Cerrado GOLD Updated Metallurgical Testwork Supports Ability to Produce 67% High Purity, Direct Reduction Iron (“Dri”) Grade Concentrates at Its Mont Sorcier Iron ORE Project IN Quebec
March 3, 2024 www.cerradogold.com
CERRADO GOLD UPDATED METALLURGICAL TESTWORK SUPPORTS ABILITY TO PRODUCE 67%
HIGH PURITY, DIRECT REDUCTION IRON (“DRI”) GRADE CONCENTRATES AT ITS MONT SORCIER
IRON ORE PROJECT IN QUEBEC
• Metallurgical test work on Master Composite reaffirms production of DRI grade iron
concentrate with combined Silica and Alumina below 2.5%;
• DRI grade concentrate demand to grow at a CAGR of over 9.0% p.a. for the next decade
according to industry forecasts
• Enhanced economic magnetite iron recovery of 83%;
• Variability test work of the primary domains has commenced;
• Additional test work focused on equipment sizing is now ongoing ;
• Feasibility study targeted for Q1 2026
(All numbers reported in US dollars)
TORONTO, ONTARIO - Cerrado Gold Inc. (TSX.V: CERT) (OTCQX: CRDOF ) (“Cerrado” or the
“Company”) is pleased to announce further positive metallurgical test results confirming the ability
to produce High Purity , DRI Grade 67% iron concentrates at its Mont Sor cier magnetite iron ore
project located mainly in the Cree territory of Eeyou Istchee James Bay, about twenty kilometres east of
Chibougamau, Quebec , held through its 100% owned subsidiary , Voyager Metals Inc. The
metallurgical tests results reflect a continuation of the test work announced in March 2024 which
will be used to determine the final flow sheet design for the feasibility study at Mont Sorcier, which
is expected to be completed in Q1 026.
The design and analysis of the metallurgical test work program is being conducted by Soutex Inc., a
consultancy firm specializing in ore processing and metallurgical processes based in Quebec City,
Quebec, with test work completed by SGS Canada, one of the world’s leading testing, inspection and
certification companies based in Quebec City.
This latest phase of test work was focused on greater detailed analysis of the Master Composite for
the Mont Sorcier orebody to provide a higher degree of confidence in the ability to produce a high
purity iron concentrate grading at least 67% iron with low Silica and Alumina; making it suitable to
be classified as a Direct Reduction Iron (“DRI”) grade product. Such a product significantly reduces
the overall emission of greenhouse gases in steel production compared to other lower grade
concentrates and commands a significant price premium in the market . High grade concentrates
have the potential to be used in electric a rc furnaces to produce steel products , further reducing
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emissions. In addition, as the Mont Sorcier project is a magnetite material , this would also reduce
the use of coal in the steel making process , further lowering overall emission levels. Numerous
industry publications are forecasting that overall demand for DRI grade iron concentrate is
forecasted to grow at over 9.0% pa for the next decade
As the strong global demand for Green Steel increases, demand and price premiums paid for higher
grade products is expected to continue to increase and remain well above the most commonly
traded iron products and will replace demand for lower grade materials. The ability to produce High
Purity iron concentrates places Mont Sorcier as a project capable of delivering Critical and Strategic
High Purity Iron as outlined by the Quebec Government, as it aspires to become a leader to support
energy transition through the development of critical and strategic minerals and reduce overall
global emissions.
Following the promising results obtained in early 2024 that showed the initial ability to produce
concentrate grading 67% iron , further test work, completed on a larger representative master
composite of the Mont Sorcier property, confirmed the initial positive outcomes. A summary of the
test work program and results is outlined below:
• The material was ground to a size of minus 2 mm and subjected to a magnetic separation
process.
• The concentrate of the first magnetic separation stage, the cobber stage, was reground to a
P80 of 106µm and underwent a rougher magnetic separation process . The rougher
concentrate was then reground to a P80 of 38µm, subjected to a hydroseparation stage to
remove low-density fine material and was then passed through a final cleaning magnetic
separation stage.
• The magnetic concentrate was then processed through a reverse iron flotation stage to
produce a low-silica concentrate.
These processing steps led to the production of a conc entrate grading 67% iron 1.8% silica for an
economic magnetic iron recovery of +72%. The addition of a scavenger flotation circuit further
improved the global economic magnetic iron recovery to +83% (+68% total iron), representing a
significant enhancement compared to the initial results, as shown in the table below:
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Testwork is currently ongoing with the processing of 18 variability samples through the flowsheet,
aiming to assess the performance of different samples representative of the Mont-Sorcier orebody.
A 3 tonne bulk sample is also being processed to generate representative concentrate. Going
forward, this material will be used to conduct specific equipment test work that will support the
equipment design and selection for the feasibility study.
Mark Brennan, CEO and Chairman , stated: “As the global steel markets continue to aim to reduce
overall emissions in the steel production process, concentrates such as those from Mont Sorcier are
expected to be in high demand to support this transition and replace lower grade materials. With
the further test work results continuing to support and enhance the ability to produce DRI grade 67%
iron concentrates with low levels of impurities , we anticipate interest to unlock the value we see in
the Mont Sorcier project to increase as we progress through the feasibility stage.r. .”
Review of Technical Information
The technical information contained in this news release with respect to the Mont Sorcier Project
has been reviewed and approved on behalf of Voyager by Pierre-Jean Lafleur of Voyager Metals,
who is a Qualified Person as defined under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”).
About Cerrado
Cerrado Gold is a Toronto-based gold production, development, and exploration company focused
on gold projects in South America. The Company is the 100% owner of both the producing Minera
Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentin a In Canada, Cerrado Gold is
developing it's 100% owned Mont Sorcier Iron Ore and Vanadium project located outside of
Chibougamou, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through
continued operational optimization and is growing production through its operations at the Las
CobberRougher
Cleaner
Hydroseparation
SiO2 Flotation (Rougher +Scavenger)
SiO2 Flotation (Rougher only)
70
75
80
85
90
95
100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28
Fe3O4 Recovery (%)
SiO2 Grade (%)
2024 Results 2025 Results
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Calandrias Heap Leach project. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Canada, Cerrado holds a 100% interest in the Mont Sorcier Iron Ore and Vanadium project, which
has the potential to produce a premium iron ore concentrate over a long mine life at low operating
costs and low capital intensity. Furthermore, its high grad e and high purity product facilitates the
migration of steel producers from blast furnaces to electric arc furnaces , contributing to the
decarbonization of the industry and the achievement of SDG goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Mark Brennan
CEO and Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
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has made certain assumptions, including, but not limited to predictions about the future demand for higher grade iron
concentrates and the Company’s ultimate ability to produce this type of produce from the Mont Sorcier Project. 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,
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whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-
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