Cerrado Gold Inc. announced its operational results for the second quarter (Q2/25) at its gold mine located in Santa Cruz Province.
By Panorama Minero
During Q2/25, Minera Don Nicolás (MDN) produced 11,437 GEO and AISC of US$1,779/oz. Operational results for the second quarter saw gold production increase compared to first half of 2025 (Q1/25), but were lower than Q2/24 during which period the high grade Calandrias Norte pit was being mined. This was anticipated given the depletion of high-grade material from Calandrias Norte, following which, MDN became primarily a heap leach only operation pending the ramp up of new high-grade material from underground.
The heap leach operation reached another production record of 7,864 GEO for the quarter. The recently expanded crushing circuit is enabling higher volumes of ore to be placed on the pad, with further increases expected following the planned addition of an agglomerator and additional conveyors in Q3 2025. With higher gold prices, the CIL plant continued to process lower-grade stockpiles through Q2/25. Going forward, lower grade material will be blended with new high-grade material from underground mining feed beginning in Q3/25 which will increase mill grades, boost production and lower unit operating costs further.
MDN commenced underground mining in June, opening up three portals for underground mining beneath the Paloma pit. Ore production is expected to ramp up over H2 and is set to make a material contribution to production rates as the year progresses. While initial production expectations are relatively modest given the current known underground resource, underground access is expected to provide a platform for major exploration activities at a lower cost than drilling from surface. Underground exploration aims to materially expand resources at MDN, leveraging the underground development for a potential expansion in production and/or mine life.
The 20,000-meter drill exploration program has begun and is focused on growing the known resources at MDN beyond those outlined in the most recent Mineral Resource Estimate. The focus remains on defining high grade-near surface targets that can readily be brought into the mine plan. The Company has developed an underground and a regional program to better understand the potential of known anomalies on the significant land package Cerrado holds at MDN. Drilling is now underway.
The Company has maintained its 2025 annual production guidance to 55,000 - 60,000 GEO. AISC costs are expected decline in the second half of 2025 as production ramps up to deliver AISC of between $1,500 - $1,700 per GEO.
