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Breathing New Life into Peruvian Zinc, Lead & Silver Mine

Stockhouse Editorial
1 Comment| April 27, 2022

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Resource management company Cerro de Pasco Resources Inc. (CSE: CDPR, Forum) provided an interim operational update this week for its Santander zinc, lead and silver mine, located about 215 km northeast of Lima, in the Lima Department of Peru.

For the first quarter ending March 31, 2022, the company reported 7,771,756 lbs of payable ZnEq1 metal produced, 7,210,518 lbs of payable zinc, 294,790 lbs of payable lead, and 24,944 oz of payable silver produced.

Further Q1 highlights:

  • Santander continues to operate, mine life extended beyond end of 2022 on immediately available Mineral Resources
  • New mining contractor brought to site, ramping up operations
  • 4,171.3m of exploration and infill drilling completed against a plan of 30,750m
  • Engineering work underway to complete a new NI 43-101 technical report supporting a material increase in mine life

Q1 2022 Santander Production Results:

  • 94,918 tonnes processed
  • Average Plant Head Grade
  • Zn 4.33 %
  • Pb 0.20 %
  • Ag 16.17 g/t

Average plant recovery:

  • Zn 95.34 %
  • Pb 74.66 %
  • Ag 49.61 %
  • 7,771,756 lbs payable ZnEq produced, comprised of
  • 7,210,518 lbs Zinc payable,
  • 294,790 lbs Lead payable, and
  • 24,944 oz Silver payable

2022 Santander Production Guidance:

Units Guidance 2022
Payable production of ZnEq (000)s lbs 46,066 - 58,260
Payable production of Zinc (000)s lbs 40,854 - 51,669
Payable production of Lead (000)s lbs 2,701 - 3,415
Payable production of Silver (000)s oz 233 - 295
C1 Cost US$/ lb 1.00 - 1.27
AISC Cost US$/ lb 1.20 - 1.52

Speaking to investors in a media release on this news, CDPR’s COO Jorge Lozano commented: that since acquiring the Santander Asset in December 2021 the company is significantly investing into the business, thus giving the Santander Mine a new life by aiming to increase its reserves, and identifying additional resource potential, enabling CDPR to unlock additional mill feed sources and grow production for a new life-of-mine.

“In addition, CDPR is working to bring Santander back to steady-state mine, with improved operating practices and safety being an integral part of all mining activities at the mine. As part of our safety production plans, and enhanced operating practices, we have brought in a new mining contractor capable of achieving our safe production standards and KPIs. The operations team at Cerro de Pasco Resources remains focused on providing consistent performance and execution to deliver on our 2022 guidance.”

A short-term plan through 2022 and into Q1 2023 has been finalized on immediately available and near-term mineralization close to existing workings. The company is currently focussed on recouping development meters and ramping up production to a steady state of 2,000 tpd through Q2 and Q3.

Upon completion of the 30,750-meter drilling campaign, the company plans to complete an industry compliant Technical Report with a new life-of-mine plan including the Santander Pipe and other relevant satellite but ore bodies to Magistral.

The company had acquired Santander in November 2021 with the objective of extending the operating life of the Magistral orebody over the previous plan which was to wind down operations ending in Q1 2022.

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