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
    • 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

    • 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

    • Significant tonnage of lower grade material that was previously treated as waste identified to be heap leached (cut-off 0.3 g/t Au)

Toronto, Ontario--(Newsfile Corp. - 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.).

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Figure 1
. Plan View Reported Drill Results

To view an enhanced version of Figure 1, please visit:
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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.

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Figure 2
. Plan View Paloma Area Reported Drill Results

To view an enhanced version of Figure 2, please visit:
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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.

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Figure 3
. Plan View Martinetas Area Reported Drill Results

To view an enhanced version of Figure 3, please visit:
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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

DDHFrom ToLength (m)True Width (m)Au (g/t)
 PA-D21-850.004.654.652.991.35
Including1.002.001.000.642.26
22.8028.806.003.860.54
36.8042.505.703.661.10
46.3058.7512.458.001.67
Including48.0053.605.603.602.16
and56.8058.301.500.962.70
 PA-D21-864.207.203.001.930.66
17.4030.5013.108.420.48
33.2556.0022.7514.621.45
Including54.6056.001.400.903.48
 PA-D21-875.207.502.301.480.65
9.2519.6010.356.650.82
Including11.2512.251.000.641.49
and17.8019.601.801.161.40
22.6024.902.301.480.66
38.8553.3014.459.291.25
Including41.0044.003.001.931.42
and46.4050.003.602.312.12
and51.5053.301.801.162.32
 PA-D21-883.005.002.001.291.60
15.1018.853.752.410.54
21.4528.156.704.310.30
29.2530.100.850.551.39
 PA-D21-8923.7028.404.703.020.65
Including27.7028.400.700.451.17
30.5043.8013.308.551.03
Including41.0041.500.500.322.75
44.9046.201.300.841.91
Including44.9045.400.500.323.66
46.9552.055.103.282.69
Including46.9548.401.450.934.07
and50.0052.052.051.323.59
53.5068.0014.509.321.10
Including56.7057.400.700.452.50
 PA-D21-9013.4015.702.301.481.86
Including13.4514.451.000.643.47
19.8020.801.000.642.37
25.3532.006.654.270.70
35.0051.7516.7510.771.35
Including39.4040.501.100.712.38
and42.9045.002.101.352.31
and50.1051.751.651.062.79
52.6053.200.600.390.90
 PA-D21-9129.5054.6025.1016.130.86
Including41.5045.804.302.761.19
and46.9050.003.101.992.47
and49.0050.001.000.643.51
 PA-D21-9232.1033.801.701.090.39
 PA-D21-9322.8523.851.000.641.18
31.5035.403.902.510.83
Including33.7034.400.700.452.23
38.9542.503.552.280.61
44.6045.150.550.351.87
45.7057.7512.057.752.24
and45.7046.701.000.642.15
and48.6051.002.401.544.37
and55.7057.151.450.932.82
 PA-D21-9424.3025.150.850.550.92
32.0035.003.001.930.72

 

Araña Target

DDHFrom ToLength (m)True Width (m)Au (g/t)
 PA-D21-9528.0028.500.500.3221.20
66.0067.001.000.770.66
11.4812.380.900.582.62
including11.9012.380.480.314.55
21.0522.000.950.612.91
24.0030.006.003.860.76
including24.0025.001.000.641.40
and28.0029.001.000.641.28
41.0042.001.000.982.87
58.0059.201.20**2.35
35.8046.0010.207.210.99
including35.8036.650.850.852.30
and40.0040.550.550.452.33
and41.2041.900.700.682.17
and44.0045.001.000.911.06
*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

DDHFrom To Length (m) True Width (m) Au (g/t)
M11-D15-001NSA
M11-D21-003NSA
M11-D15-00412.0013.001.000.820.53
26.4027.100.700.702.02
39.2540.150.900.870.40
48.1548.800.650.630.34
71.0072.001.000.910.42
85.8087.701.901.560.32
M11-D21-00515.8516.450.600.560.31
M11-D21-007NSA

 

Mara/Armadillo

DDHFrom ToLength (m) True Width (m) Au (g/t)
MA-D21-03442.0043.201.201.130.52
49.3050.301.000.942.58
52.6053.500.900.851.64
78.0079.501.501.410.52
82.0086.004.003.980.56
including84.0085.001.001.001.24
86.8087.650.850.850.35
91.5092.501.001.000.36
108.40109.401.001.000.61
MA-D21-035NSA
MA-D21-036NSA
MA-D21-03772.0072.800.800.770.66
96.1598.802.652.401.21
including96.1597.151.000.981.85
MA-D21-03845.5045.950.450.451.28
50.4553.152.701.910.73
Including52.1053.151.050.741.35
MA-D21-039NSA
MA-D21-040NSA
MA-D21-041NSA
MA-D21-04273.5073.900.400.400.57
MA-D21-04346.4548.001.551.530.51
58.4065.857.454.791.21
Including63.6065.001.400.902.93
Including63.6064.200.600.394.36
MA-D21-044NSA
MA-D21-04520.0020.700.700.660.82
24.0025.001.000.940.40
26.0027.001.000.980.42
MA-D21-04649.0050.001.000.871.62
56.0057.001.000.910.89
76.0078.002.001.990.49
MA-D21-047NSA
MA-D21-0481.503.502.001.930.37
9.0010.001.001.000.83
MA-D21-049NSA
MA-D21-050NSA
MA-D21-05127.5528.601.051.010.31
31.3032.000.700.680.32
45.2548.403.153.100.57
45.7546.250.500.491.33
52.8055.953.153.100.50
61.5062.000.500.501.05
63.0064.001.001.000.40
69.0069.600.600.591.02
MA-D21-052140.00142.002.001.810.35
142.75146.003.252.661.15
including145.30146.000.700.572.83
MA-D21-05310.0011.001.001.000.42
12.6014.001.401.390.35
19.2019.700.500.500.42
20.3021.401.101.060.35
22.4022.900.500.430.44
23.6524.200.550.540.49
24.9025.400.500.490.47
29.0031.002.001.730.31
MA-D21-05428.0035.007.006.890.36
42.0043.701.701.541.08
including42.9543.700.750.681.94
44.4545.200.750.680.61
AR-D21-01218.8521.752.902.800.96
including19.8520.750.900.871.22
AR-D21-013NSA
AR-D21-014NSA

 

Choique

DDHFrom ToLength (m)Vein dipHole dip True Width (m) Au (g/t)
CH-D21-04711.2514.403.1530503.100.96
including12.4014.402.0030501.971.23
53.4054.401.0060500.940.32
62.7063.300.6055500.580.31
CH-D21-04812.0512.550.5040500.500.54
17.8518.400.5540500.550.45
25.3026.401.1055501.060.40
32.2033.301.1060501.030.35
35.9537.501.5530501.530.34
38.9539.850.90**500.900.80
40.7041.500.8050500.790.50
47.1047.750.6555500.630.33
CH-D21-0490.308.057.75**50**0.74
including0.302.302.00**50**1.51
and7.258.050.80**50**1.20
29.0030.901.90**50**7.05
including29.9030.901.00**50**13.29
51.2553.201.95**50**0.39
CH-D21-0501919.70.7**50**0.40
20.722.61.9**50**0.72
26.127.11**50**0.38
31.632.91.3**50**0.39
34.535.20.7**50**0.45
37.440.93.5**50**0.47
42.745.42.7**50**1.00
including44.5544.950.4**50**4.26
and44.5545.40.85**50**2.60
CH-D21-051NSA
CH-D21-0525455.31.3**50**0.75
54.7555.30.55**50**1.5
CH-D21-05319.3200.7**50**0.36
44.1544.50.3583500.260.31
50.4553.63.1586502.190.39
including52.453.61.2**50**0.62
6064.24.2**50**0.34
69.671.21.663501.470.60
CH-D21-054121**50**0.33
14.4515.350.970500.780.38
19.624.6563504.601.43
including20.6523.62.9563502.722.25
and22.723.60.963500.836.01
26.527.91.463501.291.73
including26.527.20.763500.642.96
30.4531.10.6563500.603.53
46.446.90.580500.381.11
CH-D21-05515161**50**0.53
1919.750.75**50**0.33
23.624.40.8**50**0.32
CH-D21-05621.7253.385502.330.85
including21.723.51.885501.271.45
and22.623.50.985500.642.67
29.531.92.465502.180.48
30.931.40.565500.451.28
36.539.12.689501.710.34
41.842.650.8575500.700.33
4444.60.689500.390.34
CH-D21-057NSA
CH-D21-058NSA
CH-D21-05928.4529.250.880500.610.34
CH-D21-060NSA
CH-D21-0613.55.31.8**50**0.33
CH-D21-062NSA
CH-D21-063NSA
CH-D21-064NSA

 

Gecko

DDHFrom ToLength (m)Vein dipHole dip True Width (m) Au (g/t)
GK-D21-00115.6518.252.6065502.360.60
28.0029.001.0055500.970.30
GK-D21-00212.0014.002.0060501.880.82
19.0020.001.0055500.970.60
24.0026.001.00*501.000.39
78.0078.700.7055500.680.35
GK-D21-003NSA
GK-D21-004NSA
GK-D21-00585.0086.001.0025500.970.35
GK-D21-006NSA
GK-D21-007NSA
GK-D21-008NSA
GK-D21-009NSA
GK-D21-01010.0011.001.0075500.821.38
GK-D21-01152.5053.951.4530501.432.85
including53.3053.950.6530500.645.28
GK-D21-012NSA
GK-D21-013NSA

 

 

Table 1a. Collars of Reported Drill Holes from Paloma Area

TargetHole IDEasting NorthingElevationDepth Azimuth Dip
BaritinaPA-D21-8525948604713127151.37427050
BaritinaPA-D21-8625948604713137151.85627050
BaritinaPA-D21-8725948594713144151.67127050
BaritinaPA-D21-8825948554713151151.85027050
BaritinaPA-D21-8925948794713128146.39227050
BaritinaPA-D21-9025948784713152146.77727050
BaritinaPA-D21-9125948634713118149.27127050
BaritinaPA-D21-9225948504713103147.34127050
BaritinaPA-D21-9325948794713119145.78627050
BaritinaPA-D21-9425948604713112148.76527050
ArañaPA-D21-9525956234713615161.77431050
ArañaPA-D21-9625956374713630168.56531050
ArañaPA-D21-9725956504713647175.959.231050
ArañaPA-D21-9825956704713656178.36231045

 

Coordinates Projection: Gauss‐Kruger, Faja Meridiana 2

Table 1b. Collars of Reported Drill Holes from Martinetas Area

TargetHole IDEastingNorthingElevationDepthAzDip
ChoiqueCH-D21-05726211554691453150.339712050
ChoiqueCH-D21-05826211934691444152.226772050
ChoiqueCH-D21-05926204884691497155.9162050
ChoiqueCH-D21-06026204884691529161.98650050
ChoiqueCH-D21-06126208064691460154.5638018050
ChoiqueCH-D21-06226208054691387149.0088018050
ChoiqueCH-D21-06326208054691375148.1988036050
ChoiqueCH-D21-06426208054691448155.006101050
GeckoGK-D21-00126215334692035160.8792050
GeckoGK-D21-00226215334692075165.66101050
GeckoGK-D21-00326222914692101152.7780050
GeckoGK-D21-00426226774692176161.28804550
GeckoGK-D21-00526226494692204168.07894550
GeckoGK-D21-00626226244692235169.9804550
GeckoGK-D21-00726227444692156150.34712550
GeckoGK-D21-00826227354692133149.061042550
GeckoGK-D21-00926215354692004154.37131050
GeckoGK-D21-01026216174692031153.8959055
GeckoGK-D21-01126214344692015155.5568055
GeckoGK-D21-01226223904692079153.2580055
GeckoGK-D21-01326221914692091160.7665055
M11 M11-D21-00326207584692539161.96712234555
M11 M11-D21-00426206824692515155.25220034555
M11 M11-D21-00526207414692598166.925146050
M11 M11-D21-00626207414692748154.383119050
M11 M11-D21-00726207924692847157.475032550
MaraMA-D21-03426196974691281133.121222550
MaraMA-D21-03526196994691106138.8971192550
MaraMA-D21-03626197344691182135.6171192550
MaraMA-D21-03726197634691245130.9671252550
MaraMA-D21-03826198504691321134.984951050
MaraMA-D21-03926197924691068134.5681192550
MaraMA-D21-04026198214691130138.231252550
MaraMA-D21-04126198484691191137.921192550
MaraMA-D21-04226198764691252135.9221851050
MaraMA-D21-04326198894691314137.5451191050
MaraMA-D21-04426199004691371138.931371050
MaraMA-D21-04526199104691431142.791221050
MaraMA-D21-04626199214691496138.81281050
MaraMA-D21-04726200824691202145.59711050
MaraMA-D21-04826202204691422143.9268050
MaraMA-D21-04926202674691464150.4762050
MaraMA-D21-05026202674691531152.488618050
MaraMA-D21-05126198994691370139.068318050
MaraMA-D21-05226198404691258134.0631701050
MaraMA-D21-05426197984691310132.591101050
MaraMAR-T21-03726197504691398134.333871050

 

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

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/113205

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