Cerrado Gold Introduces Gold Production Growth Strategy and Provides Update from Its 2021 Exploration Program at Its Minera Don Nicolás Gold Project in Argentina
- Dual Stream Production Strategy to add lower grade stream to existing high-grade stream and expected to deliver production of approximately 70,000 ounces of gold ("oz Au") per annum by Q1 2023 and increase gold production capacity up to 90,000 oz Au by late 2023
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High grade material (cut-off grade of +1.6 grams per tonne gold; "g/t Au") to be processed through current CIL plant anticipated to deliver 40,000-50,000 oz Au per annum
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Lower grade material (cut-off grade of +0.3 g/t Au) to be processed via planned heap leach operations at both Calandrias and Martinetas expected to add approximately 40,000 oz Au of annual production capacity
- Underground Potential Paloma Area:
- Deep drilling to commence at the southern edge of the Sulfuro Vein where a high-grade subvertical shoot has been delineated by historical drilling approximately 125 metres ("m") below the current pit. Drilling in 2022 to target an additional 200m of down plunge extension.
- 2021 drilling has outlined numerous lower and high-grade resource targets to support the growth strategy
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Significant tonnage of lower grade material that was previously treated as waste identified to be heap leached (cut-off 0.3 g/t Au)
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Toronto, February 9, 2022 - CERRADO GOLD (TSXV: CERT) (OTCQX: CRDOF) ("Cerrado" or the "Company") is pleased to provide an update to its development strategy for gold production growth and to provide the remaining results of its 2021 near mine exploration drill program (12,578 m) at its Minera Don Nicolás ("MDN") Project located in Santa Cruz province, Argentina.
Following recent drilling and a thorough review of the current resources and mine plan at MDN, Cerrado has commenced development plans that should substantially add to the production profile at its MDN operations through a Dual Stream Production Strategy to more fully exploit the entire resource potential. The Dual Stream Production Strategy will focus on processing high-grade material (cut-off 1.6 g/t Au) through the existing CIL plant and the development of heap leach facilities for processing of lower grade material (cut-off 0.3 g/t Au) that is currently treated as waste or stockpiled for future use.
Dual Stream Production Strategy
Previously, lower-grade material at Martinetas (e.g., Cerro Oro and Coyote) was either ignored, treated as waste or sent to a stockpile. Metallurgical test work to date (see press release dated September 1, 2021 for more details) suggests gold recoveries via heap leach operations can economically treat much of this material.
As the results of the recent drill program demonstrate, many high-grade areas have a significant halo and/or internal dilution zone of lower grade material that can now be viewed as ore moving forward. The high-grade stream will process ore through the existing CIL plant with an estimated annual production of 40,000 - 50,000 ounces of gold per annum.
In addition, the Company plans to develop two heap leach operations. The first, as outlined in the press release dated September 1, 2021, will focus on the Las Calandrias and Escondido deposits at the northern perimeter of the property. Production is expected to average approximately 25,000 ounces of gold commencing in Q1 2023 with an initial mine life, prior to additional exploration, of approximately four years. A second heap leach operation is to be developed in the Martinetas mining region to process lower grade material that is either currently being treated as waste or stored in a lower-grade stockpile. Cerrado believes this could be in operation by late 2023 adding a further potential of 15,000 - 20,000 ounces of gold per annum.
Deep Drilling/ Underground Exploration
As part of the plan to process only high-grade material through the CIL plant (cut-off 1.6 g/t Au), Cerrado's drill plan for 2022 will include a strong focus on deeper targeting beyond the extent of current LOM pits. The first area of focus of the deep drilling will be the southern edge of the Sulfuro Vein (Paloma) where a high grade subvertical shoot has already been delineated with historic drilling approximately 125 m below the LOM pit. Drilling will target an additional 200m of down plunge extension.
The move towards underground mining is in keeping with the transitions undertaken at both MDN's neighbouring mines - Yamana's Cerro Morro operation and Anglo American's Cerro Vanguardia mine. Based upon current resources in place, Cerrado's exploration team believes it can readily outline potential resources in excess of 100,000 ounces of gold in underground mineralized material to act as an initial source of feed to the mill.
Current resources and future exploration plans are now being considered with this new production strategy in mind to best utilize the current and future resources at MDN. Future resource activity and updates will focus on outlining resources available to both production streams.
Mark Brennan, CEO & Co-Chairman, commented, "We are very excited to introduce this new development strategy that will maximize both resource and production growth at MDN. It has been a challenging yet very interesting period since Cerrado acquired the MDN Mine; the first phase was focused upon ramping up production and cash flows during a very intense COVID operating environment; which the team has very successfully achieved, and now as the next phase, we have a road map to develop what we believe will be the true potential for the MDN mine moving forward."
He continued, "Exploration work to date has identified near mine, high-grade potential targets and has opened up additional lower-grade targets which can be quickly brought into the mine plan. The Dual Stream Production Strategy is expected to provide Cerrado with a platform for continued production growth, operational flexibility and extended mine life at MDN."
2021 Exploration Drill Results
Diamond drill holes ("DDH") from MDN's exploration program were collared at the Baritina and Araña targets in the Paloma area (14 DDH, totalling 943 m); and at the M11 Mara, Gecko and Choique targets in the Martinetas area (47 DDH, totalling 4,709 m), see Figure 1. The focus of the 2021 near mine program has been to delineate new, high grade, mineralized zones and increase the confidence of near surface mineralization that have the potential to quickly be converted into mineable material. All targets are in the proximity of Cerrado's current mining operations, La Paloma and Martinetas pits.
Drill Hole Highlights by target area (all composites are reported as true thickness):
Baritina
PA-D21-85
- 8.00 m at 1.67 g/t Au, from 46.30 m
- Including 3.60 m at 2.16 g/t Au from 48.00 m
PA-D21-86
- 14.62 m at 1.45 g/t Au, from 33.25 m
- Including 1m at 3.48 g/t Au from 54.60 m
PA-D21-88
- 3.28 m at 2.69 g/t Au, from 46.95 m
Mara/Armadillo
MA-D21-043
- 4.79 m at 1.21 g/t Au, from 58.40 m
Choique
CH-D21-049
- 1.90 m (apparent width) at 7.05 g/t Au, from 44.55 m
- Including 1.00 m (apparent width) at 13.29 g/t Au from 44.55 m
CH-D21-054
- 4.60 m at 1.43 g/t Au, from 19.60 m
Gecko
GK-D21-011
- 1.43 m at 2.85 g/t Au, from 52.50 m
Near Mine Drill Program at MDN
The 2021 exploration drill program at the Minera Don Nicolás Project totalled 12,578 m, commenced in February 2021, and was completed in September 2021. Assays were fully received in November 2021 and all the previously outstanding results are disclosed in this press release, (Table 1. and Figures 1. through 3.).
Figure 1. Plan View Reported Drill Results
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6185/113205_5d059b8954eb6b5a_002full.jpg
The first phase of the program focused on targets adjacent to existing operations at La Paloma and included targets such as Esperanza/Rocio, Baritina, Chulengo and Araña. These areas ranked as high priority targets, and many of them were already included in the resource inventory, summarized in the August 2020 technical report completed by SRK.
Drilling in the La Paloma area was completed in July. Cerrado expects that the Baritina target will add future shallow high-grade feed to the mill and lower grade resources for heap leaching. Follow up at the Arana prospect on the shallow mineralized trends as well as at depth is warranted based on the results received to date.
Figure 2. Plan View Paloma Area Reported Drill Results
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6185/113205_5d059b8954eb6b5a_003full.jpg
The diamond drill rig was subsequently mobilized to the Martinetas area where an additional 4,709 m of drilling was completed in September. The Martinetas area encompasses more than five square kilometres ("km2") of argillic altered rocks that reveal a large fertile epithermal center. Mineralization includes sheeted veins (e.g., Cerro Oro) and discrete veins (Armadillo) which occur in several sectors within the large argillic footprint. Cerrado's strategy at Martinetas has been to systematically explore targets identified within the argillic envelope focussing on permissive structural trends and possible continuities from the known and mined centers (e.g., Choique Southeast).
Drilling priorities considered the proximity of the different targets in relation to the current operations. Lateral step outs of known mineralized centers including Cerro Oro, Choique, Armadillo and Mara were identified as areas that contain shallow mineralization amenable to open pit mining and thus could be quickly converted into minable resources.
Figure 3. Plan View Martinetas Area Reported Drill Results
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6185/113205_5d059b8954eb6b5a_004full.jpg
Detailed geological descriptions of each target are provided in the following link:
(https://www.cerradogold.com/geology)
Summary and follow-up
The 2021 program successfully delineated and increased the confidence on near mine shallow targets both in the La Paloma and Martinetas area. Notably in Paloma, the high grade Chulengo and Baritina refined geological models were integrated into the mine plans. The mine team will complete their pre-mining Reverse Circulation ("RC") infill drilling to optimize sequencing. In a similar fashion, positive results in Choique that extended the mineralized trend for approximately 100 m to the southeast will be followed up by tightly spaced RC drilling by the mine geology team. As part of the new strategy outlined above, the economics of these deposits, specially those in the Martinetas area, is being evaluated by considering synchronous mining, feeding the two possible processing circuits (CIL and Heap Leach).
In other targets such as Araña where continuity was limited within the drilled area, follow up with proper modelling on the shallow mineralised structures and possible deep drilling is warranted. Negative results in shallow areas believed to have been systematically drilled (e.g., M11 and Gecko) will not be part of the next exploration phases.
Table 1. Paloma Area Relevant Intercepts
Baritina
| DDH | From | To | Length (m) | True Width (m) | Au (g/t) | |
| PA-D21-85 | 0.00 | 4.65 | 4.65 | 2.99 | 1.35 | |
| Including | 1.00 | 2.00 | 1.00 | 0.64 | 2.26 | |
| 22.80 | 28.80 | 6.00 | 3.86 | 0.54 | ||
| 36.80 | 42.50 | 5.70 | 3.66 | 1.10 | ||
| 46.30 | 58.75 | 12.45 | 8.00 | 1.67 | ||
| Including | 48.00 | 53.60 | 5.60 | 3.60 | 2.16 | |
| and | 56.80 | 58.30 | 1.50 | 0.96 | 2.70 | |
| PA-D21-86 | 4.20 | 7.20 | 3.00 | 1.93 | 0.66 | |
| 17.40 | 30.50 | 13.10 | 8.42 | 0.48 | ||
| 33.25 | 56.00 | 22.75 | 14.62 | 1.45 | ||
| Including | 54.60 | 56.00 | 1.40 | 0.90 | 3.48 | |
| PA-D21-87 | 5.20 | 7.50 | 2.30 | 1.48 | 0.65 | |
| 9.25 | 19.60 | 10.35 | 6.65 | 0.82 | ||
| Including | 11.25 | 12.25 | 1.00 | 0.64 | 1.49 | |
| and | 17.80 | 19.60 | 1.80 | 1.16 | 1.40 | |
| 22.60 | 24.90 | 2.30 | 1.48 | 0.66 | ||
| 38.85 | 53.30 | 14.45 | 9.29 | 1.25 | ||
| Including | 41.00 | 44.00 | 3.00 | 1.93 | 1.42 | |
| and | 46.40 | 50.00 | 3.60 | 2.31 | 2.12 | |
| and | 51.50 | 53.30 | 1.80 | 1.16 | 2.32 | |
| PA-D21-88 | 3.00 | 5.00 | 2.00 | 1.29 | 1.60 | |
| 15.10 | 18.85 | 3.75 | 2.41 | 0.54 | ||
| 21.45 | 28.15 | 6.70 | 4.31 | 0.30 | ||
| 29.25 | 30.10 | 0.85 | 0.55 | 1.39 | ||
| PA-D21-89 | 23.70 | 28.40 | 4.70 | 3.02 | 0.65 | |
| Including | 27.70 | 28.40 | 0.70 | 0.45 | 1.17 | |
| 30.50 | 43.80 | 13.30 | 8.55 | 1.03 | ||
| Including | 41.00 | 41.50 | 0.50 | 0.32 | 2.75 | |
| 44.90 | 46.20 | 1.30 | 0.84 | 1.91 | ||
| Including | 44.90 | 45.40 | 0.50 | 0.32 | 3.66 | |
| 46.95 | 52.05 | 5.10 | 3.28 | 2.69 | ||
| Including | 46.95 | 48.40 | 1.45 | 0.93 | 4.07 | |
| and | 50.00 | 52.05 | 2.05 | 1.32 | 3.59 | |
| 53.50 | 68.00 | 14.50 | 9.32 | 1.10 | ||
| Including | 56.70 | 57.40 | 0.70 | 0.45 | 2.50 | |
| PA-D21-90 | 13.40 | 15.70 | 2.30 | 1.48 | 1.86 | |
| Including | 13.45 | 14.45 | 1.00 | 0.64 | 3.47 | |
| 19.80 | 20.80 | 1.00 | 0.64 | 2.37 | ||
| 25.35 | 32.00 | 6.65 | 4.27 | 0.70 | ||
| 35.00 | 51.75 | 16.75 | 10.77 | 1.35 | ||
| Including | 39.40 | 40.50 | 1.10 | 0.71 | 2.38 | |
| and | 42.90 | 45.00 | 2.10 | 1.35 | 2.31 | |
| and | 50.10 | 51.75 | 1.65 | 1.06 | 2.79 | |
| 52.60 | 53.20 | 0.60 | 0.39 | 0.90 | ||
| PA-D21-91 | 29.50 | 54.60 | 25.10 | 16.13 | 0.86 | |
| Including | 41.50 | 45.80 | 4.30 | 2.76 | 1.19 | |
| and | 46.90 | 50.00 | 3.10 | 1.99 | 2.47 | |
| and | 49.00 | 50.00 | 1.00 | 0.64 | 3.51 | |
| PA-D21-92 | 32.10 | 33.80 | 1.70 | 1.09 | 0.39 | |
| PA-D21-93 | 22.85 | 23.85 | 1.00 | 0.64 | 1.18 | |
| 31.50 | 35.40 | 3.90 | 2.51 | 0.83 | ||
| Including | 33.70 | 34.40 | 0.70 | 0.45 | 2.23 | |
| 38.95 | 42.50 | 3.55 | 2.28 | 0.61 | ||
| 44.60 | 45.15 | 0.55 | 0.35 | 1.87 | ||
| 45.70 | 57.75 | 12.05 | 7.75 | 2.24 | ||
| and | 45.70 | 46.70 | 1.00 | 0.64 | 2.15 | |
| and | 48.60 | 51.00 | 2.40 | 1.54 | 4.37 | |
| and | 55.70 | 57.15 | 1.45 | 0.93 | 2.82 | |
| PA-D21-94 | 24.30 | 25.15 | 0.85 | 0.55 | 0.92 | |
| 32.00 | 35.00 | 3.00 | 1.93 | 0.72 | ||
Araña Target
| DDH | From | To | Length (m) | True Width (m) | Au (g/t) | |
| PA-D21-95 | 28.00 | 28.50 | 0.50 | 0.32 | 21.20 | |
| 66.00 | 67.00 | 1.00 | 0.77 | 0.66 | ||
| 11.48 | 12.38 | 0.90 | 0.58 | 2.62 | ||
| including | 11.90 | 12.38 | 0.48 | 0.31 | 4.55 | |
| 21.05 | 22.00 | 0.95 | 0.61 | 2.91 | ||
| 24.00 | 30.00 | 6.00 | 3.86 | 0.76 | ||
| including | 24.00 | 25.00 | 1.00 | 0.64 | 1.40 | |
| and | 28.00 | 29.00 | 1.00 | 0.64 | 1.28 | |
| 41.00 | 42.00 | 1.00 | 0.98 | 2.87 | ||
| 58.00 | 59.20 | 1.20 | ** | 2.35 | ||
| 35.80 | 46.00 | 10.20 | 7.21 | 0.99 | ||
| including | 35.80 | 36.65 | 0.85 | 0.85 | 2.30 | |
| and | 40.00 | 40.55 | 0.55 | 0.45 | 2.33 | |
| and | 41.20 | 41.90 | 0.70 | 0.68 | 2.17 | |
| and | 44.00 | 45.00 | 1.00 | 0.91 | 1.06 | |
| *Partial results received | ||||||
| **No structural features possible from logging - no true width calculated | ||||||
Composites Cut-off grade 0.3 g/t Au
NSA: No significant Assays
Table 2. Martinetas Area Relevant Intercepts
M11
| DDH | From | To | Length (m) | True Width (m) | Au (g/t) |
| M11-D15-001 | NSA | ||||
| M11-D21-003 | NSA | ||||
| M11-D15-004 | 12.00 | 13.00 | 1.00 | 0.82 | 0.53 |
| 26.40 | 27.10 | 0.70 | 0.70 | 2.02 | |
| 39.25 | 40.15 | 0.90 | 0.87 | 0.40 | |
| 48.15 | 48.80 | 0.65 | 0.63 | 0.34 | |
| 71.00 | 72.00 | 1.00 | 0.91 | 0.42 | |
| 85.80 | 87.70 | 1.90 | 1.56 | 0.32 | |
| M11-D21-005 | 15.85 | 16.45 | 0.60 | 0.56 | 0.31 |
| M11-D21-007 | NSA | ||||
Mara/Armadillo
| DDH | From | To | Length (m) | True Width (m) | Au (g/t) | |
| MA-D21-034 | 42.00 | 43.20 | 1.20 | 1.13 | 0.52 | |
| 49.30 | 50.30 | 1.00 | 0.94 | 2.58 | ||
| 52.60 | 53.50 | 0.90 | 0.85 | 1.64 | ||
| 78.00 | 79.50 | 1.50 | 1.41 | 0.52 | ||
| 82.00 | 86.00 | 4.00 | 3.98 | 0.56 | ||
| including | 84.00 | 85.00 | 1.00 | 1.00 | 1.24 | |
| 86.80 | 87.65 | 0.85 | 0.85 | 0.35 | ||
| 91.50 | 92.50 | 1.00 | 1.00 | 0.36 | ||
| 108.40 | 109.40 | 1.00 | 1.00 | 0.61 | ||
| MA-D21-035 | NSA | |||||
| MA-D21-036 | NSA | |||||
| MA-D21-037 | 72.00 | 72.80 | 0.80 | 0.77 | 0.66 | |
| 96.15 | 98.80 | 2.65 | 2.40 | 1.21 | ||
| including | 96.15 | 97.15 | 1.00 | 0.98 | 1.85 | |
| MA-D21-038 | 45.50 | 45.95 | 0.45 | 0.45 | 1.28 | |
| 50.45 | 53.15 | 2.70 | 1.91 | 0.73 | ||
| Including | 52.10 | 53.15 | 1.05 | 0.74 | 1.35 | |
| MA-D21-039 | NSA | |||||
| MA-D21-040 | NSA | |||||
| MA-D21-041 | NSA | |||||
| MA-D21-042 | 73.50 | 73.90 | 0.40 | 0.40 | 0.57 | |
| MA-D21-043 | 46.45 | 48.00 | 1.55 | 1.53 | 0.51 | |
| 58.40 | 65.85 | 7.45 | 4.79 | 1.21 | ||
| Including | 63.60 | 65.00 | 1.40 | 0.90 | 2.93 | |
| Including | 63.60 | 64.20 | 0.60 | 0.39 | 4.36 | |
| MA-D21-044 | NSA | |||||
| MA-D21-045 | 20.00 | 20.70 | 0.70 | 0.66 | 0.82 | |
| 24.00 | 25.00 | 1.00 | 0.94 | 0.40 | ||
| 26.00 | 27.00 | 1.00 | 0.98 | 0.42 | ||
| MA-D21-046 | 49.00 | 50.00 | 1.00 | 0.87 | 1.62 | |
| 56.00 | 57.00 | 1.00 | 0.91 | 0.89 | ||
| 76.00 | 78.00 | 2.00 | 1.99 | 0.49 | ||
| MA-D21-047 | NSA | |||||
| MA-D21-048 | 1.50 | 3.50 | 2.00 | 1.93 | 0.37 | |
| 9.00 | 10.00 | 1.00 | 1.00 | 0.83 | ||
| MA-D21-049 | NSA | |||||
| MA-D21-050 | NSA | |||||
| MA-D21-051 | 27.55 | 28.60 | 1.05 | 1.01 | 0.31 | |
| 31.30 | 32.00 | 0.70 | 0.68 | 0.32 | ||
| 45.25 | 48.40 | 3.15 | 3.10 | 0.57 | ||
| 45.75 | 46.25 | 0.50 | 0.49 | 1.33 | ||
| 52.80 | 55.95 | 3.15 | 3.10 | 0.50 | ||
| 61.50 | 62.00 | 0.50 | 0.50 | 1.05 | ||
| 63.00 | 64.00 | 1.00 | 1.00 | 0.40 | ||
| 69.00 | 69.60 | 0.60 | 0.59 | 1.02 | ||
| MA-D21-052 | 140.00 | 142.00 | 2.00 | 1.81 | 0.35 | |
| 142.75 | 146.00 | 3.25 | 2.66 | 1.15 | ||
| including | 145.30 | 146.00 | 0.70 | 0.57 | 2.83 | |
| MA-D21-053 | 10.00 | 11.00 | 1.00 | 1.00 | 0.42 | |
| 12.60 | 14.00 | 1.40 | 1.39 | 0.35 | ||
| 19.20 | 19.70 | 0.50 | 0.50 | 0.42 | ||
| 20.30 | 21.40 | 1.10 | 1.06 | 0.35 | ||
| 22.40 | 22.90 | 0.50 | 0.43 | 0.44 | ||
| 23.65 | 24.20 | 0.55 | 0.54 | 0.49 | ||
| 24.90 | 25.40 | 0.50 | 0.49 | 0.47 | ||
| 29.00 | 31.00 | 2.00 | 1.73 | 0.31 | ||
| MA-D21-054 | 28.00 | 35.00 | 7.00 | 6.89 | 0.36 | |
| 42.00 | 43.70 | 1.70 | 1.54 | 1.08 | ||
| including | 42.95 | 43.70 | 0.75 | 0.68 | 1.94 | |
| 44.45 | 45.20 | 0.75 | 0.68 | 0.61 | ||
| AR-D21-012 | 18.85 | 21.75 | 2.90 | 2.80 | 0.96 | |
| including | 19.85 | 20.75 | 0.90 | 0.87 | 1.22 | |
| AR-D21-013 | NSA | |||||
| AR-D21-014 | NSA | |||||
Choique
| DDH | From | To | Length (m) | Vein dip | Hole dip | True Width (m) | Au (g/t) | |
| CH-D21-047 | 11.25 | 14.40 | 3.15 | 30 | 50 | 3.10 | 0.96 | |
| including | 12.40 | 14.40 | 2.00 | 30 | 50 | 1.97 | 1.23 | |
| 53.40 | 54.40 | 1.00 | 60 | 50 | 0.94 | 0.32 | ||
| 62.70 | 63.30 | 0.60 | 55 | 50 | 0.58 | 0.31 | ||
| CH-D21-048 | 12.05 | 12.55 | 0.50 | 40 | 50 | 0.50 | 0.54 | |
| 17.85 | 18.40 | 0.55 | 40 | 50 | 0.55 | 0.45 | ||
| 25.30 | 26.40 | 1.10 | 55 | 50 | 1.06 | 0.40 | ||
| 32.20 | 33.30 | 1.10 | 60 | 50 | 1.03 | 0.35 | ||
| 35.95 | 37.50 | 1.55 | 30 | 50 | 1.53 | 0.34 | ||
| 38.95 | 39.85 | 0.90 | ** | 50 | 0.90 | 0.80 | ||
| 40.70 | 41.50 | 0.80 | 50 | 50 | 0.79 | 0.50 | ||
| 47.10 | 47.75 | 0.65 | 55 | 50 | 0.63 | 0.33 | ||
| CH-D21-049 | 0.30 | 8.05 | 7.75 | ** | 50 | ** | 0.74 | |
| including | 0.30 | 2.30 | 2.00 | ** | 50 | ** | 1.51 | |
| and | 7.25 | 8.05 | 0.80 | ** | 50 | ** | 1.20 | |
| 29.00 | 30.90 | 1.90 | ** | 50 | ** | 7.05 | ||
| including | 29.90 | 30.90 | 1.00 | ** | 50 | ** | 13.29 | |
| 51.25 | 53.20 | 1.95 | ** | 50 | ** | 0.39 | ||
| CH-D21-050 | 19 | 19.7 | 0.7 | ** | 50 | ** | 0.40 | |
| 20.7 | 22.6 | 1.9 | ** | 50 | ** | 0.72 | ||
| 26.1 | 27.1 | 1 | ** | 50 | ** | 0.38 | ||
| 31.6 | 32.9 | 1.3 | ** | 50 | ** | 0.39 | ||
| 34.5 | 35.2 | 0.7 | ** | 50 | ** | 0.45 | ||
| 37.4 | 40.9 | 3.5 | ** | 50 | ** | 0.47 | ||
| 42.7 | 45.4 | 2.7 | ** | 50 | ** | 1.00 | ||
| including | 44.55 | 44.95 | 0.4 | ** | 50 | ** | 4.26 | |
| and | 44.55 | 45.4 | 0.85 | ** | 50 | ** | 2.60 | |
| CH-D21-051 | NSA | |||||||
| CH-D21-052 | 54 | 55.3 | 1.3 | ** | 50 | ** | 0.75 | |
| 54.75 | 55.3 | 0.55 | ** | 50 | ** | 1.5 | ||
| CH-D21-053 | 19.3 | 20 | 0.7 | ** | 50 | ** | 0.36 | |
| 44.15 | 44.5 | 0.35 | 83 | 50 | 0.26 | 0.31 | ||
| 50.45 | 53.6 | 3.15 | 86 | 50 | 2.19 | 0.39 | ||
| including | 52.4 | 53.6 | 1.2 | ** | 50 | ** | 0.62 | |
| 60 | 64.2 | 4.2 | ** | 50 | ** | 0.34 | ||
| 69.6 | 71.2 | 1.6 | 63 | 50 | 1.47 | 0.60 | ||
| CH-D21-054 | 1 | 2 | 1 | ** | 50 | ** | 0.33 | |
| 14.45 | 15.35 | 0.9 | 70 | 50 | 0.78 | 0.38 | ||
| 19.6 | 24.6 | 5 | 63 | 50 | 4.60 | 1.43 | ||
| including | 20.65 | 23.6 | 2.95 | 63 | 50 | 2.72 | 2.25 | |
| and | 22.7 | 23.6 | 0.9 | 63 | 50 | 0.83 | 6.01 | |
| 26.5 | 27.9 | 1.4 | 63 | 50 | 1.29 | 1.73 | ||
| including | 26.5 | 27.2 | 0.7 | 63 | 50 | 0.64 | 2.96 | |
| 30.45 | 31.1 | 0.65 | 63 | 50 | 0.60 | 3.53 | ||
| 46.4 | 46.9 | 0.5 | 80 | 50 | 0.38 | 1.11 | ||
| CH-D21-055 | 15 | 16 | 1 | ** | 50 | ** | 0.53 | |
| 19 | 19.75 | 0.75 | ** | 50 | ** | 0.33 | ||
| 23.6 | 24.4 | 0.8 | ** | 50 | ** | 0.32 | ||
| CH-D21-056 | 21.7 | 25 | 3.3 | 85 | 50 | 2.33 | 0.85 | |
| including | 21.7 | 23.5 | 1.8 | 85 | 50 | 1.27 | 1.45 | |
| and | 22.6 | 23.5 | 0.9 | 85 | 50 | 0.64 | 2.67 | |
| 29.5 | 31.9 | 2.4 | 65 | 50 | 2.18 | 0.48 | ||
| 30.9 | 31.4 | 0.5 | 65 | 50 | 0.45 | 1.28 | ||
| 36.5 | 39.1 | 2.6 | 89 | 50 | 1.71 | 0.34 | ||
| 41.8 | 42.65 | 0.85 | 75 | 50 | 0.70 | 0.33 | ||
| 44 | 44.6 | 0.6 | 89 | 50 | 0.39 | 0.34 | ||
| CH-D21-057 | NSA | |||||||
| CH-D21-058 | NSA | |||||||
| CH-D21-059 | 28.45 | 29.25 | 0.8 | 80 | 50 | 0.61 | 0.34 | |
| CH-D21-060 | NSA | |||||||
| CH-D21-061 | 3.5 | 5.3 | 1.8 | ** | 50 | ** | 0.33 | |
| CH-D21-062 | NSA | |||||||
| CH-D21-063 | NSA | |||||||
| CH-D21-064 | NSA | |||||||
Gecko
| DDH | From | To | Length (m) | Vein dip | Hole dip | True Width (m) | Au (g/t) | |
| GK-D21-001 | 15.65 | 18.25 | 2.60 | 65 | 50 | 2.36 | 0.60 | |
| 28.00 | 29.00 | 1.00 | 55 | 50 | 0.97 | 0.30 | ||
| GK-D21-002 | 12.00 | 14.00 | 2.00 | 60 | 50 | 1.88 | 0.82 | |
| 19.00 | 20.00 | 1.00 | 55 | 50 | 0.97 | 0.60 | ||
| 24.00 | 26.00 | 1.00 | * | 50 | 1.00 | 0.39 | ||
| 78.00 | 78.70 | 0.70 | 55 | 50 | 0.68 | 0.35 | ||
| GK-D21-003 | NSA | |||||||
| GK-D21-004 | NSA | |||||||
| GK-D21-005 | 85.00 | 86.00 | 1.00 | 25 | 50 | 0.97 | 0.35 | |
| GK-D21-006 | NSA | |||||||
| GK-D21-007 | NSA | |||||||
| GK-D21-008 | NSA | |||||||
| GK-D21-009 | NSA | |||||||
| GK-D21-010 | 10.00 | 11.00 | 1.00 | 75 | 50 | 0.82 | 1.38 | |
| GK-D21-011 | 52.50 | 53.95 | 1.45 | 30 | 50 | 1.43 | 2.85 | |
| including | 53.30 | 53.95 | 0.65 | 30 | 50 | 0.64 | 5.28 | |
| GK-D21-012 | NSA | |||||||
| GK-D21-013 | NSA | |||||||
Table 1a. Collars of Reported Drill Holes from Paloma Area
| Target | Hole ID | Easting | Northing | Elevation | Depth | Azimuth | Dip |
| Baritina | PA-D21-85 | 2594860 | 4713127 | 151.3 | 74 | 270 | 50 |
| Baritina | PA-D21-86 | 2594860 | 4713137 | 151.8 | 56 | 270 | 50 |
| Baritina | PA-D21-87 | 2594859 | 4713144 | 151.6 | 71 | 270 | 50 |
| Baritina | PA-D21-88 | 2594855 | 4713151 | 151.8 | 50 | 270 | 50 |
| Baritina | PA-D21-89 | 2594879 | 4713128 | 146.3 | 92 | 270 | 50 |
| Baritina | PA-D21-90 | 2594878 | 4713152 | 146.7 | 77 | 270 | 50 |
| Baritina | PA-D21-91 | 2594863 | 4713118 | 149.2 | 71 | 270 | 50 |
| Baritina | PA-D21-92 | 2594850 | 4713103 | 147.3 | 41 | 270 | 50 |
| Baritina | PA-D21-93 | 2594879 | 4713119 | 145.7 | 86 | 270 | 50 |
| Baritina | PA-D21-94 | 2594860 | 4713112 | 148.7 | 65 | 270 | 50 |
| Araña | PA-D21-95 | 2595623 | 4713615 | 161.7 | 74 | 310 | 50 |
| Araña | PA-D21-96 | 2595637 | 4713630 | 168.5 | 65 | 310 | 50 |
| Araña | PA-D21-97 | 2595650 | 4713647 | 175.9 | 59.2 | 310 | 50 |
| Araña | PA-D21-98 | 2595670 | 4713656 | 178.3 | 62 | 310 | 45 |
Coordinates Projection: Gauss‐Kruger, Faja Meridiana 2
Table 1b. Collars of Reported Drill Holes from Martinetas Area
| Target | Hole ID | Easting | Northing | Elevation | Depth | Az | Dip |
| Choique | CH-D21-057 | 2621155 | 4691453 | 150.339 | 71 | 20 | 50 |
| Choique | CH-D21-058 | 2621193 | 4691444 | 152.226 | 77 | 20 | 50 |
| Choique | CH-D21-059 | 2620488 | 4691497 | 155.91 | 62 | 0 | 50 |
| Choique | CH-D21-060 | 2620488 | 4691529 | 161.986 | 50 | 0 | 50 |
| Choique | CH-D21-061 | 2620806 | 4691460 | 154.563 | 80 | 180 | 50 |
| Choique | CH-D21-062 | 2620805 | 4691387 | 149.008 | 80 | 180 | 50 |
| Choique | CH-D21-063 | 2620805 | 4691375 | 148.198 | 80 | 360 | 50 |
| Choique | CH-D21-064 | 2620805 | 4691448 | 155.006 | 101 | 0 | 50 |
| Gecko | GK-D21-001 | 2621533 | 4692035 | 160.87 | 92 | 0 | 50 |
| Gecko | GK-D21-002 | 2621533 | 4692075 | 165.66 | 101 | 0 | 50 |
| Gecko | GK-D21-003 | 2622291 | 4692101 | 152.77 | 80 | 0 | 50 |
| Gecko | GK-D21-004 | 2622677 | 4692176 | 161.28 | 80 | 45 | 50 |
| Gecko | GK-D21-005 | 2622649 | 4692204 | 168.07 | 89 | 45 | 50 |
| Gecko | GK-D21-006 | 2622624 | 4692235 | 169.9 | 80 | 45 | 50 |
| Gecko | GK-D21-007 | 2622744 | 4692156 | 150.34 | 71 | 25 | 50 |
| Gecko | GK-D21-008 | 2622735 | 4692133 | 149.06 | 104 | 25 | 50 |
| Gecko | GK-D21-009 | 2621535 | 4692004 | 154.37 | 131 | 0 | 50 |
| Gecko | GK-D21-010 | 2621617 | 4692031 | 153.89 | 59 | 0 | 55 |
| Gecko | GK-D21-011 | 2621434 | 4692015 | 155.55 | 68 | 0 | 55 |
| Gecko | GK-D21-012 | 2622390 | 4692079 | 153.25 | 80 | 0 | 55 |
| Gecko | GK-D21-013 | 2622191 | 4692091 | 160.76 | 65 | 0 | 55 |
| M11 | M11-D21-003 | 2620758 | 4692539 | 161.967 | 122 | 345 | 55 |
| M11 | M11-D21-004 | 2620682 | 4692515 | 155.252 | 200 | 345 | 55 |
| M11 | M11-D21-005 | 2620741 | 4692598 | 166.925 | 146 | 0 | 50 |
| M11 | M11-D21-006 | 2620741 | 4692748 | 154.383 | 119 | 0 | 50 |
| M11 | M11-D21-007 | 2620792 | 4692847 | 157.47 | 50 | 325 | 50 |
| Mara | MA-D21-034 | 2619697 | 4691281 | 133.12 | 122 | 25 | 50 |
| Mara | MA-D21-035 | 2619699 | 4691106 | 138.897 | 119 | 25 | 50 |
| Mara | MA-D21-036 | 2619734 | 4691182 | 135.617 | 119 | 25 | 50 |
| Mara | MA-D21-037 | 2619763 | 4691245 | 130.967 | 125 | 25 | 50 |
| Mara | MA-D21-038 | 2619850 | 4691321 | 134.984 | 95 | 10 | 50 |
| Mara | MA-D21-039 | 2619792 | 4691068 | 134.568 | 119 | 25 | 50 |
| Mara | MA-D21-040 | 2619821 | 4691130 | 138.23 | 125 | 25 | 50 |
| Mara | MA-D21-041 | 2619848 | 4691191 | 137.92 | 119 | 25 | 50 |
| Mara | MA-D21-042 | 2619876 | 4691252 | 135.922 | 185 | 10 | 50 |
| Mara | MA-D21-043 | 2619889 | 4691314 | 137.545 | 119 | 10 | 50 |
| Mara | MA-D21-044 | 2619900 | 4691371 | 138.93 | 137 | 10 | 50 |
| Mara | MA-D21-045 | 2619910 | 4691431 | 142.79 | 122 | 10 | 50 |
| Mara | MA-D21-046 | 2619921 | 4691496 | 138.8 | 128 | 10 | 50 |
| Mara | MA-D21-047 | 2620082 | 4691202 | 145.59 | 71 | 10 | 50 |
| Mara | MA-D21-048 | 2620220 | 4691422 | 143.92 | 68 | 0 | 50 |
| Mara | MA-D21-049 | 2620267 | 4691464 | 150.47 | 62 | 0 | 50 |
| Mara | MA-D21-050 | 2620267 | 4691531 | 152.48 | 86 | 180 | 50 |
| Mara | MA-D21-051 | 2619899 | 4691370 | 139.06 | 83 | 180 | 50 |
| Mara | MA-D21-052 | 2619840 | 4691258 | 134.063 | 170 | 10 | 50 |
| Mara | MA-D21-054 | 2619798 | 4691310 | 132.59 | 110 | 10 | 50 |
| Mara | MAR-T21-037 | 2619750 | 4691398 | 134.333 | 87 | 10 | 50 |
Coordinates Projection: Gauss‐Kruger, Faja Meridiana 2
Quality Assurance and Quality Control
Analytical work was carried out Alex Stewart international, Argentina S.A. Labs (ASI). The facilities of the prep lab and assay lab are in San Julian, 184 Km from MDN mine operations. MDN sends out 10% of samples to check at ALS international labs (ALS) with the prep lab located in Mendoza and assay labs in Lima, Peru and Vancouver, Canada. In the main laboratory ASI (Mendoza), the samples are systematically analyzed for gold (ppm) and silver (ppm) by fire assay (Au4-50 + AgICP-AR-39) regarding the over limits with fire assay results greater than 10 ppm, a second assay is applied including gravimetric finishing (FA50GRAV), with respect to silver, analyzes greater than 200ppm are carried out by AgFA50GRAV.
ASI has routine quality control procedures which ensure that every batch of samples includes three sample repeats, two commercial standards and blanks. Cerrado used standard QA/QC procedures, when inserting reference standards and blanks, for the drilling program. The Reference material used are from CDN Resource Laboratories Ltd. Included in the batches following MDN internal protocols.
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 NI 43-101.
Minera Don Nicolás Overview
Minera Don Nicolás is located 1,625km southwest of Buenos Aires, Argentina in the Deseado Massif region in the mining-friendly province of Santa Cruz. The project is comprised of several exploration concessions totaling 333,400 ha. The largest regional centre is Comodoro Rivadavia, which provides logistical and other support for the operations.
MDN Project is situated within the world renowned Deseado Massif where the underlying geology of the region is dominated by rhyolitic and andesitic volcanic and tuffaceous volcaniclastic lithologies of Middle to Upper Jurassic age (130 to 170 ma). It is criss-crossed by numerous extensive fault and fracture zones, which served as conduits for hydrothermal activity during periods of Jurassic volcanism. The result of this activity is a widespread network of shallow level mineralized "epithermal" fissure veins, breccias, and stock-work systems, many of which carry potentially economic Au and Ag mineralization. The Deseado Massif region is host to several epithermal gold-silver deposits and several multi-million-ounce gold deposits, including Cerro Vanguardia (Anglo Gold), Cerro Negro (Newmont GoldCorp), Cerro Morro (Yamana).
In February 2012, Minera IRL published a Full Feasibility Technical Report in accordance with NI 43-101 (Filed on SEDAR, Minera IRL Ltd., Feb 16, 2012). Construction of the facilities was completed in 2017 and initial production began December 2017.
Current mining operations are conducted in two areas, the high grade La Paloma deposit and the Martinetas deposits, approximately 30km apart. Ore is processed through a 1,000 tpd CIL plant located near the Martinetas pit. The project currently supports 325 employees and contractors on a fly-in fly-out basis. Mineral Don Nicolás has strong regional and local community backing having signed agreements with the two neighboring communities.
Cerrado acquired the MDN Project property in March 2020 and undertook a fundamental review of the resource database and based upon a significant geological re-interpretation, engaged SRK to conduct an independent NI 43-101 updated resource technical report (August 2020) which is available on the Cerrado Gold website and SEDAR.
Mark Brennan
CEO and Co Chairman
Tel: +1-647-796-0023
mbrennan@cerradogold.com
Nicholas Campbell, CFA
Director, Corporate Development
Tel.: +1-905-630-0148
ncampbell@cerradogold.com
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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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 historical 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 events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "should", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained 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 such 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.
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