Cerro de Pasco Resources (TSX-V: CDPR) is aiming to become Peru’s next mid-tier producer of precious and base metals—not through conventional mining, but by transforming historical waste into economic opportunity. At the heart of the story is a community 4,400 meters above sea level in the Andes: the city of Cerro de Pasco, where mining has been ongoing since the Spanish first began operations nearly 400 years ago.
A City Built on Mining
Cerro de Pasco is both a city and a mine. Over the past four centuries, more than 300 million tonnes of ore have been extracted from its iconic open pit. In 1906, JP Morgan invested tens of millions of dollars—billions in today’s terms—to bring in the best engineers and geologists. This legacy established Cerro de Pasco as a global mining school and center of innovation.
That legacy continues today, albeit in a new form. CDPR’s strategy revolves around reclaiming value from the massive stockpiles and tailings that have accumulated over the years, while rehabilitating the site and improving the surrounding community’s health and environment.
Acquiring and Reclaiming Legacy Assets
In 2019, CDPR was poised to acquire key infrastructure from Glencore subsidiary Volcan: two flotation facilities, the open pit, and massive stockpiles of low-grade ore and tailings. The deal was to include the facilities for $1 and the oxide plant for $140 million, to be financed through a streaming agreement.
However, the pandemic hit just as the deal was about to be signed. With no ore coming from the pit, there was no cash flow to support the stream—and the deal collapsed. Still, CDPR’s due diligence yielded invaluable data: monthly records from 1906 to 1992, detailing exactly what was processed and what was recovered.
World-Class Tailings Grades
Analysis of the tailings revealed grades that rival or exceed many active underground mines: 1.6% copper, 1.3% lead, 2.2% zinc, along with silver and gold. These tailings are already above ground, meaning there are no mining costs—only processing.
A conservative calculation puts the in-situ metal value at $15–17 billion. CDPR plans to validate these figures through a 43-101 resource estimate, supported by approved environmental studies and drilling permits.
Navigating Complex Ownership
The area around the tailings is managed by Activos Mineros, a Peruvian government entity tasked with managing legacy liabilities. CDPR holds irrevocable mineral rights, but reconciling these rights with Activos Mineros’ closure mandate required approval from four government ministries. After a two-year process, an easement agreement is now imminent.
Seven Clear Win Conditions
The company believes its project meets seven critical success factors:
- Revitalize the local economy – Restore employment in Cerro de Pasco, which has seen mining jobs decline from 7,000 to 500.
- Environmental remediation – Reprocess acid-generating tailings and eliminate long-term contamination.
- Long-term sustainability – Once processed, tailings will be placed back in the pit, eliminating future acid water.
- Government revenue – CDPR projects $23 million USD per year in tax contributions.
- Value-added outputs – Possibility to produce sulfuric acid and green hydrogen.
- Shareholder returns – Significant upside potential with a current market cap of just C$40 million.
- Strong government and community support – Local stakeholders see the project as essential for social and economic progress.
Rehabilitating the Future
CEO Guy Goulet describes the approach not as mining, but as “rehabilitation.” By transforming historic waste into economic value and environmental restoration, CDPR is redefining what it means to be a resource company.
“We didn’t make the mess—but we’re going to clean it up.”
With a PEA in development and an NPV of $1.35 billion USD estimated from just tailings reprocessing, CDPR is positioning itself for a major market re-rating. Once the surface access easement is signed and drilling begins, the company expects investor interest—and its valuation—to rise substantially.
Backed by Proven Leadership
CEO Guy Goulet has an established track record, having co-founded lithium pioneer Lithium Americas, water tech firm H2O Innovation, and Maya Gold & Silver, now Aya Gold & Silver with a market cap of $1.5 billion. He believes Cerro de Pasco is his most ambitious project yet.
With the backing of the government, community, and a clearly defined path to near-term production, CDPR offers a compelling value proposition for investors looking for upside in a revitalized historic district with world-class grades—and global relevance.
WATCH HERE: The Next Mid-Tier Producer of Precious & Base Metals in Peru – Cerro de Pasco Resources
HEAD OFFICE
203-22 Lafleur Ave.,
Saint-Sauveur (Québec)
J0R 1R0 Canada
T: (579)-476-7000
E: info@pascoresources.com
W: pascoresources.com
For more information, contact:
Guy Goulet, CEO
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