Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) announced production results for the second quarter of 2023 (“Q2 2023”) from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are expected to be released in August 2023.
- Q2 2023 production of 12,453 Gold Equivalent Ounces (“GEO”)
- Production for the quarter in line with expectations
- Las Calandrias heap leach project – Mining activities commenced, with first gold pour completed in early July 2023
- LOM strategic plan continues to make good progress
Q2 Operating Highlights
- Q2 2023 Gold production of 12,336 ounces and Gold Equivalent Ounce production of 12,453 ounces compared to 11,640 Geo ounces Q2 2022.
- GEO sales in Q2 of 11,195 ounces.
- Results continue to demonstrate stable mill throughput.
- Gold head grades 4.84 g/t and Gold Recoveries of 83.68% for the quarter.
Operational results presented for Q2 2023 highlight the stability of the operations. Since Cerrado acquired the Minera Don Nicolas mine, it has continuously improved performance during the first two years. As seen in prior years, Q2 and Q3 results are expected to show some variability, 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, at above 1,000 tonnes per day. Production increases were driven primarily by ongoing efforts to reduce dilution and thus increase head grades, offset slightly by lower recoveries due to changes in ore type. Please see Table 1. for a summary of key highlights for the second quarter 2023. Sales for the quarter were lower than production, however, these sales should be recovered in the third quarter due to high-grade material entering the plant at the end of the quarter. Some challenges were experienced with recoveries, mainly for Chulengo, a high-grade deposit, but minor changes in operating strategies and throughput rates were found to be successful, and the operation stabilized with recoveries above 90% at the end of the quarter.
Ongoing work to optimize mine sequencing and exploration work to upgrade and define new sources of resources remains the key focus 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 Q3 2023), underground development and production at Paloma, and a new Heap Leach operation at Martinetas.
Although the Las Calandrias project heap leach pad is still under construction, 33% of the pad is completed and is currently being loaded with ore and irrigation has commenced. Mining activities are at full production level, and gold production is anticipatd to ramp up during the 3rd quarter, with full production expected by the end of the 3rd quarter.
Table 1: Key Operating Information
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.
Cerrado Gold is a market awareness client of Capital 10X.
