Cerrado Gold Inc. (TSXV: CERT | OTCQX: CRDOF) has provided an update on the development of the gold heap leach project at its Las Calandrias deposit in Santa Cruz, Argentina.
Mark Brennan, CEO and chairman commented “We are pleased to have been granted all the necessary approvals to commence operations at our initial heap leach facility at Las Calandrias which reflects the high quality of the work completed by the team on the ground at MDN. Construction is progressing extremely well and we are now one step closer to delivering on our production growth strategy at MDN to exploit the all available resources more fully.”
As of 3 March 2023, Cerrado has secured all the required environmental permits relating to the development and operation of its Las Calandrias heap leach project. The company has stated that construction work remains ongoing with first ore expected to be stacked on the heap leach pad during April and first gold pour is scheduled before the end of May.
Additionally, Cerrado has utilized metallurgical testing to confirm gold recoveries with greater than 80% confidence from oxide materials with at least 70% recovery, Transition ores have at least 50% confidence and the Primary ore has at least 36% recoveries. Due to these results, the company has redesigned the mine planning to add material from the primary ore zone which will expand resources for production and extend the mine life. The benefits of the higher grade in the Primary Zone will offset lower recoveries. This is in addition, to ongoing production from the CIL plant and the planned development of an underground operation at Paloma and a second heap leach operation at Martinetas later this year.
The heap leach operation is targeted as part of the company’s strategic growth to increase aggregate production rates at Cerrado’s Argentina operations to 90,000oz per annum from the 2022 production rate of 53,672oz at MDN with reductions in AISC. Production growth and cost reductions are planned from the development of two heap leach operations: firstly, at Las Calandrias and secondly at the Martinetas area. MDN is also expected to develop high-grade underground resources that are currently known and available by directly accessing the resources from the base of the existing high-grade pits such as at Paloma.
“Development is proceeding exceptionally well at both MDN and at MDC; we believe that the intrinsic value creation to shareholders will be strongly evidenced by the production growth at MDN by year end and the Feasibility Study in Brazil which is expected by the end of May.” Mark added.
To find out more, please visit www.cerradogold.com
