Cerrado GOLD Reports New Mineral Resource FOR Its Serra ALTA Deposit, Tocantins State, Brazil
August 4, 2021 www.cerradogold.com
CERRADO GOLD REPORTS NEW MINERAL RESOURCE FOR ITS SERRA ALTA
DEPOSIT, TOCANTINS STATE, BRAZIL
• New Serra Alta resource of 541,000 Indicated gold ounces and 780,000
Inferred gold ounces
• Expanded Resource to be Used to Deliver New Preliminary Economic
Assessment in the coming weeks
TORONTO, ONTARIO - Cerrado Gold Inc. (TSX.V: CERT) (OTCQX: CRDOF) ("Cerrado" or the "Company”)
is pleased to announce an updated mineral resource prepared by Micon International Limited at the
Serra Alta deposit within its Monte do Carmo Gold Project in the State of Tocantins, Brazil . The update
integrated the successful results of Phase 1 drilling initiated in October 2020 and finalized in April of this
year with the previous drill results.
Serra Alta Updated Resource Highlights
• Total Indicated Resource of 9,108,000 tonnes at 1.85 g/t Au, containing 541,000 oz Au
• Total Inferred Resource of 13,197,000 tonnes at 1.84 g/t Au, containing 780,000 oz Au
• Notable Increase in total Mineral Resource: 62% more gold ounces from previous estimate
(December 2018)
• Higher Confidence level: 41% of metal in Indicated category
• Over 99 % of the gold in the Indicated Resources category is included in the constraining pit shell,
the other 0.4% is considered underground
• Over 90.5% of the Inferred Resource is included in pit shell, the other 9.2% is considered
underground
• Excellent conversion rate of previous Inferred Resource into indicated confirms sound domaining
and interpolation strategy
• Confirmation of Serra Alta as the anchor deposit of the district, as exploration continues
• Potential for replicating mineral endowed zones like Serra Alta or individual blocks within Serra
Alta on regional scale remains high from Cerrado perspective
-2-
Mark Brennan, CEO and Co -Chairman commented, “We are extremely please d with the updated resource
estimate for the Serra Alta deposit , highlighting not only significant growth in contained ounces but also the
significant improvement in the confidence of a large p ortion of the current resource base , as seen in the new
Indicated Resources, which gives us strong confidence in high conversion rates going forward ”. He continued
“Further, this expanded resource base will be used in the upcoming Preliminary Economic Assessment for the
Serra Alta deposit which will look at higher throughput and production rates relative to the previous study. ”
The new Mineral Resource estimate was completed by Micon International Limited (Table 1 ) after
completion of the Phase 1 drill program (See Cerrado’s April 22, 2021 Press Release) that focused
primarily on resource extension and category conversion. The Phase 1 drilling phase added substantive
information to previous Cerrado and historic drilling that formed the bas is of the previous Resource
Estimate (Table 2) also prepared by Micon and disclosed in April 2019 (Effective day December 2018). The
new resource est imate is now the bas is of the undergoing PEA being carried out by G E21 which is
expected to be completed in the near future.
Table 1. Serra Alta Mineral Resource Statement – Effective Date July 21, 2021
Mining Method Cut-off Grade
(g/t Au)
Resource
Category
Tonnage
(kt)
Avg. Au
Grade (g/t)
Metal Content
(koz)
Open Pit 0.30 Indicated 9,063 1.85 539
Inferred 12,128 1.82 708
Underground 1.10 Indicated 45 1.66 2
Inferred 1,069 2.10 72
OP + UG Indicated 9,108 1.85 541
Inferred 13,197 1.84 780
Estimate Notes:
1. Mineral resources were estimated by Mr. B. Terrence Hennessey, P.Geo. and Mr. Alan J. San Martin, MAusIMM (CP) of Micon
International Limited. (“Micon”), a Toronto based consulting company, independent of Cerrado Gold. Both Mr. Hennessey and
Mr. San Martin meet the requirements of a “Qualified Person” as established by the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (May 2014) (“the CIM Standards”).
2. Mineral resources are not mineral reserves and therefore do not have demonstrated economic viability.
3. The Serra Alta estimate has been completed entirely using Leapfrog Geo – EDGE software.
4. The estimate is based on a long-term gold price of US$ 1,600 per ounce and economic cut-off grades 0.30 g/t Au (Open Pit)
and 1.10 g/t (Underground).
5. Open Pit constrained resources are reported within an optimized pit shell; underground resources are reported within
continuous and contiguous shapes which lie adjacent to and below the ultimate open pit shell and interpreted to be
recoverable utilizing standard underground mining methods.
6. The mineral resource estimate has an effective date of July 21, 2021.
7. The Serra Alta gold deposit was modelled by Cerrado using a wireframe constructed based on a 0.1 g/t Au cut-off grade and a
few vein interpretations.
8. Rock density was assigned to different lithologies based on the geological and mineralization models, using calculated
average values of 2.624 g/cm3 in granite, 2.65 g/cm3 in volcanics and 2.60 g/cm3 inside mineralization wireframes.
9. Grade capping was used to control the influence of outliers in the estimate, raw assays were composited to 1.0 m and then
assessed for capping. Grade capping used throughout the deposit was 45 g/t Au for the main broad envelope and 8.0 g/t Au
for the interpreted veins.
10. The block model gold grades were estimated using the Ordinary Kriging interpolation method with searching parameters
derived from geostatistical analysis performed within the mineralization wireframes. Variogram ranges go from 90 m to 150
m in the major axis.
11. The estimate assumes a metallurgical recovery of 98.5% gold, based on completed test-work to date.
-3-
12. The estimate assumes the following costs: Mining (Pit) US$ 2.00/t, Mining (Pit Waste) US$ 1.70/t, Mining (Underground) US$
40.00/t, Processing US$10.78/t, and G&A of US$ 2.00/t.
13. The pit constrained resource is reported within an optimized pit shell that assumed a maximum slope angle of 55 degrees.
Open pit mining recovery was assumed to be 100%. Open pit dilution was assumed to be 0%. Underground mining recovery
was assumed to be 100%. Underground dilution was assumed to be 0%.
14. Micon has not identified any legal, political, environmental, or other risks that could materially affect the potential
development of the mineral resource estimate.
15. The mineral resource estimates are classified according to the CIM Standards which define a Mineral Resource as “a
concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade or quality
and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality,
continuity and other characteristics of a mineral resource are known, estimated, or interpreted from specific geological
evidence and knowledge including sampling.
16. The mineral resource was categorized based on the geological confidence of the deposit into inferred and indicated
categories. An inferred mineral resource has the lowest level of confidence. An indicated mineral resource has a higher level
of confidence than an inferred mineral resource. It is reasonably expected that the portions of the inferred mineral resources
could be upgraded to indicated mineral resources with additional infill drilling.
17. All procedures, methodologies and key assumptions supporting this mineral resource estimate are included in a NI 43-101F1
Technical Report which will be available at www.sedar.com.
Resource Update
The p revious and maiden resource statement for Serra Alta was published by Cerrado in April 2019
(Effective resource statement da te December 2018) . The new drilling completed by Cerrado between
October 2020 and April 2021 (Phase 1 that included 55 diamond drill holes totalling 18,998 m) is the basis
for this update. The new drilling focused on extension of the resource, mainly following the lateral extent
of the high-grade mineralized zones and on increasing the confidence of the existing inventory (Figure
1). Total Drilling meterage included in the updated resource estimate is 40,501 m.
Most of the drilling completed in the recent drilling phase was done through low angle hole s dipping
(between 30- and 35 -degrees dip) crossing perpendicularly the mineralized trends. Low angle holes
allowed detailed refinement of the high-grade domain model in the different zones in the deposit ,
allowing additionally, the ability to target proximal zones to intrusive contacts that are the first order
control in gold endowment and quartz vein density.
Figure 1. Serra Alta New High Grade and Vein Domains and Sectors and existing drill coverage (Phase 1
Cerrado 2020-2021 and Prior drilling)
-4-
Discussion of Results
High-grade (HG) domains were built to constrain the quartz vein related mineralization within the granitic
host rock. The domains were defined by higher density of quartz veins , gold grade and consistent
hydrothermal alteration and modeled through interpolants following structural trends constructed after
oriented core detail vein orientation analysis. This domain strategy followed the scheme defined in the
2019 technical report. The high-grade domains and some additional discrete individual veins were
modeled independently in each structural block (see figure 1: East Zone, Pit Norte, Central Zone, Pit Sul
and Ext Sul). The structural blocks are bounded by high angle faults mapped on surface.
-5-
The most significant extension of the new resource materialized in the East Zone, (former N2 domain in
the 2019 Technical Report). New drilling provided the basis for higher tonnage and grade, ultimately
increasing an original 420 ,000 Oz of inferred Resource to 479 ,000 oz Au of Indicated Resource and
339,000 oz of Inferred Resource.
The increase in tonnage reflects the lateral continuity of the High-Grade domain to the East (currently
500m lateral extent is recognized). T he increase in grade is explained by better coverage over the
intrusive contact buffer zone that is believed to be one of the main primary controls on vein density and
gold endowment. Figure 2 shows a cross section along the East Zone, showing the new model High Grade
domain and discrete veins jointly with the drill pattern (low angle holes) that allowed better modeling
and lateral extent exploration . These vein s are similar to the parallel veins tha t form the H igh Grade
domain (quartz associated with gold and sulphi des) but occur as single continuous trends, extending
from 100 m to 300 m along strike with true thickness varying from 1 to 10 meters.
Table 2. Mineral Resource Comparison (December 2018 and July 2021)
Mining Method Cut-off Grade
(g/t Au)
Resource
Category
Tonnage
(kt)
Avg. Au
Grade
(g/t)
Metal
Content
(koz)
Cut-off Grade
(g/t Au)
Resource
Category
Tonnage
(kt)
Avg. Au
Grade
(g/t)
Metal
Content
(koz)
Indicated 9,063 1.85 539 Indicated
Inferred 12,128 1.82 708 Inferred 13,323 1.79 762
Indicated 45 1.66 2 Indicated
Inferred 1,069 2.1 72 Inferred 405 3.92 51
Indicated 9,108 1.85 541 Indicated
Inferred 13,197 1.84 780 Inferred 13,639 1.85 813OP + UG
July 2021 Mineral Resource December 2018 Mineral Resource
Open Pit 0.3 0.49
Underground 1.1 1.5
-6-
Figure 2. Cross section on the East Zone showing resource lateral new extension and pattern of the
low angle drilling
The new resource estimate consolidates Serra Alta as the probable anc hor deposit in the conceptual
district scale potential of the Monte do Carmo District.
The improved geological coverage of the drilling both along the granite unit strike and along the
concealed intrusive contact zones have allowed the Cerrado team to refine considerably the
understanding of the controls on the intrusion hosted gold mineralization including country rock,
proximity to intrusive contact zones, relevant hydrothermal alteration, and late offsetting structures.
Exploration Implications
As a result of the drilling results returned to date, the team has identified several areas with potential for
additional extension within the new Total Resource volume and a strategy for further resource
conversion.
The current resource stretches for a strike length of 1.5 km and as referred previously is segmented in
blocks that share the main pr imary features of the mineralized trends (granite hosted quartz veins,
broader hydrothermal alteration, structural trends) , have specific characteristic ( e.g. contact rock:
Volcanic Vs Quartzites and vein density) that also effect on metal tenors and extension of the mineralized
zones. Notably the East Zone block that covers only a quarter (~ 400 m) of the resource strike length
concentrates two thirds of the gold endowment.
In terms of the exploration strategy, this implies that relatively small blocks with a discrete footprint have
potential for hosting multi hundred thousand ounces of gold. As referred in previous disclosures Cerrado
-7-
controls extensive areas of fertile granite contact zones that share the Sierra Alt a features like possible
cupula levels, alteration assemblages, quartz veining and in several cases known artisanal mining.
From the Cerrado point of view, the potential of replicating endowed zones along this contact trace
similar to the Serra Alta whole or individual block within Serra Alta remains high.
Review of Technical Information
Technical information contained in this new release related to the Mineral Resources has been
reviewed by Mr. B. Terrence Hennessey, P.Geo. and Mr. Alan J. San Martin, MAusIMM (CP) of Micon
International Limited. (“Micon”), a Toronto based consulting company, independent of Cerrado
Gold. Mr Hennessey and Mr. San Martin have verified the data disclosed, including sampling,
analytical, and test data underlying the drill results, and they consent to the inclusion in this release
of said data in the form and context in which it appears. Other 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.
Notice to Readers
There is no certainty that any part of the Mineral Resources estimated will be converted into a Mineral
Reserves estimate. Disclosure regarding Mineral Resource estimates included herein have been
prepared by the Company in accordance with National Instrument 43-101 ("NI 43-101”).
-8-
For further information please contact
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.
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED
IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
This press release contains statements that constit ute “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 e xpectations, 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 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 Serra Alta Project, its Minera Don Nicolas Project and increase its resources. Although
Cerrado Gold believes that the expectations reflected in forward-looking statements are reasonable, it can give
no assurance that the expect ations 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 uncertainties. Accordingly, readers
should not place undue reliance on the forward -looking statements and information contained in this pr ess
release. Except as required by law, Cerrado Gold 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.