Cerrado GOLD Reports Strong Q2 Production Results from Its Minera Don Nicolàs MINE IN Argentina
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July 19, 2021 www.cerradogold.com
CERRADO GOLD REPORTS STRONG Q2 PRODUCTION RESULTS FROM ITS MINERA DON
NICOLÀS MINE IN ARGENTINA
• Q2 and year to date production and operations well ahead of plan
• Gold Equivalent ounces shipped for the 2nd quarter exceeds 10,000 ounces
TORONTO, ONTARIO - Cerrado Gold Inc. (TSXV: CERT ) (OTCQX: CRD OF) ("Cerrado" or the
"Company”) is pleased to announce its production results for the second quarter of 2021 (“Q 2
2021”) from the Minera Don Nicol ás Mine in Santa Cruz Province, Argentina . Full financial results
are to be released by the end of August.
Q2 Operating Highlights
• Gold production reported at 9,607 ounces for Q2 2021, a 28% improvement over Q 1 2021
production of 7,485 gold ounces. Gold production exceeded management’s budget by 10%
for Q2 2021 and YTD production exceeds budget by 8%. Management continues to target
to exit the year at a production run rate of approximately 55,000 ounces per annum.
• Production of Gold Equivalent ounces (“ GEO”) was 10,063 ounces for Q2 2021, a 48%
increase over Q1 2021.
• Since Cerrado acquired Minera Don Nicolas, gold production has seen a steady month over
month increase which has continued in the quarter, highlighted by 3,385 ounces produced
in June 2021, a 7% improvement over March 2021 the previous best since Cerrado has taken
ownership.
• GEO shipped for the quarter exceeded 10,000 ounces, a record for Minera Don Nicolás since
start up and a significant increase from 6,793 ounces shipped in Q1 2021.
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 t o 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 with the continuous
improvement and the robust operational results that the Don Nicolas team has achieved in a very
challenging COVID environment.” He continued, “Quarterly improvements encourage us to believe
that we will achieve our production expectations of 45–55,000 ounces Au annually.” He continued,
“The MDN team as a whole has to be commended for the strong performance it has been delivering
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in an exceptionally difficult environment; it gives us strong confidence that there is plenty of growth
moving forward, especially once restrictions imposed by COVID-19 are removed.”
Minera Don Nicol ás has been operating the laboratory in house since January 2021. Sample turn
around times ha ve improved and as a result mine planning and ore control has been significantly
enhanced. Gold grades are steadily increasing with 3.4 g/t Au in mill feed reported for June 2021.
We note that gold production year to date for the first half of the year alone of 17,091 oz Au exceeds
the total gold production during Cerrado’s 9 month ownership in 2020. As previously outlined and
based upon the current mine plan , overall ore grades are planned to see further improvement in
the second half of the year as performance improvement programs continue and the mine fully
catches up with delays caused by COVID-19 issues.
Please see below table for a summary of key highlights from Q2 2021 as well as the full period 2020.
The steady increase in production numbers highlighted in Q1 continued into Q2. Recovery issues in
May caused by copper sulphide-bearing gold ore from our Paloma deposit resulted in a 5% drop in
overall Au recovery for the month. Ore from this small copper rich area has been mined out and
recovery levels have returned to more normal levels in June.
Review of Technical Information
Operating Data Unit
Apr 1 to Dec 31,
2020* Q1 Q2
Ore Mined ktonnes 61 75 102
Waste Mined ktonnes 886 1,268 1,323
Total Mined ktonnes 959 1,393 1,467
Strip ratio waste/ore 14.52 16.81 12.94
Mining rate tpd 10,495 15,476 16,119
Ore Milled Ktonnes 81 95 107
Head Grade Au g/t 2.38 2.59 2.97
Head Grade Ag g/t 5.85 8.00 10.91
Recovery Au % 89% 91% 87%
Recovery Ag % 63% 61% 54%
Mill Throughput tpd 883 1,051 1,171
Gold ounces produced oz 5,515 7,485 9,607
Silver equivalent ounces produced oz 150 223 327
Gold Geo Produced oz 5,665 7,708 9,934
Gold ounces sold oz 5,885 6,584 9,744
Silver equivalent ounces sold oz 128 209 319
Gold Geo Sold 6,012 6,793 10,063
(1) Please note that the daily mining rate for Q 1 has been corrected and was wrongly reported at the end of
quarter 1. The actual mining rate is 15,476 tons per day for Q1 and not 16,386.
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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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
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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DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY
OR 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 cont ained 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 s uch 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.