Cerrado GOLD Intercepts 118 G/T GOLD over 2.65 Metres Including 566 G/T GOLD over 0.55 Metres at Its Minera Don Nicolás GOLD Project IN Argentina
May 6, 2021 www.cerradogold.com
CERRADO GOLD INTERCEPTS 118 G/T GOLD OVER 2.65 METRES INCLUDING 566
G/T GOLD OVER 0.55 METRES AT ITS MINERA DON NICOLÁS GOLD PROJECT IN
ARGENTINA
Drilling and trench samples highlight a number of High-Grade Gold results near
surface at the Chulengo Target next to producing Paloma area
TORONTO, ONTARIO –CERRADO GOLD ("Cerrado" or the "Company”) is pleased to announce the
results from fourteen drill holes from its ongoing 12,000-metre exploration drill program at the Chulengo
target, at its Minera Don Nicolás Project (“Minera Don Nicolás” or the “MDN Project”) located in Santa
Cruz province, Argentina. The focus for the current 12,000-metre exploration program is to delineate
new, high grade, near surface mineralization that can be brought into the production schedule in the
near term. Results highlighted in this release are from fourteen drill holes, PA-D21-51 thru 63 and 65.
Cerrado has completed 1,172 metres at Chulengo as of May 5, 2021. High grade gold results from
trenching at Chulengo are also reported.
Drill Hole Highlights (All composites are reported as true thickness):
PA-D21-57
6.00m grading 5.5g/t Au, starting from 48.80m
o including 3.35m grading 8.98g/t Au, from 48.80m
PA-D21-62
2.65m grading 118.04g/t Au, starting from 15.65m
o including 0.55m grading 565.98g/t Au, from 16.45m
PA-D21-63
7.10m grading 22.58g/t Au, starting from 33.05m
o including 4.25m grading 37.08g/t Au, from 33.85m
PA-D21-65
14.63m grading 5.05g/t Au, starting from 1.10m
o including 1.62m grading 31.60g/t Au, from 13.80m
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Trench Highlights (All composites are reported as true thickness):
PA-T21-018
4.25m grading 10.08g/t Au, starting from 27.95m
o including 2.34m grading 19.83g/t Au, from 30.00m
PA-T21-023
12.00m grading 6.48g/t Au, starting from 1.00m
o including 6.00m grading 12.24g/t Au, from 4.00m
PA-T21-024
5.61m grading 11.75g/t Au, starting from 16.00m
o including 3.27m grading 18.49g/t Au, from 17.00m
Mark Brennan, CEO & Co-Chairman commented, “We are very pleased the ongoing drill program continues
to define the Chulengo target as a potential source of additional near surface, high grade material and fully
expect the ongoing program to highlight the significant near surface potential that remains at Minera Don
Nicolas to enhance the current open pit mine operations. Following the evaluation of these first-round assays,
we will follow up with additional drill holes at Chulengo imminently.”
The current exploration drill program at the Minera Don Nicolás Project commenced on February 5 th at
the Baritina target, within the Paula-Andrea Prospect and moved onto Chulengo target (Figure 1). The
drill results reported in this press release were received May 1st, 2021 and represent complete results for
holes PA-D21-51 thru 63 and 65, which are the fourteen of seventeen holes (PA-D21-51 thru 67) totaling
1,172 metres completed at Chulengo (see Figure 2). Results from the remaining three drill holes at
chulengo and from other high priority targets will be made available as assays come in over the next few
months.
Approximately half of the new drill holes along with nearby trenches intersected high grade
mineralization. All of the data from the trenches and drill holes are being evaluated to determine where
additional drilling might be required. The breccia zone is related to the mineralized structures but not all
the breccias are mineralized. The high-grade mineralization is restricted to some sectors i.e., faults and/or
feeder vents. Also, the mineralization cut across lithologies. Further structural analysis and modeling is
being conducted to optimize understanding of which structures are mineralized and their orientation in
order to further drill test this target.
Also, attached is a cross section of the mineralization (Figure 3). The assay results for the remaining holes
and trenches are pending. The Chulengo area is 300 metres south and east of Baritina, also a part of the
Paula Andrea prospect. The current exploration drill program is expected to test numerous near mine
and brownfield targets over the course of the next few months and is on track for completion by the end
of June 2021.
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Figure 1: location of drill target areas in the La Paloma Mining Group
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Figure 2: Current Chulengo Exploration Program Drill Hole Location Map
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Figure 3: Typical Cross-sections of PA-D21-62 & 63 with the geology and current interpreted extent
of the mineralisation
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Figure 4: Current Chulengo Trench Location Map
All drill holes intersected near or at surface typical alteration zones associated with high level epithermal
mineralization, including abundant silicification, clay alteration, hematite, jarosite and sulphides (Figure
5). Chulengo presents a lithological sequence that begins at surface with a non-welded pumice
ignimbrite, then stratified volcaniclastic sediments that begins with a sandstone level.
The morphology of the mineralization is characterized by isolated sub-vertical few meters thick (1-5m)
silica-sulfide cemented hydrothermal breccias and faults, or intensely leached silicic altered rocks
representing ledges with vuggy silica textures infilled with sulfides (structural control). At surface, the
outcrop of these breccias were prone to very high Au values.
The breccias and ledges represent the conduits of the mineralized fluids that were extended and
migrated into the non welded pumice ignimbrite precipitated as dissemination, fine veinlets and
stockworks (lithological control), defining up to 20 m thick sub-horizontal mineralized levels in the
lithology. At depth (30-40m), intercepts with high values were also recognized at the intersection of the
subvertical breccias and the sandstone levels.
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Figure 5: Geological Model for Chulengo
Table 1. Drill hole information
Hole_Id Easting Northing Elevation Depth (meters) Dip Azimuth
PA-D21-51 2595669 4713017 159 65 -45 350
PA-D21-52 2595700 4712995 160 32 -45 350
PA-D21-53 2595716 4713002 161 80 -50 350
PA-D21-54 2595740 4713000 159 83 -55 350
PA-D21-55 2595586 4712950 146 50 -50 350
PA-D21-56 2595546 4713038 137 86 -50 170
PA-D21-57 2595543 4713056 136 110 -50 170
PA-D21-58 2595527 4713033 135 77 -50 170
PA-D21-59 2595523 4713052 135 92 -50 170
PA-D21-60 2595520 4713071 135 92 -50 170
PA-D21-61 2595526 4713010 135 68 -50 170
PA-D21-62 2595503 4713001 134 65 -50 170
PA-D21-63 2595498 4713032 135 98 -50 170
PA-D21-65 2595639 4712979 150 32 -50 170
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Table 2. Drill Hole Composites
Table 3. Trench information
Trench Easting Northing Elevation Length Azimuth Results
PA-T21-018 2595535.85 4713050.33 135.83 50.77 170 ok
PA-T21-019 2595527.58 4713058.46 135.52 136.08 170 ok
PA-T21-020 2595509.79 4713025.66 134.77 66.49 170 ok
PA-T21-021 2595552.42 4713050.97 136.81 45.23 170 ok
PA-T21-022 2595562.35 4712997.75 140.16 45.60 155 ok
PA-T21-023 2595637.36 4712975.94 149.91 13.00 170 ok
PA-T21-024 2595699.97 4713050.56 150.98 27.00 180 ok
PA-T21-025 2595648.05 4713034.84 151.15 40.00 170 Pending
PA-T21-026 2595590.52 4712981.30 141.09 27.00 170 Pending
PA-T21-027 2595223.87 4712574.65 129.29 8.40 125 Pending
PA-T21-034 2595346.21 4713002.90 131.28 200.00 150 Pending
PA-T21-035 2595625.44 4712985.78 145.45 39.18 165 Pending
PA-T21-036 2595669.92 4712982.93 152.40 40.00 160 Pending
PA-T21-037 2595655.60 4712989.53 153.60 35.50 175 Pending
PA-T21-038 2595586.67 4713031.93 139.10 23.70 170 Pending
Hole_Id Interval From To Length (m) True Length (m) Au (g/t)
PA-D21-51
PA-D21-52 2.00 5.10 3.10 3.10 2.58
PA-D21-53
PA-D21-54
PA-D21-55 2.00 9.70 7.70 7.70 0.33
including 8.70 9.70 1.00 1.00 1.10
PA-D21-56 10.80 23.50 12.70 12.70 1.49
including 10.80 14.25 3.45 3.45 3.50
and 40.00 44.00 4.00 4.00 1.02
PA-D21-57 48.80 54.80 6.00 6.00 5.50
including 48.80 52.15 3.35 3.35 8.98
PA-D21-58 36.00 41.00 5.00 5.00 2.12
including 40.30 41.00 0.70 0.70 9.49
PA-D21-59 50.90 55.80 4.90 4.90 1.62
including 53.55 55.80 2.25 2.25 2.16
PA-D21-60 66.50 67.50 1.00 1.00 2.36
PA-D21-61 13.00 13.90 0.90 0.90 4.69
PA-D21-62 15.65 18.30 2.65 2.65 118.04
including 16.45 17.00 0.55 0.55 565.98
and 29.30 31.30 2.00 2.00 1.65
and 57.80 58.60 0.80 0.80 1.81
PA-D21-63 33.05 40.15 7.10 7.10 22.58
including 33.85 38.10 4.25 4.25 37.08
PA-D21-65 1.10 21.00 19.90 14.63 5.05
including 7.65 11.35 3.70 2.72 4.83
including 13.80 16.00 2.20 1.62 31.60
No Significant assays
No Significant assays
No Significant assays