Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has provided an update on the development of its gold heap leach project at the Las Calandrias deposit at its Minera Don Nicolas Mine (MDN) located in Santa Cruz, Argentina.
Cerrado’s heap leach production strategy follows extensive review of the potential to utilize alternative production technologies at MDN with the aim of mining lower grade material not being delivered to the CIL plant. As initially outlined in a press release dated February 9 2022, the addition of heap leach operations at the company’s MDN mine is targeted to increase production rates to 90,000oz per annum from the 2022 rate of approximately 50,000oz with a reduction in AISC to below $1,000oz by 2024.
Production growth and cost reduction is planned from the development of two heap leach operations, firstly at Las Calandrias and secondly at the Martinetas area. The initial heap leach operation located at Las Calandrias is expected to commence production in Q2 2023. The company has budgeted approximately US$25M in development capital in 2022 and 2023 to construct the project. The company expects financing of development to be predominately from sources internal to Argentina. Cerrado has also completed all metallurgical works, geotechnical testing of the site, and a detailed design of the crushing circuit and heap leach pad.
License and permit submissions have been completed and main orders for crushing and construction of the pad have been placed or are in final negotiations. First -2- material is expected to be loaded on the pad towards the end of Q1 2023, and the first gold production is expected in Q2 2023.
Mark Brennan, CEO and Co-Chairman commented “As we prepare to enter the construction phase at the Las Calandrias project, work to date has confirmed our expectations of the viability of using heap leach methodologies to exploit the known resources more fully at MDN as seen at neighbouring operations. As a result, we are now one step closer to delivering on the first stage of our production growth strategy at MDN by utilizing lower grade material that would otherwise not be processed. The Calandrias project is the first step in our goal to reach production rates of 90,000oz per annum with reduced AISC’s at MDN by the end of 2023.”
To find out more, please visit www.cerradogold.com
