PRESS RELEASE

Cerrado Gold: Scoping Study

November 16 2018

Dear All,

 

We are making very good progress with our NI 43 101 Resource Report and are confident that the resource table will be completed by the end of November.

 

Micon have been very helpful in increasing grade and ounces by reducing dilution which has been very much appreciated.

 

Attached is an independent  Scoping Study (non 43-101 compliant) by the engineering firm PEK of Brasil outlining what they currently think is a plausible production scenario for Serra Alta.

 

It is extremely positive and puts Serra Alta at the lowest end of the cost curve (US$509 AISC); in spite of the fact we are still hoping for many more ounces in the future.

 

See the highlights below:

 

THIS IS NON 43-101 COMPLIANT AND SHOULD NOT BE USED AS A SOLE SOURCE OR BASIS FOR AN INVESTMENT DECISION IN CERRADO GOLD.

 

-             18 million tonnes at average grade of 1.9g/t

-             6 year mine life at 100,000 ounces

-             US$1200 per ounce

-             Capex of US$142 million

-             Opex of US$5.5 million ($28 tonne)

-             Strip ratio 7.8: 1

-             US$509 AISC

 

While this can be seen as conceptual in nature, we have hard data from the Jacobina and Maracas Mines in Brasil that were applied to our models which provide a strong degree of confidence in our metrics.

 

We hope that further drilling will improve our resources and our economics as we move forward.

 

Thanks again for all your support.

 

Best,

MB

Link to Report

 

Best,
MB

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