By Mining Panorama
Compared to last year, the company produced 15,744 gold equivalent ounces and sold 15,518 gold equivalent ounces during the fourth quarter alone. Additionally, they made progress in launching their new heap leach project, which aims to reach full production rates by the end of this month. The planning of the production ramp-up was delayed due to problems in the start-up of the crusher, which are currently largely resolved. “This slow process has postponed the goal of reaching full production scheduled for the first quarter by approximately three months,” they indicated. In that quarter, removal tasks also continued in Calandrias Norte, with more than 2.4 million tons of material moved, and additionally, an extra 2 million tons were removed during the first quarter of this year.
Likewise, in the months of March, April and May 2024, MDN production exceeded 17,000 ounces, supporting the continued recovery of operations at the field, which faced changes in its production process during the last year.
Production levels were lower than forecast during January and February, stabilizing since March when more than 5,255 gold equivalent ounces were produced. Meanwhile, production levels in April and May were very solid, averaging more than 6,000 gold equivalent ounces per month.
Going forward, significant improvement and benefits are expected from the access and limited removal of future material required for Calandrias Norte, combined with the continuation of the production ramp-up in the heap leach operations during the second quarter of 2024. The new Calandrias Sur heap leach project work continued during the quarter while the operation remained in the start-up phase. The start was affected by problems with the crushing systems, but completion of the crushing plant has now been completed, which should ensure a more consistent supply to the leach pad and improve the overall performance of the operation. It is scheduled to reach nominal production rates from June onwards.
Following the announcements, Mark Brennan, CEO and President of Cerrado Gold, commented: “The final quarter of 2023 was very challenging for Cerrado. We entered the year with an ambitious expansion program to build a new heap leach system at MDN and open the Calandrias Norte mine. Ramp-up delays, coupled with market conditions and changes in fiscal policy in Argentina, led to the decision to opt to advance our project in Brazil earlier this year, however, with MDN. Now stabilized, we aim to significantly reduce debt levels and restore balance during 2024 and 2025.”
On a financial level, the company generated revenues of US$100.1 million during the year ending December 31, 2023, from the sale of 53,561 ounces of gold and 44,781 ounces of silver, with an average realized price per ounce of gold sold of US$1,849 and an average realized silver price of US$23.31 per ounce sold. “Going forward we project a significant benefit from the recent investments in capital expansion in MDN, anticipating considerable cash flows in the second quarter,” they concluded from the Canadian capital company.
Cerrado Gold is a Toronto-based company focused on the production, development and exploration of gold projects in South America. The company is the 100% owner of both Minera Don Nicolás and the Las Calandrias mine, in the province of Santa Cruz, and the Monte Do Carmo development project, located in the state of Tocantins, Brazil. In Canada, Cerrado Gold is also developing an iron and vanadium project known as Mont Sorcier, located in Quebec.
