Cerro de Pasco Resources Inc. Secures Social License for Quiulacocha Surface Use Agreement

Cerro de Pasco Resources Inc. (TSXV: CDPR), a Canadian materials‑management enterprise focused on the El Metalurgista concession in east‑central Peru, has formalized a critical social‑licensing milestone with the community of Quiulacocha. The agreement, signed on 11 December 2025 and approved by the community assembly, grants the company a two‑year “green light” to conduct drilling, environmental studies, and engineering works within designated surface zones.

The deal represents a decisive step toward the feasibility study of the Quiulacocha tailings reprocessing project—a venture that could unlock significant reserves of sphalerite, tennantite, cerussite, enargite, galena, and silver. By securing explicit community consent and a clear framework for surface use, Cerro de Pasco removes a key regulatory and reputational barrier that often stalls Peruvian mining projects.

Strategic Impact

  1. Accelerated Development Timeline The surface‑use agreement eliminates the need for protracted negotiations over land access, enabling the company to advance to drilling and environmental assessment phases without delay. This positions Cerro de Pasco to begin detailed engineering work earlier than competitors still awaiting similar authorizations.

  2. Enhanced Social License to Operate (SLO) The agreement underscores the company’s commitment to responsible mining practices, strengthening its social license in a region where community relations are pivotal. A robust SLO not only safeguards operations but also attracts potential joint‑venture partners who prioritize ESG compliance.

  3. Potential for Value Creation With a clearer path to a feasibility study, investors can reassess the project’s upside. The presence of multiple base‑metal and precious‑metal constituents—particularly silver, which is currently experiencing a 50‑year breakout trend—adds a compelling dimension to the asset’s long‑term value proposition.

Market Context

The Peruvian mining sector continues to attract global interest due to favorable metallurgical profiles and relatively low production costs. Cerro de Pasco’s focus on tailings reprocessing aligns with a broader industry shift toward secondary resource extraction, which offers reduced environmental footprints and higher margins on established infrastructure.

In the broader metals & mining landscape, silver’s transition from a traditional bullion asset to a “critical mineral”—driven by solar‑panel demand and other clean‑tech applications—has heightened investor attention. The recent commentary by mineral investor Chen Lin, who highlighted silver’s 50‑year breakout, reinforces the strategic relevance of Cerro de Pasco’s silver‑bearing deposits.

Forward‑Looking Outlook

The company’s recent market performance reflects a cautious investor stance: a close price of CAD 0.48 as of 15 December 2025, against a 52‑week high of CAD 0.60. With the Quiulacocha agreement now in place, Cerro de Pasco is poised to move from pre‑feasibility to detailed engineering, potentially unlocking a higher valuation multiple for the El Metalurgista concession.

Management remains focused on securing the necessary capital, advancing technical studies, and maintaining strong community relations. Should the feasibility study confirm the projected resource estimates and economic viability, Cerro de Pasco could become a significant player in Peru’s emerging base‑metal and precious‑metal markets.

Investors monitoring the materials sector should regard this development as a clear signal of Cerro de Pasco’s trajectory toward substantive operational milestones, with the potential to capitalize on both traditional mining returns and the burgeoning critical‑mineral upside.