MONTE DO CARMO

Property Summary

The Monte Do Carmo project (“MDC”) is 100% owned by Cerrado Gold Inc and is located in state of Tocatins, with claims totalling 82,541ha of concessions.

The Company is currently developing the known ore body at Serra Alta towards construction and production and conducting exploration at other targets on the property. The principal deposit, Serra Alta contains a MI&I resource of 1.3 Mozs and was subject to a Preliminary Economic Assessment dated in July 2021. The Serra Alta PEA outlined a robust economic case for development of the Serra Alta deposit.

Throughout the 21 concessions and 82,541 ha hectares Cerrado Gold has identified an additional 30km of known mineralized trends that may hold the next “Serra Alta” style discovery.  Several targets have been identified all with minimal drilling to date.

Geological Description & Exploration Program

Volcano Sedimentary Sequence of Upper Proterozoic age, intruded by a huge granite body of Lower Proterozoic age. The principal gold mineralization is associated to hydrothermally altered and sheared granite associated with low percentages in sulphides (Pyrite, Galena, Sphalerite and Chalcopyrite). Mineralization proceeds under the felsic volcanics and also of the phanerozoic sediments.

Mineral Resources

Satellite Exploration

Exploration Potential: Finding The next 30k of Mineralized Trends:

Key exploration identifiers we look for :

1. 1. Granite Host
   2. NE Shear Zones
   3. Proximity to intrusive contact volcanics

Serra Alta: East extension E2 & E3

• Targeting a magnetic lineament extending for greater than 1 km strike length that potentially represents the NE continuity of the DK2 shear
• Conceptual target: granitic hanging wall analogue to segmented zones in Serra Alta

Baru: 1.5km trend look alike to Serra Alta

• Limited drilling completed in 2021
• Possibility of replicating Serra Alta mineralization Copula contact in segments along these kilometric trends
• Modeling and vectoring work in progress to plan next drilling phase
• The assyas from drilling in November and December:
  • intersected [email protected] Au gt .
    intersection confirms Serra Alta mineralization model to the west of main fault

Fartura

• Four holes (FFA-001 to 004) have been completed to date at Fartura.
• Core Logging and revised surface geological mapping confirmed that the host rock of the shallow mineralization (mined informally on surface) in Fartura is a porphyritic felsic volcanic.
• Visible gold and dense quartz veining occurred in holes 1 and 2 that returned relevant intercepts including 5.35 m at 1.85 g/t Au, from 62.83 m and 5.04 m at 1.50 g/t Au, from 32.56 m. 

Bit-3: 15km Shear Zone

• Discovered from an airborne geophysical anomaly that indicates a Huge Mafic/Ultramafic geological unit.
• In 2018 five trenches and 4 drill holes were executed and positive assays were produced.
• In 2021 seven more drill holes were executed with positive composites.
• This target is related to a 15 km Shear zone strike and the potential is open for exploration at depth.

Giant Quartz Viens: Possible Hanging Wall Sheeted Vein Zones

• There are 30 large quartz veins south of Serra Alta under consideration, of which 24 are mapped and about 21 were studied and evaluated for preliminary resource calculations.
• Applying the Serra Alta current Model, these sheared veins have the potential to develop laterally relevant sheeted vein zones in their hanging walls

Capitao East

• Granite underneath quartzite
• Possible higher structural level
• Parallel lineaments suggesting shear bounded geology

Divisa: Magnetic Target

• Divisa target located along the same shear zone that host Bit3. This relevant mineralized structure extends for > 15 km
• NE soil anomalies ~ 1km strike length not previously drilled.
• Some positive results in rock with up to 7.78ppm (granite).
• Possible demagnetizations associated with soil anomalies over hydrothermally altered zone

Mining Operations

The Monte do Carmo Project PEA considered an open pit operation with an average production rate of 2.65 Mtpa of ROM. Surface mining will use a contract mining fleet of hydraulic excavators, front-end loaders, and haul trucks, as well as correspondent ancillary equipment.

Site Infrastructure

Community

The town of Monte do Carmo has a population of 6k people largely supported the surrounding agricultural industry (soy & corn). The town sits 55km southeast of Porto national and 95km south of Palmas, easily travelable by paved highway.

Technical Reports

Cerrado Gold has completed technical reports prepared in accordance with National Instrument 43-101.