4.23M at 17.22 G/T and 18.8M at 3.4G/T Au from Its Phase 2 District Drilling Program at Monte Do Carmo Project IN Brazil
July 14, 2021 www.cerradogold.com
• CERRADO GOLD INTERCEPTS 41.65M AT 2.51G/T AU, 10.8M AT 2.83G/T AU,
4.23M AT 17.22 G/T AND 18.8M AT 3.4G/T AU FROM ITS PHASE 2 DISTRICT
DRILLING PROGRAM AT MONTE DO CARMO PROJECT IN BRAZIL
• Current program targeting extension within Serra Alta deposit and other district
targets in Monte Do Carmo.
• Results include mineralized lateral step outs in the Eastern Sector of Serra Alta
beyond the current extent of the high-grade domain.
• Drilling underway at the Capitao and Fartura regional satellite targets .
TORONTO, ONTARIO - Cerrado Gold Inc. (TSX.V: CERT) ("Cerrado" or the "Company”) is pleased to
announce further assay results from its Phase 2 drill program at the Serra Alta deposit at its Monte do
Carmo Project located in Tocantins State, Brazil (“MDC”). Phase 2 started in late May targeting further
extensional areas in Serra Alta and is also targeting adjacent satellite deposits aiming to better define the
district potential. Phase 2 follows the successful completion of Phase 1 that focused on infill and
extension drilling exclusively in the Serra Alta deposit, and which results are the bas is for the resource
update, expected for later this month. A new Preliminary Economic Assessment is expected to be
completed in early August. The Company is reporting assay results from 9 drill holes (see tables 1 & 2),
out of a total of 16 drill holes completed as of July 11 as part of Phase 2.
Drill Hole Highlights (All composites are reported as true thickness):
FSA-150
• 4.43m at 3.81 g/t Au, from 346.40 m
• 4.23m at 17.22 g/t Au, from 349.87 m
FSA-151
• 5.84 m at 6.00 g/t Au, from 189.04 m
▪ including 2.93m at 10.16 g/t Au from 191.0 m
• 10.77 m at 2.83 g/t Au, from 205.60 m
FSA-157
• 5.47 m at 12.51 g/t Au, from 464.99 m
FSA-159
• 41.65 m at 1.62 g/t Au, from 69.75m
▪ including 11.33m at 6.86 g/t Au from 70.78 m
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Mark Brennan, CEO and Co-Chairman commented, “We are pleased with the ongoing drill results supporting
our overall hypothesis for the potential at Serra Alta and the greater district scale opportunity we see to
materially grow the scale of the Monte Do Carmo resource base. He continued, “We continue to await the
updated resource estimate and Preliminary Economic Assessment for the Serra Alta deposit , which we believe
should demonstrate a strong base from which to grow.”
The Phase II drill program plan includes a total of 14,000m of drill ing at the Serra Alta Deposit (Figure 1)
and other satellites including Capitão, Fartura and Ferradura.
The assays results reported in this press release were received up until July 1 2, 2021, and the full extent
of nine diamond drill holes, totaling 3,583 m completed in Serra Alta. As of July 11, ten holes have been
completed in Serra Alta extensional areas (assays pending for one hole), four drill holes have been
competed in Capitao (with 2 additional ones in progress), and two holes have been completed in the
Fartura Target (with one in progress). Assays results of the satellites targets are still pending.
Phase 1 results jointly with the ongoing resource update, has allowed the Company to refine considerably
the understanding of the controls on mineralization including: host rock, proximity to intrusive contact
zones, relevant hydrothermal alteration , and late offsetting structures. Quar tz veins and gold
mineralization tend to blossom along the gran ite contact with felsic volcanic and quartzites. The contact
zone is segmented along strike by late faults that juxtapose blocks with different geometry and vein
density. This empiric model is being applied in the drill planning and interpretation of early results in the
new satellite target areas. District scale exploration started on the Capitao and Ferradura zones, currently
the highest ranked targets outside Serra Alta in Cerrado’s property holdings based upon historical data
and recent surface work.
Serra Alta Assays Results
Most of the drill holes reported extended into zones beyond the current high-grade domain modeled in
Serra Alta after the Phase 1 Results (see accompanying cross sections
https://www.cerradogold.com/mdccrosssections) The high-grade domain volume effectively constrains
the extent of the updated resource estimate currently being conducted by Micon International.
Drill hole FSA 149 and FSA-157 (drilled after deviated original hole FSA-153) were collared at the eastern
half of the East Zone, fault bounded block, and successfully expanded laterally the boundaries of the gold
mineralization. In both cases results show n ew parallel mineralized trends. Hole FSA-157 intercepted a
new zone located 70 m east of the current high-grade domain proving additional lateral extensional
potential in th e East zone . This extension reflects latera l continuity of the key geological controls ,
including high vein density and proximity to the intrusive contact zone between the hosting granite and
the felsic volcanics/quartzites.
Drill hole FSA -159 was collared in the East Zone and drilled in the granite following a parallel trajectory
to the intrusive contact between the granite and the felsic volcanic unit (approximately 12 m below the
contact). Results (41.65 m at 1.62 g/t Au, f rom 69.75m) confirm the thesis of higher vein intensity and
width of the high-grade domain along the contact zone.
Drill Hole 151 did not honor completely the shape of the modeled high-grade zone in the southern edge
of the East zone missing the central area but continues extending the eastern edge of the mineralization.
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Drill holes FSA-152 and FSA-154 failed to extend the continuity of the extreme southern zone.
There are several additional extensional areas already identified in Serra Alta deposit that will be targeted
later this year as part of the Phase 2 program.
Capitao Drilling
The Capitao Target is located 6 km to the south of Serra Alta along the same granite complex contact
zone.
Four holes (FCP-001 to 004) have been completed in Capitao, two of them carrying visible gold. Assay
results are pending. Capitao mineralization, as observed in drill core , shows remarkable resemblance
with the Serra Alta granite intrusion hosted quartz/gold. Mineralized granite areas in Capitao are also
proximal to the intrusive contacts with equivalent quartzite and Devonian horizontal sediment. As is the
case in Serra Alta, mineralization is associated with quartz veins and sulphides (pyrite + galena +
chalcopyrite) with a chloritic dominated alteration assemblage. Mineralization has been followed for a
strike length of 400m.
The area between Capitao and Serra Alta, along the mentioned contact zone , is characterized by a few
other targets including Sucuri and El Dorado where current exploration efforts include tr enching,
mapping, and geochemical soils sampling . Follow up drilling is planned subject to the results of the
current work programs. El Dorado has the potential to extend Serra Alta to the South West as it is directly
along strike.
Fartura Drilling
The Fartura Target is located 2 km to the northwest of Serra Alta, also sitting along the granite complex
contact zone.
Two holes (FFA -001 to 002) have been completed in Fartura; assays are pending. Core Logging and
revised surface geological mapping confirmed that the host rock of the shalow mineralization (mined
informally on surface) in Fartura is a porphyritic felsic volcanic. The two completed holes show intervals
with visible gold along a corridor of ~ 100 m strike length.
The fact that relevant quartz veining and visible gold is found in felsic volcani cs is very encouraging as
the intensity of mineralization is expected to increase in underlying grantic rock. Additional drilling will
target a posible contact zone underneath the feslsic volcani cs, following the Serra Alta model that has
demonstrated that better grades and continuity are expected in the more permissive granitic rock,
especially in proximal intrusive contact zones.
Exploration Strategy
Cerrado’s overarching exploration approach in the Monte Do Carmo district continues to be a parallel
process. First to define as accurately as possible the geology and mineralization continuity of Serra Alta,
the most advanced target and conceptual anchor deposit; and secondly use this knowledge to test the
full strike of the permissive contact zone to understand the overall district potential. It is Cerrado’s belief
based upon surface indications from garimpos (artisanal mining), geochem anomalies and outcropping
vein zones, jointly with sparce relevant historic drilling along this domain, that there is high probability of
discovery of substantial additional mineralization potential resembling Serra Alta scale an d tenor along
the contact zone. The exploration objective is to ultimately define a multimillion ounce gold district that
will support a long-standing mining project.
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Resource Update
As previously disclosed , Cerrado has retained Micon International to complete a resource update after
the successful Phase 1 drill program completed in April. This resource update is expected for later this
month and will be followed by a new PEA study in early August.
Table 1. Drill hole information
Hole_ID Easting Northing
Elevation DEPTH (m) dip(°)
Azimuth
FSA-149 820,731 8,810,507 662 600.79 -38.9 130
FSA-150 820,685 8,810,456 672 565.93 -40.6 130
FSA-151 820,531 8,810,271 524 487.71 -30.9 105
FSA-152 820,246 8,809,423 507 94.79 -31.9 110
FSA-153 820,697 8,810,300 680 513.98 -45.2 115
FSA-154 820,189 8,809,387 498 126.84 -43.6 110
FSA-155 820,646 8,809,934 564 506.27 -73.1 116
FSA-157 820,698 8,810,301 680 559.08 -45.7 113
FSA-159 820,603 8,810,325 582 127.61 -26.1 110
*Collar coordinates by GNSS TP-20 UTM Coordinates, Datum: SAD69 / zone 22S.
*Azimuth Set by compass
*Dip and drill hole trajectory by DEVIFLEX Devico©
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Figure 1. Drill Hole Location Map
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Table 2. Drill Hole Composites
DDH From To LENGTH (m) True Width (m) Au (g/t)
FSA-149 394.88 404.69 9.81 6.96 2.75
FSA-149 includes 394.88 396.87 1.99 1.41 11.85
FSA-149 and 408.86 416.57 7.71 5.47 0.55
FSA-149 and 457.79 469.63 11.84 8.40 1.44
FSA-149 includes 461.59 464.60 3.01 2.14 3.08
FSA-149 and 479.43 483.46 4.03 2.86 1.52
FSA-149 and 499.55 501.73 2.18 1.55 0.70
FSA-150 333.77 336.95 3.18 3.18 0.47
FSA-150 and 346.40 350.83 4.43 4.43 3.81
FSA-150 includes 347.54 348.65 1.11 1.11 13.23
FSA-150 and 381.60 385.69 4.09 4.09 1.51
FSA-150 includes 384.64 385.69 1.05 1.05 5.33
FSA-150 and 389.75 401.40 11.65 11.65 1.15
FSA-150 and 411.42 418.71 7.29 7.29 1.01
FSA-150 and 446.10 447.10 1.00 1.00 0.54
FSA-151 6.13 11.00 4.87 4.87 1.43
FSA-151 includes 8.53 9.85 1.32 1.32 4.14
FSA-151 and 58.34 59.40 1.06 1.06 0.62
FSA-151 and 132.88 136.20 3.32 3.32 2.00
FSA-151 includes 132.88 133.95 1.07 1.07 5.06
FSA-151 and 147.85 151.17 3.32 3.32 0.57
FSA-151 and 163.27 164.38 1.11 1.11 0.86
FSA-151 and 189.04 194.88 5.84 5.84 6.00
FSA-151 includes 191.00 193.93 2.93 2.93 10.16
FSA-151 and 198.10 200.36 2.26 2.26 1.42
FSA-151 and 205.60 216.37 10.77 10.77 2.83
FSA-151 and 219.61 224.75 5.14 5.14 0.44
FSA-151 and 251.08 253.23 2.15 2.15 1.71
FSA-152 13.45 14.59 1.14 1.14 0.78
FSA-153 461.38 460.38 1.00 0.66 2.57
FSA-154 No significant values
FSA-155 No significant values
FSA-157 438.46 439.59 1.13 0.99 4.07
FSA-157 and 450.27 452.45 2.18 1.91 1.40
FSA-157 and 464.99 471.25 6.26 5.47 1.62
FSA-157 includes 464.99 466.08 1.09 0.95 8.03
FSA-157 and 487.42 489.57 2.15 1.88 0.84
FSA-159 52.90 55.00 2.10 2.10 1.53
FSA-159 and 69.75 111.40 41.65 41.65 2.51
FSA-159 includes 70.78 82.11 11.33 11.33 6.86
CERRADO GOLD
*Composites Cut-off grade 0.49 Au g/t
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Quality Assurance and Quality Control
Analytical work was carried out by SGS Geosol International Lab (SGS). MDC sends half core samples
for sample preparation to the lab. SGS prepares samples at Belo Horizonte and at the same facility
performs gold assays by fire assay (FAA505) or metallic screen (FAASCR_150_Au -Grav), the coarse
fraction of metallic screen is assayed at Belo Horizonte and alternatively in Lima, Peru.
SGS has routine quality control procedures which ensure that every batch of samples includes three
sample repeats and at least two commercial standards and two blanks. Cerrado uses standard
QA/QC procedures, inserting reference standards and blanks, for the drilling prog ram. The
Reference material used are from CDN Resource Laboratories Ltd. and ITAK (Instituto de Tecnologia
August Kekulé Ltda.).
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Sergio Gelcich ., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person as
defined in National Instrument 43-101.
For further information please contact
Mark Brennan Nicholas Campbell, CFA
CEO and Co Chairman Director, Corporate Development
Tel: +1-647-796-0023 Tel: +1-905-630-0148
[email protected] [email protected]
About Cerrado Gold
Cerrado Gold is a public gold producer and exploration company with gold production derived from its
100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets
of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its
100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado
Gold please visit our website at: www.cerradogold.com.
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Forward-looking statements contained in this press release include, without limitation, statements regarding
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release, Cerrado Gold has made certain assumptions, including, but not limited to ability of Cerrado to expand
its drilling program at its Minera Don Nicolas Project and increase its resources. Although Cerrado Gold believes
that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the
expectations of any forward -looking statements will prove to be correct. Known and unknown risks,
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forward-looking statements to reflect actual results, whether as a result of new information, future events,
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