added.
In parallel, CDPR announced a non-brokered private placement offering of up to 20 million units at $0.10 per unit, aiming to raise $2 million. Each unit includes one common share and one warrant, with each warrant entitling the holder to purchase an additional share at $0.15 within 24 months.
The company reserves the right to accelerate the warrant expiry date under certain market conditions.