Cerrado GOLD Announces Q1 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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April 24, 2023 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q1 GOLD PRODUCTION RESULTS FOR ITS MINERA DON
NICOLAS MINE IN ARGENTINA
• Q1 2023 production of 13,951 Gold Equivalent Ounces (“GEO”)
• Production for the quarter in line with expectations
• Las Calandrias heap leach construction on-track for first gold pour Q2 2023
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the first quarter of 2023 (“Q1 2023”) from the Minera
Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are expected to
be released on June 8, 2023.
Q1 Operating Highlights
• Q1 2023 Gold production of 13,794 ounces and Gold Equivalent Ounce production of
13,951 ounces as compared to 13,499 in Q1 2022
• GEO sales in Q1 of 16,255 ounces compared to 15,044 ounces in Q1 2022
• Results demonstrate ongoing stability in mill throughput combined with improving
head grades and recoveries
o Gold head grades 4.59 g/t and Gold Recoveries of 91.9% for the quarter.
Mark Brennan, CEO and Chairman commented, “We are very pleased with the results from Minera
Don Nicolas in Q1/2023, confirming the sustainability of the improvements that have been
implemented over the past several quarters, which continues to highlight the skill and dedication of
the operational team.” He added, “ Work continues to focus on unlocking the significant resource
growth potential at MDN. Management’s continued objective is to build MDN’s life of mine and
develop a strategic plan that will encompass the same strateg ies employed at other nearby mines,
namely open pit, underground, and heap leach mining operations . We are making significant
progress, and during 2023 we will continue to execute on these production and exploration- based
growth initiatives.”
Operational results presented for the first quarter 2023 highlight the stability of the Company’s
continued operations. Since Cerrado acquired the Minera Don Nicolas mine, operations, and
production rates have continuously improved despite difficult Covid conditions during the first two
years. Over the next few quarters , some variability is expected to continue, given the seasonal
challenges in the winter months and given the Company is still developing and implementing its Life
of Mine (“LOM”) strategy.
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Ore milled remained stable throughout the quarter, above 1,000 tonnes per day each quarter,
demonstrating the success of the teams’ efforts to normalize operations. Production increases were
driven primarily by ongoing efforts to reduce dilution and thus increase head grades. Please see
Table 1. for a summary of key highlights for the first quarter of 2023. Sales for the quarter exceeded
production due to inventory accumulated in Q4 2022, which was drawn down this quarter.
The consolidation of mine sequencing 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 Q2 2023) ,
underground development and production at Pal oma, and a new Heap Leach operation at
Martinetas. These development initiatives are expected to be operational later in 2023 and should
support a production capacity delivering between 75,000 and 90,000 ounces per year.
Table 1. Key Operating Information
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 Mike McAllister
CEO and Co Chairman Vice President, Investor Relations
Tel: +1-647-796-0023 Tel: +1-647-805-5662
[email protected] [email protected]
Operating Data Unit Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Ore Mined ktonnes 183 412 375 89 92 85 110 73
Waste Mined ktonnes 2,658 5,114 4,530 879 1,130 1,265 1,256 1,391
Total Mined ktonnes 2,876 5,616 5,223 1,061 1,309 1,438 1,415 1,518
Strip ratio waste/ore 14.52 12.42 12.08 9.85 12.32 14.92 11.48 19.04
Mining rate tpd 10,495 15,387 14,311 11,790 14,381 15,633 15,385 16,862
Ore Milled Ktonnes 242 414 395 99 103 99 94 98
Head Grade Au g/t 2.38 3.51 4.56 4.68 3.44 4.40 5.83 4.59
Head Grade Ag g/t 5.85 12.63 10.97 14.85 9.95 11.58 7.39 5.71
Recovery Au % 89.21% 88.66% 91.56% 87.62% 91.00% 91.00% 94.85% 91.91%
Recovery Ag % 63.00% 58.71% 63.34% 63.03% 67.12% 65.53% 66.40% 67.25%
Mill Throughput tpd 883 1,133 1,082 1,096 1,131 1,075 1,026 1,085
Gold ounces produced oz 16,545 42,268 52,504 13,007 11,296 11,015 17,187 13,794
Silver equivalent ounces produced oz 451 1,291 1,167 381 344 269 173 157
Gold Geo Produced oz 16,996 43,559 53,672 13,388 11,640 11,284 17,360 13,951
Gold ounces sold oz 17,654 38,916 50,743 14,622 10,966 10,536 14,619 16,072
Silver equivalent ounces sold oz 384 1,217 1,180 423 336 253 168 183
Gold Geo Sold 18,038 40,133 51,923 15,044 11,302 10,789 14,787 16,255
Average realized price per gold
ounce sold
$/oz 1,820 1,799 1,787 1,870 1,856 1,711 1,712 1,911
Key Operating Information
2022 2023Apr to Dec,
2020
Jan to Dec,
2021
Jan to Dec,
2022
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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 maximiz ing asset value through further operations optimization
and continued production growth. An extensive exploration campaig n is ongoing to further unlock
potential resources in our highly prospective 334,000-ha 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 pro spective 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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DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
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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actions, events or results “may” or “could” , “would”, “might” or “will” be taken to occur or be
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. In making the forward- looking statements
contained in this press release, Cerrado has made certain assumptions, including, but not limited to
continuing progress of Las Calandrias , the resource growth potential at MDN, and production and
operating 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
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information, future events, changes in assumptions, changes in factors affecting such forward-
looking statements or otherwise.