Cerro de Pasco Resources will invest more than US$100 million in a key phase of the Quiulacocha tailings reuse project

The Quiulacocha tailings reuse project, developed by Cerro de Pasco Resources, will enter a decisive research phase in 2026, for which the company has allocated an investment of over US$10 million, according to Alfonso Palacio Castilla, the company’s senior project manager.

After completing phase 1 of research with positive results, the company will begin phase 2 this year, which will be the final research stage of the project and will provide the necessary technical information to move directly towards the feasibility study and the Environmental Impact Assessment (EIA).

This second phase will last approximately one year and will include sampling and drilling of the entire tailings facility, as well as detailed mineralogy, geochemistry, and metallurgy studies, with the aim of more precisely defining the metallic content of the tailings and the optimal processing scheme.

Fieldwork will commence once permitting and regulatory processes, which the company is currently undergoing, are completed. In parallel, laboratory analyses and project engineering will extend into 2027, completing a timeframe of nearly two years to conclude the entire study phase.

According to preliminary results from the initial phase, the Quiulacocha tailings contain grades exceeding 1.5 ounces of silver per ton, in a context where the metal’s price exceeds US$80 per ounce, which reinforces the economic appeal of reprocessing.

In addition to silver, studies have identified the presence of zinc and lead, as well as strategic metals like gallium and indium, which are key inputs for industries linked to semiconductors, satellite technologies, and renewable energy, expanding the project's potential beyond traditional metals.

In terms of volume, the company estimates that the Quiulacocha tailings dam holds between 70 and 75 million tons of tailings, accumulated over approximately 90 years of mining activity, making the project one of the largest environmental liabilities and with the greatest potential for reuse in the country.

Based on the preliminary design, Cerro de Pasco Resources is evaluating a scenario that includes a processing plant with a capacity of approximately 20,000 tons per day, which would entail, as a rough estimate, a capital investment of around US$300 million at a later stage. The company specified that this amount will be determined once the comprehensive characterization of the tailings and the final metallurgical process have been completed.

In the social component, the company has maintained a cooperation agreement with the peasant community of La Cocha, a direct neighbor of the project, since 2019. Likewise, in December of last year, a new addendum to the agreement was signed, which was publicly disseminated. According to the company, there is a stable relationship and a favorable disposition from the local population, interested in the remediation and reuse of this historical environmental liability.