MONTREAL, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Cerro de Pasco Resources Inc. (TSXV CDPR | OTCQX CDPMF | FRA N8HP | BVL CDPR) ("CDPR" or the "Company") is pleased to report progress on the Phase 2 drilling campaign at the Quiulacocha tailings storage facility (the "Quiulacocha TSF") in Cerro de Pasco, Peru. Drilling began on August 25, 2026, and covers 97 locations authorized by the Peruvian National Water Authority (Autoridad Nacional del Agua, "ANA"). Phase 2 follows the 40-hole Phase 1 program completed in 2025, the results of which were reported in the Company's news release of April 9, 2025. The Phase 2 drilling campaign has been designed to generate the geological, hydrogeological, geotechnical and environmental data for the first Mineral Resource Estimate ("MRE") for the Quiulacocha tailings and for the Environmental Impact Assessment ("EIA") of the Quiulacocha tailings reprocessing project (the "Project"). It follows the definitive agreements with Activos Mineros S.A.C. ("AMSAC") announced on October 21, 2026, which consolidated the Company's rights over 100% of the Quiulacocha tailings.
Highlights
- Two sonic rigs on site: a compact rig on the dry zone since August 25 and an amphibious heli-sonic rig on the ponded zone since October 1
- 34 holes completed for 1,039 m and 773 samples collected as of November 1, 2026
- 97 drilling locations authorized by ANA: 79 investigation holes and 18 piezometers
- Drilling expected to be completed in Q2 2027 with the first MRE targeted for Q3 2027
- Phase 2 drilling is a defined activity under the US$5 million project development funding agreement with the U.S. International Development Finance Corporation ("DFC")
Guy Goulet, CEO of Cerro de Pasco Resources, commented:
"Following the consolidation of our rights over 100% of the Quiulacocha tailings, we are advancing the most comprehensive drilling campaign undertaken at the facility to date. With 97 authorized drilling locations and two sonic rigs operating across both the dry and ponded areas, we are building the technical foundation for our first Mineral Resource Estimate, targeted for the third quarter of 2027, and for the technical and permitting studies of the Project. Supported by the U.S. International Development Finance Corporation, this campaign represents another significant milestone in transforming Quiulacocha into a flagship resource recovery and environmental remediation project."
Drilling Program
Cerro de Pasco Resources del Perú S.A.C. ("CDPR Perú") contracted ConeTec Perú S.A.C., a subsidiary of the ConeTec Group of Canada, in April 2026, to carry out the Phase 2 program. In June 2026, ANA authorized 97 drilling locations for the investigation of the facility, its hydrogeological study and the environmental baseline of the EIA: 79 investigation holes and 18 Casagrande piezometers, located both within the El Metalurgista concession and in the sector of the Quiulacocha TSF outside the concession, over which the Company holds surface access under its agreements with AMSAC. Together with the 40 holes drilled in Phase 1, the program brings the combined coverage of the Quiulacocha TSF to 116 geological drillholes and 18 piezometers (Figure 1).
The compact sonic rig was mobilized on August 20, 2026, and began drilling on the dry, trafficable zone of the facility on August 25 (Figure 2). The amphibious fleet, comprising a heli-sonic rig, an amphibious platform and an amphibious excavator, was assembled from September 9 and began drilling on the ponded zone on October 1, 2026 (Figure 3). Sonic drilling produces a continuous core through the full tailings column and allows sampling at 1.5-meter intervals. Resource definition holes are drilled to foundation. Geotechnical and hydrogeological holes are drilled by sonic and diamond methods into the underlying sediments and bedrock and include undisturbed Shelby tube samples, seismic cone penetration tests ("SCPTu"), downhole geophysical logging and the installation of standpipe piezometers.
Figure 1. Phase 2 drilling program status
Figure 2. Sonic compact rig on modular drilling platform
Figure 3. Heli-sonic rig mount on amphibious carrier
Progress to Date
As of November 1, 2026, 34 holes had been completed, for a total of 1,039 m drilled. As of the cut-off date, 773 samples had been collected, and a total of seven drillholes had been logged at the Company's core facility in Ate, Lima. Samples are stored under frozen-transport conditions from field collection to laboratory processing, maintaining chain of custody (Figure 4).
Figure 4. Freezer container with drilling samples
Objectives of the Campaign
The campaign has four objectives:
- Geology and resource definition: define the stratigraphy, thickness and base of the tailings across the facility and complete the drillhole density required for a first MRE under National Instrument 43-101 ("NI 43-101") and the CIM Definition Standards
- Hydrogeology: characterize groundwater flow, hydraulic connectivity and water quality through hydraulic conductivity testing, downhole geophysics and the 18 piezometers
- Geotechnics: obtain the parameters for the physical stability assessment of the facility from the SCPTu tests and laboratory testing of undisturbed Shelby tube samples
- Environmental baseline: provide the geochemical, hydrogeological and geotechnical information on the tailings and their foundation that the EIA requires
Tailings Beneath the Excelsior Stockpile
Historical data, including a 2009 reverse circulation drilling campaign by Volcan CompañÃa Minera S.A.A. described in the Company's NI 43-101 technical report dated March 15, 2021, indicate that part of the Quiulacocha tailings lie beneath the adjacent Excelsior stockpile (Figure 5). The Company is evaluating a drilling program at the toe of the stockpile to define the geology, geotechnics and hydrogeology of that portion of the tailings, subject to surface access and required permits. No mineral resource has been established for the tailings beneath the stockpile.
Figure 5. Quiulacocha and Excelsior outlines overlayed on the Aerial Photograph from 1963
Support from the U.S. International Development Finance Corporation
As announced on March 2, 2026, the Company entered into a Project Development Funding Agreement with DFC under which DFC will provide up to US$5 million in milestone-based project development funding to support defined project development activities for the Quiulacocha Tailings Reprocessing Project. The defined activities include sonic drilling, geotechnical and hydrogeological drilling, completion of a Feasibility Study and Engineering program and preparation of a comprehensive Environmental and Social Impact Assessment, with CDPR contributing matching funds for the applicable workstreams. The sonic drilling and the geotechnical and hydrogeological drilling of the Phase 2 campaign are among those defined activities, and the funding is disbursed on a milestone basis subject to the conditions of the agreement.
Laboratory, QA/QC and Qualified Person Oversight
Samples will be analyzed at a commercial certified lab in Lima, yet to be defined under an ongoing bidding process. Sample preparation comprises drying at 105°C and riffle splitting to obtain a representative pulp sample of 100 grams. Analytical methods include ICP MS/OES, Atomic Absorption, Fire Assays, Sulphur and Carbon through LECO, and volumetric Fe content.
The Company will implement a QA/QC program consisting of the insertion of twin samples, coarse and pulp duplicates, certified reference materials and coarse blanks, with check assays at a second laboratory, consistent with the protocol applied to the Phase 1 program and described in the Company's news release of April 9, 2025. Core logging, sampling and the QA/QC program are supervised by the Company's Qualified Person, and an independent Qualified Person will carry out data verification and the MRE. The Company expects to release assay results in the next four to six weeks, after validation of each batch under the QA/QC program.
Schedule and Next Steps
The Company expects to complete the Phase 2 drilling campaign in the second quarter of 2027, with assays following the progress of drilling, and targets the first MRE for the Quiulacocha tailings in the third quarter of 2027. These expectations depend on drilling performance during the rainy season, on laboratory turnaround and on the results of the QA/QC program, and there can be no assurance that the campaign or the MRE will be completed as planned.
Qualified Person
Mr. Alfonso Palacio Castilla, Professional Member of the Institute of Materials, Minerals and Mining (MIMMM), Chartered Engineer (CEng) of the UK Engineering Council, and Senior Project Manager for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Palacio is a Qualified Person for the purposes of reporting in compliance with NI 43-101. Mr. Palacio has verified the Phase 2 drilling data reported herein, consisting of drillhole locations, depths, core recovery and sample intervals, by reviewing the field logs and the drilling contractor's daily reports against the Company's drillhole database. No analytical results are reported in this news release.
Cautionary Note Regarding Mineral Disclosure
The Company has not established a mineral resource or mineral reserve for the Quiulacocha tailings, or for the tailings beneath the Excelsior stockpile, in accordance with NI 43-101. The Phase 2 program is designed to generate data to support the preparation of a first Mineral Resource Estimate.
About Cerro de Pasco Resources
Cerro de Pasco Resources Inc. is focused on developing its 100%-owned El Metalurgista concession in central Peru, which hosts silver-rich tailings and stockpiles accumulated over more than a century of mining in one of the most prolific polymetallic districts in the Americas. The Company's strategy is to reprocess historic mining waste to recover value while addressing the long-term environmental liabilities associated with these tailings.
For more information, please visit www.pascoresources.com.
Further Information
Donna Yoshimatsu, VP Investor Relations
Mobile: +1 416-722-2456
Email: [email protected]
Forward-Looking Statements
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", "scheduled" 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 advancement, timing, scope and completion of the Phase 2 drilling campaign at the Quiulacocha TSF; the number of holes, meters and samples to be completed and the rate of advance of the drilling rigs; the timing and content of future releases of assay results; the selection of the analytical laboratory and the application of the QA/QC program; the preparation and timing of a first Mineral Resource Estimate for the Quiulacocha tailings; the evaluation and potential execution of drilling at the toe of the Excelsior stockpile, including the availability of surface access and permits; the disbursement of project development funding by DFC and the use of such funding; the preparation of the EIA and the technical studies of the Project; and the timing, outcome and impact of permitting and regulatory processes, 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 information is based on the opinions, estimates and assumptions of management as of the date of this news release. These assumptions include that the drilling contractor will maintain the rate of advance achieved to date, including during the rainy season; that the drilling permits will remain in force for the period granted; that the analytical laboratory will be awarded and will deliver results within the expected turnaround; that the QA/QC program will validate the results; that DFC will disburse the project development funding on achievement of the agreed milestones; and that the Company will have the funds required to complete the campaign.
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 weather, ground and equipment conditions affecting drilling; delays or failures in laboratory analysis or QA/QC; the risk that the data generated do not support a Mineral Resource Estimate; the risk of termination of the Transfer Contract with AMSAC, announced on October 21, 2026, if the reprocessing authorization is not obtained within one year of the application; access or permit restrictions affecting the drilling, including at the Excelsior stockpile; delays in permitting; the availability of financing, including the DFC funding; and the risk factors set out in CDPR's public documents, available on SEDAR+ at www.sedarplus.ca. 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.
The Company has not established a mineral resource or mineral reserve for the Quiulacocha tailings in accordance with NI 43-101 respecting Standards of Disclosure for Mineral Projects. Ongoing drilling, assay, metallurgical and related technical work are intended to support a first Mineral Resource Estimate and future technical studies; there can be no assurance that any such estimate or study will be completed or, if completed, that it will support the advancement of the Project.
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. Forward-looking information is provided as of the date of this news release. 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.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
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