Cerro de Pasco Resources Advances Quiulacocha Tailings Project Amid Silver Supply Deficit

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

The silver market continues to face structural supply challenges that have persisted for several years, creating an environment where projects capable of delivering new metal output attract attention from investors.

According to a June 9 analysis published by Kitco News, the market has recorded a cumulative deficit of roughly 762 million ounces since 2021, with the imbalance becoming even larger when ETF flows are included.

Why Cerro de Pasco Resources Stands Out in This Environment

Cerro de Pasco Resources Inc. (CDPR:TSXC; GPPRF:OTCQB; N8HP:FSE) is advancing a tailings reprocessing project that could add meaningful silver and base metal supply without the need for conventional mining. The company recently reported new metallurgical test results from its Quiulacocha Tailings Reprocessing Project in central Peru, outlining a potential processing route that could recover silver, zinc, lead, and other metals from decades-old mine tailings while creating a separate pyrite concentrate stream.

The Quiulacocha facility covers approximately 115 hectares and holds material produced between 1921 and 1992 in Peru's historic Cerro de Pasco mining district. Because the project processes existing tailings rather than excavating new ore, it offers a lower-impact development path while still targeting valuable metals that were not fully recovered in earlier operations.

Unique Two-Concentrate Flowsheet Offers Multiple Revenue Paths

More than 110 metallurgical tests have guided the development of a conceptual two-concentrate flowsheet. In this approach, a bulk sulphide concentrate is first produced and then split into a high-grade pyrite concentrate and a separate base metal concentrate containing zinc, lead, copper, and silver. Mini-pilot plant testing recovered about 94 percent of the silver and more than 92.5 percent of total sulphides, results that aligned closely with earlier bench-scale work.

Silver in the tailings is closely associated with sulphide minerals, which helps explain the high recovery rates achieved so far. The unusually high pyrite content, representing more than half of the drilled material from the 2024 program, is now viewed as an advantage rather than a challenge. The company is evaluating the pyrite concentrate as a potential sulphur-bearing feedstock for fertilizer and chemical manufacturing, where conventional sulphur supply is tightening.

Executive Chairman Steven Zadka said in the company's announcement that future test work will focus on separating base metals from the bulk concentrate, producing cleaner pyrite material, and conducting roasting and leaching studies to assess additional downstream metal recovery.

Exploratory Work on Gallium and Indium Adds Longer-Term Optionality

Early mineralogical studies have identified gallium concentrated in silicate-rich portions of the tailings and indium primarily associated with zinc-bearing minerals.

These programs remain exploratory, and no economic conclusions have been drawn, yet they illustrate the potential for additional value streams beyond the primary silver and base metal focus.

Analyst Commentary Highlights Technical Progress and De-Risking

In a June 10 commentary, Peter Krauth and Ted Butler discussed Cerro de Pasco Resources' latest metallurgical update and its implications for the Quiulacocha project. Senior Analyst Ted Butler noted that the mini-pilot plant results at SGS Santiago provided critical proof of concept, with silver locked inside pyrite suggesting that pulling the pyrite first could ultimately allow more silver to be recovered than previously estimated. He also pointed to the 90-95 percent pyrite concentrate grade and its potential value as feedstock for sulphuric acid production.

Peter Krauth discussed recent price movements in the silver market following stronger-than-expected U.S. employment data. Market observers have noted short-term price pressure from shifting interest rate expectations and a stronger U.S. dollar, yet the underlying structural deficit remains a key theme for long-term supply dynamics.

Investor Chen Lin highlighted the metallurgical results in his newsletter, noting silver recovery above 90 percent and base metal recovery above 70 percent, with sulphur grades in the concentrate ranging from 44 to 50 percent, offering potential economic contribution even at moderate pricing levels. 

Also on June 10, CNBC reported that gold and silver prices moved lower as traders reassessed the outlook for U.S. interest rates.

Next Steps Toward Resource Definition

Cerro de Pasco outlined several ongoing and planned workstreams as part of the metallurgical program. Additional mini-pilot work will separate base metals and generate cleaned pyrite samples. Bench-scale testing of fine-grain flotation technologies is underway, and roasting and leaching trials are planned at commercial laboratories. Targeted programs are also evaluating gallium concentration from the silicate fraction and indium recovery from the base metal and pyrite streams.

A consolidated metallurgical update is expected in the second half of 2026. This update is intended to support the company's first mineral resource estimate for the Quiulacocha tailings and subsequent technical studies. The project has already secured a development agreement with the U.S. International Development Finance Corporation, and environmental and permitting work continues.

Ownership and Share Structure

¹About 7 percent of the company is held by insiders and management. About 21 percent is held by other strategic entities, and about 11 percent is held by institutions, with the remainder held by retail investors. Top shareholders include 2176423 Ontario Ltd. with 16.22 percent, Gordaldo Ltd. with 4.99 percent, Steven Zadka with 4.02 percent, and Goulet with 1.55 percent.

The market capitalization stands at CA$411.79 million with 493.39 million shares outstanding. The stock has traded in a 52-week range of CA$0.28 to CA$0.90.

With metallurgical results confirming high recoveries and multiple potential product streams, Cerro de Pasco Resources continues to advance a project that aligns with both near-term metal demand and longer-term supply considerations in the silver sector.