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Cerrado Gold Reports NI 43-101 Preliminary Economic Assessment and Mineral Resource Estimate for the Minera Don Nicolas Mine in Santa Cruz, Argentina
After Tax NPV5% of US$111 Million at US$2,100/oz Au price After Tax NPV5% of US$153 Million ...
About this update from Cerrado Gold Inc
[{"type":"text","content":"Cerrado Gold Reports NI 43-101 Preliminary Economic Assessment and Mineral Resource Estimate for the Minera Don Nicolas Mine in Santa Cruz, ArgentinaAfter Tax NPV5% of US$111 Million at US$2,100/oz Au priceAfter Tax NPV5% of US$153 Million at Spot prices1Average annual production targeted at approx. 56,000 Gold Equivalent Ounces (\"GEO\")2Life of Mine Average annual EBITDA of US$49 Million and FCF of US$25 MillionLOM average EBITDA of US$64 Million and FCF of US$29 Million at Spot prices1Mine life of 5 years, from April 2024 based on existing ResourcesAverage Cash Costs of US$863/oz; Avg AISC US$1,144/ozNo Material Upfront Capital Expenditures requiredUpdated Mineral Resource Estimate contains 490,000ozs of Measured and Indicated Resources and 121,150 ozs of Inferred Resources with potential upside from continued drilling & resource expansion1. Spot prices; Au: US$2,400/oz and Ag:US$29/oz2. GEO calculated by multiplying recovered silver ounces by (25/2100)TORONTO, ON / ACCESSWIRE / August 6, 2024 / CERRADO GOLD (\"Cerrado\" or the \"Company\") is pleased to announce the results of a NI 43-101 Preliminary Economic Assessment (\"PEA\") and an updated Mineral Resource Estimate (\"MRE\") for its Minera Don Nicolas mine located in Santa Cruz Province, Argentina. The work was completed by GeoEstima SpA. The final report is to be completed and available on SEDAR+ by 20th September 2024.Mark Brennan, CEO of Cerrado Gold commented \"The results of the PEA support the near-term operational performance we are targeting for Minera Don Nicolas. These results support our view that MDN is set to enter a period of stable operations, generating robust cash flows enabling the reduction of debt and enhancing the overall financial strength of Cerrado. When combined with the expected receipt of US$45MM in total cash payments for the recent sale of our Brazilian asset over the next two years, Cerrado will be well positioned for strong future growth. For the next few years, MDN will be focused on growing resources to extend the mine life and leverage the value of our existing operations. We continue to view MDN as early in its exploration life and see the potential for a world-class multi-deposit district moving forward.\"PEA Summary ResultsPEA Base Case1 Average Annual Gold Equivalent Production (ounces)55,869Mine life (years) - Mine Plan start D...