Cerrado GOLD Announces Resumption of Trading and Provides Update and Full-Year Guidance FOR Minera Don Nicholas MINE
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August 7, 2024 www.cerradogold.com
CERRADO GOLD ANNOUNCES RESUMPTION OF TRADING AND PROVIDES UPDATE AND
FULL-YEAR GUIDANCE FOR MINERA DON NICHOLAS MINE
• Common shares to resume trading at the opening on August 8th, 2024
• MDN operations are performing well with Q2/24 production of 16,255 Gold Equivalent
Ounces ("GEO")
• Full-Year production guidance of 50,000 – 60,000 GEO at AISC of US$1,200-1,400/oz
• Recent PEA results for MDN show an NPV (5%) of $111MM at $2100/oz gold over a 5-
year mine plan producing an average of approximately 56,000 GEO per annum
• Life of Mine Average annual EBITDA of US$49 Million and FCF of US$25 Million
o LOM average EBITDA of US$64 Million and FCF of US$29 Million at Spot prices1
• Additional US$45 million cash expected between March 2025-2027 from the sale of the
Monte do Carmo project in Brazil
• Second crusher on site is being commissioned to support further expansion of heap leach
operations
• Operating cashflow continues to support the strengthening of the balance sheet
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V: CERT][OTCQX: CRDOF] ("Cerrado" or the "Company") is
pleased to announce that further to its news release of June 27, 2024, the Company has been advised by the
TSX Venture Exchange (the "Exchange") that trading of the Company's common shares on the Exchange will
resume at the opening of the market on August 8, 2024.
Further, as previously released on July 17, 2024, the Company is pleased to announce that operations at its
wholly-owned Minera Don Nicolas project in Argentina continue to perform well during a typically
challenging winter period. As previously announced, production for Q2 was 16,255 Gold Equivalent Ounces
("GEO") as production from the heap leach continues to perform well. A second crusher has now arrived at
site and will be installed to support a further expansion of capacity at the Calandrias Sur heap leach operation.
First half of 2024, production of 27,459 GEO has been achieved. The Company is guiding for 2024 total
production of between 50,000-60,000 GEO at an All-In-Sustaining Cost between US$1,200-US$1,400/oz.
Improved operating performance and ongoing strength in gold prices continue to support the repayment of
local debt and payables in Argentina , and we expect to see a material reduction in our negative working
capital position going forward.
In addition, as outlined in a press release dated August 6th, 2024, Cerrado announced the results of an NI 43-
101 Preliminary Economic Assessment ( "PEA") and an updated Mineral Resource Estimate ( "MRE") for its
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Minera Don Nicolas mine located in Santa Cruz Province, Argentina. The work was completed by GeoEstima
SpA (Chile), and a summary of the results is presented below.
PEA Summary Results
The PEA highlights a robust 5-year mine life using our current inventory of mineralized material. As
high-grade material from our Calandrias Norte pit is exhausted, the heap leach at Calandrias Sur and
a second potential heap leach at Martinetas will gener ate strong cashflows, allowing the Company
to support continued deleveraging while refocusing efforts on exploration to add additional high -
grade ounces to the mine plan, support underground development and expand the life of mine.
Mark Brennan, CEO and Chairman commented, "With operations performing well, the heap leach
hitting its stride and trading resuming in our shares, we are now putting behind us what has been a
very challenging period for the Company. Going forward, strong operating results leading to an
improved financial position as supported by our recently completed PEA for MDN, and the potential
for additional cash proceeds of US$45MM over the coming years if the option to purchase the
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Company's Monte Do Carmo Project in Brazil is exercised, positions Cerrado as a well-funded junior
producer refocused on growth through exploration and development."
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 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 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 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
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
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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 Cer rado, the trading date for the Company 's common
shares on the TSX Venture Exchange , the performance of the Minera Don Nicolas mine including
management guidance in respect of production and costs, the strength of the price of gold,
repayment of debt and working capital, the anticipated date of release of Q2 financial statements
and the receipt of funds related to the sale of the Monte Do Carmo project 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 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.