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Cerrado Gold Provides Update of Its near Mine Exploration Program and the New Antena Discovery at Its Minera Don Nicolas Project in Argentina

Jul 7, 2021

  • Esperanza/Rocio highlight near mine high grade zones
  • New discovery of the Antena Vein System
  • Trench results from Chulengo and Araña target provide details for drilling targets

Toronto, Ontario–(Newsfile Corp. – July 7, 2021) – CERRADO GOLD (TSXV: CERT) (“Cerrado” or the “Company”) is pleased to announce the results from a further nineteen drill holes (totalling 2,868 m) from its ongoing 12,000-metre exploration drill program at its Minera Don Nicolás Project (“Minera Don Nicolás” or the “MDN Project”) located in Santa Cruz province, Argentina. Reported diamond drill holes were collared at the Esperanza/Rocio and other Paula Andrea targets. As previously outlined, the focus for the current 12,000-metre district exploration program is to delineate new high grade mineralized zones and increase confidence, of near surface mineralization in the proximity of Cerrado’s mining operations: La Paloma and Martinetas Pits. Results are actively being integrated into further economic studies for ultimate conversion of additional resources into the mine plan.

The 2021 exploration drill program at the Minera Don Nicolás Project commenced on February 5th at and has targeted initially areas within the Paloma area and the adjacent Paula-Andrea Area, including: Baritina, Chulengo, Antena, Esperanza and Rocio. Results from the first two target areas were released in May of this year.

The drill results reported in this press release include all assays received as June 25th, 2021 and represent complete for file holes from Esperanza/Rocio, nine holes from Antena, and five holes from the Chulengo and adjacent NW corridor target.

Mark Brennan, CEO & Co-Chairman commented, “We are very pleased that the initial drill results at Minera Don Nicolas continue to support our view that significant near surface and near mine targets remain to be defined. As these new targets are more fully defined, we believe they have the potential to support not only adding additional resources but potentially increasing the grade of the overall resource base, supporting production in the future.

Current Near Mine Drill Program at MDN

The near mine exploration program at Minera Don Nicolas is comprised of 12,000 metres of diamond drilling. As June 25th, 6675 meters have been completed. The program is focusing mainly on step-out and downdip drilling to target extensions of gold mineralization and infill drilling to upgrade resources. The initial areas of focus for the program follow mainly exploration targets that have been defined by limited historical drilling, such as the Esperanza South vein at Paloma and the Paula Andrea Area (e.g. Baritina, Chulengo and Araña targets).

Given that these targets are close to the current, high grade, La Paloma mining area they are ranked as high priority in order to potentially add new resources that subsequently undergo economic evaluation by the mine team. The current program is in addition to RC drilling undertaken by the mine for infill and grade control to extend the current mining areas of La Paloma and Martinetas both along strike and at depth.

Drilling in the La Paloma adjacent areas is expected to be completed early in July. The diamond rigs will then mobilize to the Martinetas area. As is the case in La Paloma, drilling priorities in Martinetas will consider the proximity and economic viability of the different targets in the proximity of the Cerro Oro and Coyote Pits. The distribution of the footage of this years program, for which the ultimate scope is to gain confidence on the extent and economics of the satellite structures, aims to keep the balance of the resource inventory between the two main operations that Cerrado currently mines.

Esperanza/Rocio Vein

The Esperanza veins are part of the La Paloma system characterized by discrete narrow, arcuate, steeply dipping quartz breccia veins. The most notable structure within this system is the Sulfuro vein currently being mined by Cerrado. Esperanza is located west of Sulfuro, the northern segment of the 1km continuous strike vein was shallowly mined prior to Cerrado acquisition of Minera Don Nicolas.

Current drilling at Esperanza has focused on the southern zone of the vein system. The Esperanza vein system dips 75 degrees to the east (toward the Sulfuro vein) and has an average thickness of 0.3m to 6m. The five holes reported here, totalling 499m (see Figure 1) systematically intercepted also at depth the Rocio vein (slightly oblique with respect to Esperanza). Seven additional holes drilled at the Esperanza/Rocio veins are pending results. Preliminary modelling suggests stronger mineralization and gold tenor along the domain where both veins coalesce (sub vertical linear feature).

Importantly, the Esperanza structure is thought to coalesce with the main Sulfuro vein at an absolute depth of ~ 450 metres. The geometry of the predicted structural intersection is sub horizontal in nature and could be the loci of relevant additional gold endowment. This structural/mineralization model hypothesis remains drill untested but will be tested in the near future.

Drilling results at close space centers are being integrated in the updated long-term model and economically evaluated by the mine team for potential reserve conversion.

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Figure 1. 3D View looking north of the Esperanza Rocio south drilling reported in this press release.

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Antena Target

The Antena target is located 1,250m to the SSE of the Sulfuro pit. The width of the structure varies from 1m to 2m and consists of cryptocrystalline quartz veins and vein breccias with sulphides (pyrite, sphalerite, molibdenite ± galena). Textures features include breccias, massive and banding. Surrounding the veins massive-cryptocrystalline-quartz-sulphides stockworks develop as halos. The structures are dipping to the west between 70º to 80º and some of them are subvertical. Post-mineralization tectonic breccias are common affecting the veins, vein-breccias and stockworks, and probably represents the reactivation of the syn-mineralization faults. Also, the presence of post-mineralization low-angle dipping faults are interpreted and dislocates the mineralization (see Section below)

The 8 drill holes reported for the Antena target, totalling 1776 m, provide the first confirmation of continuity of mineralization below surface on this target and represent a new discovery. Refinement of the 3D modelling will be completed to better understand the geometry and grade potential size of these structures.

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Figure 2. Antena Target Location.

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Figure 3. North/South cross section of Antena Discovery.

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Chulengo Target

Drill holes PA-D21-66 and PA-D21-67 completed in Chulengo did not intersect relevant mineralization, missing the gold endowed zones of the breccia/ledges domains. Chulengo mineralization is characterized by silica-sulfide cemented hydrothermal breccias and ledges with vuggy silica textures infilled by sulfides (oxides) and controlled by ENE-WSW to E-W faults dipping to the north. Also, the mineralization shows a lithological control forming dissemination and fine veinlets/stockworks in permeable lithologies.

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Figure 4. Location of Chulengo Target.

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Drill hole PA-D21-68 was drilled ~ 500 m to the south of the Chulengo breccias and intercepted anomalous gold values resembling some of the proximal halos found in the Baretina target. Further field work will be completed to assess need of follow-up drilling.

Drill hole PA-D21-69 and 70 targeted IP chargeability anomalies that were explained by coarse pyrite concentrations in barren argillic altered volcanic rocks.

Chulengo trench results includes 3.70 m grading 18.31 g/t Au starting from 11.60 m (PA-T21-041) and 5.70 m @ 5.97 g/t Au starting from 20.20 m (PA-T21-035).

The results obtained confirm that the structures in Chulengo form “rosaries or possible extensional jogs” along the ENE-WSW corridor. In domains with efficient structural opening there is a better continuity of gold mineralization hosted by hydrothermal breccias with a matrix of quartz and sulfides that cut the entire volcanosedimentary sequence (ignimbrites and volcanoclastics) providing better vertical extent and overall economics significance as a possible near mine satellite.

Araña Target

Araña mineralization is characterized by Fe-Mn oxides, barite and cryptocrystalline quartz veinlets and stockworks and sectors with vuggy silica textures infilled by oxides). The main recognized structure has a NE-SW orientation, and the host rock is a rhyolitic dome. Figure 5 shows the trenches intersections and the interpretation of the ore bodies at surface and high-grade zones.

Notable trench results in Arana include 4.80 m grading 4.09 g/t Au (PA-T21_029) and 9.40 m grading 5.06 g/t Au (see Figure 5 and table 2). These encouraging results will be follow-up with shallow diamond drilling. Drill pads have been prepared and drilling should commence in July as part of the current phase.

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Figure 5. Arana Target Trench Results.

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Table 1. Drill Hole Collars

Hole_Id Easting Northing Elevation Depth
(meters)
Azimuth Dip
ESP-D21-49 2592817 4715707 153.68 122 270 -50
ESP-D21-50 2592837 4715707 153.69 137 270 -50
ESP-D21-51 2592810 4715690 154.88 88 270 -50
ESP-D21-52 2592820 4715674 156.29 82 270 -50
ESP-D21-54 2592827 4715640 157.67 70 270 -50
AN-D21-001 2593342 4714418 148.47 253 100 -50
AN-D21-002A 2593347 4714457 148.74 118 100 -50
AN-D21-003 2593266 4714429 153.62 247 100 -50
AN-D21-004 2593321 4714380 150.34 103 100 -50
AN-D21-005 2593281 4714391 151.65 151 100 -50
AN-D21-006 2593250 4714100 140.36 257 90 -60
AN-D21-007 2593181 4714445 160.23 229 100 -60
AN-D21-007A 2593179 4714446 160.33 293 100 -60
AN-D21-008 2593426 4714399 151.64 125 100 -50
PA-D21-66 2595695 4713025 159.89 48 350 -60
PA-D21-67 2595692 4713033 159.6 32 170 -60
PA-D21-68 2595640 4712570 154.26 80 225 -50
PA-D21-69 2595180 4713041 133.43 230 330 -60
PA-D21-70 2595122 4713140 136.33 203 330 -60

 

Table 2. Drill Hole relevant Intercepts

  Drillholes
Target DDH From To LENGTH
(m)
True Width
(m)
Au
(g/t)
Esperanza ESP-D21-49   39.15 40.30 1.15 0.96 6.01
ESP-D21-49   97.00 99.00 2.00 1.98 0.63
ESP-D21-49   105.60 108.10 2.50 2.50 1.43
  including 105.60 106.90 1.30 1.30 2.24
ESP-D21-49   109.00 113.60 4.60 4.60 3.02
  including 109.00 111.40 2.40 2.40 3.76
ESP-D21-49 and 112.90 113.60 0.70 0.70 4.50
ESP-D21-50   64.50 65.00 0.50 0.42 0.59
ESP-D21-50   122.65 129.20 6.55 6.55 1.21
  including 122.65 125.25 2.60 2.60 2.36
ESP-D21-51   27.60 29.40 1.80 1.60 5.13
  including 27.60 28.35 0.75 0.67 8.05
  and 29.00 29.40 0.40 0.36 7.75
ESP-D21-52   39.60 40.55 0.95 0.85 3.30
  including 39.60 40.00 0.40 0.36 4.24
ESP-D21-52   78.05 78.85 0.80 0.78 0.95
ESP-D21-54   50.15 54.00 3.85 3.74 0.67
  including 51.25 54.00 2.75 2.67 0.82
Antena AN-D21-001   37.30 38.00 0.70 0.48 1.31
AN-D21-001   84.05 86.60 2.55 1.70 4.30
  including 84.05 85.00 0.95 0.63 10.45
AN-D21-002A   47.60 49.00 1.40 1.08 0.64
AN-D21-002A   57.30 58.00 0.70 0.54 0.50
AN-D21-003   50.25 50.75 0.50 0.32 1.19
AN-D21-003   65.50 66.50 1.00 0.87 1.71
AN-D21-003   95.50 101.45 5.95 4.55 0.38
AN-D21-003   105.00 106.00 1.00 0.76 1.36
AN-D21-004   55.85 58.90 3.05 2.20 0.50
AN-D21-004   74.70 75.35 0.65 0.47 0.83
AN-D21-005   74.85 77.80 2.95 2.21 1.82
  including 75.70 76.50 0.80 0.60 3.48
AN-D21-006   80.00 84.00 4.00 2.49 1.49
  including 80.00 81.00 1.00 0.62 2.01
  and 83.00 84.00 1.00 0.62 3.01
AN-D21-006   117.45 120.70 3.25 2.01 1.76
  including 119.15 120.70 1.55 0.96 2.88
AN-D21-007   NSA
AN-D21-007A   189.60 191.00 1.40 0.98 2.09
  including 190.45 191.00 0.55 0.39 3.49
AN-D21-008   82.20 84.80 2.60 2.52 0.33
  including 83.20 83.90 0.70 0.68 0.48
Chulengo PA-D21-66   NSA
PA-D21-67   NSA
Corredor NW PA-D21-68   NSA
PA-D21-69   NSA
PA-D21-70   NSA

 

Table 3. Trench relevant Intercepts

Target Trench ID From To LENGTH
(m)
Au
(g/t)
Antena AN-T21-018 NSA
Antena AN-T21-019 NSA
Antena AN-T21-020 181.00 182.00 1.00 1.60
196.10 198.60 2.50 0.42
Antena AN-T21-021 31.70 39.60 7.90 1.10
including 33.80 35.80 2.00 1.83
and 36.80 38.90 2.10 1.37
121.50 122.00 0.50 1.14
Chulengo PA-T21-025 18.00 19.00 1.00 2.31
Chulengo PA-T21-026 NSA
Chulengo PA-T21-027 NSA
Chulengo PA-T21-035 20.20 25.90 5.70 5.97
including 20.90 25.00 4.10 7.97
and 24.40 25.00 0.60 28.96
Chulengo PA-T21-037 14.50 16.90 2.40 0.53
14.50 15.40 0.90 1.04
Chulengo PA-T21-040 NSA
Chulengo PA-T21-041 4.00 9.00 5.00 1.54
Including 6.00 7.00 1.00 2.97
11.60 15.30 3.70 18.31
Including 12.90 14.30 1.40 37.03
Araña PA-T21-029 5.30 10.10 4.80 4.09
including 6.30 7.30 1.00 15.25
and 9.10 10.10 1.00 2.08
Araña PA-T21-030 7.20 8.30 1.10 1.94
Araña PA-T21-031 7.20 16.60 9.40 5.06
including 9.20 11.00 1.80 7.87
and 15.60 16.60 1.00 17.81
Araña PA-T21-032 10.50 13.50 3.00 2.00
including 10.50 11.50 1.00 3.28
Araña PA-T21-033 16.30 21.00 4.70 0.46

 

Quality Assurance and Quality Control

Analytical work was carried out Alex Stewart international, Argentina S.A. Labs (ASI). The facilities of the prep lab and assay lab are in San Julian, 184 Km from MDN mine operations. MDN sends out 10% of samples to check at ALS international labs (ALS) with the prep lab located in Mendoza and assay labs in Lima, Peru and Vancouver, Canada. In the main laboratory ASI (Mendoza), the samples are systematically analyzed for gold (ppm) and silver (ppm) by fire assay (Au4-50 + AgICP-AR-39) regarding the over limits with fire assay results greater than 10 ppm, a second assay is applied including gravimetric finishing (FA50GRAV), with respect to silver, analyzes greater than 200ppm are carried out by AgFA50GRAV.

ASI has routine quality control procedures which ensure that every batch of samples includes three sample repeats, two commercial standards and 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. Included in the batches following MDN internal protocols.

Review of Technical Information

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

Minera Don Nicolás Overview

Minera Don Nicolás is located 1,625km southwest of Buenos Aires, Argentina in the Deseado Massif region in the mining-friendly province of Santa Cruz. The project is comprised of several exploration concessions totaling 333,400 ha. The largest regional centre is Comodoro Rivadavia, which provides logistical and other support for the operations.

MDN Project is situated within the world renowned Deseado Massif where the underlying geology of the region is dominated by rhyolitic and andesitic volcanic and tuffaceous volcaniclastic lithologies of Middle to Upper Jurassic age (130 to 170 ma). It is criss-crossed by numerous extensive fault and fracture zones, which served as conduits for hydrothermal activity during periods of Jurassic volcanism. The result of this activity is a widespread network of shallow level mineralized “epithermal” fissure veins, breccias, and stock-work systems, many of which carry potentially economic Au and Ag mineralization. The Deseado Massif region is host to several epithermal gold-silver deposits and several multi-million-ounce gold deposits, including Cerro Vanguardia (Anglo Gold), Cerro Negro (Newmont GoldCorp), Cerro Morro (Yamana).

In February 2012, Minera IRL published a Full Feasibility Technical Report in accordance with NI 43-101 (Filed on SEDAR, MINERA IRL LTD, Feb 16, 2012). Construction of the facilities was completed in 2017 and initial production began December 2017.

Current mining operations are conducted in two areas, the high grade La Paloma deposit and the Martinetas deposits, approximately 30km apart. Ore is processed through a 1,000 tpd CIL plant located near the Martinetas pit. The project currently supports 325 employees and contractors on a fly-in fly-out basis. Mineral Don Nicolás has strong regional and local community backing having signed agreements with the two neighboring communities.

Cerrado acquired the MDN Project property in March 2020 and undertook a fundamental review of the resource database and based upon a significant geological re-interpretation, engaged SRK to conduct an independent NI 43-101 updated resource technical report (August 2020) which is available on the Cerrado Gold website and SEDAR.

Mark Brennan
CEO and Co Chairman
Tel: +1-647-796-0023
[email protected]

Nicholas Campbell, CFA
Director, Corporate Development
Tel.: +1-905-630-0148
[email protected]

About Cerrado Gold

Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana 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.cerradogold.com.

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado Gold. In making the forward- looking statements contained in this press release, Cerrado Gold has made certain assumptions, including, but not limited to ability of Cerrado to expand its drilling program at its Minera Don Nicolas Project and increase its resources. Although Cerrado Gold believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado Gold disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.