Welcome to our dedicated page for Cerrado Gold news (Ticker: CRDOF), a resource for investors and traders seeking the latest updates and insights on Cerrado Gold stock.
Overview of Cerrado Gold Inc.
Cerrado Gold Inc. (symbol: CRDOF) is a Toronto-based mining company focused on gold production, development, and exploration. With a diversified portfolio combining operational gold assets in South America and promising development projects in Canada, the company embodies a strategic blend of established production and innovative exploration. Key industry terms such as gold production, mining exploration, and heap leach operations underscore its commitment to operational optimization and asset value maximization.
Core Business and Operations
Cerrado Gold is dedicated to the extraction and production of gold through its high-performing assets in Argentina. The company manages producing assets such as the Minera Don Nicolás and Las Calandrias mines, where continuous operational optimization has allowed it to enhance throughput, improve efficiencies, and steadily increase production while applying modern heap leach techniques. Its comprehensive operational model highlights a rigorous commitment to geological exploration and resource expansion, supporting its gold mining operations with advanced drilling programs and detailed mineral resource evaluations.
Exploration and Development Initiatives
Beyond current production, Cerrado Gold invests in significant exploration campaigns aimed at extending the life of its mines and unlocking additional high-grade resources. Its drilling programs target key zones to provide quality high-grade feed for processing facilities, while ongoing NI 43-101 compliant studies and metallurgical test work ensure that the company maintains a robust approach to technical evaluation and resource estimation. This balanced focus on both immediate operational performance and long-term asset growth demonstrates the company’s expertise in integrating scientific principles into mining operations.
Development of Mont Sorcier Iron Ore and Vanadium Project
In addition to its gold operations in South America, Cerrado Gold is developing the Mont Sorcier project in Quebec. This project is aimed at producing a premium iron ore concentrate and vanadium product designed for applications in low-carbon steel production. With innovative metallurgical processes and extensive test work that confirm the feasibility of producing high-purity, DRI grade concentrates, the project is positioned to contribute to a transition in the steel manufacturing industry. The focus on producing high-grade materials suitable for direct reduction iron processes highlights the company’s commitment to sustainable and efficient resource development.
Strategic Financial and Operational Position
The company employs a strategy that integrates operational excellence with strategic asset transactions, shared services agreements, and collaborative financing initiatives. Through prudent management of cash flows, structured asset sales, and a focus on strengthening its balance sheet, Cerrado Gold ensures its financial robustness while investing in growth opportunities. This operational and financial discipline enables the company to pursue both exploration activities and development projects, thereby enhancing its overall portfolio value.
Industry Expertise and Future-Proof Operations
With a clear focus on operational optimization and exploration excellence, Cerrado Gold leverages industry best practices and technical expertise to maintain competitiveness. The company’s communication regarding exploration strategies, detailed technical assessments, and ongoing process improvements reflects its E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness) credentials. While remaining neutral, Cerrado Gold’s rigorous approach to asset management and technological integration sets it apart in the competitive mining sector, reinforcing its position as a solid, diversified resource company.
Key Highlights
- Gold Production Excellence: Operating key mines in Argentina with ongoing production optimization.
- Strategic Exploration: Active exploration programs extend the mine life and resource base.
- Innovative Development: Progressive initiatives at the Mont Sorcier project with advanced metallurgical testing.
- Financial Strength: Robust balance sheet management through targeted asset sales and efficient capital allocation.
- Technical Expertise: Use of industry standards such as NI 43-101 and advanced drilling and testing methodologies.
Cerrado Gold’s integrated approach, combining high-grade production, exploration, and technologically advanced asset development, positions it as an informative case study for investors seeking to understand the complexities of the modern mining sector. Its continued dedication to operational efficiency and resource enhancement ensures that the company remains a notable player in both gold mining and the strategic development of critical minerals.
Cerrado Gold (TSXV:CERT, OTCQX:CRDOF) has completed the final US$5 million payment for its Minera Don Nicolas (MDN) gold mine in Argentina, bringing the total acquisition cost to US$47 million. Since the 2020 acquisition, MDN's production has significantly increased from 22,000 to 55,000 ounces annually, with over 200,000 Gold Equivalent Ounces produced through 2024.
The Las Calandrias heap leach operation continues to perform well, with plans for underground operations at Paloma expected to begin in Q3 2025. The company is preparing an exploration campaign focused on mine life extension. Additionally, Cerrado anticipates closing the acquisition of Ascendant Resources Inc. around May 12, 2025, which includes the Lagoa Salgada Project in Portugal, with a construction decision expected by end of 2025.
Cerrado Gold (CRDOF) has announced positive metallurgical test results from its Mont Sorcier iron ore project in Quebec, confirming the ability to produce 67% High Purity, Direct Reduction Iron (DRI) grade concentrates. The latest phase of testing, conducted on a master composite, demonstrated enhanced economic magnetite iron recovery of 83%, with combined Silica and Alumina below 2.5%.
The project, located in Cree territory near Chibougamau, is progressing toward a feasibility study targeted for Q1 2026. The metallurgical testing, performed by SGS Canada and analyzed by Soutex Inc., shows promising results for producing high-purity iron concentrate suitable for DRI grade classification. Industry forecasts predict DRI grade concentrate demand to grow at a CAGR of over 9.0% annually for the next decade.
The process involves magnetic separation, regrinding, hydroseparation, and reverse iron flotation stages, resulting in a concentrate grading 67% iron with 1.8% silica. Additional variability testing of 18 samples and a 3-tonne bulk sample processing are currently ongoing to support equipment design for the feasibility study.
Cerrado Gold has entered into a definitive agreement to acquire Ascendant Resources, gaining an 80% interest in the Lagoa Salgada VMS Project in Portugal. The transaction involves a share exchange ratio of 1 Cerrado share for every 7.8 Ascendant shares, resulting in Ascendant shareholders owning approximately 21% of Cerrado post-transaction.
The Lagoa Salgada Project features a post-tax NPV of US$147 million and a 39% IRR, with expected production in second half of 2027. The project is anticipated to generate US$75 million per year in free cash flow during its first 5 years of operations. The asset provides exposure to precious metals (34% silver & gold) and critical minerals (30% zinc, 15% copper, 14% lead, 7% tin).
Cerrado currently has US$21 million in cash, with additional expected payments of $15M from Hochschild and potential $10M from Anglo Gold. The transaction will result in Cerrado issuing 27.7 million shares, bringing its total outstanding shares to approximately 131.3 million.
Cerrado Gold reported its Q4 and annual 2024 production results from the Minera Don Nicolas Mine in Argentina. The company achieved annual gold equivalent production of 54,494 GEO, within their guidance of 50,000-60,000 GEO. Q4 production was 10,431 GEO, lower than Q3's 16,604 GEO due to decreased ore grades from residual open pits.
The company's heap leach operations reached record production of 5,956 GEO in Q4. Cerrado received significant asset sale and option payments totaling $34 MM during the quarter, strengthening their balance sheet. For 2025, production guidance is set at 50,000-55,000 GEO.
The company is installing additional crushing capacity at Calandrias Sur, aiming to reach 4,000-4,500 GEO monthly production by March 2025. They're also preparing to commence underground operations at Paloma in H2/25. At their Mont Sorcier project, metallurgical testwork confirmed potential for high-grade iron concentrate production, with a Bankable Feasibility Study targeted for Q1 2026.
Cerrado Gold's subsidiary Minera Don Nicolas (MDN) has received a US$4 million option payment from Cerro Vanguardia SA (CVSA), a subsidiary of AngloGold Ashanti Holdings. The payment is part of a larger US$14 million agreement where CVSA has the option to purchase a 100% interest in certain exploration properties in the south region of MDN's project in Santa Cruz, Argentina. The remaining US$10 million is payable within 3 years upon exercise of the option.
Additionally, Cerrado has issued a US$275,000 loan to Ascendant Resources Inc., bearing 10% annual interest and maturing on demand with minimum 366 days notice. The loan, despite commonality of directors between the companies, is not considered a related party transaction.
Cerrado Gold (CRDOF) has entered into an option agreement with AngloGold Ashanti's subsidiary, Cerro Vanguardia SA (CVSA), for the sale of its Michelle Properties in Argentina for US$14 million. The agreement includes an initial US$4 million payment and US$10 million upon exercise within 3 years.
The Michelle Properties comprise 14 exploration concessions totaling 14,000 hectares, located 100 km southeast of the MDN plant. CVSA will take operational control during the option period. The transaction strengthens Cerrado's balance sheet and allows focus on core properties, including the operating Minera Don Nicolas gold mine and Mont Sorcier iron ore project.
The company has secured consents from royalty holders Royal Gold, Sandstorm, and Sprott, with outstanding royalty payments being settled and interest penalties waived.
Cerrado Gold provides an update on its Mont Sorcier iron ore project in Quebec, highlighting ongoing metallurgical testing that confirms production of DRI grade iron concentrate with 67%+ purity and combined Silica and Alumina below 2.5%. The company has appointed DRA Global to deliver a NI 43-101 Bankable Feasibility Study by Q1 2026.
The project's 2022 PEA showed an NPV8% of US$1.6 Billion for a 21-year mine life, projecting 5MT of Iron Concentrate production annually, generating US$348M per annum in cash flow with initial capex of US$574M. UKEF and TD Bank have agreed to sponsor 70% of project capital required.
The metallurgical program, conducted by Soutex Inc. and SGS Canada, shows promising results with potential for further improvements in iron grade and purity.
Cerrado Gold reported Q3 2024 production of 16,604 Gold Equivalent Ounces (GEO), maintaining its full-year guidance of 50,000-60,000 GEO. The company achieved Adjusted EBITDA of $7.4 million and reduced its working capital deficit by over $20 million year to date. The company completed the sale of Monte Do Carmo gold project to Amarillo for a total consideration of US$60 million, with US$45 million already received and US$15 million expected within 28 months. Q3 revenue reached $36.7 million from selling 15,505 ounces of gold at an average price of $2,329 per ounce.
Cerrado Gold has announced that the TSX Venture Exchange has accepted its notice to implement a normal course issuer bid (NCIB). The company can repurchase up to 5,170,903 common shares (5% of outstanding shares) for cancellation. The NCIB will run from November 15, 2024 to November 14, 2025, with a limitation of acquiring no more than 2,068,361 shares in any 30-day period. The Board believes the current market price doesn't reflect the company's true value and assets. Eight Capital will act as the broker for the NCIB, which will be executed through TSXV facilities at market prices.
Cerrado Gold has completed the sale of its Monte Do Carmo gold project in Brazil to Amarillo Mineração do Brasil, a subsidiary of Hochschild Mining. The transaction includes US$30 million in closing cash payments, plus US$15 million previously received for granting the option, totaling US$60 million (approximately C$83 million). Additional future payments of US$15 million are guaranteed by Hochschild, with US$10 million due by June 27, 2026, and US$5 million due by the earlier of commercial production start or March 31, 2027.
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