Production reached 11,163 Gold Equivalent Ounces ("GEO")
By Panorama Minero
Cerrado Gold Inc. announced its operational and financial results for the first quarter ("Q1/25") including its Minera Don Nicolas ("MDN") gold mine in Santa Cruz Province, and its Mont Sorcier High Purity DRI Iron Project in Quebec.
Q1/25 MDN Operating Highlights includes
• Q1/25 production of 11,163 GEO and AISC of $1,932/oz
• Unit costs set to decline as production increases (target US$1,500-1,700)
• Q1/25 Adjusted EBITDA of $4.8 million
• Record heap leach production of 6,897 GEO During the Quarter
• Secondary crusher operational and underground development started
Operational results for the first quarter saw gold production in line with Q1/24, with the heap leach operation reaching a new production record of 6,897 GEO for the quarter. The expanded crusher is now fully operational and the quantity of ore being placed on the pad has increased. With higher gold prices, the CIL plant continues to process lower-grade stockpiles and is planned to continue processing low grade stockpiles through Q2/25, after which it will be blended with new high-grade material from the underground mining operations which will increase the average grade throughput at the mill.
Mark Brennan, CEO and Chairman commented, "The results from the first quarter demonstrate robust and improving production from our Heap leach operations; delivering strong cashflow to support our growth initiatives. We have successfully expanded and improved our crushing capacity at MDN, which will yield greater production and cashflows moving forward. Likewise, the preparation for underground development and production have added costs but will add to our production and cash flows starting in July. The strong cash flow combined with our cash balance has enabled us to continue to pay down debt at MDN, and will allow us to continue to deploy capital at our high-grade Mont Sorcier DRI iron project and our well advanced and highly prospective Lagoa Salgada Project."
Outlook
Entering the second quarter of 2025 and beyond, Cerrado's MDN Heap Leach operations are set to benefit from the completion of its crushing infrastructure to grow and improve production. Higher gold prices have enabled the plant to remain operational by processing lower grade stockpiles through March and April. The underground operations have begun and production is expected to begin in Q3.
The Company raised its 2025 annual production guidance to 55,000 - 60,000 GEO. AISC costs are expected to be modestly higher than previously anticipated with an AISC of between $1,500 - $1,700 per GEO. The increased costs are the result of the inclusion of underground mining, ongoing processing of low-grade ores and continued inflationary pressure in Argentina.
A new Exploration initiative began in Q1 with the focus on growing the known resources at MDN beyond those outlined in the recent Mineral Resource Estimate ("MRE"). The focus remains on defining high grade-near surface targets that can readily be brought into the mine plan, underground exploration and a regional program to better understand the potential of known anomalies on the significant land package Cerrado holds at MDN. Drilling is expected to commence in early June.
