Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has announced production results for the first quarter of 2023 from its Minera Don Nicolas Mine in Santa Cruz Province, Argentina. Full financial results are expected to be released on 8 June 2023.
Q1 operating highlights include 2023 gold production of 13,794oz and gold equivalent ounce production of 13,951oz as compared to 13,499 in Q1 2022. GEO sales in Q1 of 16,255oz compared to 15,044oz in Q1 2022. Results demonstrate ongoing stability in mill throughput combined with improving head grades and recoveries. Gold head grades 4.59g/t and gold recoveries of 91.9% for the quarter.
Mark Brennan, CEO and Chairman commented, “We are very pleased with the results from Minera Don Nicolas in Q1/2023, confirming the sustainability of the improvements that have been implemented over the past several quarters, which continues to highlight the skill and dedication of the operational team.” He added, “Work continues to focus on unlocking the significant resource growth potential at MDN. Management’s continued objective is to build MDN’s life of mine and develop a strategic plan that will encompass the same strategies employed at other nearby mines, namely open pit, underground, and heap leach mining operations. We are making significant progress, and during 2023 we will continue to execute on these production and exploration-based growth initiatives.”
Operational results presented for the first quarter 2023 highlight the stability of the company’s continued operations. Since Cerrado acquired the Minera Don Nicolas mine, operations, and production rates have continuously improved despite difficult Covid conditions during the first two years. Over the next few quarters, Cerrado expects some variability to continue, given the seasonal challenges in the winter months and given the company is still developing and implementing its life of mine strategy.
Ore milled remained stable throughout the quarter, above 1,000tpd each quarter, demonstrating the success of the teams’ efforts to normalize operations. Production increases were driven primarily by ongoing efforts to reduce dilution and thus increase head grades.
The consolidation of mine sequencing and exploration work to upgrade and define new sources of resources remains the key focus given the early stage of development at MDN. The operations team is focused on numerous new growth projects aside from expanding current open pit resources, including the construction of the company’s Las Calandrias Heap Leach operation (first gold pour Q2 2023), underground development and production at Paloma, and a new Heap Leach operation at Martinetas. The company expects these development initiatives to be operational later in 2023 and should support a production capacity delivering between 75,000 and 90,000ozpa.
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