- Q2 2022 gold production of 11,640 gold equivalent ounces
- Gold grades expected to improve going forward
- In line with targeted 45,000 to 55,000 ounces of production for 2022
- Third consecutive quarter of “normalized” operations
- Issues with explosives and spare parts resolved
- Calandrias heap leach on track to commence construction in Q3 2022
- Cerrado Gold is a public gold producer and exploration company with projects in Brazil and Argentina
- Cerrado Gold Inc. (CERT) is down 6.15 per cent on the day, trading at C$1.22 per share as of 10:20 am ET.
Cerrado Gold (CERT) has released Q2 production results from the Minera Don Nicolás Mine in Santa Cruz Province in Argentina.
Full financial results will be released by the end of August.
The continued strong operational performance seen in Q2 2022 follows MDN’s record quarterly production in Q4 2021 and strong production performance in Q1 2022.
The mining team experienced some setbacks due to a drop in head grade during the quarter as operations transitioned to three new mining areas, namely Chulengo, Baritina, and Esperanza which impacted the near-term grade profile as these pits are in the initial stages of development.
The company says it is expected that gold grades will increase with depth and that production levels will normalize in Q4, returning to previous production levels achieved in Q1.
Supply chain issues from the first quarter were resolved early in the quarter. Despite these issues the operation continued to meet its production targets in terms of tonnes moved and recovery rates.
The numerous operational improvements implemented at the processing plant ensured consistent mill throughput rates above 1,100tpd during Q2 2022.
The development of new mining areas is expected to result in a slight drop in head grade, resulting in an estimated gold grade between 3.0 to 3.5g/t for Q3 2022. That said, mine development and planning activities indicate that head grades should return to targeted levels in Q4 2022, exceeding 4g/t.
Construction activities for the new heap leach processing facility at Calandrias will commence during Q3 2022. Detailed design of the process plant and heap leach pad are now complete.
Mark Brennan, CEO and Co-Chairman of Cerrado Gold, commented on the results.
“Despite some challenges seen in the quarter, we are pleased that the numerous operational improvements implemented by the team continue to demonstrate a more sustainable and predictable production profile for MDN. The core focus at MDN for 2022 remains the development of the heap leach operations at Calandria and ongoing exploration programs to increase our resource base. Stable and growing production at MDN and progress with the Feasibility Study at MDC in Brazil puts us on track for rapid production growth in the coming years”.
Cerrado Gold is a gold producer and exploration company with projects in Brazil and Argentina.
Cerrado Gold Inc. (CERT) is down 6.15 per cent on the day, trading at C$1.22 per share as of 10:20 am ET.