Cerrado GOLD Reports Positive Drill Results from Its Initial Satellite Exploration Program at the Monte Do Carmo Project IN Brazil Results Confirm District Scale Potential of Monte Do Carmo
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December 15th, 2021 www.cerradogold.com
CERRADO GOLD REPORTS POSITIVE DRILL RESULTS FROM ITS INITIAL SATELLITE
EXPLORATION PROGRAM AT THE MONTE DO CARMO PROJECT IN BRAZIL
RESULTS CONFIRM DISTRICT SCALE POTENTIAL OF MONTE DO CARMO
• Visible gold and mineralized alteration zones prolific throughout the property
• Six of the initial the eight targets drilled returned relevant intercepts, all within a
6 km radius of the Serra Alta deposit
o Baru and Fartura corridors believed to extend for over 1 km resembling the
spatial footprint of the Serra Alta deposit
o Capitão mineralization and alteration footprints extend for 500 m of strike
length and up to 700 m in lateral extent
o Bit-3 reveals new style of mineralization associated to sheer zone in
permissive ultramafic granite, this shear zone contact extends for 15 kms
along an underexplored NE trend
o At Sucuri, a new high-grade sheared vein zone has been discovered
• Follow up programs planned for 2022
TORONTO, ONTARIO - Cerrado Gold Inc. ("Cerrado" or the "Company”) is pleased to announce
the initial results from its exploration drill program focused on various Satellite deposits within
its Monte do Carmo (“MDC”) Project, located in Tocantins State, Brazil. The exploration program
initiated in Q 2/21 was designed to better define the district potential by targeting satellite
deposits adjacent to the Sierra Alta deposit as well as extensions to Serra Alta itself. Based on
the success of the program, additional work is now being planned to follow up on these results.
The Company is reporting assay results of 39 drill holes, drilled exclusively at satellite targets
(see Figure 1. and Tables 1. & 2.).
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Drill Hole Highlights by target area (all composites are reported as true thickness):
Capitão
FCP-004
• 2.9 m at 2.13 g/t Au, from 123.56 m
FCP-005
• 7.22 m at 0.94 g/t Au, from 71.65 m
FCP-007
• 4.44 m at 2.14 g/t Au, from 165.41 m ; and
• 1.01 m at 8.63 g/t Au, from 232.74 m
FCP-010
• 1.92 m at 6.81 g/t Au, from 255.64 m
Fartura
FFA-001
• 5.35 m at 1.85 g/t Au, from 62.83 m
FFA-002
• 5.04 m at 1.50 g/t Au, from 32.56 m
Sucuri
FSC-001
• 1.00 m at 9.72 g/t Au, from 32.56 m
Bit 3
FLD-005
• 6.72 m at 1.50 g/t Au, from 155.35m
Including 2.57 m at 3.71 g/t Au from156.32 m
Baru
FBU-004
• 20.05 m at 0.71 g/t Au, from 240.05 m
Including 1.02 m at 2.23 g/t Au from 243.08 m
Mark Brennan, CEO and Co -Chairman commented “The preliminary drill results support our
hypothesis for the district potential at Monte do Carmo. We see substantial evidence of visible gold
and mineralized alteration throughout the property and expect most of the satellite deposits to add
material ounces to an already extremely robust resource base. We will continue extensive testing and
drilling of the newly found discoveries in the new year. “
Cerrado’s overarching exploration approach in the Monte do Carmo district continues to be a
parallel process. First to define as accurately as possible the geology and mineralization
continuity of Serra Alta, the most advanced target and conceptual anchor deposit; and secondly,
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use this knowledge to test the full strik e of the permissive contact zone to understand the
overall district potential. Drilling on the satellite targets is ongoing.
It is Cerrado’s belief based upon surface indications like garimpos (artisanal mining), Geochem
anomalies and outcropping of vein zones, jointly with sparse relevant historic drill along this
domain, there is a high probability of discovery of substantial additional mineralization
potentially resembling the Serra Alta deposit scale and tenor along the contact zone.
The regional exploration program at the Monte d o Carmo project was designed to undertake
initial exploration of the numerous targets on the project property to demonstrate the potential
to grow the known resources outside of the Serra Alta deposit.
The program commenced in Q2/21 immediately after the completion of Phase 1 drilling, which
focused on upgrading and expanding the existing resources at the Serra Alta. Drilling during H2
2021 has focused on satellites including Capitão, Bit 3, Baru, Fartura and Ferradura as well as
extensions to the existing Serra Alta deposit. The main satellite targets are shown in Figure 1.
and relevant details of the drill program are shown in Tables 2. and 3.
Figure 1. MDC Regional Geology
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The assay results reported in this press release were received up until November 30th, 2021
and represent the full extent of thirty-nine diamond drill holes, totaling 10,007 m completed at
the Satellite targets. It should be noted that each target has only had a limited amount of drilling
as compared to the Serra Alta deposit where approximately 6,250 meters (completed prior to
Cerrado) of drilling was required to initially define the target and to understand the potential
for resource definition.
Drilling in November and December is focus ed on the concealed Baru and Fartur a trends
(Figure 2.) where Cerrado believes there is the possibility of replicating the copula contact Serra
Alta mineralization style in segments along these kilometric trends.
Figure 2. Location of Fartura and Baru trends
Fartura Drilling
The Fartura Target is located 2 km to the northwest of Serra Alta, also sitting along the granite
complex contact zone.
Four holes (FFA -001 to 004) were completed in Fartura. Core Logging and revised surface
geological mapping confirmed that the host rock of the sha llow mineralization (mined
informally on surface) in Fartura is a porphyritic felsic volcanic. Visible gold and dense quartz
veining occurred in holes FFA-001 and FFA-002 that returned relevant intercepts including 5.35
m at 1.85 g/t Au, from 62.83 m and 5.04 m at 1.50 g/t Au, from 32.56 m. The outline of
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mineralization at Fartura extends for over 200m in strike length and is open both to the north
(under sedimentary volcanics) and to the south.
The fact that relevant quartz veining and visible gold is fou nd in felsic volcanic is very
encouraging as the mineralization intensity is expected to increase in underlying granitic rock.
Granitic rocks are exposed approximately 800 m to the south with showings of quartz veins and
artisanal mining, this opens the potential for a kilometer scale mineralized trend (See Figure 1).
Current drilling efforts are focused on the contact zone underneath the felsic volcanics along
this trend. The concept of better endowment along a granitic copula follows the Serra Alta
model that has demonstrated that better grades and continuity are expected in the more
permissive granitic rock, especially in proximal intrusive contact zones.
Figure 3. Fartura Drill Hole Locations & Highlighted Results
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Baru Target
The Baru Target is located 1 km to the west of the south pit block of Serra Alta. Trenching and
traversing carried out in Q2 revealed notable resemblance of the granitic units with Serra Alta
including equigranular mid grain size granite, quartz sheeted veins, potassic alteration and
staining along veins after sulphide oxidation. As in the case of Fartura south, the granitic rocks
are exposed in a fault bounded block and terminate to the north where the felsic volcanic units
outcrop (possibly concealing in depth the continuity of the granite (Figure 1).
The exposed altered and mineralized granitic rock area was drilled tested with 8 holes
spreading more than 500 m in a lateral sense and 200 m in the strike direction. This press
release reports results for the first 6 holes (FBU -001 to 006, see table 3). H ole FBU -004,
considered a discovery hole, shows notable mineralization continuity including 20.05 m at 0.71
g/t Au, from 240.05 m. This hole was collared immediately to the west of the Agua Suja Fault, a
Northeast/Southwest striking regional fault that is believed to have controls both on possible
primary loci of extensional gagues corridor and on later vertical offsets that can put into contact
mineralized and unmineralized blocks.
As is the case of Fartura (see presiding paragraphs) the felsic volcanics that sit in fault contact
to the north show alteration and quartz veining along a Northeast trend that extends for over
a 1 km (Figure 3). Cerrado currently has 2 rigs drilling through the volcanics with the dual
objective of assessing any relevant mineralization hosted by the volcanic rocks and also testing
the thickness of the sequence and the nature and mineralization of the underlaying intrusive
rocks. Cerrado believes that the scale of the Baru target re sembles that of Serra Alta and that
similar structural levels of the granitic cupola that host the mineralization in Serra Alta could be
preserved under the volcanic cover.
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Figure 4. Baru Drill Hole Locations & Highlighted Results
Capitao
The Capitão Target is located 6 km to the south of Serra Alta along the same granite complex.
The hosting intrusive unit , as is the case of Serra Alta , is covered by quartzites and Devonian
horizontal sediments . The target shares similar mineralogical paragenesis and cinematic
tectonics with Serra Alta.
Cerrado completed 10 drill holes in the Capitão target, totaling 3,793 m and notably expanded
the footprint of the target previously constrained by historic drilling (Kinros s 2007). The
mineralized zone after successful extensional step outs now a strike length of 500 m with
notable wide lateral extents up to 700 m.
Capitão mineralization, shows resemblance with the Serra Alta granite intrusion hosted
quartz/gold. A distinct feature of the m ineralized granite areas in Capitão is the chlorite
dominated alteration. Quartz vein density and visible gold occurrence are relatively less intense
than Serra Alta. This is reflected in the lower grade tenor and continuity. Notable results include
hole FCP-007, that intercepted 4.44 m at 2.14 g/t Au, from 165.41 m and 1.01 m at 8.63 g/t Au,
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from 232.74 m. This hole is in section with whole FCP-005 that intercepted 7.22 m at 0.94 g/t
Au, from 71.65 m effectively defining a 200 m wide mineralized corridor. Hole FCP-004, drilled
100 m to the south, returned 2.9 m at 2.13 g/t Au, from 123.56 m.
As is the case in Serra Alta mineralization is associated with quartz veins and sulphides (pyrite
+ galena + chalcopyrite). Cerrado believes that the mineralized trend drilled in Capitão might be
relatively distal to the best endowed contact zone (e.g., felsic volcanics), which in terms of the
current empirical exploration model constitutes the best loci for high grade mineralization.
Follow up work in this target will include , some infill drilling to properly constrain grade shells
purposed for completing a first resource estimate , and further scout drilling for possible
concealed contact zones to test the hypothesis of better endowment along intrusive contact
zones of copulas.
Figure 5. Capitão Drill Hole Locations Highlighted Results