From Legacy to Leverage: Cerro De Pasco’s $14B Above-Ground Resource Opportunity

Cerro De Pasco Resources (TSXV: CDPR) is on a mission to unlock one of the largest above-ground metal resources on the planet—not by mining new ore, but by reprocessing the legacy tailings and stockpiles left behind by centuries of industrial activity. This unconventional model could position CDPR as a leader in sustainable mining and critical mineral supply, all while revitalizing a historic Peruvian community.

Project Overview & Economic Rationale

Situated 4,400 meters above sea level in the Andes of Peru, Cerro de Pasco is more than just a site—it’s a symbol of historical wealth generation. Since its discovery in 1630, this mine has operated continuously, including its early 20th-century development under JP Morgan. Now, CDPR holds mineral rights over approximately 75 million tonnes of tailings and stockpiles, with recoverable silver, copper, lead, zinc, gold, and critical elements like gallium and indium.

CEO Guy Goulet explains the economic potential:

“There’s $14 billion of in-situ metal value sitting above ground, with no need to drill underground or develop new deposits.”

The company estimates a conservative $169/t in-situ value. Utilizing existing flotation facilities adjacent to the pit (owned by Volcan), CDPR could generate $2.9 billion in profit at 40% recovery. A new plant using modern tech could increase recovery to 70%, pushing profits to $6.3 billion over a 10-year mine life.

Legacy Resource, Modern Opportunity

Unlike most mining projects, CDPR’s strategy involves no new mining. Instead, the company is reprocessing existing material—300 million tonnes of historically mined ore, 75 million of which remain in tailings and stockpiles. Early 20th-century processing only achieved ~60% metal recovery. Goulet notes that 40% of mining costs are typically attributed to extraction:

“We don’t have to mine. That 40% of cost—gone. That’s the opportunity.”

The average grades within the tailings are impressive:

These numbers equate to ~4.3 oz/ton silver equivalent, or $170/t in place.

Critical Metals & Strategic Importance

While the precious and base metal content alone makes the project valuable, CDPR’s discovery of gallium and indium elevates it to strategic importance. These metals are essential to semiconductors, 5G, aerospace, and defense. With China currently producing 98% of global gallium and now limiting exports, the U.S. and its allies are urgently seeking alternative sources.

“We didn’t expect this. But we’re now sitting on gallium concentrations four times higher than China’s 2024 reported production.”

If recoverable at scale, CDPR could emerge as a globally significant supplier of critical elements.

Community-Driven Revitalization

The city of Cerro de Pasco was built around the mine, and the company is working closely with the 67,000-strong local population. Historically, the mine employed tens of thousands; today, it employs only a few hundred.

The mayor of the community told Goulet:

“These tailings will send our children to school in Lima.”

CDPR has secured government permits—including a rare Supreme Resolution signed by the President of Peru—to conduct its first 40 drill holes. Phase 2 is in motion, with full support from the local population and community agreements in place.

Technical De-Risking & Phase Progress

The first 40 holes confirmed expectations for metal content, with consistent grades across depths. CDPR is now undertaking mineralogical and metallurgical studies in Sweden, Germany, Canada, and Peru to understand the best recovery methods, particularly for gallium and indium.

Samples were frozen immediately after drilling to prevent oxidation, preserving “in situ” integrity. With metallurgy underway and Phase 2 drilling expected soon, CDPR is building toward a feasibility study targeted for Q2–Q3 2026.

“Every 1% improvement in recovery equals tens of millions in value.”

The company is also evaluating two operational paths:

• Using existing flotation facilities at 10,000 tpd (~$140M/year profit)
• Building a new plant for 20,000 tpd (~$610M/year profit)

Capex estimates for a new facility range from $150M (using Chinese equipment) to $400M (with German engineering), with payback possible within a single year.

The tailings area is owned by the Peruvian federal government. There is no NSR (net smelter royalty), but CDPR will pay a 28% corporate tax on cash flow. In exchange, the government gains environmental remediation, job creation, and critical metals—all without fronting development capital.

Funding, Share Structure & Institutional Support

CDPR is backed by renowned investor Eric Sprott, who owns ~20% of the company. Management and three institutions control over 40% of the float. The company currently trades at a ~C$150M market cap.

Warrants expiring in June may be a short-term overhang on share price, but insiders—including Sprott—hold most of the low-price warrants, meaning exercise will likely not require open-market selling. With $16M cash on hand, the company is fully funded to reach feasibility.

The project isn’t just about reprocessing metals—it’s about reversing environmental damage. CDPR will eliminate the region’s acid water problem over a 20-year horizon by removing the reactive tailings and stockpiles that caused it.

The company may also produce sulfuric acid as a byproduct, vital for Peruvian agriculture. From metal recovery to water remediation, this is as much an ESG story as it is an economic one.

Looking Ahead: Feasibility and Potential Re-Rating

CDPR plans to list on the Lima Stock Exchange within months and is preparing to announce its second Supreme Decree for expanded drilling. A full feasibility study is expected by mid-2026, after which the company could move to build or potentially attract acquisition interest.

“This is not just a mining project—it’s a rehabilitation project. No underground risk. No exploration risk. Just recovery.”

As reprocessing tailings gains momentum in a world demanding sustainability, CDPR is arguably sitting on the perfect combination of scale, grade, social license, and critical mineral leverage.