Cerrado GOLD Confirms Ability to Produce 67% High Purity, Direct Reduction Iron Grade Concentrates at Its Mont Sorcier Iron ORE Project IN Quebec
March 1, 2024 www.cerradogold.com
CERRADO GOLD CONFIRMS ABILITY TO PRODUCE 67% HIGH PURITY, DIRECT REDUCTION IRON
GRADE CONCENTRATES AT ITS MONT SORCIER IRON ORE PROJECT IN QUEBEC
• Metallurgical test work confirms DRI grade iron concentrate with combined Silica and
Alumina below 2.5%
(All numbers reported in US dollars)
TORONTO, ONTARIO - Cerrado Gold Inc. (TSX.V: CERT) (OTCQX: CRDOF ) (“Cerrado” or the
“Company”) is pleased to announce positive metallurgical test results confirming the ability to
produce High Purity , DRI Grade iron concentrates at its Mont Sor cier magnetite iron ore project
located near Chibougamau, Quebec held through its 100% owned subsidiary , Voyager Metals Inc.
The metallurgical tests were the initial phase in determining the final flow sheet design for the
feasibility study at Mont Sorcier targeted for later this year.
The design and analysis of the metallurgical test work program was conducted by Soutex Inc., a
consultancy firm specializing in ore processing and metallurgical processes based in Quebec City,
Quebec, with test work completed by SGS Canada, one of the world’s leading testing, inspection and
certification companies based in Quebec City.
The results of this initial phase of test work demonstrate that the Mont Sorcier project has the
potential to produce a high purity iron concentrate grading 67% iron with low Silica and Alumina;
making it suitable to be classified as a Direct Reduction Iron (“DRI”) grade product. Such a product
significantly reduces the overall emission of greenhouse gases in steel production compared to
other lower grade concentrates. It has the potential to be used in electric arc furnace s to produce
steel products, further reducing emissions. Also, as the Mont Sorcier project is a magnetite material,
reducing the use of coal in the steel making process and when combined with the availability of
Hydroelectric power in Quebec, lowers overall emission levels.
As the global demand for Green Steel increases, it is expected that the demand and price premium
paid for higher grade products will continue to increase to a level above the most commonly traded
iron products and replace demand for lower grade materials. The ability to produce High Purity iron
concentrates places Mont Sorcier as a project capable of delivering Critical and Strategic High Purity
Iron as outlined by the Quebec Government , as it aspires to become a leader to support energy
transition through the development of critical and strategic minerals and reduce overall global
emissions.
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The test work program was designed to evaluate alternative processing flowsheets to maximize the
value of the project as compared to the previous 43-101 Preliminary Economic Assessment
completed in July 2022 and to assess the capability of producing a high purity iron concentrate, with
low deleterious elements, suitable for direct reduction.
Composite samples representative of the L ife of Mine material were processed at the laboratory
scale through the following stages:
• The material was ground to a size of minus 1.7 mm and was subjected to a magnetic
separation process:
- The concentrate of the first magnetic separation stage, the cobber stage, was
reground to a P 80 of 106µm and submitted to a rougher magnetic separation
process;
- The rougher concentrate was then reground to a P 80 of 38µm, and magnetite was
recovered in a final cleaning magnetic separation stage.
• The magnetic concentrate was then processed through a hydroseparation step to remove
low density fine material , followed by a sulfur flotation step aim ed at reducing the sulfur
content in the concentrate. These processing steps led to the production of a concentrate
grading 65% Iron, 3% silica with a sulfur content below 0.4%, for an iron recovery of 75%,
which was in accordance with the previous PEA results.
• The concentrate was then processed through an additional reverse iron flotation stage to
assess the capability of producing a low silica concentrate. Successful tests led to the
production of a 67% iron concentrate, with combined silica and alumina grades below 2.3%
(SiO2 ≈ 1.8% Al2O3 ≈ 0.5%) and sulfur content below 0.4% for an iron recovery of 61%.
The results generated from this test work program represent a significant step forward compared
to previous results and demonstrate not only that a base case of 65% iron concentrate is readily
achievable but also that the production of high purity 67% iron concentrates is now possible. Going
forward, continued work will focus on flowsheet and grind size optimization, in addition to
confirmation of the test work results obtained on the composite on variability samples. Currently ,
the deposit is defined by five domains, and work will now shift to understanding the best sequence
for mining and processing to deliver the optimal production profile and enhance project economics.
Mark Brennan, CEO and Chairman, stated: “We are very pleased that the test results have confirmed
the ability to produce DRI grade 67% iron concentrate s with low levels of impurities. As the global
steel markets continue to aim to reduce overall emissions in the steel production process,
concentrates such as those from Mont Sorcier are expected to be in high demand to support this
transition and replace lower grade materials.”
Review of Technical Information
The technical information contained in this news release with respect to the Mont Sorcier Project
has been reviewed and approved on behalf of Voyager by Pierra-Jean Lafleur of Voyager Metals,
who is a Qualified Person as defined under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”).
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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, Brazil. In Canada, Cerrado Gold
is developing it’s 100% owned Mont Sorcier Iron Ore 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 Brazil, Cerrado is rapidly advancing the Serra Alta deposit at its Monte Do Carmo Project, through
feasibility and into production. Serra Alta is expected to be a high -margin and high -return project
with significant exploration potential on an extensive and highly prospective 82,542 hectare land
package.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron Ore, 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 pro duct facilitates the migration of steel
producers from blast furnaces to electric arc furnaces contributing to the decarbonisation 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 [email protected]
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has made certain assumptions, including, but not limited to predictions about the future demand for higher grade iron
concentrates and the Company’s ultimate ability to produce this type of produce from the Mont Sorcier Project. 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 facto rs which may caus e 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. Accord ingly, 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.