Cerrado GOLD Announces Q3 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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October 16, 2024 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q3 GOLD PRODUCTION RESULTS FOR ITS MINERA DON NICOLAS
MINE IN ARGENTINA
• Q3 Production of 16,604 Gold Equivalent Ounces (“GEO”) vs 16,255 GEO in Q2 and
11,204 in Q1, 2024.
• Calandrias Norte high-grade ore supplemented by additional pits extending CIL
operation into 2025.
• Production of 3,404, GEO from Heap leach operations during the quarter with a
record of 1,644 GEO in August.
• Balance sheet continues to improve, with approximately US$12m in current liabilities
repaid since March 2024.
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the third quarter ended September, 2024 (“Q3 2024”)
from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full third quarter
financial results are expected to be released in November 2024.
Q3 Operating Highlights
• Q3 Production of 16,604 GEO vs 16,255 GEO in Q2 and 11,204 in Q1, 2024.
• Choique and Zorro pits supplemented CIL feed from Calandrias Norte during the
quarter. CIL plant will continue operating until the end of January 2025.
• Focus remains on doubling up crushing capacity at Calandrias Sur and bringing heap
leach production up to 4,500 GEO per month.
Operational results for Q3 2024 demonstrated a slight increase in production over the the previous
quarter, highlighting stabilized operations. Ore from the Calandrias Norte high-grade open pit was
exhausted but replaced by additional high-grade feed from two additional pits. In addition, the ramp
up of heap leach operations continued to improve as crushing capacity continued to climb with
record production of 1,644 GEO in August before a slight decline in September as some adjustments
were put in place to support the overall expansion of the facilities . The performance of the Heap
leach continues to depend on the crushing circuit. To maintain production rates until an additional
crushing circuit is installed , two mobile crushers were added , resulting in a total crushing capacity
of 300,00 0 tons per month . The design of a new crushing circuit is complete , and a secondary
crusher has been ordered. The secondary crusher will double the capacity with a single crushing
circuit supporting the ramp up in production from the heap leach operations. The installation of the
secondary crusher is expected to reduce fleet and operating cost s. The new circuit is expected to
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operate by the end of the 4th quarter, at which time the mobile crushers will be placed on stand by.
Recovery rates are in line with expectations given ore on the pad to date.
The Company has also continued to make progress in improving its working capital position during
the quarter, partly due to the cashflow generated by high gold prices and strong production. At
quarter end, the Company’s total current liabilities (including payables, loans, and amounts due to
the Sellers) have been reduced by approximately US$12MM from the end of Q1 2024, with further
reductions expected in the coming quarters, strengthening the overall financial position of the
Company.
Mark Brennan, CEO and Chairman commented, "Production in the third quarter remained strong
over the second quarter owing to additional high -grade feed to the CIL as well as increasing
production from the heap leach facility . As crushing performance continues to improve, we expect
to see heap leach production continue its upward trajectory towards the targeted 4,500 GEO per
month with a commiserate reduction in operating costs.”
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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, Argentin a, and the highly prospective
Monte Do Carmo development project, located in Tocantins State, Br azil under option to Amarillo
Mineração Do Brasil Ltda., a subsidiary of Hochschild Mining PLC. In Canada, Cerrado Gold is
developing it's 100% owned Mont Sorci er Iron Ore and Vanadium project located outside of
Chibougamou, Quebec.
Operating Data Unit Q1 2024 Q2 2024 Q3 2024
High Grade CIL Operations
Ore Mined ktonnes 375 303 187 85 58 43
Waste Mined ktonnes 4,530 4,043 6,529 2,618 1,791 2,120
Total Mined ktonnes 5,223 4,409 7,519 2,892 2,080 2,548
Strip ratio waste/ore 12.08 13.33 35 30.70 30.70 48.81
Mining rate tpd 14,311 12,079 20,601 32,133 22,854 27,694
Ore Milled Ktonnes 395 367 255 90 66 99
Head Grade Au g/t 4.56 4.59 4.90 3.65 7.08 4.58
Head Grade Ag g/t 10.97 5.59 9.99 10.21 12.86 7.86
Recovery Au % 91.6% 90.4% 90.5% 87.6% 91.2% 91.9%
Recovery Ag % 63.3% 62.1% 57.2% 55.7% 53.8% 62.5%
Mill Throughput tpd 1,082 1,006 698 1,001 725 1,072
Gold ounces produced oz 52,504 50,658 36,549 9,879 13,648 13,022
Silver equivalent ounces produced oz 1,167 492 560 193 187 179
Gold Geo Produced oz 53,672 51,150 37,108 10,072 13,835 13,201
Heap Leach Operations
Ore Mined ktonnes 560 804 189 230 385
Waste Mined ktonnes 1,115 2,112 519 708 885
Total Mined ktonnes 1,675 2,916 708 938 1,269
Strip ratio waste/ore 1.99 2.63 2.74 3.08 2.30
Mining rate tpd 6,837 8,703 7,868 15,377 13,798
Ore PAD Feed Ktonnes 446 950 231 285 434
Head Grade Au g/t 0.52 0.74 0.59 0.85 0.75
Head Grade Ag g/t 4.54 10.69 9.82 12.39 10.04
Recovery Au % 13.4% 29.5% 25.4% 29.4% 31.2%
Recovery Ag % 2.59% 7.85% 3.49% 9.14% 9.08%
PAD Throughput tpd 4,927 4,675 2,565 4,675 4,715
Gold ounces produced oz 1,057 6,646 1,103 2,290 3,253
Silver equivalent ounces produced oz 23 308 29 130 150
Gold Geo Produced oz 1,080 6,955 1,132 2,420 3,403
Consolidated Gold Produciton
Gold Geo Produced oz 53,672 52,230 44,063 11,204 16,255 16,604
Gold Geo Sold oz 51,923 54,100 42,086 10,331 15,818 15,937
Average realized price per gold ounce sold $/oz 1,742 1,849 2,182 1,970 2,199 2,306
Key Operating Information
Jan to Dec,
2022
2024Jan to Dec,
2023
Jan to Sept,
2024
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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 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
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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”,
“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 potential for additional crushing capacity that
may be added, the performance of the heap leach pad, CIL plant life extension, anticipated
production in Q4 2024 and anticipated strengthening of the Company’s financial position. In making
the forward - looking statements contained in this press release, Cerrado has made certain
assumptions. Although C errado 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
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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.
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