US Government Financing Supports Cerro de Pasco’s Quiulacocha Development

• US government involvement materially alters the project’s risk profile with up to US$5 million in milestone-based development funding and up to US$300 million in potential construction financing.
• Funding targets critical development milestones for the Quiulacocha Tailings Reprocessing Project, including drilling programs, the Feasibility Study (FS), and the Environmental and Social Impact Assessment (ESIA).
• Asset scale underpins the project's strategic relevance, with a 75 million tonnes of historic surface stockpile containing approximately 423 million ounces of silver equivalent, with the deposit also hosting zinc, lead, gallium, and indium.
• The deposit contains gallium at an average grade of 53.2 grams per tonne, a critical mineral for which the United States is 100% import dependent, while China controls approximately 98% of global supply.
• Key risks remain, including completing the FS, ESIA, and additional drilling programs, while the potential US$300 million construction financing remains contingent on technical progress, due diligence, and final approvals.

Development Financing & Institutional Backing Reduce Early-Stage Project Risk

Cerro de Pasco Resources has recently taken a significant step in the de-risking process through financing support from the US International Development Finance Corporation (DFC). The DFC has committed up to US$5 million in milestone-based, reimbursable development funding that requires one-to-one matching funds from the company and will support sonic drilling, geotechnical and hydrogeological drilling, completion of a Feasibility Study (FS), and preparation of an Environmental and Social Impact Assessment (ESIA). In parallel, the DFC is evaluating the possibility of up to US$300 million in long-term direct loan financing for construction, subject to successful development work, due diligence, and internal approvals.

Director and Chief Executive Officer of Cerro de Pasco Resources, Guy Goulet, highlighted that several operational milestones remain central to advancing the project: 

"We got this deal with the United States that should come. We got metallurgy to announce, and the most important thing would be to drill what's out of our permit that belongs to the government of Peru."

While the potential construction loan remains contingent on technical progress and final documentation, the structured financing framework provides clearer visibility into how the Quiulacocha Tailings Reprocessing Project could advance from development to construction. Institutional backing of this nature is uncommon for development-stage mining projects and signals confidence in the asset’s strategic relevance. As governments increasingly prioritize secure supply chains for critical and technology metals, projects that demonstrate technical progress and institutional alignment may experience reduced financing and execution risk over time.

Resource Scale & Polymetallic Composition of the Quiulacocha Tailings

At the core of the investment thesis for Cerro de Pasco Resources is the scale and composition of the Quiulacocha tailings deposit. The project targets 75 million tonnes of historic surface stockpile containing approximately 423 million ounces of silver equivalent, making it one of the largest above-ground metal resources globally. Recent drilling returned assays from 40 out of 40 holes with an average grade of 5.5 ounces per tonne of silver equivalent, including silver at 1.66 ounces per tonne, zinc at 1.47%, lead at 0.89%, gallium at 53.2 grams per tonne, and indium at 19.9 grams per tonne.

As Goulet noted:

"If you put the copper, the lead, the zinc, and the gold into silver equivalent, you end up at 423 million ounces of silver equivalent above ground.”

The resource base is further supplemented by the Excelsior Mineral Pile, which contains a National Instrument 43-101 (NI 43-101) inferred resource of 30.1 million tonnes. This polymetallic profile introduces diversified revenue potential beyond traditional precious metals while reinforcing the scale of the overall resource. Large, well-defined deposits can improve mine planning flexibility, extend potential project life, and strengthen the ability to secure development financing.

Critical Minerals, Jurisdiction & Infrastructure Considerations

Beyond silver and base metals, the Quiulacocha project contains technology metals including gallium and indium, which are strategically important for advanced manufacturing and national defense supply chains. Gallium is used in semiconductor technologies, artificial intelligence infrastructure, military systems, and fifth-generation telecommunications, while the United States is 100% dependent on imports and China controls approximately 98% of the global supply. Identified gallium grades reach 53.2 grams per tonne, with higher grades toward the southern portion of the deposit.

The project is located in the Pasco Region of Peru, approximately 175 kilometers north-northeast of Lima, within a centuries-old mining district with well-established infrastructure and skilled labor. Existing support includes road access, power grid connectivity, water availability, and adjacent third-party processing facilities with a combined capacity of 20,000 tonnes per day. Reprocessing historic tailings also addresses environmental remediation by reducing acid water contamination, supporting permitting, and fostering local stakeholder engagement.

Remaining Risks & Key Milestones for Investors

Despite significant de-risking progress, several material uncertainties remain for the Quiulacocha project. The US$5 million DFC development facility requires one-to-one matching funds from the company, and the potential US$300 million construction loan is contingent on completing technical studies, satisfactory due diligence, internal credit approvals, and execution of final documentation. The project must also complete its ESIA, FS, and additional drilling programs, while successful construction and operational ramp-up remain critical milestones.

The Investment Thesis for Cerro de Pasco Resources

• Cerro de Pasco Resources controls a 75 million tonnes of historic surface stockpile containing approximately 423 million ounces of silver equivalent, with drilling returning an average grade of 5.5 ounces per tonne of silver equivalent across a polymetallic resource that includes silver, zinc, and lead, with the deposit also hosting gallium and indium.
• The project’s resource base is further supported by the Excelsior Mineral Pile, which hosts a National Instrument 43-101 inferred resource of 30.1 million tonnes, reinforcing overall project scale and potential mine life.
• Development financing from the US International Development Finance Corporation includes up to US$5 million to fund drilling, the Feasibility Study, and the Environmental and Social Impact Assessment, while the agency is also evaluating up to US$300 million in potential construction financing.
• The presence of gallium and indium provides exposure to critical minerals supply chains, particularly as the United States remains 100% import dependent on gallium, while China controls approximately 98% of the global supply.
• The project is located in the Pasco Region of Peru, approximately 175 kilometers north-northeast of Lima, within a historic mining district that provides road access, power connectivity, water availability, and nearby third-party processing facilities with a combined capacity of 20,000 tonnes per day.
• Reprocessing historic tailings introduces an environmental remediation component that may reduce acid water contamination from legacy mining while supporting stakeholder engagement and permitting progress.

These factors position Cerro de Pasco Resources as a development-stage project with significant resource scale, institutional financing support, and defined milestones as it advances toward completion of the Feasibility Study, Environmental and Social Impact Assessment, and additional drilling programs.

TL;DR

Cerro de Pasco Resources is advancing the Quiulacocha Tailings Reprocessing Project with up to US$5 million in development funding and a potential US$300 million construction loan under evaluation from the US DFC, providing rare institutional backing for a development-stage mining project. The project targets 75 million tonnes of historic tailings deposit containing approximately 423 million ounces of silver equivalent, with additional exposure to critical minerals such as gallium and indium, supported by existing infrastructure in Peru’s Pasco mining district. While financing support improves development visibility, key milestones, including completion of the Feasibility Study, Environmental and Social Impact Assessment, and further drilling, remain necessary before construction decisions are finalized.

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