Cerrado Gold Announces Q3 Gold Production Results for its Minera Don Nicolas Mine In Argentina

TORONTO, ON / ACCESSWIRE / October 24, 2023 / Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") announces production results for the third quarter of 2023 ("Q3 2023") from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina ("MDN"). Full financial results are expected to be released in late November 2023.

Q3 Operating Highlights

• Q3 2023 GEO production of 9,544 ounces compared to 12,453 ounces in Q2 2023 and 11,284 ounces Q3 2022.
• Gold Equivalent Ounces ("GEO") sold increased to 11,386 ozs compared to 10,789 ozs in Q3 2022.
• Results impacted by unusually severe winter operating conditions, reducing throughput during the quarter, and lower planned ore grades which were offset by strong recoveries:
  • Gold head grades of 3.19g/t Au compared to 4.84 g/t Au in Q2 2023 and Gold Recoveries of 93.1% vs 91.0%.
• Las Calandrias heap leach project produced 650 ozs during ongoing commissioning.
• LOM strategic plan continues to make good progress.

Operational results presented for Q3 2023 were impacted by poor operating conditions during the quarter, most notedly extremely poor wet winter weather conditions followed by freezing temperatures, resulting in lower than planned mined ore production rates and lower than planned ore grades processed through the mill. Wet ore also reduced plant throughput.

At the new Calandrias heap leach project, work continued as the operation remained in the commissioning phase during the quarter. Initial ramp up was impacted by freezing conditions reducing initial irrigation rates which has now been addressed. Finalization of the crushing plant has now been completed, which should also see more consistent feed to the pad and improve overall performance going forward. Approximately 650 ozs were produced in the quarter, which are excluded from the current production results. Production is set to achieve nameplate production rates from January thereafter.

Mark Brennan, CEO and Chairman commented, "While unusually harsh winter conditions - flooding followed by freezing temperatures - impacted quarterly production rates, we are encouraged by the efforts of the operational team to sustain operations and continue to push expansion projects forward. We look forward to a ramp up of production rates in the fourth quarter and beyond." He added, "Work on the heap leach project is coming to an end and production is now positioned to ramp up steadily and demonstrate our focus of unlocking the significant growth potential at MDN. Management's focus remains on developing the overall life of mine at MDN and developing a strategic plan that will encompass the same strategies employed at other nearby mines, namely open pit, underground, and heap leach mining operations..."