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This Company’s Mineral Resource Estimate Just Increased by 62 % at its Brazil Property

Jocelyn Aspa Jocelyn Aspa, The Market Herald
1 Comment| August 24, 2021

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Latin America continues to be a massive contributor when it comes to global gold production. While Peru is the region’s leader, clocking in at 120 metric tonnes in 2020, countries like Brazil and Argentina aren’t too far behind, at 80 and 60 metric tonnes produced last year respectively.

In line with this, Canadian companies are choosing regions such as the state of Tocantins in Brazil to operate thanks to its local advanced infrastructure and support from local residents.

Case in point, Cerrado Gold Inc. (TSXV:CERT, OTCQX:CRDOF, Forum) is one such company exploring the region thanks to its advanced exploration stage Monte do Carmo property, which consists of 14 exploration permits spanning 58,000 hectares.
Historically, gold was first discovered in the Monte do Carmo region sometime during the 17th century by the Portuguese. By the 1980s, the area went through an influx of artisanal gold miners, while investments in mineral exploration in the area skyrocketed from US$4.7 million in 1985 to $20 million by 2020.


Fast forward to present day and Cerrado Gold is advancing the Serra Alta deposit on the Monte do Carmo Gold project. The Serra Alta deposit is characterized bya high-grade, shallow mineralization with an open pittable mineral resource.

On August 4, the company announced a mineral resource update at the Serra Alta deposit to include successful Phase 1 drilling results initiated in October of last year.


New mineral resource updated at Serra Alta deposit

In a press release, the company said the new mineral resource estimate was done by Micon International after the Phase 1 program that focused on resource extension and category conversion.

Notably, total mineral resources increased with 62 per cent more ounces of gold from the previous estimate. As such, updated resource highlights include total indicated resource of over 9.1 million tonnes at 1.85 grams per tonne (g/t) gold containing 541,000 ounces of gold. Meanwhile total inferred resources of 13.19 million tonnes at 1.84 g/t gold contained 780,000 ounces of gold.


(Click image to enlarge. Image courtesy of Cerrado Gold)


The first phase of drilling also added important information to previous and historic drilling done by Cerrado which formed the basis of the previous resource estimate done in April 2019 by Micon.

"We are extremely pleased with the updated resource estimate for the Serra Alta deposit, highlighting not only significant growth in contained ounces but also the significant improvement in the confidence of a large portion of the current resource base, as seen in the new Indicated Resources, which gives us strong confidence in high conversion rates going forward,” Mark Brenna CEO of Cerrado Gold, said in a press release. "Further, this expanded resource base will be used in the upcoming Preliminary Economic Assessment for the Serra Alta deposit which will look at higher throughput and production rates relative to the previous study."

The company also said that the new resource estimate will now act as the basis of its ongoing preliminary economic assessment, expected to be completed sometime in the near future.


Cerrado Gold recent highlights

In addition to the mineral resource update at its Serra Alta deposit, Cerrado Gold has been busy over the summer months — both in Brazil and Argentina.

In July, the company released strong Q2 production results from its Minera Don Nicolas Mine in the Santa Cruz province of Argentina. Highlights included gold production of 9,607 ounces for the quarter which is a 28 per cent increase from the previous quarter of 7,485 ounces of gold produced.

Later that month, Cerrado Gold announced it had intercepted 49.22 g/t gold over 2.25 metres and 22.42 g/t gold over 4.57 metres at the same region.

“Work to date continues to support our view that significant resource growth remains available on our extensive land package at Minera Don Nicolas. In addition, these results continue to show the potential to quickly add additional high-grade, shallow resources near existing infrastructure which we believe can quickly be brought into the mine plan as they are more fully defined,” Brennan said in the release. “We fully expect the ongoing program to continue to add additional resources and open up new targets for the future.”


The investment opportunity

Cerrado Gold is in a solid position for future growth and strong results from its properties in both Brazil and Argentina. With an influx of milestones over the 2021 summer months alone — including the mineral resource estimate increase of 62 per cent at the Serra Alta deposit — Cerrado Gold is proving itself to be a game changer in the space.

Not only that, shares of Cerrado Gold have had a solid 9.60 per cent increase year-to-date to C$1.37. At this price, investors are guaranteed a solid buy from a company that consistently delivers strong results.


For more information, visit cerradogold.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.


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