Cerrado Gold Reports Additional Results from Its Infill Drill Program at the Serra Alta Deposit at Its Monte Do Carmo Project in Brazil

• Notable results in all three zones of the deposit (East Zone, Pit Norte, and Pit Sul) Including:

  • FSA-241: 71m at 2.50 g/t Au from 113m;

  • FSA-249: 25m at 3.23 g/t Au from 55m;

  • FSA-223: 29m at 2.36 g/t Au from 186m;

  • FSA-243: 32m at 2.60 g/t Au from 85m; and

  • FSA-251: 6m at 4.52 g/t Au from 29m.

• Drill Program on track to deliver an updated Mineral Resource Estimate (MRE) in support of the ongoing Feasibility Study.

Toronto, Ontario--(Newsfile Corp. - August 8, 2022) - Cerrado Gold Inc. (TSXV: CERT) (OTCQX: CRDOF) ("Cerrado" or the "Company") is pleased to announce further assay results from its ongoing infill drill program at the Serra Alta deposit at its Monte do Carmo Project located in Tocantins State, Brazil ("MDC"). The infill drill program commenced in Q4 2021 with the aim to upgrade the resources into Measured and Indicated categories to support the ongoing Feasibility Study. The 2022 development program is on track to deliver the Feasibility Study during Q1 2023.

The Company is currently reporting assay results from 18 drill holes, totaling 3,809m (see Tables 1 & 2) completed from April to June 2022. As of August 2, 2022, a total of 117 drill holes, totaling 28,864 m, have been completed as part of the 2022 program. Total completed holes include 102 holes at Serra Alta (infill, condemnation, and partial extensions); and 15 holes in the satellite exploration areas namely, Gogó de Onça and Capitão.

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

Serra Alta (Infill)

FSA-241

• 71m at 2.50 g/t Au from 113m

  • Including 6.5m at 17.28 g/t Au from 119m

FSA-249

• 25m at 3.23 g/t Au from 55m

  • Including 2m at 19.76 g/t Au from 78m

FSA-243

• 32m at 2.60 g/t Au from 85m

  • Including 4m at 11.27 g/t Au from 85m

  • Including 5m at 6.75 g/t Au from 104m

FSA-242

• 48m at 1.35 g/t Au from 163

  • Including 2m at 4.92 g/t Au from 186m

FSA-223

• 29m at 2.36 g/t Au from 186m,

  • Including 4m at 15.30 g/t Au from 202m

FSA-248

• 2m at 25.96 g/t Au from 333m

FSA-226

• 41m at 2.25 g/t Au from 140m

  • Including 2m at 17.25 g/t Au from 170m

FSA-251

• 6m at 4.52 g/t Au from 29m

The Company currently has 5 drill rigs on site actively drilling, with 4 rigs focused on infill and one actively drilling at Gogó de Onça.

Mark Brennan, CEO and Co-Chairman commented "As we near completion of our infill drilling campaign we are now confident that we will deliver a solid upgraded resource at Serra Alta, which will provide a base for the ongoing Feasibility due to be completed during Q1 2023. In addition, the ongoing regional drilling and other exploration activities continues to highlight the strong potential to grow the total resources on the Monte do Carmo property."

Serra Alta Infill

The main objective of the 18 infill drill holes reported today is to convert inferred blocks within the current open pit constrained resource estimate (Micon, 2021) into the Indicated category, closing the distance between holes informing blocks in the model. Holes reported today include, 8 collared in the East Zone, 6 in Pit Norte and 4 in Pit Sul (see Figure 1 for drill hole locations, and Figure 2 for cross sections of highlighted holes).

Drill holes FSA-223, FSA-225, FSA-236, FSA-241, FSA-242, FSA-245, FSA-248, FSA-256 were collared in the East Zone. Main high-grade domains were intercepted with varying grade reconciliation with respect to the existing model. The best reported intercept in the east zone corresponds to holes FSA-223 and FSA-241 collared in the northern and central segments of East Zone respectively. Hole FSA-223 is located close to the current northern edge of the resource. Hole FSA-241 is exceptional as it includes a relevant thick and continuous interval in a relatively deeper zone where the original model only considered dismembered narrower discrete zones. The main intercept is defined by 71m at 2.50 g/t Au from 113m, including 6.5m at 17.28 g/t Au from 119m.

Drill holes FSA-226, FSA-229, FSA-230, FSA-243, FSA-247 and FSA-249 were collared in Pit Norte. The highlights in this zone are holes FSA-243 and FSA-249. The former intercepted a well-endowed area in the immediate footwall of the granite volcanic contact. Assays in hole FSA-243 returned 32m at 2.60 g/t Au from 85m, including 4m at 11.27 g/t Au from 85m and 5m at 6.75 g/t Au from 104m. Hole FSA-249 was drilled in section with FSA-241 intercepted 25m at 3.23 g/t Au from 55m confirming downdip continuity.

Drill holes FSA-251 and FSA-253 were collared in Pit Sul. Most relevant results are included in hole FSA-251 which crossed 6m at 4.52 g/t Au from 29m confirming the previous outline of the shallow high-grade mineralization that will conceptually be part of the early phases of mining.

Figure 1. Reported and Ongoing Drill Hole Locations

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_002full.jpg

Figure 2. Select Highlighted Cross Sections of Reported Holes* (East Zone)

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_004full.jpg

Figure 2.1 Select Highlighted Cross Sections of Reported Holes* (East Zone)

To view an enhanced version of Figure 2.1, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_005full.jpg

 

Figure 2.2 Select Highlighted Cross Sections of Reported Holes* (East Zone)

To view an enhanced version of Figure 2.2, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_007full.jpg

Figure 2.3 Select Highlighted Cross Sections of Reported Holes* (East Zone)

To view an enhanced version of Figure 2.3, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_010full.jpg

Figure 2.4 Select Highlighted Cross Sections of Reported Holes* (Pit Norte)

To view an enhanced version of Figure 2.4, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_008full.jpg

Figure 2.5 Select Highlighted Cross Sections of Reported Holes* (Pit Norte)

To view an enhanced version of Figure 2.5, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_009full.jpg

Figure 2.6 Select Highlighted Cross Sections of Reported Holes* (Pit Norte)

To view an enhanced version of Figure 2.6, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_012full.jpg

 

Figure 2.7 Select Highlighted Cross Sections of Reported Holes* (Pit Sul)

To view an enhanced version of Figure 2.7, please visit:
https://images.newsfilecorp.com/files/7487/133086_f955cbba744f0963_014full.jpg

Note: Scale vary by section

Table 1. Drill Hole Composites

Sector	DDH		From	To	LENGTH (m)	True Width (m)	Au (g/t)
East Zone	FSA-223	and	162.60	165.79	3.19	3.19	0.73
	FSA-223	and	185.65	214.46	28.81	28.81	2.36
	FSA-223	includes	201.47	205.26	3.79	3.79	15.30
	FSA-223	and	236.40	239.56	3.16	3.16	0.67
	FSA-223	and	246.72	247.65	0.93	0.93	0.99
	FSA-223	and	254.05	255.20	1.15	1.15	0.55
	FSA-223	and	288.75	291.18	2.43	2.43	0.75
	FSA-223	and	295.30	297.30	2.00	2.00	1.23
	FSA-223	and	303.00	304.08	1.08	1.08	0.36
	FSA-223	and	311.30	318.49	7.19	7.19	1.03
	FSA-223	includes	316.37	317.44	1.07	1.07	2.40
	FSA-223	and	333.05	345.00	11.95	11.95	0.54
	FSA-223	includes	337.35	338.44	1.09	1.09	2.35
	FSA-223	and	348.27	349.37	1.10	1.10	0.70
	FSA-223	and	358.55	359.55	1.00	1.00	0.70
	FSA-223	and	367.26	368.19	0.93	0.93	0.78
	FSA-223	and	377.50	378.58	1.08	1.08	0.80
	FSA-223	and	382.95	424.48	41.53	41.53	1.11
	FSA-223	includes	389.45	390.27	0.82	0.82	6.80
	FSA-223	includes	410.24	411.35	1.11	1.11	11.10
	FSA-223	and	427.83	428.90	1.07	1.07	0.83
	FSA-225	and	81.07	82.10	1.03	1.03	0.45
	FSA-225	and	106.57	115.09	8.52	8.52	0.51
	FSA-225	includes	109.69	110.83	1.14	1.14	2.51
	FSA-225	and	120.39	122.59	2.20	2.20	0.59
	FSA-225	and	160.53	161.54	1.01	1.01	0.82
	FSA-225	and	175.50	195.62	20.12	20.12	0.80
	FSA-225	includes	190.31	192.37	2.06	2.06	3.99
	FSA-225	and	198.71	199.88	1.17	1.17	0.78
	FSA-236	and	82.34	83.37	1.03	1.03	0.36
	FSA-236	and	86.69	87.70	1.01	1.01	0.50
	FSA-236	and	105.65	107.43	1.78	1.78	2.56
	FSA-236	and	128.20	129.20	1.00	1.00	0.32
	FSA-236	and	132.58	133.54	0.96	0.96	0.68
	FSA-236	and	137.70	138.84	1.14	1.14	0.33
	FSA-236	and	146.33	150.75	4.42	4.42	0.38
	FSA-236	and	153.93	154.96	1.03	1.03	0.43
	FSA-236	and	191.95	193.04	1.09	1.09	5.15
	FSA-236	and	198.40	199.45	1.05	1.05	0.61
	FSA-236	and	207.80	211.00	3.20	3.20	0.33
	FSA-236	and	219.40	228.20	8.80	8.80	2.28
	FSA-236	includes	221.30	222.30	1.00	1.00	16.45
	FSA-236	and	233.25	234.25	1.00	1.00	1.01
	FSA-236	and	245.50	246.74	1.24	1.24	0.69
	FSA-236	and	254.35	255.41	1.06	1.06	0.31
	FSA-236	and	308.20	310.16	1.96	1.96	0.59
	FSA-242	and	132.73	134.86	2.13	1.79	1.40
	FSA-242	and	149.97	151.98	2.01	1.69	0.72
	FSA-242	and	157.38	159.59	2.21	1.85	0.93
	FSA-242	and	162.80	219.44	56.64	47.51	1.35
	FSA-242	includes	185.83	187.91	2.08	1.74	4.92
	FSA-242	includes	215.23	217.28	2.05	1.72	4.64
	FSA-248	and	289.10	291.16	2.06	1.87	0.74
	FSA-248	and	307.23	313.60	6.37	5.79	1.58
	FSA-248	includes	312.50	313.60	1.10	1.00	5.21
	FSA-248	and	323.97	326.07	2.10	1.91	1.93
	FSA-248	and	333.25	335.35	2.10	1.91	25.96
	FSA-248	and	343.92	356.85	12.93	11.75	0.91
	FSA-248	and	361.60	379.30	17.70	16.09	0.78
	FSA-248	and	385.63	387.72	2.09	1.90	0.49
	FSA-248	and	415.71	422.48	6.77	6.15	1.68
	FSA-241	and	4.82	29.10	24.28	22.47	1.11
	FSA-241	includes	19.38	25.76	6.38	5.91	2.34
	FSA-241	and	36.04	37.19	1.15	1.06	0.44
FSA-241	and	49.69	50.74	1.05	0.97	2.21
FSA-241	and	58.27	63.66	5.39	4.99	1.48
FSA-241	and	79.77	88.58	8.81	8.15	0.22
FSA-241	and	94.75	96.78	2.03	1.88	0.45
FSA-241	and	112.53	189.43	76.90	71.18	2.50
FSA-241	includes	118.80	125.85	7.05	6.53	17.28
FSA-241	includes	137.72	138.77	1.05	0.97	11.95
FSA-241	includes	187.19	189.43	2.24	2.07	11.28
FSA-241	and	196.56	197.58	1.02	0.94	1.08
FSA-241	and	217.95	221.09	3.14	2.91	0.51
FSA-241	and	240.23	244.38	4.15	3.84	0.82
FSA-241	and	250.91	252.01	1.10	1.02	0.36
FSA-245	and	2.65	13.22	10.57	10.57	0.70
FSA-245	and	50.07	51.20	1.13	1.13	0.44
FSA-245	and	65.32	71.70	6.38	6.38	0.48
FSA-245	and	78.17	81.44	3.27	3.27	0.81
FSA-245	includes	80.32	81.44	1.12	1.12	1.59
FSA-245	and	86.80	90.02	3.22	3.22	0.32
FSA-245	and	121.33	130.78	9.45	9.45	0.75
FSA-245	includes	122.40	124.17	1.77	1.77	2.42
FSA-256	and	5.21	6.44	1.23	1.23	0.36
FSA-256	and	58.17	60.32	2.15	2.15	0.62
FSA-256	and	126.40	127.54	1.14	1.14	0.47
FSA-256	and	137.22	138.22	1.00	1.00	0.47
FSA-256	and	155.34	156.24	0.90	0.90	1.19
FSA-256	and	181.77	182.84	1.07	1.07	0.31
Pit Norte	FSA-226	and	8.35	12.35	4.00	3.81	0.34
	FSA-226	and	22.03	23.06	1.03	0.98	0.60
	FSA-226	and	26.97	69.65	42.68	40.61	1.43
	FSA-226	includes	28.03	29.11	1.08	1.03	7.08
	FSA-226	includes	31.23	36.86	5.63	5.36	2.17
	FSA-226	includes	59.00	62.85	3.85	3.66	2.80
	FSA-226	and	103.26	104.36	1.10	1.05	1.81
	FSA-229	and	70.50	71.60	1.10	1.10	0.98
	FSA-230	and	10.29	17.84	7.55	7.05	1.06
	FSA-230	and	42.04	55.15	13.11	12.24	2.19
	FSA-230	includes	42.04	43.18	1.14	1.06	12.65
	FSA-230	and	61.55	81.12	19.57	18.26	0.50
	FSA-243	and	67.46	68.46	1.00	0.93	0.30
	FSA-243	and	69.52	70.70	1.18	1.09	0.38
	FSA-243	and	73.75	74.89	1.14	1.06	0.67
	FSA-243	and	85.44	120.05	34.61	32.06	2.60
	FSA-243	includes	85.44	89.50	4.06	3.76	11.27
	FSA-243	includes	103.74	108.88	5.14	4.76	6.75
	FSA-247	and	0.00	16.41	16.41	15.13	0.88
	FSA-247	includes	5.88	8.88	3.00	2.77	1.93
	FSA-247	and	24.50	28.59	4.09	3.77	1.62
	FSA-247	and	31.63	32.73	1.10	1.01	1.47
	FSA-247	and	36.21	44.25	8.04	7.41	0.38
	FSA-247	and	52.21	62.19	9.98	9.20	1.65
	FSA-247	includes	52.21	53.22	1.01	0.93	5.72
	FSA-247	includes	59.83	60.97	1.14	1.05	8.61
	FSA-247	and	69.34	70.46	1.12	1.03	5.64
	FSA-249	and	0.22	1.85	1.63	1.57	0.37
	FSA-249	and	8.35	15.73	7.38	7.12	1.78
	FSA-249	includes	12.85	13.78	0.93	0.90	5.26
	FSA-249	and	19.97	21.11	1.14	1.10	0.71
	FSA-249	and	36.35	42.02	5.67	5.47	0.91
	FSA-249	includes	39.70	40.95	1.25	1.21	3.65
	FSA-249	and	43.20	44.32	1.12	1.08	0.43
	FSA-249	and	55.27	81.35	26.08	25.15	3.23
	FSA-249	includes	65.73	67.90	2.17	2.09	4.13
	FSA-249	includes	70.08	71.08	1.00	0.96	13.50
	FSA-249	includes	77.87	80.09	2.22	2.14	19.76
	FSA-249	and	89.69	90.72	1.03	0.99	1.48
	FSA-249	and	107.66	117.63	9.97	9.62	3.73
	FSA-249	includes	115.57	117.63	2.06	1.99	14.33
Pit Sul	FSA-251	and	8.37	10.52	2.15	1.43	0.52
	FSA-251	and	14.86	15.86	1.00	0.67	1.60
	FSA-251	and	28.52	37.80	9.28	6.18	4.52
	FSA-251	includes	33.72	35.75	2.03	1.35	17.32
	FSA-251	and	45.22	46.25	1.03	0.69	0.41
	FSA-251	and	50.41	74.45	24.04	16.02	1.52
	FSA-251	includes	50.41	51.45	1.04	0.69	6.41
	FSA-251	includes	59.23	60.23	1.00	0.67	5.79
	FSA-251	includes	71.24	73.40	2.16	1.44	8.18
	FSA-251	and	86.23	93.55	7.32	4.88	2.56
	FSA-251	includes	86.23	87.30	1.07	0.71	10.90
	FSA-251	and	99.00	100.00	1.00	0.67	0.30
	FSA-251	and	104.00	109.15	5.15	3.43	0.83
	FSA-253	and	81.25	83.30	2.05	1.40	1.69
	FSA-253	and	87.55	88.60	1.05	0.72	0.34
	FSA-244	and	7.92	9.15	1.23	1.23	0.38
	FSA-244	and	14.23	16.27	2.04	2.04	1.08
	FSA-244	and	27.73	54.82	27.09	27.09	1.33
	FSA-244	includes	30.98	33.14	2.16	2.16	10.63
	FSA-244	and	62.45	63.56	1.11	1.11	0.94
	FSA-244	and	67.95	82.00	14.05	14.05	1.41
	FSA-244	includes	77.95	82.00	4.05	4.05	4.58
	FSA-244	and	123.02	124.02	1.00	1.00	0.39
	FSA-244	and	130.00	133.15	3.15	3.15	0.51
	FSA-255	and	95.65	99.70	4.05	2.06	0.51

 

Table 2. Drill Hole locations

Sector	Hole number	UTM N m	UTM E m	Elevation m	Depth m	Azimuth	Dip
East Zone	FSA-223	8810544	820676	661	444.1	106	-44
East Zone	FSA-225	8810504	820501	570	250.8	98	-21
East Zone	FSA-236	8810479	820471	567	331.3	98	-19
East Zone	FSA-241	8810372	820568	552	289.1	121	-47
East Zone	FSA-242	8810498	820618	668	268.4	127	-56
East Zone	FSA-245	8810415	820581	555	255.4	112	-33
East Zone	FSA-248	8810437	820778	663	480.8	98	-55
East Zone	FSA-256	8810416	820580	555	202.3	100	-46
Pit Norte	FSA-226	8810101	820381	449	136.3	112	-47
Pit Norte	FSA-229	8809950	820304	446	110.2	111	-49
Pit Norte	FSA-230	8810094	820354	446	134.8	104	-56
Pit Norte	FSA-243	8809986	820477	477	147.7	121	-38
Pit Norte	FSA-247	8809983	820454	467	76.0	121	-44
Pit Norte	FSA-249	8810016	820431	464	141.3	116	-33
Pit Sul	FSA-244	8809654	820375	495	206.9	104	-18
Pit Sul	FSA-251	8809652	820374	494	110.2	130	-20
Pit Sul	FSA-253	8809679	820444	561	112.7	142	-71
Pit Sul	FSA-255	8809678	820444	561	110.8	158	-60

 

*Collar coordinates by GNSS TP-20 UTM Coordinates, Datum: SAD69 / zone 22S.
*Azimuth Set by compass
*Dip and drill hole trajectory by DEVIFLEX Devico

Quality Assurance and Quality Control

Analytical work was carried out by ALS international lab (ALS). MDC send half core samples for sample preparation to the lab. The facilities of the prep lab are located in Goiânia, Brazil 835 km from the MDC project and alternatively in Belo Horizonte, Brazil 1,110 Km from the MDC project. MDC sends out samples to ALS international labs (ALS) with the prep lab located in Goiânia or alternatively in Belo Horizonte. ALS lab sends the prepared aliquots for analytical assay to their lab in Lima, Peru where the prepared samples are systematically analyzed for gold (ppm) by fire assay (Au-AA24) or gold (ppm) by metallic screen (Au-SCR24). Randomly the ICP (Inductively coupled plasma mass spectrometry) is done for trace elements in 4 acids (hydrofluoric, perchloric, nitric and hydrochloric) digestion (ME-MS-61). ALS has routine quality control procedures which ensure that every batch of samples includes three sample repeats and at least two commercial standards and one blank. Cerrado uses standard QA/QC procedures, inserting reference standards and blanks for the drilling program. The Reference material used are from CDN Resource Laboratories Ltd., ITAK (Instituto de Tecnologia August Kekulé Ltda. and OREAS).

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Sergio Gelcich, P.Geo., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person as defined in National Instrument 43-101.

Mark Brennan 
CEO and Co Chairman 
Tel: +1-647-796-0023 
mbrennan@cerradogold.com

David Ball
Vice President, Corporate Development
Tel.: +1-647-796-0068
dball@cerradogold.com

About Cerrado
Cerrado is a Toronto based gold production, development and exploration company focused on gold projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás mine in Santa Cruz province, Argentina and the highly prospective development project, Monte Do Carmo located in Tocantins State, Brazil.

At Minera Don Nicolas, Cerrado is maximising asset value through further operation optimization and continued production growth. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package.

At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and production. The Serra Alta deposit Indicated Resources of 541 kozs of contained gold and Inferred Resources of 780 kozs of contained gold. The Preliminary Economic Assessment demonstrates robust economics as well as the potential to be one of the industry's lowest cost producers. Cerrado also holds an extensive and highly prospective 82,542 ha land package at Monte Do Carmo.

For more information about Cerrado please visit our website at: www.cerradogold.com.

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation, all statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado. In making the forward-looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to continuing progress of the Feasibility Study and infill drilling at MDC. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/133086