Cerro de Pasco Resources (CSE:CDPR, OTC:GPPRF) said it has received authorization from the Peruvian Ministry of Energy and Mines to initiate exploration activities at its Quiulacocha Tailings Project.
The authorization is the first time in Peru's history that such approval has been granted for a new mining exploration project within a tailings storage facility, Cerro de Pasco said in a statement.
The Canadian company has started its Phase I drilling program at the Quiulacocha Tailings Project, a 40-hole program over eight weeks to collect over 1,000 tailings samples.
Samples will be analyzed to determine the mineral resource estimate and metallurgical methods for reprocessing the tailings, the company said.
Additionally, the company completed its first phase of geophysical studies, revealing that the tailings deposit exceeds 40 meters in depth in certain areas, surpassing initial expectations. The Quiulacocha Tailings Storage Facility, covering approximately 115 hectares, is estimated to contain about 75 million tonnes of material from decades of mining operations dating back to the 1920s.
“This is the first ever drilling authorization granted for a new mining exploration project over tailings in the history of Peru, not related to a beneficiation concession,” Cerro de Pasco CEO Guy Goulet told shareholders.
“It is also a very exciting stage for CDPR as we will finally discover the true value of the QT tailings and be able to produce a Master Plan for the entire Quiulacocha tailings resource.”