Cerrado GOLD Reports Record Q3 Production Results from Its Minera Don Nicolás MINE IN Argentina
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October 18, 2021 www.cerradogold.com
CERRADO GOLD REPORTS RECORD Q3 PRODUCTION RESULTS FROM ITS
MINERA DON NICOLÁS MINE IN ARGENTINA
• Q3 and year to date production and operations results remains well ahead of plan
• Gold Equivalent ounces produced for the 3rd quarter exceeds 10,000 ounces
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT ] [OTCQX: CRDOF ] ("Cerrado" or the
"Company”) is pleased to announce its production results for the third quarter of 2021 (“Q3 2021”)
from the Minera Don Nicolás Mine in Santa Cruz Province, Argentina. Full financial results are to be
released by the end of November.
Q3 Operating Highlights
• Production of Gold Equivalent ounces (“ GEO”) was 10, 549 ounces for Q 3 2021, a n 6%
increase over Q2 2021 GEO production of 9,934 ounces.
• Management continues to target exit year production at a run rate in excess of 50,000
ounces per annum.
• Since Cerrado acquired Minera Don Nicolás, gold production has seen a steady month over
month increas e, highlighted by 4,545 geo ounces produced in August 2021, a 30%
improvement over 3,505 geo ounces produced in June 2021 the previous best month since
Cerrado has taken ownership.
• Q3 Gold production represents a record for Minera Don Nicolás since start up.
The strong operational performance is the result of continuous improvement by the onsite team.
The mining team has exceeded ore production and Au grade targets consistently year to date.
Operational improvements around the processing plant have ensured an increase of approximately
20% on mill design throughput capacity on a sustained basis.
Mark Brennan, CEO and Co-Chairman commented “We are extremely pleased to have achieved a
new record of quarterly gold production which reflects the tremendous efforts from the Don Nicolás
team despite a still very challenging COVID environment ”. He continued, “ Ongoing q uarterly
improvements continue to support our view that we should achieve our production expectations of
45– 55,000 ounces Au annually on a sustained basis”. He continued, “Once again we would like to
commend the MDN team as a whole for the strong performance they have been delivering in an
exceptionally difficult environment; it gives us strong confidence that there is plenty of growth
moving forward, especially once restrictions imposed by Covid are removed.”
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Minera Don Nicolás has been operating its on site fire assay laboratory in house since January 2021.
Sample turnaround times ha ve improved and as a result mine planning and ore control has been
significantly enhanced. Gold grades are steadily increasing with an average head grade of 3.57g/t
Au in mill feed reported for the 3rd quarter 2021. We note that gold production year to date for the
first three quarters alone of 28,191 geo oz Au exceeds the total gold geo production for any full
production year in the history of Minera Don Nicolás.
As previously outlined and based upon the current mine plan, overall ore grades are planned to see
further improvement in the fourth quarter as performance improvement programs continue and
with the mine fully caught up with delays caused by COVID 19 issues.
Please see below table for a summary of key highlights from Q 3 2021 as well as the first three
quarters averaged for 2020.
The steady increase in production numbers highlighted in Q2 continued in to Q3.
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 Nicholas Campbell, CFA
CEO and Co Chairman Director, Corporate Development
Operating Data Unit
Apr to Dec,
2020 Q1 Q2 Q3
Ore Mined ktonnes 61 75 102 113
Waste Mined ktonnes 886 1,268 1,323 1,462
Total Mined ktonnes 959 1,393 1,467 1,575
Strip ratio waste/ore 14.52 16.81 12.94 12.88
Mining rate tpd 10,495 15,476 16,119 17,308
Ore Milled Ktonnes 81 95 107 102
Head Grade Au g/t 2.38 2.59 2.97 3.57
Head Grade Ag g/t 5.85 8.00 10.91 13.01
Recovery Au % 89% 91% 87% 88%
Recovery Ag % 63% 61% 54% 63%
Mill Throughput tpd 883 1,051 1,171 1,126
Gold ounces produced oz 5,515 7,485 9,607 10,168
Silver equivalent ounces produced oz 150 223 327 381
Gold Geo Produced oz 5,665 7,708 9,934 10,549
Gold ounces sold oz 5,885 6,584 9,744 9,724
Silver equivalent ounces sold oz 128 209 319 346
Gold Geo Sold 6,012 6,793 10,063 10,070
Key Operating Information
(*) Values for 2020 represent average values for the last 3 quarters (Period from April 1 to December
31,2020 at Minera Don Nicolas.
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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
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ACCURACY OF THIS RELEASE.
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 histor ical 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 eve nts or performance (often but not always using
phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”,
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or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or
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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 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
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 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 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.