CORPORATE PRESENTATION | May 2021 - Cerro de Pasco ...
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CORPORATE PRESENTATION | May 2021
Forward Looking Statements Certain information contained in this Presentation may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified using forward-looking terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”, “might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other similar expressions. Forward-looking statements, including the expectations of CDPR’s management regarding the completion of a Transaction as well as the business and the expansion and growth of CDPR’s operations, are based on CDPR’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of CDPR to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Forward- looking statements are subject to business and economic factors and uncertainties and other factors, such as Covid-19, that could cause actual results to differ materially from these forward-looking statements, including the relevant assumptions and risks factors set out in CDPR’s public documents, available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Although CDPR believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements and forward- looking information. Except where required by applicable law, CDPR disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Cautionary Statement Cautionary Statement Regarding Estimates of Mineral Resources The mineral resource estimates reported in this presentation have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States' securities laws. The CIM Definition Standards differ from the definitions in the United States Securities and Exchange Commission (the "SEC") Guide 7 (the "SEC Guide 7"). The terms "mineral resource", "Measured mineral resource", "Indicated mineral resource" and "Inferred mineral resource" are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under SEC Guide 7 or recognized under U.S. securities laws. Readers are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "Inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Readers are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. Measured and Indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. Under Canadian rules, estimates of Inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically. Technical Information The scientific and technical information contained in this presentation was reviewed and approved by Shane Whitty, Shane Whitty, CGeol and V.P. of Exploration and Technical Services for CDPR., a Qualified Person within the meaning of National Instrument 43-101.
ABOUT CERRO DE PASCO RESOURCES
Cerro de Pasco Resources Inc. (“CDPR”) is a resource management company, founded in
2012 and publicly listed in Canada in 2018, with the purpose of treating and reprocessing all
dumps, tailings, mining waste and material resources in the Cerro de Pasco Region in Peru.
The Company is the holder of the El Metalurgista Concession which is situated immediately
adjacent to the Cerro de Pasco mining operation and extends across the Quiulacocha tailings
and Excelsior waste deposits. These were excluded from the privatization process in 1999, when
Volcan Companía Minera SAA (Glencore Group) acquired the operation.
Remediation by reprocessing is both a critical necessity and an opportunity.
CDPR was formed as an ESG-driven mining company at the forefront of remediation and
reprocessing technologies. Our ambition is to restore long-term sustainability to the
mining activity in the Cerro de Pasco Region, in harmony with a healthy and motivated
local population. Our team brings first-hand experience and ideas based on innovative
solutions and a holistic approach, aiming to create numerous opportunities in a circular
economy.
CERRO DE PASCO / PERU
PROFITABLE OPERATIONS FOR NEARLY 400 YEARS
Cerro de Pasco became one of the world’s
richest silver producing areas after silver
was discovered there in 16301
1) Source: Chisholm, Hugh, ed. (1911). "Cerro de Pasco" . Encyclopædia Britannica. 5 (11th ed.). Cambridge University Press. p. 762.
5
CERRO DE PASCO / PERU
MULTIPLE WORLD-CLASS ASSETS MINING DISTRICT
6
MINING AND PRECIOUS METALS IN PERU
Peru, a world class producer of The Fraser Institute in 2019 Survey ranked
precious and base metals with a Peru as 24th destination for investment in
mining and 12th in Best Practices Mineral
friendly investment environment Potential Index.
Peru is a leading and established mining
Peru has a promotional investment country – top producer of copper, silver, zinc,
framework for mining in place for several lead, tin and gold
decades, including:
> No discrimination between national and
foreign investments.
> Access to stability agreements.
> The Mining Law provides for special
incentives for mining investors.
7
CERRO DE PASCO RESOURCES / ASSETS OVERVIEW
QUIULACOCHA TAILINGS STORAGE FACILITIES
ORE TYPE Sulphide
Estimated to hold approximately 75MT
8QUIULACOCHA TAILINGS AgEq
Tonnes Average Mill Head Grade Price (USD)
(000s) Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) Cu 6,000 Tonne
Copper Mining Era (1906 – 1965) 16,369 4.00 200 3 Pb 2,125 Tonne
Zn 2,650 Tonne
Polymetallic Mining Era (1952 – 1992) 58,299 3.30 8.60 98
Ag 16 Ounce
Average Processing Recovery (%) 60% 60% 75% 60% 60% Au 1,400 Ounce
Estimated Average Tailings Grade
Estimated Plant Tailings / Residues Tonnes AgEq
(000s) Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) (oz/t) Ag Moz AgEq Moz
Copper Mining Era (1906 – 1965) 16,369 1.60 80 1.2 11.95 42.1 196
Polymetallic Mining Era (1952 – 1992) 58,299 1.30 2.20 39 6.62 73.1 386
581
Possible Recovery (%) 55% 55% 60% 55% 50%
Payable (%) 95% 95% 85% 85% 60%
Tonnes Total NSR AgEq NSR AgEq NSR
(000s) Cu ($/t) Pb ($/t) Zn ($/t) Ag ($/t) Au ($/t) ($/t) (oz/t) Moz
Approximate NSR Copper Era 16,369 50.16 19.23 16.2 85.59 5.35 87.6
Approximate NSR Polymetallic Era 58,299 14.6 29.73 9.37 53.7 3.36 195.8
283.4
9QUIULACOCHA TAILINGS CuEq
Tonnes Average Mill Head Grade Price (USD)
(000s) Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) Cu 6,000 Tonne
Copper Mining Era (1906 – 1965) 16,369 4.00 200 3 Pb 2,125 Tonne
Zn 2,650 Tonne
Polymetallic Mining Era (1952 – 1992) 58,299 3.30 8.60 98
Ag 16 Ounce
Average Processing Recovery (%) 60% 60% 75% 60% 60% Au 1,400 Ounce
Estimated Average Tailings Grade
Estimated Plant Tailings / Residues Tonnes CuEq
(000s) Cu (%) Pb (%) Zn (%) Ag (g/t) Au (g/t) (%/t) Cu Kt CuEq Kt
Copper Mining Era (1906 – 1965) 16,369 1.60 80 1.2 3.2 262 523
Polymetallic Mining Era (1952 – 1992) 58,299 1.30 2.20 39 1.8 - 1,029
1,552
Possible Recovery (%) 55% 55% 60% 55% 50%
Payable (%) 95% 95% 85% 85% 60%
Tonnes Total NSR CuEq NSR CuEq NSR
(000s) Cu ($/t) Pb ($/t) Zn ($/t) Ag ($/t) Au ($/t) ($/t) (%/t) Kt
Approximate NSR Copper Era 16,369 50.16 19.23 16.2 85.59 1.43 234
Approximate NSR Polymetallic Era 58,299 14.6 29.73 9.37 53.7 0.9 522
756
10CERRO DE PASCO ASSETS OVERVIEW
Quiulacocha Tailings Storage Facility
Estimated 75 Mt
of Tailings
11CERRO DE PASCO RESOURCES / ASSETS OVERVIEW
EXCELSIOR MINERAL PILE
ORE TYPE Sulphide
EXCELSIOR STOCKPILE MINERAL RESOURCE ESTIMATE
Mineralization Tonnes Ag Pb Zn
Class
Type (Mt) (ozt) (%) (%)
Pb-Zn-Ag Inferred 30.1 1.42 0.60 1.5
12EXCELSIOR STOCKPILE MINERAL RESOURCE ESTIMATE
Mineral Resource Estimate of the Excelsior Stockpile with the Effective Date of August 31, 2020
Grade Contained Metal
NSR Cut-off Tonnes NSR Ag Pb Zn Ag Pb Zn AgEq
Classification (US$/t) (Kt) (US$/t) (g/t) (%) (%) Koz Kt Kt Koz
Inferred 11 30,100 22 44 0.6 1.5 42,900 184 437 139,716
Notes:
1. The Mineral Resource estimate was prepared by Dr. Adrian Martínez Vargas, P.Geo., Senior Resource Geologist, and employee of CSA Global Consultants Canada Limited, an
ERM Group company, and an independent Qualified Person for the purposes of NI 43-101.
2. Numbers have been rounded to reflect the precision of a Mineral Resource estimate, therefore numbers may not total.
3. The reporting cut-off is calculated as the marginal NSR that equals total estimated mining (1 US$/t for stockpiles), processing (8 US$/t), and administration costs (2 US$/t),
assumed metallurgical extraction by multiple stage flotation, and metal prices of Zn 2,650 US$/t, Pb 2,125 US$/t, and Ag 16 US$/oz. Metallurgical processing recoveries were
modelled using test work and production data provided to CDPR by Volcan from its current operations at Cerro de Pasco which are processing similar material to that within the
Excelsior Stockpile.
4. A bulk density of 1.98 t/m3 is used.
5. Block model grade interpolation was undertaken using ordinary kriging.
6. The average grade estimates reflect resources in-situ and do not include modifying factors such as external dilution, mining losses and process recovery losses. However,
resources were reported based on a regularized model that included dilution with low-grade material.
7. The Mineral Resource estimate for the surface stockpile is constrained by the vertical lateral limits of the El Metalurgista concession boundaries and the physical limits of the
stockpile surfaces within the concession.
8. Mineral Resources are estimated and classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, adopted by the CIM Council on May 10,
2014 using the Estimation of Mineral Resource and Mineral Reserves Best Practice Guidelines, adopted by the CIM Council on November 29, 2019.
9. Mineral Resources are not Reserves and, as such, do not have demonstrated economic viability.
10. One troy ounce (oz) equals 31.10348 g
13CERRO DE PASCO RESOURCES / ASSETS OVERVIEW
Excelsior Mineral Pile
Excelsior Mineral Pile
estimated at 104 Mt
30.1 Mt Resource Supported
by NI 43-101 MRE
14CERRO DE PASCO RESOURCES ASSETS OVERVIEW
One Largest Above Ground Mineralized Resources in the World
The EL METALURGISTA Mining Concession and Social License
15EXPERIENCED MANAGEMENT TEAM
STEVEN ZADKA ROBERT BOISJOLI
Executive Chairman Chief Financial Officer
Founding partner of CDPR with 15+ years of Chartered Accountant 30+ years
transactional and executive management of operational and senior advisory
experience in Latin America, USA and Canada. experience in various sectors.
GUY GOULET SHANE WHITTY
Executive Director and CEO VP Exploration and
30+ year track record of investment in the Technical Services
mining sector, leading numerous listed Geologist with 20+ years of experience of which 16 have
ventures in Canada and internationally. been in South America, including operating mines and
advanced stage mining projects / Cerro de Pasco.
NEIL T. RINGDAHL
Executive Director and President DIEDERIK DUVENAGE
Mining Engineer with 25+ years of executive
v VP Operations and Projects
and operational experience in Latin America, 28+ years career in mining project
Africa and Europe, including management in Latin America and
Cerro de Pasco (2007/2009). Africa, including Cerro de Pasco.
MANUEL RODRIGUEZ
MARIÁTEGUI JOHN GREWAR
Executive Director and Country Manager VP Processing Operations
30+ years of management and investment experience 40+ years’ experience in gold and base metal
in the Peruvian mining sector, including SM Austria metallurgy in South Africa, Latin America and Europe
Duvaz with over 700 workers. with executive management experience in Volcan.
PROF. DR. BERNHARD DOLD EDWIN MITCHELL
Chief Technology Officer VP Safety, Health, Environment
and Community
Professor with 25+ years of experience in
sustainable mining with special emphasis on Peru 20+ years of international experience in Environment,
(Cerro de Pasco) and Chili. Health and Safety, Permitting, Community and Stakeholder
Relations with significant experience in Peru.
16BOARD OF DIRECTORS
STEVEN ZADKA GUY GOULET JOHN G. BOOTH, LLM
Executive Chairman Executive Director and CEO Independent Director
Member of the Audit, Governance and 30+ year track record of Chair the Audit and Governance
Compensation Committees investment in the mining sector, Committees
Founding partner of CDPR with 15+ years leading numerous listed ventures 30+ years of international experience in
of transactional and executive management in Canada and internationally. finance, law, ESG and corporate governance
experience in Latin America, USA of natural resource management, serving on
and Canada. the boards of several listed companies.
NEIL T. RINGDAHL MANUEL RODRIGUEZ DAVID SHAW, PH.D
Executive Director and MARIÁTEGUI Independent Director
President Executive Director and Chair of Compensation Committee and
Mining Engineer with 25+ years of Country Manager Member of the Governance Committee
executive and operational 30+ years of management and investment 30+ years of international experience in
experience in Latin America, Africa experience in the Peruvian mining sector, finance, law, ESG and corporate governance
and Europe, including Cerro de including SM Austria Duvaz with over of natural resource management, serving on
Pasco (2007/2009). 700 workers. the boards of several listed companies.
FRANK HODGSON KEITH BRILL
Independent Director Independent Director
Member of the Audit and Member of the Audit and
Governance Committee Compensation Committee
30+ years of international experience Management consultant with Gartner Inc.
in finance, law, ESG and corporate Worked as a principal consultant for PA
governance of natural resource Consulting Group
management.
17CORPORATE OVERVIEW
CSE ǀ CDPR OTCMKTS ǀ GPPRF Frankfurt ǀ N8HP
Ownership
SHARE STRUCTURE, as of May 4, 2021
Shares Outstanding * 275.3 M Management &
Directors
Options Outstanding (average price $0.40) 10.6 M
Warrants Outstanding (average price $0.53) 18.9 M Public float v
Fully Diluted Shares Outstanding 304.8 M
Institutional
Investor
Market Capitalization (February 18, 2022) 102 M
Convertible Debenture at $0.60 per share
CDN$1 M
(October 15, 2021)
Escrow Shares (last release February 2022) 78.5 M
Management & Directors Institutions Public float
18Cerro de Pasco Resources
203 – 22 Lafleur Av. N Av. Santo Toribio
Saint-Sauveur, Québec No. 115, Of. 702
San Isidro, Lima - PERÚ
J0R 1R0, CANADA
+1.51 .712.3731
+1.579.476.7000
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