Cerrado GOLD Commences Drilling at Its Michelle Exploration Target IN Argentina
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May 10th, 2022 www.cerradogold.com
CERRADO GOLD COMMENCES DRILLING AT ITS MICHELLE
EXPLORATION TARGET IN ARGENTINA
• Michelle target favorably located between AngloGold Ashanti’s prolific Cerro
Vanguardia Mine and E2 Metals’ recent bonanza grade discoveries
• Program targeting high grade silver-gold ore shoots hosted along +30 km of strike
length of known low sulphidation epithermal veins
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT] [OTCQX:CRDOF] ("Cerrado" or the
"Company”) is pleased to announce that it has commenced Phase I drilling at its Michelle Property
(“Michelle”) located 90 kilometers (“km”) from its Minera Don Nicolas Mine in Santa Cruz Province,
Argentina (“MDN”).
Michelle Property Highlights
• 37,400 hectares (“ha”) of exploration permits located between and adjacent to AngloGold
Ashanti’s prolific Cerro Vanguardia Mine (+8.5Moz gold, +85Moz silver)1 and recent bonanza
grade discoveries made by E2 Metals Limited (“E2”) less than 50 meters (“m”) from
Michelle’s border.
• Over 30 km of veins mapped on surface and additional potential for continuity under thin
basaltic cover.
• Recent nearby discoveries by E2 & Fredonia Mining Inc. (“Fredonia”) to the south, suggest
the potential for high grade Silver-Gold ore shoots on the Michelle property. Regional drill
results include:
o Mia (E2)2: 31 m at 27 grams per tonne (“g/t”) gold (“Au”) and 160 g/t silver (“Ag”)
from 53 m;
▪ including 18m at 47 g/t gold and 208 g/t silver from 66 m; and
▪ including 1m at 424 g/t gold and 1,489 g/t silver from 68 m.
o Malvina (E2)2: 14m at 8.7g/t Au and 2,541 g/t Ag from 67 m.
o Monserrat (Fredonia)3: 34 m at 1.15 g/t Au and 50 g/t Ag from 32 m.
Figure 1 below highlights the location of Michelle relative to regional vein fields discoveries.
Data Source:
1.Historical reported production of 5.6Moz Au and 13.0Moz Ag, source: S&P Global Inc. and current 43-101 resources inclusive of reserves of
2.9Moz Au and 75.5Moz Ag, source: AngloGold Ashanti’s MINERAL RESOURCE AND ORE RESERVE REPORT AS AT 31 DECEMBER 2021.
2. https://e2metals.com.au/
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3. https://www.fredoniamanagement.com/el-dorado-monserrat
Figure 1. District endowment and regional discoveries
Mark Brennan, CEO and Co -Chairman commented “Given the Michelle property being directly
adjacent to Anglo’s prolific Cerro Van guardia mine and the very near proximity to E2 Metals new
bonanza grade discoveries at Mia and Malvina , which have many similar geological features to
Michelle, we view the potential for new discoveries as very high . The very strong results from
neighboring properties and the numerous vein structures outlined on our property, indicate
significant potential for stand-alone value at Michelle.”
The initial targets of the 2022 exploration drilling program ar e outlined in Figures 2 and 3. below.
These targets have been selected based on historical and recent surface mapping and trenching
works and the interpretation of regional the results.
1. Phase 1- Jackpot: Continuation of Mia vein (E2). Historic intercepts at Jackpot, include 4.0m @
2.99 g/t AuEq4. Currently 8 holes are planned to follow the modeled vein for 300 m of strike
length
2. Phase 2 - Luxor: Potential continuation from the Malvina South vein (E2). An initial phase of 6
holes are targeted at this time
3. Phase 3 - Vero, Jackpot South and Michelle/Gran Sierra targets: relevant structures
intersections, ~ 10 scouting holes planned subject to further field reconnaissance
4. Regional Targets: Structural trends below basaltic cover could be continuation of veins
mapped at Fredonia a trenching campaign is planned to help define potential drill targets
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In addition, s everal targets have bee n identified through a mix of structural, geochemical, and
trenching work undertaken by both Cerrado and previous owners. These may be followed up in
secondary and tertiary phases of exploration.
Figure 2. Phase one drill hole location all targets
Figure 3. East-West Long Section Jackpot (Cerrado)/Mia (E2 Metals) showing p hase one drill hole
location at Jackpot
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Michelle Overview
The Michelle property is characterized by a cluster of NW trending low sulphidation epithermal vein
systems. These NW trends are the continuation of the dominant mineralized structures at the Cerro
de Vanguardia mine, located 8.5 km to the southeast (owned by Anglo Ashanti, hi storic resource
base of 8.9 million oz); and adjacent on the northwest to E2 Metals’ Conserrat project which has
outlined a number of mineralized veins including Mia, only 50m West of the boundary of Cerrado’s
Michelle property.
According to the current un derstanding of Michelle, a series of NW normal faults define hemi -
grabens, that break the property area into 3 sectors. A deeper sector is exposed to the NE of the
property (Paris) and a shallower sector in the central block of the property (Casino Royale – Circus
– Grand Sierra) and an intermediate sector to the SW of the property (Michelle – Jackpot).
Exploration on the property to date includes ~ 15,000m of historical drilling (Yamana 2006 and IRL,
2011 programs) concentrated on targets in the NE and Central part of the property. Cerrado has not
validated the historic drilling and data is only being used as a general reference (See table 1.).
The SE portion of the Michelle property, which remains less explored, has continuity to the west
where E2 Metals h as reported in the last quarter numerous mineralized veins with high tenors of
Au and Ag (e.g. Mia, Malvina and Silvia veins). The southern part of this sector is completely covered
by basaltic cover believed to be less than 20 m thick.
Only 4 drill holes have been completed at Jackpot concentrating some of the best intercepts on the
property including 2.1 m at 2.81 g/t Au Eq starting at 40.7 m and 3.7 m at 1.83 g/t AuEq starting at
8.3 m (IRL. 2011 historic assay results).
The property has been covered by a number of geophysical surveys including airborne Mag (894 l
Km) and CSMAT (95 line km). Geophysics is an excellent tool to map structures and to define contact
zones based on conductivity or magnetic contrast (see Figure 2.).
Last Year Cerrad o Gold engaged GoldSpot Discoveries Corp (“GoldSpot”) to help with predictivity
and regional metal fertility analysis making use of existing data. For Michelle, Goldspot developed
lineament and geological fabric products from different regional data sets (e.g. Magnetics, DTM and
Multispectral). This analysis defines highly prospective zones particularly in the Jackpot area and
additionally in areas under the basaltic cover where traditional mapping and geochemical methods
are not applicable. New interpretation of structural intersections between the NW dominant trend
with West-East or Northeast structures has highlighted several highly prospective zones some of
which will be targeted by the current drill program.
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Table 1. Relevant Historic Drill Intercepts In Michelle (Not Validated by Cerrado)
Target holeid from to Length Ag (g/t) Au (g/t)
AuEq4
(g/t)
Jackpot MI-D11-025 40.7 42.8 2.1 100.92 1.37 2.81
Jackpot MI-D11-024 107 110 3 87.57 0.59 1.84
Jackpot MI-D11-023 8.3 12 3.7 1.80 1.81 1.83
Michelle Vein 06-017 26 28 2 18.60 3.61 3.87
Michelle Vein 06-017 46 50 4 7.10 2.89 2.99
Michelle Vein MI-D11-017 130 132.6 2.6 165.84 0.10 2.47
Michelle Vein 06-004 0 2 2 1.60 2.12 2.15
Michelle Vein 06-009 36 38 2 2.40 1.76 1.79
Michelle Vein MI-D11-021 116.6 118.7 2.1 12.05 1.35 1.52
Paris 05-014 34 36 2 184.00 0.12 2.75
4. AuEq = Au (g/t)*Ag (g/t)/70
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.
Mark Brennan Nicholas Campbell, CFA
CEO and Co Chairman Director, Corporate Development
Tel: +1-647-796-0023 Tel.: +1-905-630-0148
[email protected] [email protected]
About Cerrado Gold
Cerrado Gold is a public gold producer and exploration company with gold production derived from its
100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets
of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its
100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado
Gold please visit our website at: www.cerradogold.com.
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Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cerrad o Gold. In making the forward - looking statements
contained in this press release, Cerrado Gold has made certain assumptions, including, but not limited
to ability of Cerrado to expand its drilling program at its Minera Don Nicolas Project and increase its
resources and that the Michelle property may provide similar results to adjacent properties . Although
Cerrado Gold 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
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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
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