Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has released production results for Q3 2022 from its Minera Don Nicolás (MDN) mine in Santa Cruz Province, Argentina.
During Q3 2022, operations at MDN continued under normalized operations for the fourth consecutive quarter demonstrating the significant improvements that have been achieved at site, the company said.
Quarterly production waned slightly, from 11,640oz AuEq in Q2 2022 to 11,284oz AuEq in Q3 2022. The company attributes this to lower throughput caused by wet feed due to poor winter season conditions.
The average gold grade mined improved from 3.44 g/t in Q2 2022 to 4.40 g/t in Q3 2022, an improvement of 28%. Additionally, September production exceeded 4,000oz, with an average head grade of 5.15 g/t.
Although gold production was slightly lower in the quarter, the higher grades resulted in an increase of gold inventory of 1,300oz. The Company expects gold production to exceed 13,000oz for Q4 2022.
The company’s management reiterated its gold-equivalent production guidance of 45,000 to 55,000oz AuEq for 2022. For the nine-month period ending in September, production was 36,423oz AuEq.
Furthermore, Cerrado continues to progress development of the Calandrias heap leach project, with construction set to get underway in Q4 2022. The company says heap leach operations will look to utilize lower grade material and increase annual production at MDN by approximately 20,000 to 25,000oz per year.
“The past year has been a building year for MDN,” said Mark Brennan, Cerrado’s CEO and co-chairman.
“While we are pleased with the consistency in the operation to achieve our 2022 production guidance of between 45,000 to 55,000oz AuEq – and we continue to expect an increase in grades and expect further improvement as we bring the new pits into the mine plan – the real focus of operations has been to develop a long term strategy for MDN.
“Work on expansion plans via the heap leach projects is now underway which should only improve the long-term future and results at MDN.
“Concurrently, we continue to make rapid progress on completing the Feasibility Study at the Monte do Carmo project in Brazil. Once onstream, the combined production from both these projects puts Cerrado on track to be a mid-tier producer.”
The company says it will release its full financial results on 22 November.
To find out more, visit: https://www.cerradogold.com/
