Cerro de Pasco Resources Inc. (CDPR) communicated that it is currently addressing the final requirements in relation to a two-year legal easement, providing access to the surface areas corresponding to CDPR’s El Metalurgista Concession and the Tailings Project Quiulacocha.
The easement, which allows the company to conduct exploration through a 40-well sonic drilling program, is expected to be approved by supreme resolution in December of this year.
The easement process was initiated by the CDPR on August 25, 2022 with the authorization and guidance of the General Directorate of Mining (DGM) of the Ministry of Energy and Mines (Minem).
The hearings were held between CDPR and Activos Mineros SAC (AMSAC), which controls the surface rights over the entire area of the Quiulacocha Tailings Project. Having confirmed the rejection of AMSAC to a voluntary land easement, the DGM supported the beginning of a Legal (or forced) easement process.
The process recognizes that CDPR has an irrevocable and indefinite right to explore and exploit the El Metalurgista concession, which encompasses the Quiulacocha Tailings.
However, delays have occurred as a result of two separate and consecutive appeals filed by AMSAC. The first was reviewed by the independent Mining Council and resolved by the DGM. The second, presented on September 19, 2023, is currently in process, and must be evaluated by the Mining Council on November 30.
“AMSAC appeals, of course, are outside of our control. This process has been long, but Forced Easements are rare and have only occurred five times in the past. We respect the formalities of the country and recognize the diligence of those authorities who continue to help us find a way out of the impasse and move forward. Easement will pave the way for rapid development of the Tailings Project Quiulacocha”said Guy Goulet, CEO of Cerro De Pasco Resources.
As a result of delays due to AMSAC appeals, the Supreme Resolution is expected to be presented for signature in December. “It is a project that is fully supported by the local community and is of critical importance to Pasco Hill“Guy Goulet noted.
During the rainy season in Peru the drilling process is difficult. However, ““It is possible to drill in the rain, as long as the conditions that allow safe and quality execution are met.”, noted CDPR. Another factor to consider is the El Niño Phenomenon.
As a result, CDPR expects to begin geophysics and tomography studies before the end of the year, and also begin the Quiulacocha Tailings Drilling Program as soon as weather conditions permit.
Under the new schedule, CDPR expects to complete the 40-well drilling program and the first phase of the Tailings Preliminary Economic Assessment (PEA). Quiulacocha for the second quarter of 2024.
CDPR will pay AMSAC approximately US$1 million for the easement, and will be permitted to access and drill within its own concession area for a period of up to two years, providing access to CDPR’s El Metalurgista surface areas.
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