Cerrado Gold Elects to Revise Timing for Completion of the Mont Sorcier Feasibility Study to Undertake Optimization Initiatives
Cerrado Gold Elects to Revise Timing for Completion of the Mont Sorcier
Feasibility Study to Undertake Optimization Initiatives
• Optimization Opportunities to be incorporated into the Mont Sorcier Feasibility, resulting in an extended
completion date.
• Key Optimization Focus Areas Include:
• Enhanced Mine plan to reduce Overall Strip Ratio
• Tailing Dam Construction
• CAPEX and OPEX review in light of Ongoing Regional Inflation
• Trade-off in Concentrate Quality vs Premium Price
• Modest Drill Program set for late Q3 to Enhance Mine Plan by Upgrading additional Resources
TORONTO, July 15, 2026 -- Cerrado Gold Inc. [TSX.V: CERT] [OTCQX: CRDOF] ("Cerrado" or the "Company") announces
that it has elected to extend the completion date of the Bankable Feasibility Study at its Mont Sorcier high grade iron project,
led by Voyager Metals, a 100% owned subsidiary of Cerrado Gold, to review numerous optimization and trade off opportunities
that have been identified during the BFS process as having the potential to materially enhance the overall value of the project.
Mark Brennan, CEO and Chairman, commented, “We believe that this is the right course of action and are confident that the
opportunities identified will have a material impact on the value of the project. Furthermore, the optimization program is not
expected to materially impact the overall project timeline, which is driven by the Environmental and Social Impact Assessment
submission date, which we now expect will be submitted in Q2/27 as a result of these changes.”
Mont Sorcier Feasibility Updated Timeline
During recent quarters, work has continued to advance the Bankable Feasibility Study ("BFS") for the Company's high-grade
Mont Sorcier iron project. As the BFS has progressed, the Company has identified several opportunities to further optimize
project economics and reduce both capital and operating costs, despite ongoing industry-wide inflation. A number of trade-off
studies are expected to be completed to evaluate and capture these improvements.
The most significant opportunity to enhance the project has emerged from the ongoing mine planning process. An opportunity
to enhance the overall mine plan and lower costs has been identified through a conversion of a modest amount of currently
Inferred Resources to Measured Resources within a defined area to the east of the current planned pit. The material in this
region is expected to be shallower and should materially reduce stripping and tailings management costs over the life of mine.
The Company will undertake a small, targeted definition drill program in Q3/26 so that any resources which may be converted
from inferred to measured may be incorporated into the optimized mine plan. Given the potential and material positive impact
on project economics, the Company has determined that this should be incorporated into the BFS in order to deliver an
optimal mining operation.
Additional areas for detailed review and trade-off studies will be undertaken with respect to overall CAPEX and OPEX estimates
that are currently seeing a material impact from rising inflationary pressures in the market. As such, a focus on LOM tailing
dam construction and other project infrastructure needs to reduce the overall size and construction material required is
currently planned.
A further area for review will be tradeoff studies to commence the operation producing a 65% grade iron concentrate versus the
currently planned 67% grade iron concentrate. While current metallurgical test work supports the ability to produce the 67%
higher grade concentrates that is desired by the Green Steel industry, the current price premium to the premium offered to
65% concentrate, being seen and forecast in the market today, may not be sufficient to justify the additional capital and
operating cost requirements to deliver the 67% product. However, if high-grade price premiums were to increase, additional
infrastructure could be added if economic. It should be noted that 65% grade iron concentrates remain a highly desired product
in the market, receiving an approximate 20% premium over the more common 61-62% iron concentrate Index. Currently, 67%
concentrates garner an approximate $20/t premium to the 65% Index as published by leading industry forecasters, subject to
specific concentrate characteristics. The lower price would be offset by a higher weight recovery in the concentrator plant to
deliver higher levels of production with a simplified flow sheet, reducing capital and operating costs.
While the precise impact on the final completion date of the BFS remains uncertain at this time pending the completion of the
drill program, the Company does not expect it to materially affect the timing of the Environmental and Social Impact
Assessment ("ESIA"), which is expected to be filed in Q2/ 2027. The ESIA is a key project milestone, as its submission
initiates the formal permitting process. On this basis, the Company continues to expect that the required permits could be
granted around year-end 2028, suggesting construction could commence around the end of Q1/2029. Recent comments by
policymakers indicate a desire to accelerate the permitting process, though no clear timeline for how this may affect Mont
Sorcier is available at this time. The Company views this step as a prudent investment to optimize the project for all
stakeholders and will provide further updates on timing as they become available.
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
Chibougamau, 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 the deposit and at prospective step-out targets across the large 7,209-hectare property concession.
Located just 80km from Lisbon and surrounded by existing infrastructure, Lagoa Salgada offers a low-cost entry to a
significant development and exploration opportunity, already showing its mineable scale and cash flow generation potential.
In Canada, Cerrado is developing its 100% owned Mont Sorcier high-purity, high-grade, Direct Reduced Iron project, led by
Voyager Metals, a 100% owned subsidiary of Cerrado Gold, located on the traditional Cree territory of Eeyou Istchee James
Bay in the municipality of Chibougamau. The Mont Sorcier project has the potential to produce a premium iron 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
Disclaimer
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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 potential outcome of the BFS, the potential for increased value and optimization opportunities in
connection with the BFS, the potential to convert Inferred Resources to Measured Resources through additional drilling, the
time required to complete the BFS, the anticipated ESIA submission date, the potential impact on project economics that
may result from modifying the target grade of iron concentrate, the future price of iron and the price premium, if any, that 65%
or 67% iron concentrate grade may attract in the market, the estimated time to potentially receive permits at the Mont Sorcier
Project and the likelihood that the Mont Sorcier Project will be permitted for construction, the grade of iron concentrate that
will or may be produced at the Mont Sorcier Project, the potential premium to market that higher purity iron concentrate may
receive in the market and the risks and uncertainties described under the heading “Risks & Uncertainties” in the Company’s
Management Discussion and Analysis and other filings made with the securities commissions in Canada. 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. 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.