Cerrado GOLD Announces Q1 2025 Production Results at Its Minera Don Nicolas MINE IN Argentina
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April 15, 2025 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q1 2025 PRODUCTION RESULTS AT ITS MINERA DON NICOLAS
MINE IN ARGENTINA
• Gold Equivalent Ounce (“GEO”) Production of 11,163 GEO for the 1st Quarter 2025
• Record Production of 7,228, GEO from Heap Leach operations during the quarter
• 2025 Production Guidance Increased to 55,000 – 60,000 GEO
• Underground Production commencing in H2/2025
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the first quarter ended March 2025 (“Q1 2025”) from
the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full quarterly financial
results are expected to be released prior to May 30, 2025.
Q1 Operating Highlights
• Q1 Production of 11,163 GEO vs 10,431 in Q4
• Heap leach production ramping up to expanded capacity with over 2,800 GEO
produced in March and 7,228 GEO for the quarter
• CIL plant to continue to process low-grade stockpiles in anticipation of blending with
high-grade ore from underground in H2/2025
• Underground development at Paloma to commence in Q2 with initial production
expected in Q3/2025
• Expanded crushing capacity installation at Calandrias Sur to be completed in Q2 2025
Operational results for Q 1 2025 showed a modest improvement in production over the previous
quarter, driven by the ongoing ramp-up and transition to a focus on heap leach production as the
high-grade ore feed for the CIL plant has been depleting as we await ongoing exploration activities.
The CIL plant will continue to process low er-grade stockpiles until underground operations at
Paloma are in itiated in Q3 2025 with development commencing in Q2 2025 . The heap leach
operational performance continued to improve over the quarter, reaching record production levels
as more ore was added to the pad. The performance of the heap leach continues to improve, exiting
the quarter at near full capacity.
The second phase of the expansion of the crushing circuit is set to be concluded in May, supporting
a doubling of capacity which will increase feed stability in order to deliver steady ore to the pad.
While supporting higher production, additional crushing facilities are also expected to reduce the
feed size to the pad and result in increased recover ies. Despite the introduction of material from
the primary zone, recoveries have increased from 33% to 38% in this first quarter. The 2nd phase of
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the crusher project will decrease the particle size ( p80) from 15mm to 7.8mm and include the
installation of a 500tph agglomerator. Test work has shown that an i ncrease of up to 15% in
recoveries can be expected by reducing the particle size. Metallurgical test work will continue during
the 2nd quarter, aiming at reducing the p80 even fu rther to improve the expected recovery for the
primary zone. Having an agglomerator installed, will ensure better leaching conditions and allow for
smaller particle sizes after crushing. The new configuration is also expected to lower unit operating
costs by removing the current complement of costly rented crushing capacity.
In addition , the company is currently well advanced with detailed analysis and preparations for
equipment sourcing to commence underground development during Q2 2025 beneath the Palmoa
pit. While initial production expectations are relatively modest given the current know n
underground resource, underground access is expected to provide a platform for major exploration
activities at lower costs than drilling from surface. Underground exploration aims to materially
expand resources at MDN, leveraging the underground development for a potential expansion in
production and/or mine life.
The Company is ra ising its 2025 annual production guidance to 55,000 to 6 0,000 GEO, up from
50,000 – 55,000 GEO, to include the addition of modest underground production. AISC costs are
expected to be modestly higher than previously anticipated with an ASIC of between $1,500 - $1,700
per GEO as compared to prior expectations of $1,300 - $1,500 per GEO. The increased costs are the
result of the inclusion of underground mining, ongoing processing of low -grade ores, continued
inflationary pressure in Argentina, and the use of rental crushing equipment as the new permanent
crushing capacity is being installed.
Mark Brennan, CEO and Chairman commented, "Q1 results are generally in line with expectations
based upon the current mine plan and the ramp-up profile of the expanded heap leach operations.
The addition of underground mining in the second half of 2025 should see overall production levels
increase as the year progresses , delivering strong cash flows to support extensive exploration
activities which are expected to expand resources and mine life. Cerrado continues to progress the
Mont Sorcier project towards completion of the feasibility study by Q1/2026.”
Mont Sorcier Project Update
At the Mont Sorcier high-purity iron project, detailed metallurgical test work and flow sheet design
continued during the quarter . As announced in early December 2024 , (see press r elease dated
December 4, 2024) test work has reaffirmed the potential to produce high grade and high purity
iron concentrate grading in excess of 67% iron with silica and alumina content below 2.3%. Ongoing
test work is focused on flotation testing, greater detailed variability tests, grind size and reagent
optimization programs as well as equipment sizing.
Current test work and overall process design are to be at the core of the NI 43 -101 Bankable
Feasibility Study ("BFS") which is targeted to be completed by the end of Q1 2026. The Bankable
Feasibility Study will look to provide greater detail of the potential for the project that was
highlighted in the previous 2022 NI 43-101 Preliminary Economic Assessment ("PEA") that delivered
a project NPV 8% of US$1.6 Billion based upon iron conce ntrates grading 65% iron . All principal
consultants are now actively engaged in the BFS process.
Corporate Activities
The Company has also continued to make progress on improving its working capital position during
the quarter with the receipt of cash from asset sales in Q4/2024 and steady production cashflows,
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allowing for an ongoing deleveraging of the MDN balance sheet . The Company’s balance sheet is
expected to further improve following receipt of future payments from the sale of the Brazilian
Monte do Carmo asset sale totaling US$15 million (U$10 million due in July 2026 and US$5 million
by March 2027) as well as a further US$ 10 million should the option granted over the Company’s
Michelle properties in Argentina be exercised.
During the quarter the Company also announced the proposed acquisition of Ascendant Resources
Inc. (see announcement dated February 3, 2025 for details). This transaction is expected to close in
May 2025 subject to all necessary approvals.
Table 1. Key Operating Information
Review of Technical Information
The scientific and technical information from Minera do n Nicolas in this press release has been
reviewed and approved by Cid Bonfim, P. Geo., Senior Geologist Cerrado Gold , and Pierre Jean
LaFleur, P. Geo., VP Exploration for Voyager Metals, a 100% owned subsidiary of Cerrado Gold, are
Qualified Persons as defined in National Instrument 43-101.
2024
Operating Data Unit Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Jan to Dic,
High Grade CIL Operations
Ore Mined ktonnes 11 85 58 43 31 218
Waste Mined ktonnes 60 2,099 1,083 1,235 610 5,027
Total Mined ktonnes 71 2,184 1,142 1,278 641 5,245
Strip ratio waste/ore 5.23 24.61 18.56 28.44 19.87 23.08
Mining rate tpd 788 24,264 12,546 13,896 6,966 14,369
Ore Milled Ktonnes 92 90 66 99 93 348
Head Grade Au g/t 1.51 3.65 7.08 4.58 1.48 3.99
Head Grade Ag g/t 6.44 10.21 12.86 7.86 8.13 9.49
Recovery Au % 91.88% 87.58% 91.23% 91.85% 89.87% 90.43%
Recovery Ag % 53.81% 55.74% 53.78% 62.54% 64.36% 58.81%
Mill Throughput tpd 1,017 1,001 725 1,072 1,010 952
Gold ounces produced oz 3,821 9,879 13,648 13,022 4,312 40,861
Silver equivalent ounces produced oz 115 193 187 179 163 722
Gold Geo Produced oz 3,936 10,072 13,835 13,201 4,475 41,583
Heap Leach Operations
Ore Mined ktonnes 659 144 207 365 563 1,280
Waste Mined ktonnes 1,024 519 708 885 1,103 3,215
Total Mined ktonnes 1,683 663 915 1,250 1,666 4,494
Strip ratio waste/ore 1.56 3.60 3.42 2.43 1.96 2.51
Mining rate tpd 18,699 7,369 10,058 13,583 18,112 12,313
Ore PAD Feed Ktonnes 693 231 285 434 588 1,538
Head Grade Au g/t 0.80 0.59 0.85 0.75 0.73 0.73
Head Grade Ag g/t 15.95 9.82 12.39 10.04 9.96 10.41
Recovery Au % 38.86% 25.38% 29.41% 31.24% 40.94% 33.82%
Recovery Ag % 8.35% 3.49% 9.14% 9.08% 14.64% 10.34%
PAD Throughput tpd 7,700 2,565 3,134 4,715 6,394 4,214
Gold ounces produced oz 6,897 1,103 2,290 3,253 5,631 12,277
Silver equivalent ounces produced oz 331 29 130 150 325 633
Gold Geo Produced oz 7,228 1,132 2,420 3,403 5,956 12,911
Consolidated Gold Produciton
Gold Geo Produced oz 11,163 11,204 16,255 16,604 10,431 54,494
Gold Geo Sold oz 11,608 10,331 15,775 15,844 10,108 52,058
Average realized price per gold ounce sold $/oz 2,529 1,970 2,199 2,329 2,371 2,226
Key Operating Information
20242025
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About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused
on gold projects in South America. The Company is the 100% owner of both the producing Minera
Don Nicolás and Las Calandrias mines in Santa Cruz province, Argentina. In Canada, Cerrado Gold is
developing its 100% owned Mont Sorcier Iron Ore and Vanadium project located outside of
Chibougamou, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through
continued operational optimization and is growing production through its operations at the Las
Calandrias Heap Leach project. An extensive campaign of exploration i s ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron Ore and Vanadium project, which
has the potential to produce a premium iron ore concentrate over a long mine life at low operating
costs and low capital intensity. Furthermore, its high -grade and high-purity product facilitates the
migration of steel producers from blast furnaces to electric arc furnaces , contributing to the
decarbonization of the industry and the achievement of SDG goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Mark Brennan
CEO and Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
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ADEQUACY OR ACCURACY OF THIS RELEASE.
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
that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future
events or performance (often but not always using phrases such as “expects”, or “does not expect”,
“is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”,
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achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cerrado, production forecasts and estimated AISC for 2025
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and beyond, the potential for additional crushing capacity that may be added and the performance
of the heap leach pad, the possibility of commencing underground mining, the potential to produce
iron concentrate grading in excess of 67% at Mont Sorcier, further deleveraging during 2025, receipt
of the deferred closing payment of US$15 million in connection with the asset sale, the likelihood of
the Michelle option being exercised by the optionor and the related option payment being received,
and the closing of the proposed acquisition of Ascendant Resources Inc. including assumptions as to
the satisfaction of closing conditions related thereto including shareholder, regulatory and court
approvals and the timely receipt of required approvals . In making the forward-looking statements
contained in this press release, Cerrado has made certain assumptions. 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, uncertai nties, 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, pol itical 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.