Cerrado GOLD Receives Permits FOR the Las Calandrias Heap Leach Project IN Argentina
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March 6, 2023 www.cerradogold.com
CERRADO GOLD RECEIVES PERMITS FOR THE LAS CALANDRIAS HEAP LEACH
PROJECT IN ARGENTINA
• First gold pour scheduled for end of May 2023
• Primary resource recoveries confirmed; Life of Mine extended
• Feasibility study progressing extremely well at Monte do Carmo (Brazil)
with completion targeted for May 2023; robust economics expected to
follow strong PEA
TORONTO, ONTARIO – Cerrado Gold Inc. [TSX.V: CERT][OTCQX:CRDOF] (“Cerrado” or the “Company”) is
pleased to provide an update on the progress of its development of the gold heap leach project at the
Las Calandrias deposit in Santa Cruz, Argentina (“MDN”).
As of March 3 rd, 2023 Cerrado has secured all the required environmental permits relating to the
development and operation of the Las Calandrias heap leach project. Construction work remains ongoing
with first ore expected to be stacked on the heap leach pad during April and first gold pour is scheduled
before the end of May. Please see photographs below of construction activities to date.
Additionally, metallurgical testing has confirmed gold recoveries with greater than 80% confidence from
Oxide materials with at least 70% recovery, Transition ores have at least 50% confidence and the Primary
ore has at least 36% recoveries. As a result, mine planning has been redesigned to add material from the
primary ore zone which will expand resources for production and extend the mine life. The benefits of
the higher grade in the Primary Zone will offset lower recoveries . This is i n addition , to ongoing
production from the CIL plant and the planned development of a n underground operation at Paloma
and a second heap leach operation at Martinetas later this year.
As outlined in a press release dated October 18 2022, the heap leach operation is targeted as part of the
strategic growth to increase aggregate production rates at Cerrado’s Argentina operations to 90,000 oz
per annum from the 2022 production rate of 5 3,672 oz at MDN with reductions in AISC. Production
growth and cost reductions are planned from the development of two heap leach operations ; firstly at
Las Calandrias and secondly at the Martinetas area. MDN is also expected to develop high -grade
underground Resources that are currently known and available by directly accessing the resources from
the base of the existing high-grade pits such as at Paloma.
Mark Brennan, CEO and Chairman commented “We are pleased to have been granted all the necessary
approvals to commence operations at our initial heap leach facility at Las Calandrias which reflects the high
quality of the work completed by the team on the ground at MDN. Construction is progressing extremely well
and we are now one step clos er to delivering on our production growth strategy at MDN to exploit the all
available resources more fully.”
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He continued, “Development is proceeding exceptionally well at both MDN and at MDC (Brazil); we believe that
the intrinsic value creation to shareholders will be strongly evidenced by the production growth at MDN by year
end and the Feasibility Study in Brazil which is expected by the end of May.”
Monte do Carmo (“MDC”) Feasibility Study Progress
As previously released (see Press Release of February 27, 2023), all the infill drilling completed at the
Serra Alta deposit has been completed with the objective of upgrading a significant component of the
resources to the Measured and Indicated categories. Work is now focused on mine engineering, process
plant design, tailing facilities and associated infrastructure. Completion of the Feasibility Study is
expected by May 2023.
The quotational process for key operational contracts and capital equipment is well underway. Early
indications suggest both capital and operating costs are expected to be in -line with the 43 -101
Preliminary Economic Assessment, confirming expectations that Serra Alta is set to be a low capital cost
project combined with low operating cost s set to deliver robust economics as demonstrated in the
Preliminary Economic Assessment completed in 2021.
All required works for the approval of the preliminary license are progressing according to schedule and
we expect to receive said preliminary license imminently. The construction license is expected to follow
in the following months. Additionally, the Company has also initiated discussions with various financial
groups regarding Project Financing.
Photos: Las Calandrias Heap Leach pad preparation
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Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Clinton Swemmer, P.Eng., Vice President, Technical Services for Cerrado Gold Inc., who is a Qualified
Person as defined in National Instrument 43-101.
Mark Brennan David Ball
CEO and Co Chairman Vice President, Corporate Development
Tel: +1-647-796-0023 Tel: +1-647-796-0068
[email protected] [email protected]
About Cerrado
Cerrado is a Toronto based gold production, development and exploration company focused on gold
projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás
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mine in Santa Cruz province, Argentina, and the highly prospect ive development project, Monte Do
Carmo located in Tocantins State, Brazil.
At Minera Don Nicolas, Cerrado is maximising asset value through further operation optimization and
continued production growth. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and
production. The Serra Alta deposit Indicated Resources of 541 k . Oz of contained gold and Inferred
Resources of 780 k. ozs of contained gold. The Preliminary Eco nomic Assessment demonstrates robust
economics as well as the potential to be one of the industry’s lowest cost producers. Cerrado also holds
an extensive and highly prospective 82,542 ha land package at Monte Do Carmo.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Disclaimer
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” o r “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. In making the forward - looking statements contained in this press
release, Cerrado has made certain assumptions, including, but not limited to the timing of production, rates of
production, operating costs and capital costs of the Las Calandrias project , and expectations and timing of
receipt of the preliminary license and construction license at MDC . 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 unc ertainties. Accordingly, 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.