Highlights
- Common shares resumed trading at the opening on August 8th, 2024
- MDN operations are performing well with Q2/24 production of 16,255 Gold Equivalent Ounces (“GEO”)
- Full-Year production guidance of 50,000 – 60,000 GEO at AISC of US$1,200-1,400/oz
- Recent PEA results for MDN show an NPV (8%) of $105MM at $2100/oz gold over a 5-year mine plan producing an average of approximately 56,000 GEO per annum
- Life of Mine Average annual EBITDA of US$49 Million and FCF of US$25 Million
- Additional US$45 million cash expected between March 2025-2027 from the sale of the Monte do Carmo project in Brazil
TORONTO, ON / ACCESSWIRE / August 7, 2024 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) is pleased to announce that further to its news release of June 27, 2024, the Company has been advised by the TSX Venture Exchange (the “Exchange”) that trading of the Company’s common shares on the Exchange have resumed at the opening of the market on August 8, 2024.
Further, as previously released on July 17, 2024, the Company is pleased to announce that operations at its wholly-owned Minera Don Nicolas project in Argentina continue to perform well during a typically challenging winter period. As previously announced, production for Q2 was 16,255 Gold Equivalent Ounces (“GEO”) as production from the heap leach continues to perform well. A second crusher has now arrived at site and will be installed to support a further expansion of capacity at the Calandrias Sur heap leach operation.
First half of 2024, production of 27,459 GEO has been achieved. The Company is guiding for 2024 total production of between 50,000-60,000 GEO at an All-In-Sustaining Cost between US$1,200-US$1,400/oz.
Improved operating performance and ongoing strength in gold prices continue to support the repayment of local debt and payables in Argentina, and we expect to see a material reduction in our negative working capital position going forward.
In addition, as outlined in a press release dated August 6th, 2024, Cerrado announced the results of an NI 43-101 Preliminary Economic Assessment (“PEA”) and an updated Mineral Resource Estimate (“MRE”) for its Minera Don Nicolas mine located in Santa Cruz Province, Argentina. The work was completed by GeoEstima SpA (Chile), and a summary of the results is presented below.
PEA Summary Results
The PEA highlights a robust 5-year mine life using our current inventory of mineralized material. As high-grade material from our Calandrias Norte pit is exhausted, the heap leach at Calandrias Sur and a second potential heap leach at Martinetas will generate strong cashflows, allowing the Company to support continued deleveraging while refocusing efforts on exploration to add additional high-grade ounces to the mine plan, support underground development and expand the life of mine.
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, Argentina, and the highly prospective Monte Do Carmo development project, located in Tocantins State, Brazil under option to Amarillo Mineração Do Brasil Ltda., a subsidiary of Hochschild Mining PLC. 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 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 grade 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.
