Cerrado GOLD Announces Q2 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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July 17, 2024 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q2 GOLD PRODUCTION RESULTS FOR ITS MINERA DON NICOLAS
MINE IN ARGENTINA
• Q2 Production of 16,255 Gold Equivalent Ounces (“GEO”) vs 11,204 GEO in Q1,
2024.
• High-Grade ore from Calandrias Norte and continued ramp-up at Heap leach
operations are supporting strong quarterly production.
• MDN 43-101 Preliminary Economic Assessment and Updated Mineral Resource
Estimate are expected to be announced shortly.
• Balance sheet continues to improve, with approximately US$10m in current
liabilities repaid since Year End 2023.
• Significant cost reductions have also been made to reduce corporate expenses
substantially.
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the second quarter of 202 4 (“Q2 2024”) from the
Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full second quarter financial
results are expected to be released in August 2024.
Q2 Operating Highlights
• Q2 2024 production of 16,255 GEO vs 11,204 GEO in Q1, 2024.
• Production for April of 6,641 GEO, May 5,486 GEO and June of 4,128 GEO (harsh
winter conditions).
• Ramp-up of production from the Las Calandrias heap leap project continues,
producing 421 GEO in April and ramping up to 943 GEO for June despite harsh
winter weather conditions.
• Focus remains on delivering cashflow and rebuilding the balance sheet with
significant progress made towards debt reduction during the quarter.
Operational results presented for Q 2 2024 showed a marked improvement over the previous
quarter as the full exploitation of the Calandrias Norte high-grade open pit was achieved in addition
to the continued ramp up of the heap leach operations. Production results for June saw a modest
decline due to harsh weather conditions which saw the closure of most roads in Santa Cruz and the
closure of Comodoro Rivadavia airport for several days. Heavy snow impacted the transportation
of high-grade ore to the mill and reduced mill throughput. That said, this material is expected to be
processed in the coming months, supporting production levels going forward . The performance of
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the Heap leach during this period continues to improve despite the harsh weather and bodes well
for the ramp-up to full commercial production, which we expect to occur in Q3/2024 as the weather
improves. Performance of the crushing circuit at the Calandrias Sur Heap Leach Project continues to
improve, allowing the placement of more ore on the heap leach pad during the quarter , which is
key to delivering higher sustained production rates . Recovery rates are in line with expectations
given ore on the pad to date. Production from the Heap Leach improved from 491 GEO in April to
985 GEO in May. It maintained close to these levels in June at 943 GEO despite extremely wet and
cold conditions that affected leaching kinetics. Additional crushing capacity is being added via the
addition of a mobile crushing unit that has recently been delivered to the site and is set to double
overall crushing capacity at Calandrias Sur to around 10,000 tpd to support an increase in production
in the latter part of the year doubling capacity to around 4,500 ounces per month.
The Company has also made significant progress in improving its working capital position during the
quarter, partly due to the cashflow generated by high gold prices and strong production but also
from proceeds received under the sale of an option on the Monte Do Carmo project to a subsidiary
of Hochschild, which was approved by shareholders on 27 th June 2024. At quarter end , the
Company has reduced overall current liabilities (payables, loans, and amounts due to the Sellers) by
approximately US $10MM from the beginning of the year , with further declines expected in the
coming quarters, strengthening the overall financial position of the company. The Company has also
seen a significant reduction in costs and corporate overhead to help to improve overall profitability
for the future.
Mark Brennan, CEO and Chairman commented, "Production in the second quarter rebounded
significantly from access to the high-grade ore at Calandrias Norte and a strong performance of both
the CIL plant and the new heap leach facility . While conditions towards the end of the quarter
impacted short term production levels, we are encouraged with the performance of the heap leach,
which maintained production despite the wet conditions. With production levels expected to remain
around the current level in Q3 w e continue to execute on our plan to reduce debt levels and
strengthen the balance sheet, and we expect to exit the coming months in a much stronger operating
position.”
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Table 1. Key Operating Information
Update on Cease Trade Order
With the filing of the second quarter financials , the cease trade order on Cerrado common shares
has now been revoked. The company is currently working with the TSX Venture Exchange to approve
the resumption of trading which is expected in the near term.
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, Argentin a, 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 2024 Q2 2024
Total tons mined for CIL and HL
Ore Mined - High Grade ktonnes 375 287 85 58
Ore Mined - Calandrias Heap Leach 560 189 230
Waste Mined ktonnes 4,530 5,158 3,137 2,500
Total Mined ktonnes 4,905 6,005 3,411 2,788
Strip ratio waste/ore 12.07 13.33 17.03 11.13
Mining rate tpd 13,439 16,694 37,899 30,635
CIL Plant
Ore Milled Ktonnes 395 367 90 66
Head Grade Au g/t 4.56 4.61 3.65 7.08
Head Grade Ag g/t 10.97 5.59 10.21 12.86
Recovery Au % 92.0% 91.0% 87.6% 91.2%
Recovery Ag % 64.0% 64.0% 55.7% 53.8%
Gold Production CIL Plant
Mill Throughput tpd 1,082 1,006 1,001 725
Gold ounces produced oz 52,504 51,715 10,982 15,938
Silver equivalent ounces produced oz 1,168 515 222 317
Gold Geo Produced oz 53,672 52,230 11,204 16,255
Gold ounces sold oz 50,668 53,561 10,120 15,510
Silver equivalent ounces sold oz 1,255 539 211 308
Total Gold Ounces sold CIL & Heapleach
Gold Geo Sold 51,923 54,100 10,331 15,818
Average realized price per gold ounce sold $/oz 1,742 1,849 1,970 2,168
Key Operating Information
2024Jan to Dec,
2022
Jan to Dec,
2023
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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 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 grad e 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
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, the grade of ore being transported to the mill, the
potential ramp up of production as winter conditions dissipate, the potential for additional crushing
capacity being that may be added with the addition of a mobile crushing unit, the performance of
the heap leach pad and CIL plant, anticipated production in Q3 and anticipated timing for the
resumption of trading the Company’s common shares in Canada over the facilities of the TSX Venture
Exchange. 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
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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.