Guy Goulet: Cerro de Pasco CEO on Historic Silver Tailings & Company Future

Michael Fox interviews Guy Goulet, the President and CEO of Cerro de Pasco Resources (TSX-V: CDPR) (OTCMKTS: GPPRF) (FRA: N8HP), to discuss the company's history and projects. Guy highlights that the investment in Cerro de Pasco Copper Corporation was once considered the greatest investment of the 20th century in Peru. The company was listed on the New York Stock Exchange a few years after its creation, showcasing its significant historical impact.

Silver-Rich Mineral Rights Discovery

Guy discussed the company's ownership of mineral rights on stockpiles and tailings, which represent approximately 200 million tons and are estimated to contain 423 million ounces of silver equivalent. He explained that recent drilling confirmed their expectations, though copper levels were slightly lower than anticipated. Michael expressed excitement about the project, noting that the minerals are already above ground and accessible, and highlighted the potential for profitable extraction using modern technology, as historical recovery rates were much lower.

Silver Tailings Project Development Plan

The discussion focused on a tailings project where 60% of the ground has been covered by 80 additional drill holes, with consistent silver grades of 1.5-2.5 ounces per ton and an average of 4.3 ounces per ton silver equivalent. The project, which is entirely surface-based with low mining costs of $1 per ton, has the potential to be developed quickly with significant gallium and indium byproducts, with current metallurgical tests indicating 40% metal recovery at a nearby facility or up to 70% recovery if a dedicated facility is built. The company has approximately $17 million in cash and is considering building their own facility, which would cost $150-200 million with Chinese equipment or over $300 million with German equipment, with the feasibility study currently underway to determine the optimal approach.

Peru Silver Mining Project Update

The discussion focused on a mining project in Peru, where Guy explained that 80 additional drill holes are planned to recover 423 million ounces of silver equivalent from 75 million tons of processed material. The project is expected to be profitable for both the government and local community, with permits and acid water treatment costs being key considerations. The company is conducting mineralogy and metallurgy tests, with results expected by September, and plans to list on the Lima Stock Exchange, while also exploring the potential value of gallium and indium found in the tailings, which could increase the project's profitability to over $200 per ton.

Cerro de Pasco Resources

https://www.pascoresources.com/