Cerrado Gold Inc V.CERT

RE:RE:RE:Phil the fearmonger

[ABDPhil]

@Brioche: "You are a basher .... but a very interested basher. ". Indeed, I am an interested basher. If CERT was a bunch of BS, I wouldn't do the same.

Regarding COVID and POG, all gold companies are suffering the consequences. This cannot be an excuse because we are comparing apples to apples.

"Where do u see any problem? "Regarding the strip ratio, it is very high and one should understand why this is so. Is it temporary or is it the structure of the deposit that dictates it? It is to be verified.

Regarding the gold grade, it is up 20% and gold production is up 6%. Why did the growth in ounces of gold produced not keep pace with the increase in gold grade? This is to be verified because these metrics show a poor performance of the plant. What will happen if the gold grade returns to the Q2 level?

Regarding drilling, I will clarify my message with an example. If profitability should initially be reached from 0.5 g / t but for various reasons, profitability is rather reached at 0.6 g / t, this means that the ore from 0.5 to 0.6 will be transported to the reject yard rather than treated. Therefore, the mineral reserves calculated according to the threshold of at 0.5 g / t are no longer valid. Consequently, “additional” drilling (beyond what was planned) will be necessary to maintain the reserves. For your information, the cut-off is established according to the break-even point. When a factory is operational, a very low cut-off is a good indicator to measure its performance. A high performing factory has lower production costs and is less dependent on POG to be profitable. For me, this is a metric that I find very important.

** Beware of the exploration company, which estimates mineral resources with a cut-off of 0.2 g / t. This is intended to present artificial results. **

For 2022, I wish you efficiency metrics continue to improve, regardless of quarters. Improving the operation of a factory takes investment and time, you have to be forgiving.

Regarding the nature of my interventions, you have to understand that they are like that because I am a long-term investor. An investment in Cerrado is not excluded. But for now, I prefer to monitor the situation and wait for the results to improve further.

Have a great holiday.