Cerrado Gold PEA estimates Monte Do Carmo at 131,000 oz/year

Cerrado Gold Inc. [CERT-TSXV; CRDOF-OTCQX] has filed on SEDAR a new NI 43-101 preliminary economic assessment (PEA) for the Serra Alt deposit at the 100%-owned Monte Do Carmo project located in Tocantins State, Brazil.  . The report was completed by GE21 Consultoria Mineral Ltda. As announced on Aug. 23, 2021, the new PEA incorporated results from the NI 43-101 mineral resource estimate produced by Micon International dated July 21, 2021.

Average annual gold production is estimated at 149,000 ounces over the first five years and 131,000 ounces over life-of-mine eight years. Annual average free cash flow is US$150-million over the first five years at US$1,600/oz gold. Total cumulative, after tax, free cash flow estimated US$901-million over eight years. After Tax NPV (5%) is US$617million with an IRR of 94.8%.

Average AISC is US$431/oz over the first five years with low initial capital expenditure of US$126-million (including US$25-million contingency). Payback is 1.3 years. There is further upside potential from continued exploration drilling and resource expansion. Development program including feasibility study will begin immediately; EIS under way.

Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100%-owned Minera Don Nicolas mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana, also in Santa Cruz province.