Cerrado GOLD Announces Q2 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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July 19, 2023 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q2 GOLD PRODUCTION RESULTS FOR ITS MINERA DON
NICOLAS MINE IN ARGENTINA
• Q2 2023 production of 12,453 Gold Equivalent Ounces (“GEO”)
• Production for the quarter in line with expectations
• Las Calandrias heap leach project - Mining activities commenced, with first gold pour
completed in early July 2023
• LOM strategic plan continues to make good progress
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the second quarter of 202 3 (“Q2 2023”) from the
Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are
expected to be released in August 2023.
Q2 Operating Highlights
• Q2 2023 Gold production of 12,336 ounces and Gold Equivalent Ounce production of
12,453 ounces compared to 11,640 Geo ounces Q2 2022.
• GEO sales in Q2 of 11,195 ounces.
• Results continue to demonstrate stable mill throughput.
o Gold head grades 4.84 g/t and Gold Recoveries of 83.68% for the quarter.
Operational results presented for Q2 2023 highlight the stability of the operations. Since Cerrado
acquired the Minera Don Nicolas mine, it has continuously improved performance during the first
two years. As seen in prior years , Q2 and Q3 results are expected to show some variability, given
the seasonal challenges in the winter months and given the Company is still developing and
implementing its Life of Mine (“LOM”) strategy.
Ore milled remained stable throughout the quarter, at above 1,000 tonnes per day. Production
increases were driven primarily by ongoing efforts to reduce dilution and thus increase head grades,
offset slightly by lower recoveries due to changes in ore type . Please see Table 1. for a summary of
key highlights for the second quarter 2023. Sales for the quarter were lower than production ,
however, these sales should be recovered in the third quarter due to high-grade material entering
the plant at the end of the quarter. Some challenges were experienced with recoveries, mainly for
Chulengo, a high -grade deposit, but minor changes in operating strategies and throughput rates
were found to be successful, and the operation stabilized with recoveries above 90% at the end of
the quarter.
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Ongoing work to optimize mine sequencing and exploration work to upgrade and define new
sources of resources remains the key focus 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 Q 3 2023), underground
development and production at Paloma, and a new Heap Leach operation at Martinetas.
Although the Las Calandrias project heap leach p ad is s till under construction, 33% of the pad is
completed and is currently being loaded with ore and irrigation has commenced. Mining activities
are at full production level, and gold production is anticipatd to ramp up during the 3rd quarter, with
full production expected by the end of the 3rd quarter.
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.
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 mine in Santa Cruz province, Argentina, and the highly prospective
Monte Do Carmo development project, located in Tocantins State, Brazil. In Canada, Cerrado Gold
is developing it’s 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
Operating Data Unit Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Ore Mined ktonnes 183 412 375 89 92 85 110 73 75.1
Waste Mined ktonnes 2,658 5,114 4,530 879 1,130 1,265 1,256 1,391 1,179
Total Mined ktonnes 2,876 5,616 5,223 1,061 1,309 1,438 1,415 1,518 1,277
Strip ratio waste/ore 14.52 12.42 12.08 9.85 12.32 14.92 11.48 19.04 15.70
Mining rate tpd 10,495 15,387 14,311 11,790 14,381 15,633 15,385 16,862 14,028
Ore Milled Ktonnes 242 414 395 99 103 99 94 98 93
Head Grade Au g/t 2.38 3.51 4.56 4.68 3.44 4.40 5.83 4.59 4.84
Head Grade Ag g/t 5.85 12.63 10.97 14.85 9.95 11.58 7.39 5.71 4.95
Recovery Au % 89.21% 88.66% 91.56% 87.62% 91.00% 91.00% 94.85% 91.91% 83.68%
Recovery Ag % 63.00% 58.71% 63.34% 63.03% 67.12% 65.53% 66.40% 67.25% 56.91%
Mill Throughput tpd 883 1,133 1,082 1,096 1,131 1,075 1,026 1,085 1,021
Gold ounces produced oz 16,545 42,268 52,504 13,007 11,296 11,015 17,187 13,794 12,336
Silver equivalent ounces
produced oz 451 1,291 1,167 381 344 269 173 157 117
Gold Geo Produced oz 16,996 43,559 53,672 13,388 11,640 11,284 17,360 13,951 12,453
Gold ounces sold oz 17,654 38,916 50,743 14,622 10,966 10,536 14,619 16,005 11,082
Silver equivalent ounces sold oz 384 1,217 1,180 423 336 253 168 250 113
Gold Geo Sold 18,038 40,133 51,923 15,044 11,302 10,789 14,787 16,255 11,195
Average realized price per gold
ounce sold $/oz 1,779 1,739 1,739 1,819 1,795 1,652 1,689 1,696 1,858
Key Operating Information
Apr to Dec,
2020
Jan to Dec,
2021
Jan to Dec,
2022
2022 2023
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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 Brazil, Cerrado is rapidly advancing the Serra Alta deposit at its Monte Do Carmo Project, through
feasibility and into production . Serra Alta is expected to be a high -margin and high -return project
with significant exploration potential on an extensive and highly prospective 82,542 hectare land
package.
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 blas t furnaces to electric arc furnaces contributing to the
decarbonisation 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
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS 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”, “estimates”, “believes”
or “intends” or variations of such words and phrases or stating that certain 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 the time required to reach production capacity at Las
Calandrias, the future operating costs in Argentina, as well the timing of the feasibility study at Monte Do Carmo.
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 fro m 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.
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