Cerrado GOLD Announces Q2 2025 Production Results at Its Minera Don Nicolas MINE IN Argentina
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July 17, 2025 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q2 2025 PRODUCTION RESULTS AT ITS MINERA DON NICOLAS
MINE IN ARGENTINA
• Gold Equivalent Ounce (“GEO”) Production of 11,437 GEO for the 2nd Quarter 2025
• Underground Development has commenced and production set to ramp up in
H2/2025
• Expanded crushing and agglomeration capacity should expand tonnages to the leach
pads and improve recoveries at the Heap Leach operation
• 2025 Production Guidance of 55,000 – 60,000 GEO remains in place, production
weighted to H2 2025 as underground ramps up
• 20,000m Exploration Program underway at MDN targeting potential significant
resource growth opportunities
• Development activities continue to progress both the Lagoa Salgada and Mont
Sorcier projects
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the second quarter ended June 2025 (“Q2 2025”)
from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full quarterly
financial results are expected to be released prior to August 30, 2025.
Q2 Operating Highlights
• Q2 Production of 11,437 GEO vs 11,163 in Q1
• Heap leach production steadily ramping up to expanded capacity for H2/25
• Underground development at Paloma commencing as planned with three access
portals started
• CIL plant starting to receive initial contribution from underground development,
production expected to ramp up over H2/2025
Operational results for Q 2 2025 showed a slight increase in production over the previous quarter,
driven by modestly higher production from the heap leach operations. The heap leach operational
performance remained steady over the quarter, however, recovery rates were impacted by a larger
amount of primary ore placed on the pad during the quarter due to mine sequencing. This primary
material has lower recovery rates and longer retention times as compared to oxide material. Heap
leach production is expected to improve in H2/25 as more oxide ore is mined, the addition of an
agglomerator to reduce fines and the ongoing upgrades to the crushing circuit are completed. In
addition, during the quarter the crushing circuit was offline for approximately 15 days early in the
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quarter as upgrades were put in place to support higher throughput rates moving forward.
Production from stockpiled material via the CIL plant declined somewhat due to lower grades ,
however, underground operations at Paloma are expected to begin to contribute meaningfully to
production in Q3 2025 and beyond as development rates increase and more ore becomes available.
The second phase of the expansion of the heap leach crushing circuit is now operational, which will
increase feed stability in order to deliver steady ore to the pad. While supporting higher production
rates, additional crushing facilities are also expected to reduce the feed size to the pad and result in
increased recover ies. The final updates to the crusher circuit, including final installation of the
agglomerator and additional conveyors, are set to be completed in Q3/25
As previously announced, the company commenced underground mining in June, opening up three
portals for underground mining beneath the Paloma pit. Ore production is expected to ramp up over
the coming months and is set to make a material contribution to production rates as the year
progresses. 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.
On the exploration front, the Company commenced an approximate 20,000 metre drill program late
in the quarter and is set to drill numerous targets in the coming months with the aim to potentially
define new resources to provide mill feed to the CIL plant at MDN. Drilling commenced with a single
DDH rig north of the Paloma pit, where several new veins have been intersected. Results are pending
and further drilling will be required to confirm any new resources.
Mark Brennan, CEO and Chairman commented, "While Q2 results were modestly lower than our
expectations as the heap leach continues to ramp up to its fully expanded capacity, we continue to
be confident in our full year expectations as the underground operations ramp-up in H2/25. Cerrado
also continued to progress both the Lagoa Salgada project and the Mont Sorcier project s towards
completion of feasibility studies by Q3/2025 and Q1/2026 respectively, which we believe should
demonstrate substantial value being unlocked by Cerrado’s development projects.”
Mont Sorcier Project Update
At the Mont Sorcier high-purity iron project, detailed metallurgical test work and flow sheet design
continued during the quarter . All key workstreams are now engaged and the Company has
commenced an infill drill program to update sufficient resources to the Proven and Probable
categories as required to support the ongoing feasibility. Assay results remain pending at this time.
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 . With
the improved metallurgical results received to date the Company is confident it can deliver a high
purity DRI grade Iron ore concentrate product of over 67% iron , enhancing the project value and
delivering a highly desired product to support the Green Steel transition.
Lagoa Salgada Project Update
At the Lagoa Salgada polymetallic VMS project, detailed metallurgical test work is scheduled to be
completed by the end of July, with results targeting improvements across recoveries and grades for
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the various concentrate products. An updated Mineral Resource and Reserve Estimate is planned to
be completed in Q3/25 incorporating the results of the metallurgical test work as well as using
updated long term commodity price expectations. This updated resource will be used as part of the
Optimized Feasibility Study that is well underway and expected to be completed around the end of
Q3/25.
Corporate Activities
In addition to funding development programs at Lagoa Salgada and Mont Sorcier Cerrado continued
to pay down debt during the quarter. The Company anticipates its balance sheet to strengthen over
the remainder of the year as cash flow increase s from higher production rates and strong gold
prices. In the medium term the Company is also set to receive 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.
Table 1. Key Operating Information
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Andrew Croal, P.Eng., Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined
in National Instrument 43-101.
2025
Operating Data Unit Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Jan to June
Heap Leach Operations
Ore Mined ktonnes 144 207 365 563 1,280 659 550 1,209
Waste Mined ktonnes 519 708 885 1,103 3,215 1,024 998 2,023
Total Mined ktonnes 663 915 1,250 1,666 4,494 1,683 1,549 3,232
Strip ratio waste/ore 3.60 3.42 2.43 1.96 2.51 1.56 1.81 1.67
Mining rate tpd 7,369 10,058 13,583 18,112 12,313 18,699 17,207 17,953
Ore PAD Feed Ktonnes 231 285 434 588 1,538 693 724 1,417
Head Grade Au g/t 0.59 0.85 0.75 0.73 0.73 0.80 0.86 0.83
Head Grade Ag g/t 9.82 12.39 10.04 9.96 10.41 15.95 12.13 14.00
Recovery Au % 25% 29% 31% 41% 34% 39% 37% 38%
Recovery Ag % 3% 9% 9% 15% 10% 8% 15% 11%
PAD Throughput tpd 2,565 3,134 4,715 6,394 4,214 7,700 7,953 7,700
Gold ounces produced oz 1,103 2,290 3,253 5,631 12,277 6,897 7,442 14,339
Silver equivalent ounces produced oz 29 130 150 325 633 331 422 753
GEO Produced oz 1,132 2,420 3,403 5,956 12,911 7,228 7,864 15,092
High Grade CIL Operations
Ore Mined ktonnes 85 58 43 31 218 11 - 11
Waste Mined ktonnes 2,099 1,083 1,235 610 5,027 60 - 60
Total Mined ktonnes 2,184 1,142 1,278 641 5,245 71 - 71
Strip ratio waste/ore 24.61 18.56 28.44 19.87 23.08 5.23 5.23
Mining rate tpd 24,264 12,546 13,896 6,966 14,369 788 - 394
Ore Milled Ktonnes 90 66 99 93 348 92 97 188
Head Grade Au g/t 3.65 7.08 4.58 1.48 3.99 1.51 1.18 1.34
Head Grade Ag g/t 10.21 12.86 7.86 8.13 9.49 6.44 9.71 8.12
Recovery Au % 88% 91% 92% 90% 90% 92% 84% 88%
Recovery Ag % 56% 54% 63% 64% 59% 54% 62% 59%
Mill Throughput tpd 1,001 725 1,072 1,010 952 1,017 1,076 1,046
Gold ounces produced oz 9,879 13,648 13,022 4,312 40,861 3,821 3,378 7,199
Silver equivalent ounces produced oz 193 187 179 163 722 115 195 310
GEO Produced oz 10,072 13,835 13,201 4,475 41,583 3,936 3,573 7,509
Consolidated Gold Produciton
GEO Produced oz 11,204 16,255 16,604 10,431 54,494 11,163 11,437 22,601
GEO Sold oz 10,331 15,775 15,844 10,108 52,058 11,468 11,078 22,546
Average realized price per gold ounce sold $/oz 1,970 2,199 2,329 2,371 2,226 2,520 2,715 2,618
Key Operating Information
20252024 Jan to Dec,
2024
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About Cerrado
Cerrado Gold is a Toronto -based gold production, development, and exploration company. The
Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa
Cruz province, Argentina. In Portugal, the Company holds an 80% intere st in the highly prospective
Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In
Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of
Chibougamou, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas (“MDN”) operation
through continued operational optimization and is growing production through its operations at the
Las Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Portugal, Cerrado is focused on the development and exploration of the highly prospective Lagoa
Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project
is a high -grade polymetallic project, demonstrating a typical mineralization endowment of zinc,
copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near deposit and
at prospective step -out targets across the large 7,209 -hectare property concession. Located just
80km from Lisb on and surrounded by exceptional infrastructure, Lagoa Salgada offers a low -cost
entry to a significant development and exploration opportunity, already showing its mineable scale
and cashflow generation potential.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier high purity high grade DRI Iron project,
which has the potential to produce a premium iron 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 sustainable development 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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events or performance (often but not always using phrases such as “expects”, or “does not expect”,
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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
and beyond, the potential for additional crushing capacity that may be added and the performance
of the heap leach pad , the production potential of MDN’ underground mining operations, the
potential to produce iron concentrate grading in excess of 67% at Mont Sorcier and the potential to
enhance project value, anticipated timing to complete metallurgical test work at Lagoa Salgada, the
potential further deleveraging and/or the potential to enhance liquidity during 2025, receipt of the
deferred closing payment of US$15 million in connection with the Monte do Carmo asset sale, the
likelihood of the Michelle option being exercised by the optionor and the related option payment
being received. 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, 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.