Cerrado GOLD Announces Q3 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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October 24, 2023 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q3 GOLD PRODUCTION RESULTS FOR ITS MINERA DON
NICOLAS MINE IN ARGENTINA
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the third quarter of 202 3 (“Q3 2023”) from the
Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are
expected to be released in late November 2023.
Q3 Operating Highlights
• Q3 2023 GEO production of 9,544 ounces compared to 12,453 ounces in Q2 2023 and
11,284 ounces Q3 2022.
• Gold Equivalent Ounces (“GEO”) sold increased to 11,386 ozs compared to 10,789 ozs
in Q3 2022.
• Results impacted by unusually severe winter operating conditions, reducing
throughput during the quarter, and lower planned ore grades which were offset by
strong recoveries:
o Gold head grades of 3.19g/t Au compared to 4.84 g/t Au in Q2 2023 and Gold
Recoveries of 93.1% vs 91.0%.
• Las Calandrias heap leach project produced 650 ozs during ongoing commissioning.
• LOM strategic plan continues to make good progress.
Operational results presented for Q3 2023 were impacted by poor operating conditions during the
quarter, most notedly extremely poor wet winter weather conditions followed by freezing
temperatures, resulting in lower than planned mined ore production rates and lower than planned
ore grades processed through the mill. Wet ore also reduced plant throughput.
At the new Calandrias heap leach project , work continued as the operation remained in the
commissioning phase during the quarter. Initial ramp up was impacted by freezing conditions
reducing initial irrigation rates which has now been addressed. Finalization of the crushing plant
has now been completed , which should also see more consistent feed to the pad and improve
overall performance going forward. Approximately 650 ozs were produced in the quarter, which are
excluded from the current production results. Production is set to achieve nameplate production
rates from January thereafter.
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Mark Brennan, CEO and Chairman commented, "While unusually harsh winter conditions - flooding
followed by freezing temperatures - impacted quarterly production rates, we are encouraged by the
efforts of the operational team to sustain operations and continue to push expansion projects
forward. We look forward to a ramp up of production rates in the fourth quarter and beyond." He
added, "Work on the heap leach project is coming to an end and production is now positioned to
ramp up steadily and demonstrate our focus of unlocking the significant growth potential at MDN.
Management's focus remains on developing the overall life of mine at MDN and developing a
strategic plan that will encompass the same strategies employed at other nearby mines, namely
open pit, underground, and heap leach mining operations..."
Stripping at Calandrias Norte commenced during the quarter w ith over 1.6MM tonnes of material
moved. A further 2.7MM tonnes is to be stripped in October and November and fresh ore is set to
feed the mill from December onwards. Results in Q4 are expected to show significant improvement
and benefit from access to Calandrias Norte material and the further ramp up of the heap leach
operations.
Ore milled declined modestly during the quarter due to the impact from noted weather conditions,
however, it has since returned to mo re normal rates at above 1,000 tonnes per day. As noted,
production was impacted by poor operating conditions due to a harsher than normal winter period
and lower than expected ore grades offset slightly by stronger recoveries. Please see Table 1. for a
summary of key highlights for the third quarter 2023. Sales for the quarter were higher than
production due to timing differences.
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
completion 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.
Table 1. Key Operating Information
Monte Do Carmo Update
At the Company’s Monte Do Carmo (“MDC”) project works are continuing to progress as planned
and the Feasibility Study remains on schedule for completion by the end of October. The installation
2023
Operating Data Unit Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Jan to Sep,
Ore Mined ktonnes 183 412 375 89 92 85 110 73 75.1 55.9 204
Waste Mined ktonnes 2,658 5,114 4,530 879 1,130 1,265 1,256 1,391 1,144 881 3,416
Total Mined ktonnes 2,842 5,526 4,905 968 1,222 1,350 1,366 1,464 1,218.65 937 3,620
Strip ratio waste/ore 14.52 12.42 12.08 9.85 12.32 14.92 11.48 19.04 15.23 15.75 16.74
Mining rate tpd 10,370 15,391 13,439 10,759 13,422 14,672 14,842 16,271 13,392 10,179 13,259
Ore Milled Ktonnes 242 414 395 99 103 99 94 98 93 83 273.9
Head Grade Au g/t 2.38 3.51 4.56 4.68 3.44 4.40 5.83 4.59 4.84 3.19 4.25
Head Grade Ag g/t 5.85 12.63 10.97 14.85 9.95 11.58 7.39 5.71 4.95 5.16 5.29
Recovery Au % 89.21% 88.66% 91.56% 87.62% 91.00% 91.00% 94.85% 91.91% 83.68% 93.14% 89.05%
Recovery Ag % 63.00% 58.71% 63.34% 63.03% 67.12% 65.53% 66.40% 67.25% 56.91% 61.74% 62.33%
Mill Throughput tpd 883 1,133 1,082 1,096 1,131 1,075 1,026 1,085 1,021 906 1,003
Gold ounces produced oz 16,545 42,268 52,504 13,007 11,296 11,015 17,187 13,794 12,336 9,446 35,576
Silver equivalent ounces produced oz 451 1,291 1,167 381 344 269 173 157 117 98 372
Gold Geo Produced oz 16,996 43,559 53,672 13,388 11,640 11,284 17,360 13,951 12,453 9,544 35,947
Gold ounces sold oz 17,654 38,916 50,743 14,622 10,966 10,536 14,619 16,005 10,907 11,272 38,184
Silver equivalent ounces sold oz 384 1,217 1,180 423 336 253 168 250 46 113 410
Gold Geo Sold 18,038 40,133 51,923 15,044 11,302 10,789 14,787 16,255 10,953 11,386 38,594
Average realized price per gold ounce sold $/oz 1,779 1,739 1,739 1,819 1,795 1,652 1,689 1,696 1,919 1,834 1,801
Key Operating Information
2022 2023Apr to Dec,
2020
Jan to Dec,
2021
Jan to Dec,
2022
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permit or LP at MDC is expected to be issued within the coming months allowing the start of
construction.
As previously announced significant progress has been made in relation to project financing with
our Mandated Lead Arranger selected for both MDC and the Mont Sorcier Iron Ore Project in
Quebec.
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
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 grad e and high purity product facilitates the
migration of steel producers from blast 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 Mike McAllister
CEO and Chairman Vice President, Investor Relations
Tel: +1-647-805-5662
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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 wel l 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
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