CDPR Reports Q2 2023 Production Highlights and Updates on its Santander Mining Operation
August 1, 2023
MONTRÉAL, QUÉBEC, CANADA — (August 1st, 2023) Cerro de Pasco Resources Inc. (CSE:CDPR) (OTCPK: GPPRF) (FRA: N8HP) (“CDPR” or the “Company”) reports production results for the second quarter ended June 30th, 2023 (“Q2 2023”) and provides updates on its Santander mining operation. Production results are from the Company’s wholly owned Santander Mine (“Santander”), located in Peru. All amounts are in U.S. dollars, unless otherwise noted. Q2 2023 Highlights Operations Update – Curtailed Operations The operation in Q2 2023 averaged 61,637 tonnes per month of processed ore. This is a 5.0% improvement over Q1 2023 and 96.4% more over the same period last year. Likewise, over the same period the operation implemented an aggressive cost-reduction-plan, successfully reducing operating costs by 30.3% from January to June 2023. By the end of June 2023, the operation achieved the previously set guidance range for this year. From January to June 2023 the realized value for the price of zinc fell by over 28% due to inflationary pressures and broader market volatility in the global economy. Despite this scenario, the Company has secured two term-sheets for a total of $32.5 million in aggregate funding to execute the Santander Pipe Project. While the company considers the macro-economic pressures affecting zinc price to be transient, CDPR believes the best course of action is to implement a new operations plan that contemplates temporary curtailment of the Santander operations (the “Curtailed Operations Plan”). As part of the Curtailed Operations Plan the Company anticipates the following: Jorge Lozano, CDPR’s COO stated: “During the quarter, zinc production from our Santander operations improved as result of higher processed tonnes, furthermore we have achieved steady production with significant cost optimization. Santander is well positioned for significantly higher mill production rates as we transition to mining ore from the Pipe area. The actions taken as part of the Curtailed Operations Plan are key to ensuring the successful execution of the Santander Pipe Project. Our operational readiness and proven ability to secure term-sheets demonstrates the robust economics of the Pipe Project.” Guidance Update As a result of the Curtailed Operations Plan, CDPR revises estimates for 2023 zinc and lead production to a new estimated range of 27.5 to 34.7 million lbs on a *ZnEq. basis, compared to prior guidance of 41.7 to 55.4 million lbs on *ZnEq. *Prices considered are 1.51 $/lb for Zinc, 1.01$/lb for Lead and 23 $/oz for Silver. Technical Information Mr. Jorge Lozano, MMSAQP and Chief Operating Officer for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a Qualified Person for the purposes of reporting in compliance with NI 43-101. About Cerro de Pasco Resources Cerro de Pasco Resources Inc. (CDPR) is a mining and resource management company, with the goal to become the next mid-tier producer of base metals in Peru. CDPR is currently engaged in mining, developing and exploring its wholly-owned 6,000 hectare Santander Mine in the highly prospective Antamina-Yauricocha Skarn Corridor, located 215 km from Lima. CDPR is also focused on the development of its principal 100% owned asset, the El Metalurgista mining concession comprising mineral tailings and stockpiles extracted from the Cerro de Pasco open pit mine in Central Peru. The company’s approach at El Metalurgista entails the reprocessing and environmental remediation of mining waste and the creation of numerous opportunities in a circular economy. CDPR is founded on clear objectives, to engender long-term economic sustainability and benefit for the local population, from an economic, social and health point of view. Forward-Looking Statements and Disclaimer Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified using forward-looking terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other similar expressions. Forward-looking statements, including the expectations of CDPR’s management regarding the completion of the Transaction as well as the business and the expansion and growth of CDPR’s operations, are based on CDPR’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of CDPR to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements are subject to business and economic factors and uncertainties and other factors that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in CDPR’s public documents, available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although CDPR believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements and forward-looking information. Except where required by applicable law, CDPR disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Further Information Guy Goulet, CEO
Q2 2023
Q2 2022
Var
1H 2023
1H 2022
Var
Production
Zn Price
($/t)
2,638
3,925
-32.8%
2,909
3,528
-17.6%
Ore Mined
t
185,050
94,207
96.4%
363,285
189,125
92.1%
Ore Milled
t
185,210
94,207
96.6%
361,694
189,125
91.2%
Zn Head Grade
%
3.14
3.30
-4.7%
3.20
3.82
-16.2%
Pb Head Grade
%
0.31
0.30
3.4%
0.29
0.22
27.9%
Ag Head Grade
oz/t
0.71
0.50
42.4%
0.67
0.50
35.1%
Zn Recovery
%
93.64
94.80
-1.2%
94.32
95.10
-0.8%
Pb Recovery
%
68.61
71.10
-3.5%
68.21
72.78
-6.3%
Ag recovery
%
50.38
47.30
6.5%
48.27
48.35
-0.2%
Zn Concentrate
Tn
11,508
6,129
87.8%
23,060
14,172
62.7%
Pb Concentrate
Tn
773
372
107.7%
1,339
666
101.0%
Ag Production
oz
69,862
22,405
211.8%
117,660
41,959
180.4%
Development meters
1,261
1,213
4.0%
3,435
1,987
72.9%
Units
Guidance 2023 REVISED
Payable production of ZnEq*
(000)s lbs
27,496
-
34,731
Payable production of Zinc
(000)s lbs
24,746
-
31,258
Payable production of Lead
(000)s lbs
1,316
-
1,662
Payable production of Silver
(000)s oz
123
-
155
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