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  • Results from fourteen drill holes from Cerrado Gold’s ongoing 12,000-metre exploration drill program at its Minera Don Nicolás Project in Argentina
  • The focus for the current 12,000-metre exploration program is to delineate new, high-grade, near surface mineralization
  • The current exploration drill program at the Minera Don Nicolás Project began on February 5th at the Baritina target
  • The drill results reported in this release were received May 1st, 2021 and represent complete results for holes PA-D21-51 thru 63 and 65
  • Cerrado Gold is a gold production and exploration company with projects in Brazil and Argentina
  • Cerrado Gold (CERT) is up 9.59 per cent, trading at C$1.60 per share at 10:15 am ET

Cerrado Gold (CERT) announces results from fourteen drill holes from its exploration drill program at its Minera Don Nicolás Project in Argentina.

The focus for the current 12,000-metre exploration program is to delineate new, high-grade, near-surface mineralization that can be brought into the production schedule in the near term. Results highlighted in this release are from fourteen drill holes, PA-D21-51 thru 63 and 65. Cerrado has completed 1,172 metres at Chulengo as of May 5, 2021. High-grade gold results from trenching at Chulengo are also reported.

Drill Hole Highlights (All composites are reported as true thickness):


  • 6.00m grading 5.5g/t Au, starting from 48.80m
    • including 3.35m grading 8.98g/t Au, from 48.80m


  • 2.65m grading 118.04g/t Au, starting from 15.65m
    • including 0.55m grading 565.98g/t Au, from 16.45m


  • 7.10m grading 22.58g/t Au, starting from 33.05m
    • including 4.25m grading 37.08g/t Au, from 33.85m


  • 14.63m grading 5.05g/t Au, starting from 1.10m
    • including 1.62m grading 31.60g/t Au, from 13.80m

Trench Highlights (All composites are reported as true thickness):


  • 4.25m grading 10.08g/t Au, starting from 27.95m
    • including 2.34m grading 19.83g/t Au, from 30.00m


  • 12.00m grading 6.48g/t Au, starting from 1.00m
    • including 6.00m grading 12.24g/t Au, from 4.00m


  • 5.61m grading 11.75g/t Au, starting from 16.00m
    • including 3.27m grading 18.49g/t Au, from 17.00m

Mark Brennan, CEO & Co-Chairman commented,

“We are very pleased the ongoing drill program continues to define the Chulengo target as a potential source of additional near surface, high grade material and fully expect the ongoing program to highlight the significant near surface potential that remains at Minera Don Nicolas to enhance the current open pit mine operations. Following the evaluation of these first-round assays, we will follow up with additional drill holes at Chulengo imminently.”

The current exploration drill program at the Minera Don Nicolás Project began on February 5th at the Baritina target, within the Paula-Andrea Prospect and moved onto the Chulengo target (Figure 1).

The drill results reported in this press release were received May 1st, 2021 and represent complete results for holes PA-D21-51 thru 63 and 65, which are the fourteen of seventeen holes (PA-D21-51 thru 67) totalling 1,172 metres completed at Chulengo (Figure 2).

Results from the remaining three drill holes at chulengo and from other high-priority targets will be made available as assays come in over the next few months.

Approximately half of the new drill holes, along with nearby trenches, intersected high-grade mineralization.

All of the data from the trenches and drill holes are being evaluated to determine where additional drilling might be required.

The breccia zone is related to the mineralized structures but not all the breccias are mineralized. The high-grade mineralization is restricted to some sectors i.e., faults and/or feeder vents. Also, the mineralization cut across lithologies. Further structural analysis and modelling are being conducted to optimize understanding of which structures are mineralized and their orientation in order to further drill test this target.

Also, attached is a cross-section of the mineralization (Figure 3). The assay results for the remaining holes and trenches are pending. The Chulengo area is 300 metres south and east of Baritina, also a part of the Paula Andrea prospect. The current exploration drill program is expected to test numerous near mine and brownfield targets over the course of the next few months and is on track for completion by the end of June 2021.

Figure 1: location of drill target areas in the La Paloma Mining Group
Figure 2: Current Chulengo Exploration Program Drill Hole Location Map
Figure 3: Typical Cross-sections of PA-D21-62 & 63 with the geology and current interpreted extent of the mineralisation

Figure 4: Current Chulengo Trench Location Map

All drill holes intersected near or at surface typical alteration zones associated with high-level epithermal mineralization, including abundant silicification, clay alteration, hematite, jarosite and sulphides (Figure 5). Chulengo presents a lithological sequence that begins at surface with a non-welded pumice ignimbrite, then stratified volcaniclastic sediments that begin with a sandstone level.

The morphology of the mineralization is characterized by isolated sub-vertical few meters thick (1-5m) silica-sulphide cemented hydrothermal breccias and faults, or intensely leached silicic altered rocks representing ledges with vuggy silica textures infilled with sulphides (structural control). At surface, the outcrop of these breccias was prone to very high Au values.

The breccias and ledges represent the conduits of the mineralized fluids that were extended and migrated into the non welded pumice ignimbrite precipitated as dissemination, fine veinlets and stockworks (lithological control), defining up to 20 m thick sub-horizontal mineralized levels in the lithology. At depth (30-40m), intercepts with high values were also recognized at the intersection of the subvertical breccias and the sandstone levels.

Figure 5: Geological Model for Chulengo

Table 1. Drill hole information

Hole_IdEastingNorthingElevationDepth (meters)DipAzimuth

Table 2. Drill Hole Composites

Table 3. Trench information


Table 4. Trench Composites

Trench SampleFromToLENGTH (m)True Width (m)Au (g/t)

Current Near Mine Drill Program at MDN

The near-mine exploration program at Minera Don Nicolas is comprised of 12,000 metres of diamond drilling. The program will consist mainly of step-out and downdip drilling to target extensions of gold mineralization and a modest amount of infill drilling to upgrade resources. The primary areas of focus for the program will be to build on the numerous exploration targets that have been defined by limited historical drillings, such as the Esperanza and Paula Andrea (Baritina, Chulengo, Ariana, Carcol targets) Prospect (Figure 1), and upgrade these in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Given that these targets are close to the current, high-grade, La Paloma mining area they are ranked as a high priority in order to potentially add new resources.. The current program is in addition to RC drilling undertaken by the mine for infill and grade control to extend the current mining areas of La Paloma and Martinetas both along strike and at depth.

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 totalling 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 crisscrossed 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 neighbouring 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.

Cerrado has not based its ongoing production decisions at the MDN Project based on its own NI 43-101 minerals resource or reserve estimates, preliminary economic assessments, feasibility studies, or historical projects although without such reports Cerrado has increased uncertainty and risk of economic viability.

Cerrado’s decision to continue the operations at levels determined by management as with other production-related decisions is largely based upon Cerrado’s own internal non-public company data, as well from technical reports by previous owners and operators and based on continuing exploration and mining work conducted by Cerrado and by geologists and engineers engaged by Cerrado.

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.

Cerrado Gold (CERT) is up 9.59 per cent, trading at C$1.60 per share at 10:15 am ET.

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