• Gold Equivalent Ounce ("GEO") Production of 11,163 GEO for the 1st Quarter (Q1) 2025
• Record Production of 7,228, GEO from Heap Leach operations during the quarter
• 2025 Production Guidance Increased to 55,000 – 60,000 GEO
• Underground Production commencing in H2/2025
By Panorama Minero
Cerrado Gold Inc. announced production results for the first quarter ended March 2025 from the Minera Don Nicolas Mine in Santa Cruz Province.
Q1 Operating Highlights
• >Q1 Production of 11,163 GEO vs. 10,431 in Q4
• Heap leach production ramping up to expanded capacity with over 2,800 GEO produced in March and 7,228 GEO for the quarter
• CIL plant to continue to process low-grade stockpiles in anticipation of blending with high-grade ore from underground in H2/2025
• Underground development at Paloma to commence in Q2 with initial production expected in Q3/2025
• Expanded crushing capacity installation at Calandrias Sur to be completed in Q2 2025
Operational results for Q1 2025 showed a modest improvement in production over the previous quarter, driven by the ongoing ramp-up and transition to a focus on heap leach production as the high-grade ore feed for the CIL plant has been depleting as we await ongoing exploration activities. The CIL plant will continue to process lower-grade stockpiles until underground operations at Paloma are initiated in Q3 2025 with development commencing in Q2 2025. The heap leach operational performance continued to improve over the quarter, reaching record production levels as more ore was added to the pad. The performance of the heap leach continues to improve, exiting the quarter at near full capacity.
The second phase of the expansion of the crushing circuit is set to be concluded in May, supporting a doubling of capacity which will increase feed stability in order to deliver steady ore to the pad. While supporting higher production, additional crushing facilities are also expected to reduce the feed size to the pad and result in increased recoveries. Despite the introduction of material from the primary zone, recoveries have increased from 33% to 38% in this first quarter. The 2nd phase of the crusher project will decrease the particle size (p80) from 15mm to 7.8mm and include the installation of a 500tph agglomerator. Test work has shown that an increase of up to 15% in recoveries can be expected by reducing the particle size. Metallurgical test work will continue during the 2nd quarter, aiming at reducing the p80 even further to improve the expected recovery for the primary zone. Having an agglomerator installed, will ensure better leaching conditions and allow for smaller particle sizes after crushing. The new configuration is also expected to lower unit operating costs by removing the current complement of costly rented crushing capacity.
In addition, the company is currently well advanced with detailed analysis and preparations for equipment sourcing to commence underground development during Q2 2025 beneath the Paloma pit. While initial production expectations are relatively modest given the current known underground resource, underground access is expected to provide a platform for major exploration activities at lower costs than drilling from surface. Underground exploration aims to materially expand resources at MDN, leveraging the underground development for a potential expansion in production and/or mine life.
The Company is raising its 2025 annual production guidance to 55,000 to 60,000 GEO, up from 50,000 – 55,000 GEO, to include the addition of modest underground production. AISC costs are expected to be modestly higher than previously anticipated with an ASIC of between $1,500 – $1,700 per GEO as compared to prior expectations of $1,300 – $1,500 per GEO.
Mark Brennan, CEO and Chairman commented, "Q1 results are generally in line with expectations based upon the current mine plan and the ramp-up profile of the expanded heap leach operations. The addition of underground mining in the second half of 2025 should see overall production levels increase as the year progresses, delivering strong cash flows to support extensive exploration activities which are expected to expand resou
