Cerrado Gold Releases Preliminary Economic Assessment and Mineral Resource Estimate for Minera Don Nicolas Mine

Cerrado Gold Inc. has announced its NI 43-101 Preliminary Economic Assessment (PEA) and updated Mineral Resource Estimate (MRE) for the Minera Don Nicolas mine in Santa Cruz, Argentina. The PEA, conducted by GeoEstima SpA, indicates an after-tax NPV at 5% discount rate of $111 million, with a potential upllift to $153 million at current spot prices. The mine is expected to produce approximately 56,000 gold equivalent ounces annually over a five-year life starting April 2024.

CEO Mark Brennan expressed optimism, noting strong projected cash flows of $49 million EBITDA and $25 million free cash flow per year. The PEA also highlighted no material upfront capital expenditures required, and average cash costs of $863/oz, with an average AISC of $1,144/oz.

The updated MRE contains 490,000 ounces of measured and indicated resources and 121,150 ounces of inferred resources. Cerrado will continue exploration to extend mine life and leverage existing operations, aiming to build a multi-deposit district.