Cerro de Pasco: Silver Surge Meets Century-Old Resource

• Silver prices have surged 249% over the past year and 47% year-to-date, driven by China's strategic resource designation, industrial demand from solar and EV sectors, and investor inflows into ETFs and physical metals.
• Cerro de Pasco Resources completed integrated Phase 1 technical programs in 2025, including mineralogy, metallurgy, and environmental baseline studies, establishing technical readiness for its Quiulacocha tailings reprocessing project in Peru.
• The company controls the El Metalurgista concession hosting over a century of accumulated silver-rich tailings and stockpiles, representing one of the world's largest above-ground mineral resources in a Tier-1 mining jurisdiction.
• Phase 1 bulk sampling of 12.3 tonnes was completed in December 2025, with laboratory analysis and metallurgical testing underway to support flowsheet development and scale-up studies for commercial production.
• The company closed its Phase 1 drilling Environmental Impact Declaration and submitted Phase 2 applications, while securing a surface use agreement with the Community of Quiulacocha, advancing toward a comprehensive tailings reprocessing authorization.

Silver's rally has captured global attention, with the metal surging to multi-year highs amid supply constraints, industrial demand, and investor activity. As China designates silver a strategic resource and restricts exports, while solar panel and electric vehicle manufacturers increase consumption, mining companies with near-term production potential are attracting investor scrutiny.

Cerro de Pasco Resources is advancing toward production from historic silver-rich tailings in Peru, positioned to capitalize on market dynamics while addressing environmental remediation. CEO Guy Goulet notes:

 “Our strategic focus is to reprocess and remediate historic mining waste, unlocking value while advancing environmental remediation and sustainable development.”

The timing of the company's technical progress aligns with a silver market that has grown to over $6 trillion in valuation. While veteran analysts warn of potential commodity bubble risks, the fundamental drivers supporting silver prices including China's export restrictions affecting only 44 licensed companies globally and accelerating industrial applications suggest structural demand may support pricing. For Cerro de Pasco Resources, this environment provides a window to advance its assets toward commercial production.

With Phase 1 technical programs completed and bulk sampling underway, the company has de-risked its Quiulacocha project while establishing a pathway to resource estimation and feasibility studies. As silver prices remain elevated and supply constraints intensify, investors are evaluating opportunities in companies positioned to bring new production online within relevant timeframes.

Company Overview

Cerro de Pasco Resources Inc. trades on the TSX Venture Exchange under the symbol CDPR, with additional listings on the OTCQB (GPPRF), Frankfurt Stock Exchange (N8HP), and Lima Stock Exchange (CDPR). The company focuses on developing its wholly-owned El Metalurgista mining concession in central Peru, which hosts silver-rich tailings and stockpiles accumulated over more than a century of mining operations.

The company's business model centers on reprocessing historic mining waste. The Cerro de Pasco region has produced metals for over 400 years, with modern industrial-scale mining beginning in the early 20th century, creating substantial tailings deposits that contemporary metallurgical technology can process more efficiently than historic methods.

Under CEO Guy Goulet's leadership, the company has advanced technical studies, secured community agreements, and navigated Peru's regulatory framework. Goulet emphasizes:

“We aim to create a sustainable, socially responsible pathway to production while addressing environmental legacies that have persisted for decades.”

The company's qualified person, Alfonso Palacio Castilla, MIMMM and Chartered Engineer, provides technical oversight. The management team's strategy focuses on establishing project readiness through completion of technical, environmental, and permitting workstreams before advancing to resource estimation and feasibility-level engineering.

Key Development: Phase 1 Technical Completion

The company completed principal technical, environmental, and regulatory workstreams throughout 2025. These integrated Phase 1 programs encompassed mineralogy, metallurgy, rheology, geotechnical and hydrogeological studies, subsidence assessment, and validation of drill spacing and resource modeling methodologies. Multi-laboratory metallurgical characterization programs provided a technical basis for scale-up testing, flowsheet optimization, and downstream engineering trade-off evaluations.

Environmental-geochemical baseline programs were completed across both wet and dry seasons, with sampling conducted at more than 60 locations. Preliminary geotechnical and hydrogeological studies were finalized, enabling stability modeling, risk assessment, and the design of the Phase 2 drilling program.

From December 16-19, 2025, Cerro de Pasco Resources completed Phase 1 bulk sampling at the Quiulacocha tailings facility. Approximately 12.3 tonnes of raw bulk material were collected through shallow excavation, packaged, and transported to Lima under frozen conditions for laboratory chemical analysis and metallurgical testing. This bulk sampling program supports subsequent phases of technical development, including flowsheet refinement and scale-up planning. Goulet commented: 

“The completion of our Phase 1 bulk sampling program marks a pivotal milestone, providing critical data to optimize metallurgical flowsheets and advance the project toward commercial production.”

Strategic Significance in the Silver Market Context

Cerro de Pasco Resources' advancement toward production occurs during a period of notable silver market dynamics. China's designation of silver as a strategic resource and subsequent export restrictions created supply constraints in global markets, with only 44 companies qualifying for export licenses. This regulatory shift altered silver trade flows and affected pricing for producers outside Chinese jurisdiction, particularly those in established mining regions like Peru.

Industrial demand growth from solar panel manufacturing, electric vehicle components, and electronics applications provides structural support for silver consumption. According to Guy Goulet:

“The market conditions present a unique opportunity for companies like ours to deliver near-term production from above-ground resources, while meeting growing industrial demand sustainably.”

The project's location in Peru, a Tier-1 mining jurisdiction with established infrastructure and regulatory frameworks, reduces political risk compared to projects in less stable regions. Tailings reprocessing projects typically feature shorter development timelines than traditional mining operations. The environmental remediation component may attract impact investors and potentially qualify for financing terms or government support programs.

Current Activities & Operational Progress

The company's operational focus centers on advancing permitting processes while awaiting results from the December 2025 bulk sampling program. Cerro de Pasco Resources closed the Declaración de Impacto Ambiental related to Phase 1 drilling and submitted a Declaración de Impacto Ambiental for Phase 2 drilling activities within the existing easement area of the El Metalurgista concession.

The company executed a surface use agreement with the Community of Quiulacocha, securing continuity of access for ongoing and future technical activities. Preliminary logistics and transportation studies were completed during 2025, evaluating concentrate handling, storage, and regional transport alternatives including road, rail, and pipeline-based options.

In December 2025, the company granted 10.6 million stock options to directors, officers, employees, and consultants at an exercise price of CAD 0.68 per share for periods of two or five years. The company also entered into a consultancy agreement with 1473632 BC Ltd. for strategic advisory and business development services at CAD 25,000 per quarter for an initial one-year term. Goulet reinforced the company's mission, stating, 

“Securing community agreements and advancing regulatory approvals are fundamental to ensuring long-term project sustainability and alignment with local stakeholders.”

For Investors

• Consider accumulating positions in silver-levered developers if prices sustain above historical resistance levels through Q2 2026.
• Diversify across multiple silver jurisdictions to mitigate country-specific regulatory or permitting risks.
• Monitor metallurgical test results from bulk sampling programs as key technical validation milestones that impact valuation.
• Evaluate entry points following commodity pullbacks, as silver's volatility creates tactical buying opportunities in development assets.
• Allocate portfolio percentage appropriate to development-stage risk profiles, with position sizing reflecting higher execution uncertainty versus producers.
• Track China's export licensing regime and industrial demand metrics as leading indicators for sustained silver price support.

Cerro de Pasco Resources presents a risk-reward profile for investors seeking exposure to elevated silver prices through a company approaching resource estimation and feasibility studies. The completion of Phase 1 technical programs and bulk sampling establishes project readiness while the company advances permitting processes. The asset's location in Peru provides jurisdictional stability.

Silver's surge, driven by supply constraints from China's strategic resource designation and growing industrial demand, creates a pricing environment for companies advancing toward production. While analysts including former JPMorgan strategist Marko Kolanovic warn that commodity bubbles can form and burst quickly, the structural drivers supporting silver differ from purely speculative rallies. Veteran commodity trader Peter Brandt echoes cautionary signals based on historical trading patterns. Guy Goulet frames the company's outlook: 

“Our objective is to translate technical progress into tangible operational milestones, ensuring that when silver prices sustain, Cerro de Pasco is ready to deliver production responsibly and efficiently.”

Upcoming catalysts include metallurgical test results from the December 2025 bulk sampling program, advancement of Phase 2 drilling applications, and progression toward the first Mineral Resource Estimate for the Quiulacocha tailings. The company's approach to technical validation, environmental baseline establishment, and community engagement reduces execution risk while the silver market provides pricing support.

TL;DR

Cerro de Pasco Resources advances Peru-based silver tailings project amid a 249% silver rally driven by China export restrictions and industrial demand. The company completed Phase 1 technical programs in 2025, conducted 12.3-tonne bulk sampling in December, and secured community agreements while progressing regulatory submissions. Upcoming catalysts include metallurgical test results, Phase 2 drilling approval, and first resource estimate. Tailings reprocessing model offers a shorter development timeline than traditional mining while addressing environmental remediation, positioning companies to potentially reach production during elevated silver price environments.

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