Cerrado GOLD Annouces Q4 GOLD Production Results and Provides 2023 Guidance FOR Its Minera Don Nicolas MINE IN Argentina
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January 18, 2023 www.cerradogold.com
CERRADO GOLD ANNOUCES Q4 GOLD PRODUCTION RESULTS AND PROVIDES 2023
GUIDANCE FOR ITS MINERA DON NICOLAS MINE IN ARGENTINA
• Q4 2022 production of 17,360 Gold Equivalent Ounces (“GEO”)
• Full year production at top end of range of guidance at 53,672 GEO (45-55,000 GEO)
• Las Calandrias heap leach construction on-track for first gold pour late Q2 2023
• 2023 Production Guidance: 60,000 – 70,000 GEO at an AISC of US$1,100-1,300 per
ounce
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX:CRDOF] ("Cerrado" or the
"Company”) announces production results for the fourth quarter of 2022 (“Q 4 2022”) from its
Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are
expected to be released on April 14, 2023.
Q4 Operating Highlights
• Q4 production of 17,360 GEO compared to Q3 2022 production of 11,284 GEO (+54%)
• Full year production of 53,672 GEO compared to 43,559 GEO for 2021 (+23%)
• Results demonstrate ongoing stability in mill throughput combined with improving
head grades and recoveries;
o Gold head grades increased to 5.83 g/t from 4.40 g/t quarter-on-quarter (“QoQ”)
and to 4.56 g/t from 3.51 g/t year-on-year (“YoY”)
o Gold Recoveries increased from 91.0% to 94.9% QoQ and from 88.7% to 91.6%
YoY
Mark Brennan, CEO and Co-Chairman commented “We are very pleased with the progress at Minera
Don Nicolas in 2022; the production growth and asset development seen over the past y ear is a
testament to the skill and dedication of the MDN operational team.” He added, “While we are in
production with operations that have now been normalized, MDN remains a Discovery asset and is
still in its start -up phase. Management’s objective over the last year has been focused on driving
production but also on building MDN’s life of mine strategic plan that will incorporate the same
opportunities seen at the neighboring operations of Anglo, Yamana and Newmont.”
He continued, “ We are making signifi cant headway with our heap leach and underground
development and during 2023 we will continue to be focused on growth initiatives, both production
and exploration based, to more fully define the world class potential we see in this asset.”
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Operational results presented for 2022 highlight the Company’s first full year of normalized
operations. Since Cerrado acquired the Minera Don Nicolas mine, operations and production rates
have seen continuous growth and improvement in spite of initially difficult Covid conditions. Over
the next few quarters, variability is expected to continue given the Company is still developing and
implementing its Life of Mine (“LOM”) strategy. The consolidation of mine se quencing and
exploration work to upgrade and define new sources o f resources remains the key focus given the
early stage of development at MDN.
The operations team is focused on numerous new growth projects aside from expanding current
open pit resources, including: the construction of the Las Calandrias Heap Leach operation (first gold
pour anticipated Q2 2023); underground development and production at Paloma; and a new Heap
leach operation at Martinetas . These development initiatives are expected to be operational later
in 2023 and should support the production capacity of up to approximately 90,000 ozs per year.
Both ore mined and ore milled remained stable throughout the year , above 1,000 tonnes per day
each quarter, demonstrating the success of the teams’ efforts to normalize operations during
2020/21. Production increases were driven primarily by ongoing efforts to reduce dilution and thus
increase head -grades. Additionally, ore from new pits opened during Q2 and Q3, are delivering
higher grade ore than predicted by the mine plan. Gold production for the year also benefited by
cumulative increases in the recoveries over the year. Please see Table 1. for a summary of key
highlights from all four quarters for 2022. We note sales in Q4 were below production due to the
timing of shipments over the holiday period.
Annual Guidance for 2023
Production is expected to be between 60,000 – 70,000 GEO and the Company expects to deliver
an AISC of US$1,100-1,300 per ounce for the upcoming year.
Table 1. Key Operating Information
Key Operating Information
Operating Data Unit Q4 2021 Q1 Q2 Q3 Q4 2022
Ore Mined ktonnes 121 412 89 92 85 109 375
Waste Mined ktonnes 1,061 5,114 879 1,130 1,265 1,256 4,530
Total Mined ktonnes 1,225 5,616 1,061 1,309 1,438 1,415 5,223
Strip ratio waste/ore 8.81 12.42 10 12 15 11 12.08
Mining rate tpd 13,310 15,387 11,790 14,381 15,633 15,385 14,311
Ore Milled Ktonnes 110 414 99 103 99 94 394.9
Head Grade Au g/t 4.77 3.51 4.68 3.44 4.40 5.83 4.56
Head Grade Ag g/t 17.94 12.63 14.85 9.95 11.58 7.39 10.97
Recovery Au % 89.0% 88.7% 87.6% 91.0% 91.0% 94.9% 91.6%
Recovery Ag % 57.0% 58.7% 63.0% 67.1% 65.5% 66.4% 63.3%
Mill Throughput tpd 1,194 1,133 1,096 1,131 1,075 1,026 1,082
Gold ounces produced oz 15,008 42,268 13,007 11,296 11,015 17,187 52,504
Silver equivalent ounces produced oz 300 1,291 381 344 269 173 1,167
Gold Geo Produced oz 15,308 43,559 13,388 11,640 11,284 17,360 53,672
Gold ounces sold oz 12,864 38,916 14,622 10,966 10,536 14,619 50,743
Silver equivalent ounces sold oz 286 1,217 423 336 253 168 1,180
Gold Geo Sold oz 13,150 40,133 15,044 11,302 10,789 14,787 51,923
Av. realized price per gold ounce sold $/oz 1,748 1,799 1,870 1,856 1,711 1,712 1,787
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Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Sergio Gelcich, P.Geo., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person
as defined in National Instrument 43-101.
Mark Brennan David Ball
CEO and Co Chairman Vice President, Corporate Development
Tel: +1-647-796-0023 Tel: +1-647-796-0068
[email protected] [email protected]
About Cerrado
Cerrado is a Toronto based gold production, development and exploration company focused on gold
projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás
mine in Santa Cruz province, Argentina and the highly prospective Monte Do Carmo development
project, located in Tocantins State, Brazil.
At Minera Don Nicolas, Cerrado is maximising asset value through further operations optimization
and continued production growth. An extensive campaign of exploration is ongoing to further
unlock potential resources in our highly prospective 334,000ha land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and
production. The Serra Alta deposit hosts Indicated Resources of 541 kozs of contained gold and
Inferred Resources of 780 kozs of contained gold. The Preliminary Economic Assessment
demonstrates extremely robust economics as well as the potential to be one of the industry’s lowest
cost producers. Cerrado also holds an extensive and highly prospective 82,542 ha land package at
Monte Do Carmo.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Disclaimer
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This press release contains statements that constitute “forward -looking information” (collectively,
“forward-looking statements”) within the meaning of the applicable Canadian securities legislation,
all statements, other than statements of historical fact, are forward -looking statements and are
based on expectations, estimates and projections as at the date of this news release. Any statement
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Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cerrado. In making the forward - looking statements
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contained in this press release, Cerrado has made certain assumptions, including, but not limited to
2023 production guidance including production and AISC, building MDN’s life of mine and achieving
opportunities seen at other nearby mines, achieving first gold pour at Las Calandrias in Q2 2023,
executing on other growth opportunities in 2023 including underground development and
production at Paloma and a new heap leach operation at Martinetas and operating and growth
guidance. Although Cerrado 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, uncertainties, and other factors which may cause
the actual results and future events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not limited to general business, economic,
competitive, political and social uncertainties. Accordingly, readers should not place undue reliance
on the forward -looking statements and information contained in this press release. Except as
required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any
forward-looking statements to reflect actual results, whether as a result of new information, future
events, changes in assumptions, changes in factors affecting such forward -looking statements or
otherwise.