Cerrado GOLD Announces Q4 and Annual 2024 GOLD Production Results FOR Its Minera Don Nicolas MINE IN Argentina
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January 15, 2025 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q4 AND ANNUAL 2024 GOLD PRODUCTION RESULTS FOR ITS
MINERA DON NICOLAS MINE IN ARGENTINA
• Annual Gold Equivalent Ounce (“GEO”) Production of 54,494 GEO; in line with
Guidance of 50,000 – 60,000 GEO.
• Q4 Production of 10,431 GEO impacted by lower than planned ore grades from
residual open pits.
• Record Production of 5,956, GEO from Heap Leach operations during the quarter.
• Received Asset Sale and Option payments totaling $34 MM during the quarter,
significantly strengthening the balance sheet.
• 2025 Production Guidance of between 50,000-55,000 GEO.
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] (“Cerrado” or the
“Company”) announces production results for the fourth quarter ended December, 2024 (“Q4
2024”) from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full fourth
quarter financial results are expected to be released prior to April 30, 2025.
Q4 Operating Highlights
• Q4 Production of 10,431 GEO vs 16,604 GEO in Q3.
• Annual Sales of 51,694 GEO for 2024
• Production impacted by lower than planned feed grade to the CIL plant during the
quarter as mining of high-grade pits nears completion.
• Studies to commence underground operations at Paloma in H2/25 initiated during
the quarter.
• Focus remains on ramping up crushing capacity at Calandrias Sur and bringing heap
leach production up to 4,000- 4,500 GEO per month by March 2025.
While operational results for Q 4 2024 demonstrated a decrease in production over the previous
quarter, this was driven by lower than expected ore grades delivered from the final stages of mining
of the older high grade open pits and stockpiles to feed the CIL plant as the Company’s operations
transition to a primarily heap le ach operation in 2025. The heap leach operation al performance
continued to improve over the quarter, reaching record production leve ls as more ore was added
to the pad. The performance of the heap leach continues to depend on the crushing circuit . A n
additional secondary crushing circuit is currently being installed to ensure excess capacilty is in place
to support the transition to a heap leach only facility . Once fully operational, the crushing capacity
should allow for approximately 300,000 tonnes of ore to be place d on the pad per month. The
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installation of the secondary crusher is expected to reduce fleet and operating costs and is expected
to operate at full capacity by the end of the 1st quarter, at which time the mobile crushers will be
placed on stand by.
In addition, the company is undertaking detailed analysis and preparations for equipment sourcing
with the view to commencing underground operations later this year beneath the Palmoa pit. While
the 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 with the aim to materially expand the resources available for
underground development . Further details will be released once finalized and a de velopment
decision is made.
The Company provides 2025 annual production guidance of between 5 0,000 – 55,000 GEO at an
ASIC of between $1,300 - $1,500 per GEO. The bulk of this production is expected to be delivered
solely from heap leach operations from Q2/25 onwards .
Mont Sorcier Update
At the Mont Sorcier high purity iron project , detailed metallurginal testwork and flow sheet design
continued during the quarter . As announced in early December 2024 (see press r elease dated
December 4, 2024) testwork has reaffirmed the potential to produce high grade and high purity iron
concentrate grading in excess of 67% iron with silica and alumina below 2.3%. Ongoing testwork is
focused on flotation testing, more detailed variability tests, grind size and reagent optimization
programs as well as equipment sizing.
Current testwork and overall process design are to be at the core of the NI 43 -101 Bankable
Feasibility Study ("BFS") which is targeted to be completed by the end of Q1 2026. The Bankable
Feasibility Study will look to provide greater detail into the potential of the project that was
highlighted in the previous 2022 NI 43-101 Preliminary Economic Assessment ("PEA") that delivered
a project NPV8% of US$1.6 Billion based upon iron concerates grading 65% iron.
Corporate Activities
The Company has also continued to make progress on improving its working capital position during
the quarter with the recepit of a total of US$34 million from asset sales and the sale of an option on
the Michelle properties at MDN. As a result , the company has now significantly strengthened its
balance sheet and expects to continue to deliver further deleveraging during 2025. Future payments
from the Brazilian Monte do Carmo asset sale totalling US$15 million as well as a further US$ 10
million, should the Michelle Option be excersised, would continue to add to the Company’s strong
cash position moving forward.
Mark Brennan, CEO and Chairman commented, "While 2024 was a year with significant challenges,
we are pleased to have achived gold production in line with our guidance for the year, supported by
strong growth in production from the heap leach as the year progressed . With the new crushing
circuit currently being installed , we expect this trend to continue to support production targets for
2025 while we review the potential to add additional production from a potential underground
operation at Paloma. Further testwork at our Mont Sorcier project in Quebec continues to highlight
the significant upside we see in this project as we work to unlock value with the completion of a
feasibility study by Q1/2026 . Cerrado is exiting the year with a signifigantly improved working
capital position, placing Cerrado in a stronger financial position heading into 2025. ”
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Table 1. Key Operating Information
Note : Q1-Q3 2024 Ore mined for Heap Leach Operations has been adjusted to reflect a recalcualation based on
updated information. This has no impact on ounces produced.
Review of Technical Information
The scientific and technical information from Minera do n Nicolas in this press release has been
reviewed and approved by Cid Bonfim, P. Geo., Senior Geologist Cerrado Gold , and Pierre Jean
LaFleur, P. Geo., VP Exploration for Voyager Metals, a 100% owned subsidiary of Cerrado Gold, are
Qualified Persons 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 . 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 Q3 2024 Q4 2024
High Grade CIL Operations
Ore Mined ktonnes 375 303 85 58 43 31 218
Waste Mined ktonnes 4,530 4,043 2,099 1,083 1,235 610 5,027
Total Mined ktonnes 5,223 4,409 2,184 1,142 1,278 641 5,245
Strip ratio waste/ore 12.08 13.33 24.61 18.56 28.44 19.87 23.08
Mining rate tpd 14,311 12,079 24,264 12,546 13,896 6,966 14,369
Ore Milled Ktonnes 395 367 90 66 99 93 348
Head Grade Au g/t 4.56 4.59 3.65 7.08 4.58 1.48 3.99
Head Grade Ag g/t 10.97 5.59 10.21 12.86 7.86 8.13 9.49
Recovery Au % 91.6% 90.4% 87.6% 91.2% 91.9% 89.9% 90.4%
Recovery Ag % 63.3% 62.1% 55.7% 53.8% 62.5% 64.4% 58.8%
Mill Throughput tpd 1,082 1,006 1,001 725 1,072 1,010 952
Gold ounces produced oz 52,504 50,658 9,879 13,648 13,022 4,312 40,861
Silver equivalent ounces produced oz 1,167 492 193 187 179 163 722
Gold Geo Produced oz 53,672 51,150 10,072 13,835 13,201 4,475 41,583
Heap Leach Operations
Ore Mined ktonnes 560 144 207 365 563 1,280
Waste Mined ktonnes 1,115 519 708 885 1,103 3,215
Total Mined ktonnes 1,675 663 915 1,250 1,666 4,494
Strip ratio waste/ore 1.99 3.60 3.42 2.43 1.96 2.51
Mining rate tpd 6,839 7,369 10,058 13,583 18,112 12,313
Ore PAD Feed Ktonnes 446 231 285 434 588 1,538
Head Grade Au g/t 0.52 0.59 0.85 0.75 0.73 0.73
Head Grade Ag g/t 4.54 9.82 12.39 10.04 9.96 10.41
Recovery Au % 13.4% 25.4% 29.4% 31.2% 40.9% 33.8%
Recovery Ag % 2.6% 3.5% 9.1% 9.1% 14.6% 10.3%
PAD Throughput tpd 4,927 2,565 3,134 4,715 6,394 4,214
Gold ounces produced oz 1,057 1,103 2,290 3,253 5,631 12,277
Silver equivalent ounces produced oz 23 29 130 150 325 633
Gold Geo Produced oz 1,080 1,132 2,420 3,403 5,956 12,911
Consolidated Gold Produciton
Gold Geo Produced oz 53,672 52,230 11,204 16,255 16,604 10,431 54,494
Gold Geo Sold oz 51,923 54,100 10,331 15,775 15,844 9,744 51,694
Average realized price per gold ounce sold $/oz 1,742 1,849 1,970 2,199 2,329 2,377 2,226
Key Operating Information
Jan to Dec,
2022
Jan to Dec,
2023
2024 Jan to Dec,
2024
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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 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 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, production forecasts and estimated ASIC for 2025
and beyond, the potential for additional crushing capacity that may be added and the performance
of the heap leach pad, the possibility of commencing underground mining, the potential to produce
iron concentrate grading in excess of 67% at Mont Sorcier, further deleveraging during 2025, receipt
of the deferred closing payment of US$15 million in connection with the asset sale and the likelihood
of the Michelle option being exercised and the related option payment being received . 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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