Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has filed the technical report of the independent feasibility study as prepared by DRA Global Limited in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects on its 100% owned Monte do Carmo gold project located in Tocantins State, Brazil.
The technical report shows a positive adjustment to the economic parameters presented in the 7 November 2023 press release outlining results of the feasibility study. The full technical report has now been filed on SEDAR+ as of 15 December 2023.
Mark Brenan, CEO, and chairman, commented, “We are extremely pleased that the ongoing work by DRA has resulted in a modest improvement in what were already robust feasibility study results. The feasibility study demonstrates that the Monte do Carmo project is poised to be an extremely robust project with low capital and operating costs that will generate cash flows well above its weight as a 100,000oz producer of gold while providing an approximate 2:1 ratio of NPV over capex.”
The positive adjustment reflects the results of work undertaken by DRA and GE21 during the completion of the FS to include:
- Recently completed additional metallurgical optimization test work on variability samples have demonstrated improved flotation concentrate leach efficiencies and reduced cyanide consumption rates. Projections indicate that over the life of the mine, an additional 0.4% recovery improvement or US3,7koz of gold is anticipated to be recovered, accompanied by a 2.7% reduction in process operating costs
- In addition, the receipt of suppliers quote for larger size haulage equipment as well as the optimization of both the open pit and underground mining fleets, resulted in CAPEX savings of US$5.2M in direct costs and US$2.8M in sustaining costs. This has led to a resulting OPEX reduction of US$20 per oz
As a result, the after tax NPV5% increased to US$390M from US$369M, and the IRR increased to 34% from 32%.
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.
To find out more, please visit www.cerradogold.com
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