Cerrado Gold: Micon 43-101 Resource Report
December 6 2018
Dear Ladies and Gentlemen,
Please see the attached Technical Memorandum outlining Micon’s maiden NI 43-101 Resources for Cerrado Gold’s Serra Alta deposit.
We are very pleased with the progress made over the past year and the value created for shareholders who participated in the funding rounds of last fall and this past summer.
Micon’s global resource is not greatly different from our targeted 1 million ounce total - and our internal model total of 980,000 ounces - however we see a difference in the inferred resource grade and total number of ounces as Micon have reduced Cerrado’s geological domains by 10% and have smoothed their resource model by using more data entry points (drill holes, samples and trenching) than that used by Cerrado. Micon has used a more conservative approach in their resources estimate not knowing the deposit as well as Cerrado and deferring to being more conservative in their estimation.
Micon Statement of Inferred Mineral Resources Summary
Global Mineral Inventory (0.00 g/t cut-off): 28,431kt @ 1.02 g/t = 931,000 ounces
Serra Alta Inferred Resources:
Open Pit (0.49 g/t Cut-off): 13,234kt @ 1.79 g/t = 762,000 ounces
Underground (1.5 g/t Cut-off): 458kt @ 3.92 g/t = 51,000 ounces
While we would have hoped to have seen closer proximity to our own model, particularly in the grade profile, we are greatly appreciative of Micon’s quality of work and the assistance provided to attain Cerrado’s maiden resource.
We are extremely confident that the ounces and grade profile will improve with further drilling.
We are now ready to begin phase II to target 2 million ounces by the summer of 2019 and 3 million ounces by year end 2019.
I would welcome any questions you may have.
Thank you all once again for your support.