Cerro de Pasco Resources Prepares for Next Phase as Technical and Permitting Work Advances at the Quiulacocha Project

The December 10, 2025 news release provides a comprehensive update on the Quiulacocha Tailings Reprocessing Project. The key takeaways are: - Permitting Progress: In November 2025, Peru's Mining Council issued two resolutions that clarify the administrative path for the Ministry of Energy and Mines to evaluate and formalize the company's Tailings Reprocessing Application. This is a significant positive development that supports the timely conclusion of remaining permitting steps. - Technical Program Advancement: The 40-hole Phase 1 sonic drill program is complete, confirming metal grades and continuity. An integrated metallurgical program is underway and targeted for completion in Q1 2026. - Next Steps: The company is preparing for a Phase 2 drill program (approximately 116 total holes) to support a first Mineral Resource Estimate. The ultimate goal is to advance the project into the pre-feasibility and feasibility study stages. - CEO Commentary: Guy Goulet, CEO, highlighted the comprehensive technical program, the project's unique combination of metal endowment and environmental benefit, and the company's commitment to advancing into the feasibility phase now that administrative steps are moving forward.

The news is Material - Positive. While it doesn't contain new drill results, the update on permitting is a significant de-risking event. Permitting is one of the highest risks for any mining project in Peru, and the "clarification of the administrative path" by the Mining Council is a crucial step forward. It suggests a supportive government stance and reduces uncertainty around the project's timeline.

This update should be viewed in the context of the company's recent achievements: 1. Strategic Refocus (July 2025): The sale of the Santander mine cleaned the balance sheet of significant liabilities, allowing management to focus exclusively on the flagship Quiulacocha project. 2. Successful Drilling (April 2025): The completion of the 40-hole drill campaign confirmed high-grade polymetallic mineralization, including valuable and strategic metals like gallium. 3. Major Financing (November 2025): The company closed a $22.7 million financing, with participation from notable resource investor Eric Sprott. This fully funds the company through the feasibility stage.

The latest news confirms that the capital raised is being deployed effectively to advance the project on key fronts. It shows methodical progress and addresses the primary non-technical risk (permitting). The market has been waiting for confirmation that the project can advance, and this news provides that assurance. It reinforces the investment thesis and builds confidence that the company can execute its plan. The stock has been consolidating since the financing, and this positive operational news could provide a catalyst for the next move upwards.

Cerro de Pasco Resources Inc. is a Canadian resource company focused on the development of its flagship asset, the Quiulacocha Tailings Storage Facility (TSF) in the Pasco Region of Peru. The company's strategy is to reprocess historical mining waste to recover valuable metals, which has the dual benefit of generating economic returns while remediating a long-standing environmental liability.

The Quiulacocha project is one of the world's largest above-ground resources, containing an estimated 75 million tonnes of tailings deposited over 70 years of mining. A recently completed 40-hole drill program confirmed an average grade of 5.5 oz/t AgEq, including silver, zinc, lead, copper, gold, and significant concentrations of strategic metals like gallium and indium. The project benefits from low extraction costs ($1-$2/tonne) as no traditional hard rock mining is required.