Cerrado Gold (TSXV: CERT | OTCQX: CRDOF) has announced production results for the fourth quarter of 2022 from its Minera Don Nicolas Mine in Santa Cruz Province, Argentina. Full financial results are expected to be released on April 14, 2023.
Mark Brennan, CEO and co-chairman commented “We are very pleased with the progress at Minera Don Nicolas in 2022; the production growth and asset development seen over the past year is a testament to the skill and dedication of the MDN operational team. While we are in production with operations that have now been normalized, MDN remains a discovery asset and is still in its start-up phase. Management’s objective over the last year has been focused on driving production but also on building MDN’s life of mine strategic plan that will incorporate the same opportunities seen at the neighboring operations of Anglo, Yamana and Newmont.”
Q4 operating highlights include the Q4 production of 17,360 gold equivalent ounce (GEO) compared to Q3 2022 production of 11,284 GEO, marking an increase of +54%. The full year production combined to 53,672 GEO compared to 43,559 GEO for 2021, also marking a significant increase of +23%.
Cerrado has stated that these results demonstrate ongoing stability in mill throughput combined with improving head grades and recoveries, reporting that gold head grades increased to 5.83g/t from 4.40g/t quarter-on-quarter and to 4.56g/t from 3.51g/t year-on-year. Overall, the company is pleased to report that gold recoveries increased from 91.0% to 94.9% quarter-on-quarter and from 88.7% to 91.6% year-on-year.
Mark added, “We are making significant headway with our heap leach and underground development and during 2023 we will continue to be focused on growth initiatives, both production and exploration based, to more fully define the world class potential we see in this asset. We are making significant headway with our heap leach and underground development and during 2023 we will continue to be focused on growth initiatives, both production and exploration based, to more fully define the world class potential we see in this asset.”
Operational results presented for 2022 highlight the company’s first full year of normalized operations. Since Cerrado acquired the Minera Don Nicolas mine, operations and production rates have seen continuous growth and improvement despite initially difficult Covid conditions.
Over the next few quarters, variability is expected to continue given the company is still developing and implementing its life of mine strategy. The consolidation of mine sequencing and exploration work to upgrade and define new sources of resources remains Ascendant’s key focus given the early stage of development at MDN.
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