Positive Feasibility Study Results For Monte Do Carmo Gold Project

TORONTO - Cerrado Gold Inc. reported positive results of an independent Feasibility Study (FS) prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) on its Monte do Carmo gold project located in Tocantins State, Brazil.

The FS outlines a robust project, with low capital costs and low operating costs generating significant Free Cash Flow over a 9 year mine life. The FS is focused on the principal Serra Alta deposit and the smaller satellite deposit of Gogo Do Onca and provides a scalable base of production for future potential exploration success.

Monte do Carmo is expected to commence production at a rate of 1.92Mtpa from the open pit for total production of 709,920 ounces. In Year 4, simultaneous underground development will be initiated contributing an additional 143,252 ounces over five years of operation.

Two open pit operating scenarios were analyzed for cost estimation purposes. The first scenario involved a traditional owner-operated model, while the second scenario explored a contractor-operated model. Over the 9-year life of the mine, it was found that the owner-operated option produced a higher NPV although with some reduction in IRR. Consequently, this study adopted the owner-operated option for both the Open Pit and Underground Operations.

Ore is processed at the plant using conventional concentration and cyanide leaching of gold concentrates. Tailings will be disposed of using a combination of best in practice dry stack, co-stacking and in-pit filling techniques.

The Company remains on track to receive the construction permit by the end of this year and is progressing Project Financing with an aim to make a fully financed construction decision in Q2 2024.

Mark Brennan, CEO and Chairman, said, "We are extremely pleased that the results of this Feasibility Study demonstrate that Monte do Carmo is an extremely robust project that will generate significant returns on capital for a good period of time. Based on these results, we are confident that the project is positioned to be a high quality, low cost and low capital-intensive gold producer in the near term. We see the Serra Alta deposit as the cashflow engine to unlock future exploration and expansion potential of the greater Monte do Carmo Project."