Cerrado GOLD Reports Q3 2022 GOLD Production from Its Minera Don Nicolás MINE IN Argentina
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October 20, 2022 www.cerradogold.com
CERRADO GOLD REPORTS Q3 2022 GOLD PRODUCTION FROM ITS
MINERA DON NICOLÁS MINE IN ARGENTINA
• Company reiterates annual production guidance of 45,000 - 55,000 GEO ounces for 2022
• Q3 Financials release date - 22nd November
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT ][OTCQX:CRDOF] ("Cerrado" or the
"Company”) announces production results for the third quarter of 2022 (“Q 3 2022”) from the
Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are to be
released on the 22nd of November.
Q3 Operating Highlights
• Gold Equivalent ounces (“GEO”) production of 11,284 ounces of gold in Q3 2022
• Gold Grades improved 28% from Q2 to Q3 to 4.40g/t
• Gold production expected to exceed 13,000 ounces for Q4 2022
• Calandrias heap leach to commence construction in Q4 2022
During Q3 2022 operations at MDN continued under normalized operations for the fourth
consecutive quarter demonstrating the significant improvements that have been achieved at site.
That said, quarterly production slightly declined from the previous quarter from 11,640 GEO ozs to
11,284 GEO ozs in Q3 2022 primarily due to lower throughput caused by wet feed due to inclement
winter season conditions. Although gold production was lower in the quarter , the higher grades
resulted in an increase of gold inventory of 1,300 ounces. Additionally, September production
exceeded 4,000 ounces with an average head grade of 5.15 g/t. The average gold grade mined
improved from 3.44 g/t in Q2 2022 to 4.40 g/t in Q3 2022, a 28% improvement. The Company
expects gold production to exceed 13,000 ounces for Q4 2022.
Management reiterates GEO production guidance at 45,000 to 55,000 GEO for 2022. For the nine-
month period ending September production was 36,423 GEO ozs.
The company continues to progress development of the Calandrias heap leach project with
construction commencing in Q4 of 2022. The heap leach operations will look to utilize lower grade
material and increase annual production at the Minera Don Nicolas Mine by approximately 20,000-
25,000 ozs per annum.
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Mark Brennan, CEO and Co-Chairman stated: “The past year has been a building year for MDN; while
we are pleased with the consistency in the operation to achieve our 2022 production guidance of
between 45,000-55,000 GEO ozs and we continue to expect an increase in grades and expect further
improvement as we bring the new pits into the mine plan, the real focus of operations has been to
develop a long term strategy for MDN. Work on expansion plans via the heap leach projects is now
underway which should only improve the long-term future and results at MDN. Concurrently, we
continue to make rapid progress on completing the Feasibility Study at the Monte do Carmo project
in Brazil. Once onstream, the combined production from both these projects puts Cerrado on track
to be a mid tier producer.”
Please see Table 1. below for a summary of key highlights from Q3 2022 and previous reporting
periods.
Table 1. Key Operating Information
MDN Operating
Data Units Q3 Q2 Q1 Q4 Q3 Q2 Q1
2022 2022 2022 2021 2021 2021 2021 2021
Ore Mined ktonnes 85 92 89 412 121 114 102 75
Waste Mined ktonnes 1,265 1,130 879 5,114 1,061 1,462 1,323 1,268
Strip Ratio waste/ore 14.92 12.32 9.85 12.42 8.81 12.88 12.94 16.81
Mining Rate tpd 15,633 14,381 10,760 15,980 12,844 17,308 16,119 15,476
Ore Milled ktonnes 99 103 99 414 110 102 107 95
Head Grade Au g/t 4.40 3.44 4.68 3.51 4.77 3.57 2.97 2.59
Head Grade Ag g/t 11.58 9.95 14.85 12.63 17.94 13.01 10.91 8
Recovery Au % 91% 91% 89% 89% 89% 88% 87% 91%
Recovery Ag % 66% 67% 58% 59% 57% 63% 54% 61%
Mill Throughput tpd 1,075 1,131 1,096 1,152 1,194 1,126 1,171 1,051
Gold Ounces Produced oz 11,015 11,296 13,007 42,268 15,008 10,168 9,607 7,485
Silver Equivalent
Ounces (Au Equiv.) oz 269 344 381 1,291 360 381 327 223
GEO Production oz 11,284 11,640 13,499 43,559 15,368 10,549 9,934 7,708
Full financial results are to be released by November 22, 2022.
In addition, during the quarter the Company continued to pursue its exploration activities at
numerous targets at MDN including the Paloma underground target. Construction activities on the
Calandrias heap leach project are expected to start imminently. At the Company’s Monte do Carmo
project in Brazil, the infill drill campaign and additional exploration activities continue progressing
well and the Company is advancing numerous work streams to deliver the Feasibility Study in Q1
2023.
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Review of Technical Information
The 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.
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
mine in Santa Cruz province, Argentina and the highly prospective Monte Do Carmo development
project, located in Tocantins State, Brazil.
At Minera Don Nicolas, Cerrado is maximising asset value through further operations optimization
and continued production growth. An extensive campaign of exploration is ongoing to further
unlock potential resources in our highly prospective 334,000ha land package.
At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and
production. The Serra Alta deposit hosts Indicated Resources of 541 kozs of contained gold and
Inferred Resources of 780 kozs of contained gold. The P reliminary Economic Assessment
demonstrates extremely 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.
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Forward-looking statements contained in this press release include, without limitation, statements
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contained in this press release, Cerrado has made certain assumptions, including, but not limited to
improving gold grades, production targets and continuing progress of the Feasibility Study and infill
drilling 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 an d social uncertainties. 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 o r
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.