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Cerrado Gold Intersects 105 Metres Grading 3.5 Grams Gold per Tonne and Includes 27 Metres at 10.9 Grams and 1 Metre of 218 Grams at Its Monte Do Carmo Project in Brazil

Dec 16, 2020

Current results fall well within PEA open pit shell with current drill program experiencing more extensive intercepts and greater visible gold than Cerrado’s previous drill program

Toronto, Ontario–(Newsfile Corp. – December 16, 2020) – Cerrado Gold Inc. (“Cerrado” or the “Company”) is very pleased to announce initial drill results from its ongoing 17,000-metre definition drilling program at the Serra Alta deposit, at its Monte do Carmo (“MDC”) Project located in Tocantins State, Brazil. The initial drill results highlighted in this release are from the first drill hole, FSA-94, with more results to be announced as assays are made available over the next few months.

Drill Hole Highlights:

FSA94

  • From 30.10m TO 135.10m, True thickness 105.00m at 3.48g Au/t
    • Including 40.30m to 54.00m, True thickness 13.70m at 2.50g Au/t
    • including 108.35m to 135.10m, True thickness 26.75m at 10.93g Au/t
    • including 114.40m to 115.38m, True thickness 0.98m at 218g Au/t
      and 175.10m to 214.60m, True thickness 39.50m at 1.90g Au/t

      and 229.78m to 234.02m, True thickness 4.24m at 4.62g Au/t

Mark Brennan, CEO and Co-Chairman commented “We are extremely encouraged by these initial assay results and have seen extensive intercepts and numerous occurrences of visible gold in subsequent drill hole core that are awaiting assays. The initial results, extensive intercepts and sightings of visual gold suggests this drill program could exceed the positive results from Cerrado’s previous drill program and support the Company’s view that we can rapidly grow the resources at Serra Alta to our 1.5MM ounce target by the end of March 2021.”

The drill results reported in this press release were received on December 10 thru 12th, 2020 and represent partial results of this initial drill hole (FSA-94) from 10.56m to 234.02m. The remaining results of the drill hole from 234.02 through 487.53 metres are pending and are expected in early January along with assay results for a number of subsequent holes. These preliminary results indicate that this drill hole has been successful in confirming and expanding the existing mineralization. Cerrado’s ongoing phase I drill program is targeting 17,000-metres of drilling.

Drill hole FSA-94 intersected broad zones of hydrothermal alteration with abundant points of visible gold. The alteration is typical for the Serra Alta deposit, including abundance of quartz veinlets, potassic, chloritic and sulphides (py, spl, and gal) with visible gold.

Drilling

This first phase of the current drill program at Serra Alta, which began at the end of September 2020, follows the success of the 2018 drill program which resulted in a maiden NI43-101 compliant resource estimate with an effective date of December 5, 2018 of an inferred resource totaling 813,000 oz of gold contained within 13,639,000 tonnes grading 1.85 g/t Au.

This new Phase I program is expected to consist of approximately 17,000 metres of drilling; mainly step-out and downdip to define additional ounces and a modest amount of infill drilling to upgrade a portion of the resource base to the Measured and Indicated resource categories focusing on the known Serra Alta deposit. This deposit is 1.5 kilometres long and remains open along strike and at depth and represents only the first of 4 known targets which are targeted to grow the resource on the overall Monte Do Carmo project land package.

The drilling and supporting assay results are expected to build upon the success of Cerrado’s previous drilling program. Cerrado is targeting to define a resource between 1.2 million and 1.6 million ounces. Cerrado expects this program to be completed by the end of March 2021. Investors are cautioned that this resource target is conceptual in nature at this time and there has been insufficient exploration to define a new mineral resource.

Tables 1 summarizes the drill hole information. Table 2 summarizes the significant assay results to a depth of 234.02 metres.

Table 1. Drill hole information

Hole_ID Easting Northing Elevation DEPTH (metres) dip Azimuth
FSA94 820573.6295 8810318.2260 570.56 487.53 -33.57 110

 

Table 2. Drill Hole Composites

DDH FROM TO *True Width (m) AU (PPM)
FSA-94 30.10 135.10 105.00 3.48
FSA-94 includes 40.30 54.00 13.70 2.50
FSA-94 includes 108.35 135.10 26.75 10.93
FSA-94 includes 114.40 115.38 0.98 218.00
FSA-94 and 159.20 163.20 4.00 1.84
FSA-94 and 175.10 214.60 39.50 1.90
FSA-94 includes 175.10 181.75 6.65 2.22
FSA-94 includes 191.75 199.00 7.25 2.76
FSA-94 includes 213.38 214.60 1.22 20.70
FSA-94 and 229.78 234.02 4.24 4.62
FSA-94 includes 232.45 234.02 1.57 11.40
*core length and true thickness as approximately the same

 

Quality Assurance and Quality Control

Analytical work was carried out by ALS international lab (ALS). The facilities of the prep lab are located in Goiânia, Brazil 835 km from MDC and alternatively in Belo Horizonte, Brazil 1,110 Km from the MDC project. MDC sends out their samples to ALS international labs (ALS) with the prep lab located in Goiânia or alternatively in Belo Horizonte. ALS lab sends the prepared aliquots for analytical assay to their lab in Lima, Peru where the prepared samples are systematically analyzed for gold (ppm) by fire assay (Au-AA24) or gold (ppm) by metallic screen (Au-SCR24)). Randomly the ICP (Inductively coupled plasma mass spectrometry) is done for trace elements in 4 acids (hydrofluoric, perchloric, nitric and hydrochloric) digestion (ME-MS-61).

ALS has routine quality control procedures which ensure that every batch of samples includes three sample repeats and at least two commercial standards and two blanks. Cerrado used standard QA/QC procedures, when inserting reference standards and blanks, for the drilling program. The Reference material used are from CDN Resource Laboratories Ltd. and ITAK (Instituto de Tecnologia August Kekulé Ltda.) Brazilian supplier included in the batches following MDC internal protocols.

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Robert Campbell, P.Geo., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person as defined in National Instrument 43-101.

For further information please contact

Mark Brennan
CEO and Co Chairman
Tel: +1-647-796-0023
www.cerradogold.com

About Cerrado Gold

Cerrado Gold is a private gold production and exploration company with gold production derived from its 100% owned Minera Don Nicolas mine in Santa Cruz province, Argentina. The company is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado Gold please visit our website at www.ceradogold.com.