CERRO DE PASCO RESOURCES INTERCEPTS NEW HIGH-GRADE MINERALIZATION AT SANTANDER, ANNOUNCES EXPANSION OF ITS EXPLORATION PROGRAM AND PROGRESS OF ITS PEA STUDY ON SANTANDER PIPE(HISTORIC SANTANDER MINE)

MONTRÉAL, July 11, 2022 /CNW Telbec/ – Cerro de Pasco Resources Inc. (CSE: CDPR) (OTCMKTS: GPPRF) (Frankfurt : N8HP) (“CDPR” or the “Corporation”) is pleased to report results of a high grade intercept at its wholly-owned Santander Mine in Peru. The Corporation also provides a report and update on the exploration and infill drilling campaigns together with an announcement to expand its exploration program.

High-grade intercept in new location between Magistral Mine and Santander Pipe 

Borehole SAN-0282-22, which is located approximately halfway between the Magistral Mine and the Santander Pipe, has cut a 300 m package of skarn with various mineralized horizons which have been analyzed in the mine’s onsite laboratory run by SGS. The mineralization and alteration encountered in SAN-0282-22 is similar to that of the Santander Pipe body which was historically mined for very high base metal grades.

The Corporation feels that the mineralisation and skarn intercepts encountered in SAN-0282-22 demonstrate significant exploration potential. Therefore, the Corporation has increased the 2022 drilling budget to cover an additional 5,000m of drilling. CDPR has followed up on the initial drilling results with two additional boreholes, both of which have hit similar skarn and mineralized horizons. These boreholes are currently being sampled. Figure 1 shows a preliminary section interpretation of SAN-0282-22 and SAN-0283-22 (location of section line in Figure 2), and Table 1 shows the assay results returned to date (SGS mine laboratory) for intercepts in SAN-0282-22. Drilling on this target is continuing to the North of SAN-0282-22.

Table 1: Best intercepts from SAN-0282-22.

HOLEID	FROM (m)	TO (m)	Length (m)	Zn_pct	Pb_pct	Cu_pct	Ag_ppm
SAN-0282-22	572.85	580.70	7.85	9.61	0.17	0.14	61.37
SAN-0282-22	625.10	627.75	2.65	4.61	0.01	0.04	4.04
SAN-0282-22	639.40	644.00	4.60	3.41	0.01	0.03	2.34
SAN-0282-22	652.80	661.00	8.20	2.12	0.01	0.01	2.00
SAN-0282-22	700.15	704.95	4.80	7.42	0.01	0.30	14.04

The sample pulps for the intercepts in Table 1 will be further analyzed in ALS to confirm the mine laboratory assays and to quantify other elements not assayed by the mine laboratory.  

Guy Goulet, CEO of CDPR commented: “This update highlights the exciting path forward for continued value to be generated. Cerro de Pasco Resources believe Santander has significant brownfield exploration potential that points to mine life extensions and validates our confidence in potential long-term value from the acquisition of Santander.”

Also, CDPR feels it is strategically important that this first intercept and potential new ore zone is located halfway between the Santander Pipe and the Magistral Deposits, and at a depth similar to current mining levels in the Magistral bodies.

Jorge Lozano, COO of CDPR further commented: “The strategic location in between a proposed connecting infrastructure from Magistral to Santander Pipe deposit. Further definition of this deposit will allow us to unlock new value to the project with a more flexible path for developing the Pipe deposits and further optimization of economics with mining higher grade areas.”

Exploration Program Update

The overall drilling program has been increased to 35,880 m from 30,750 m (stated in Q1 press release), of which 25,150 m have been allocated for exploration (surface and underground) and 10,730 m for infill drilling. To date, a total of 17,820.35m of drilling has been executed, which includes 13,980.45 m of exploration (mainly surface) and 3,839.9 m of infill drilling. Figure 2 shows the location and advance of surface exploration drilling, Figure 3 shows the same information in cross section including the underground exploration drilling, and Figure 4 shows the executed and proposed infill drilling programs. 

Other Exploration and Infill Drilling Result Highlights

See previous press release dated April 27, 2022 for Q1 Exploration results.  The following provides an update for Q2. 

Extension Magistral North – CDPR has finished its current drilling program in Magistral North. The results shown below are in addition to the Q1 results and show good intercepts in two of the boreholes.     

• SAN-0273-22 intersected:
  • 2.30 m at 3.11% Zn, 0.09 % Pb, 0.02% Cu, 10.72 g/t Ag.
• SAN-0275B-22 intersected:
  • 7.20 m at 3.09 % Zn, 0.92% Pb, 0.03 % Cu, 57.93 g/t Ag.
  • 8.35 m at 1.87 % Zn, 0.42% Pb, 0.02 % Cu, 68.48 g/t Ag.

The site geologists consider the style of mineralisation intersected to be similar to that of the Rosa and Fatima bodies which are vein fault structures that crosscut the Magistral orebody. CDPR is building an interpretation for this new zone.

Extension at Magistral South – Q1 surface drilling identified a possible extension to the Magistral South orebody.  CDPR drilled the potential extension with infill boreholes from underground mine accesses in relatively close proximity to the newly identified zone.  The results shown below are in addition to the Q1 results and show good intercepts in two of the boreholes. Some of the top intersects are:

• MSD-0664-22 Intersected:
  • (MS) 3.2 m at 3.01% Zn, 0.27% Pb, 4.46 g/t Ag.
• MSD-0666-22 Intersected:
  • (MS) 3.3 m at 3.51% Zn, 0.17% Pb, 2.48 g/t Ag.
• MSD-0672-22 Intersected:
  • (MS) 6.4 m at 10.78% Zn, 0.03% Pb, 10.71% g/t Ag.

Note: * MS – Magistral Sur, shows mineralization at the southern end of the already mined zones.

CDPR has finalized an interpretation for this new zone and plan to incorporate it into 2022 mining schedule due to close proximity of mineralisation to existing accesses. CDPR will use any new accesses mined to undertake further step out infill drilling in areas that cannot currently be reached with the existing mine infrastructure.

Blanquita Target – The Blanquita target is located 0.7 km SE of Magistral South and 0.5 km NW of Santander Pipe. The mineralisation intersected to date lies directly under a spur coming out of the large project wide Magnetotelluric (MT) geophysical anomaly and below an area of pervasive jasperoid silica alteration (470 m x 20 m) and As, Mn, Sb, Mo, Cs and Sr geochemical anomalies. The Q1 assay results were reported through the onsite SGS managed laboratory and are restated below considering ALS check analysis, which also includes assays for Au. 

• SAN-0270-22 intersected:
  • 2.75 m at 0.16 % Zn, 0.09% Pb, 0.00% Cu, 37.49 g/t Ag, 0.05 g/t Au.
  • 0.80 m at 0.66% Zn, 0.58% Pb, 0.01% Cu, 30.28 g/t Ag, 0.03 g/t Au.
  • 2.70 m at 0.23% Zn, 0.17% Pb, 0.00% Cu, 45.44 g/t Ag, 0.04 g/t Au.
  • 2.10 m at 0.75% Zn, 0.34% Pb, 0.03% Cu, 74.09 g/t Ag, 0.03 g/t Au.
• SAN-0274-22 Intersected
  • 1.35 m at 3.41 % Zn, 0.69% Pb, 0.09% Cu, 112.17 g/t Ag, 0.27 g/t Au.
  • 6.30 m at 0.14% Zn, 0.05% Pb, 0.01% Cu, 109.53 g/t Ag, 0.84 g/t Au.
  • 3.65 m at 0.74% Zn, 0.28% Pb, 0.01% Cu, 229.90 g/t Ag, 0.95g/t Au.

The Blanquita target has been interpreted to be a series of veins and faults with mineralisation style and texture that suggest CDPR intersected the upper part of an epithermal vein system. All drilling on the Blanquita target has finished for 2022 and CDPR is now concentrating on the geological interpretation.