Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) announces production results for the first quarter of 2023 from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina.
Key Takeaways:
- Reliable mill throughput above 1,000 tpd, largely in line with a year ago.
- Gold production grew 6% year over year driven by a 4% increase in gold recovery rates and 43% increase in the mining rate.
- Company still on track to grow production to 90,000 oz per year in 2024 from 56,000 oz today.
Q1 Operating Highlights
- Q1 2023 Gold production of 13,794 ounces and Gold Equivalent Ounce production of 13,951 ounces as compared to 13,499 in Q1 2022
- GEO sales in Q1 of 16,255 ounces compared to 15,044 ounces in Q1 2022
- Results demonstrate ongoing stability in mill throughput combined with improving head grades and recoveries
- Gold head grades 4.59 g/t and Gold Recoveries of 91.9% for the quarter.
Operational results presented for the first quarter 2023 highlight the stability of the Company’s continued operations.
Since Cerrado acquired the Minera Don Nicolas mine, operations, and production rates have continuously improved despite difficult Covid conditions during the first two years.
Over the next few quarters, some variability is expected to continue, given the seasonal challenges in the winter months and given the Company is still developing and implementing its Life of Mine (“LOM”) strategy.
Ore milled remained stable throughout the quarter, above 1,000 tonnes per day each quarter, demonstrating the success of the teams’ efforts to normalize operations. Production increases were driven primarily by ongoing efforts to reduce dilution and thus increase head grades.
Sales for the quarter exceeded production due to inventory accumulated in Q4 2022, which was drawn down this quarter.
The consolidation of mine sequencing and exploration work to upgrade and define new sources of resources remains the key focus given the early stage of development at MDN.
The operations team is focused on numerous new growth projects aside from expanding current open pit resources, including; the construction of the Las Calandrias Heap Leach operation (first gold pour Q2 2023), underground development and production at Paloma, and a new Heap Leach operation at Martinetas.
Key Operating Metrics
Cerrado will release full financial results on June 8, 2023.
Cerrado Gold is a market awareness client of Capital 10X.
