Snapshot

Santander Highlights

• Profitable mine with potential to grow operating cash flow and significant exploration upside;
• Steady state, fully permitted operation with stable workforce and good community relations;
• A modern 2,500 tonne per day concentrator which could be used ultimately for treating material from our El Metalurgista concession, located only 60 km away from the Santander Mine;
• Significant tailings resource which can be retreated at the end of the life of mine;
• CDPR plans to develop the Santander Pipe orebody by linking the existing underground mine, increasing payable zinc equivalent metal and reducing All-in Sustaining Costs after two years;

Strong geological evidence of a continuation of mineralization in depth, and that there are further extensions to the mineralization to be explored along strike, both to the north and south of the current mine workings.

Improvements can be made within the mine in order to reduce operational costs

CDPR will resume infill drilling and development below the bottom of the mine to maintain a continuation of mining operations in the magistral mine

Santander Overview

CDPR’s acquisition of Santander Mine in Peru was by way of a sale of the shares held by Trevali in its Peruvian subsidiary Trevali Peru S.A.C., including all their permits, licenses and concessions located at the Santander mining complex. A 1% NSR Royalty was agreed with respect to any mineral found and mined outside of Magistral, Santander Pipe and Puajanca deposits or any other mineral occurrences within the exclusion zone

Well-established mine which is producing and processing approximately 2,500 tonnes of ore per day, and ships zinc, lead and silver metals in concentrates.

 Santander Pipe

• Over a 34-year time span, the total production from the Santander pipe is estimated to have been in the order of 8,000,000 tonnes with a grade of approximately 7% zinc, with significant silver-lead content, and minor copper credits. 
• At the time of closure, an underground exploration program was in progress, and the lowermost proven reserves were reportedly being developed for exploitation.

Magistral Deposits

• Closure of the operations in 1992 precluded an accurate assessment of the viability of the MS open pit. Based upon discussions with former senior management, Trevali had estimated that approximately 100,000 t were mined from the MC and MS deposits. 

Trevali Operations

• Trevali began construction on the Santander concentrator and other plant infrastructure in 2011; underground operation at the Magistral commenced in 2013. Since production began in 2013, Trevali mined 6,477,386 tonnes of mineralised material mainly from the Magistral deposits.
• Given that Trevali declared proven and probable mineral reserves at the close of 2020 amounted to 650,000 tonnes, it can be deduced that much of this was extracted during 2021 and prior to the acquisition by CDPR at the start of December.

Santander Exploration

Several mapping campaigns and studies have been undertaken by Trevali and have assisted in the understanding of the project geology and structural framework, along with identification of exploration targets.

• A total of 3,507 rock chip samples have been taken since 2013.
• 229 soil samples have been taken that either follow surface contours or as an approximate 100 m by 100 m grid.
• Pyrrhotite and magnetite dominated mineralization is highly magnetic compared to the surrounding limestone dominated host rocks and forms an excellent geophysical target.
• 11 geophysical studies were carried out by various contractors (Val d’ Or, Quantec, Glencore, and Crone Geophysics), between 2007 and 2021, using methods such as Magnetometry, Gravimetry, IP, Electromagnetic, and Magnetoteluric.
• 10 exploration targets have been determined from the exploration work undertaken to date.
•  The historic drilling and channel samples, prior to 1992, were produced by Compañía Minera de Santander S.A.C. There were no QA/QC protocols at the time and most of the core is lost, however, the available data was compiled by Trevali and assisted the geological interpretation of the Property.
• The infill and exploration drilling and channel samples from 2007 to 2021 were produced by Trevali. Surveying, logging, sampling, and assaying were executed to industry standards, including QA/QC protocols that were started in 2007.
• The historic drilling and channel samples, prior to 1992, were produced by Compañía Minera de Santander S.A.C. There were no QA/QC protocols at the time and most of the core is lost, however, the available data was compiled by Trevali and assisted the geological interpretation of the Property.
• The infill and exploration drilling and channel samples from 2007 to 2021 were produced by Trevali. Surveying, logging, sampling, and assaying were executed to industry standards, including QA/QC protocols that were started in 2007.
• The historic drilling and channel samples, prior to 1992, were produced by Compañía Minera de Santander S.A.C. There were no QA/QC protocols at the time and most of the core is lost, however, the available data was compiled by Trevali and assisted the geological interpretation of the Property.
• The infill and exploration drilling and channel samples from 2007 to 2021 were produced by Trevali. Surveying, logging, sampling, and assaying were executed to industry standards, including QA/QC protocols that were started in 2007.