Cerrado GOLD Begins Underground Operations at Its Minera Don Nicolas MINE
June 12, 2025 www.cerradogold.com
CERRADO GOLD BEGINS UNDERGROUND OPERATIONS AT ITS MINERA DON
NICOLAS MINE
Highlights:
• Portal construction commenced with initial blast completed
• Underground operations expected to contribute to production in June and ramp up
during Q3 2025
• Open pit exploration drill campaign commenced
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or
the “Company”) is pleased to provide an update on the development of the Company’s inaugural
underground operation commencing underneath the high-grade Paloma pit at its Minera Don
Nicolas Mine in Argentina (“MDN”).
Earlier this week, the Company completed the initial blast to begin construction of the
underground portal and progress the development of the underground mine over the coming
months. The initial decline will be driven through the ore body and will provide nominal feed to
the carbon in leach (“CIL”) plant. Production from the underground is expected to ramp-up to reach
steady state production by October this year.
Additionally, the Company has now mobilized the initial drill rig to commence the previously
announced 20,000 metre exploration drill program at MDN. The primary focus will be near surface,
high-grade deposits that can provide feed to the CIL plant as well as expanding potential resources
in and around the Las Calandrias heap leach project to add both high grade and heap leachable
material. Underground drilling at Paloma will commence once the underground exploration
platforms have been established.
Mark Brennan, Executive Chairman, commented: “The start of the underground operation is a key
milestone for Cerrado’s Argentinian operations; we now have the ability to produce from open pit,
heap leach and underground operations. Not only will the underground operations contribute to
production immediately, but it will also provide a platform for underground exploration, which
remains completely open and largely unexplored at MDN.”
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Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Andrew Croal, P.Eng., Chief Technical Officer for Cerrado Gold, 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. The
Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa
Cruz province, Argentina. In Portugal, the Company holds an 80% interest in the highly prospective
Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In
Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of
Chibougamou, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas (“MDN”) operation
through continued operational optimization and is growing production through its operations at the
Las 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 Portugal, Cerrado is focused on the development and exploration of the highly prospective Lagoa
Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project
is a high-grade polymetallic project, demonstrating a typical mineralization endowment of zinc,
copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near deposit and
at prospective step-out targets across the large 7,209-hectare property concession. Located just
80km from Lisbon and surrounded by exceptional infrastructure, Lagoa Salgada offers a low-cost
entry to a significant development and exploration opportunity, already showing its mineable scale
and cashflow generation potential.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier high purity high grade DRI Iron Ore
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 sustainable development 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
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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 Company’s 2025 guidance including expected
gold production, future growth, the goals of our planned underground exploration program, the
expected timing of the strengthening of the 2025 production, the primary sources of the 2025
production, expectations regarding production at the underground operation. Forward -looking
statements and forward-looking information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by such forward -looking statements or
information.
In making the forward- looking statements contained in this press release, Cerrado has made certain
assumpNons. 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, r eaders 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.