Cerrado Gold Announces Q1 Gold Production Results for Its Minera Don Nicolas Mine in Argentina - Seite 2

Production is set to ramp-up over the second quarter of 2024, and the Calandrias Heap Leach is expected to achieve nameplate production rates in June. At Calandrias Norte, stripping activities have been completed, and the pit is now beginning to deliver higher grade ore to the CIL plant at Martinetas. Head grades from Calandrias Norte are reconciling well with the model, and grades have increased as the early benches have been mined out and deeper, higher grade levels are accessed.

Mark Brennan, CEO and Chairman commented, "Production in the first quarter was impacted due to lingering issues with the new heap leach facility, resulting in a slower ramp up than initially planned. Further, ore grades were lower than expected in the initial benches at Calandrias Norte. That said, the performance at MDN has begun to show significant improvement in March and April as we accessed higher grade ore from Calandrias Norte, and the leach cycle at Las Calandrias shows a consistent increase in production although at lower than expected rates."

He continued, "It has been a very difficult period for Cerrado and MDN over the past six months, waiting for production at Calandrias Norte and the Heap Leach to ramp up, and we now feel that we have turned the corner. In the near term, the focus at MDN continues to be on generating strong cash flow from our now completed capital investments, which are expected to allow us to rebuild the balance sheet and refocus our efforts on exploration and increasing the overall life of mine at MDN. There remains a terrific opportunity to scale up MDN and develop it into a significant operation much like our neighboring peers."

Ore milled and production rates decreased during the first quarter as operations, while normalized, experienced lower grades from the initial benches mined at Las Calandrias Norte and some issues with the commissioning of the crusher at the heap leach operation. Improved production is expected into the second quarter as the crushing circuit continues to operate at or near full capacity, and higher grades from the lower benches at Las Calandrias Norte are now being mined. Total production for the first quarter from the heap leach operation was 1,103 gold ounces and 2,543 silver ounces, with 43% of the gold production from the heap leach coming in March. Please see Table 1. for a summary of key highlights for the first quarter. Sales for the quarter were lower than production due to delays in shipping due to in-country holidays for Easter at the end of March.