Cerrado Gold Inc · TSXV:CERT
Cerrado Gold — Investor Presentation (March 2023)
37 slides from Cerrado Gold's investor presentation, March 2023
Slide 1: Corporate Presentation – March 2023
Corporate Presentation – March 2023 CERT: TSX.V CRDOF: OTCQX
Slide 2: Disclaimer
Disclaimer This presentation contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and hi
Slide 3: Company Overview
Cerrado Gold Company Overview Monte Do Carmo (MDC): ▪ Exploring over 30km of known mineralized trends BRAZIL ▪ Only Serra Alta deposit has had significant drilling Monte do Carmo ▪ Feasibility Study on anchor Serra Alta Deposit in Q2/23; Production Two Discovery targeted early 2025 Rio de Janeiro St
Slide 4: Company Overview
Cerrado Gold Company Overview Monte do Carmo Location ▪ 82,541 Ha concession package in the state of Tocantins, Brazil ▪ Mineralization hosted in quartz vein swarms, moderately rich in sulphides Geology ▪ Significant “free gold” and no refractory ore ▪ M&I 9.1Mt @ 1.85g/t Au (541koz) Resource ▪ Infe
Slide 5: Cerrado Gold Overview
Cerrado Gold Overview Transitioning to a Low-Cost Producer 200-225,000 200-225,000 150,000-175,000 1,310 1,300 1,200 1,100 75-90,000 857 838 838 65-70,000 53,672 42,284 2021 2022 2023E 2024E 2025E 2026E 2027E MDN MDC AISC (US$/oz) 5
Slide 6: History of Leadership in Latin America
History of Leadership in Latin America : +25x return to founders and still growing : 2.4x for shareholders in under 2 years 4.0 Volume ('000s) SMT Share Price (C$) 270,000 2006 5.0x Production Growth • Desert Sun acquired by Yamana Mar 2017 3.5 230,000 for C$575m • Mark resigns as CEO 2004 3.0 180,0
Slide 7: Monte Do Carmo
Monte Do Carmo Multi-Million Once Potential & the Next Lowest Cost Producer
Slide 8: Location
Monte Do Carmo Location State of Tocantins Monte Do Carmo ▪ State dominated by Industrial Scale Agriculture ▪ Key Infrastructure in place ▪ Tax incentives & State only permitting structure ▪ 69Kv power running through site ▪ Grid power largely supported by Hydro power ▪ Paved road 2km west of the de
Slide 9: Extensive and Underexplored Land Package
Monte Do Carmo Extensive and Underexplored Land Package +30km of Mineralized Trends over 82,542 ha land package 1.3Moz in Serra Alta alone +1,000m Strike 9
Slide 10: Serra Alta: 2021 PEA Highlights a Robust Initial Operation
Monte Do Carmo Serra Alta: 2021 PEA Highlights a Robust Initial operation Peer Leading Economics ▪ Expected to be one of the Lowest Cost 43-101 PEA Summary After-Tax (September 2021) Operations Globally(10) NPV5% After Tax US$617m ▪ AISC of US$431/oz for first 5 years IRR After Tax 94.8% ▪ District
Slide 11: Strongest Return on Investment of any Gold Project
Monte Do Carmo Peer Leading Economics Strongest Return on Investment of any Gold Project US$1,600/oz US$1,700/oz US$1,800/oz 5.78x 6.02x (NPV/Initial Capex) 5.46x 5.14x 4.90x 4.79x 4.82x 4.50x 3.95x 3.50x 3.22x 2.95x 2.98x 2.56x 2.58x 2.29x 2.00x 2.13x 1.98x 1.75x 1.53x 1.64x 1.28x 1.31x 1.05x 0.66x
Slide 12: Rapid Timeline to Production
Monte Do Carmo Rapid Timeline to Production Rapidly advancing to first pour in Q2 2025 2023 2024 2025 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Infill Drilling for M&I Resource NI 43-101 Resource Update Feasibility Study Project Financing Preliminary License Construction License Construction Operation
Slide 13: Serra Alta is the Anchor Deposit in a New District
Monte Do Carmo Serra Alta is The Anchor Deposit in a New District Serra Alta Economic Studies Resource definition Gogo, Capitao Scouting drilling Bit 3, Baru, Ferradura, Fartura, Early indication of potential/ Divisa, Frontel, Gogo North, Gogo West, Serra Alta NE Drill Ready target Giant Quartz Vein
Slide 14: Ingredients to Find the Next Serra Alta
Monte Do Carmo 4 Ingredients to Find the next Serra Alta 1: Granite Hosted 2: NE Shear Zones 3: Proximity to Felsic Volcanics 3D Slice East Zone Sedimentary Cover Felsic Volcanics Au Granite 4: Drilling 100,000 88,206 90,000 80,000 Drilling (m) 70,000 58,576 m to delineate 1.3MOz of Resource at Serr
Slide 15: Targets for 2023 Exploration Program
Monte Do Carmo Targets for 2023 Exploration Program 1. Serra Alta: Remains open ▪ Magnetic lineaments extending for >1km strike Gogo Do Onca Continuing length along strike 1 ▪ Potentially represents the NE continuity of the 2 DK2 shear (Host of E3 Zone) ▪ Targeting additional granitic hanging wall a
Slide 16: Targets for 2023 Exploration Program (Cont.)
Monte Do Carmo Targets for 2023 Exploration Program (Cont.) 4 3 3. Bit-3: Largely untested Magnetic anomaly 4. Divisa: Undrilled ▪ Large Geophysical anomaly that indicates a Huge ▪ Divisa target located along the same shear zone that hosts Mafic/Ultramafic geological unit Bit3 ▪ This target is relat
Slide 17: Targets for 2023 Exploration Program (Cont.)
Monte Do Carmo Targets for 2023 Exploration Program (Cont.) Continuing along strike 5 E2 & E3 Zones Capitao – Building on previous success 5. Capitao East: Finding the sweet spot ▪ Successful drilling in 2022 may have missed the best endowed part of the deposit ▪ Capitao East Target granite undernea
Slide 18: Targets for 2023 Exploration Program (Cont.)
Monte Do Carmo Targets for 2023 Exploration Program (Cont.) Continuing along strike Hangingwall of fertile shear vein 6 6. Giant Quartz Veins: Searching for the source ▪ There are 30 large quartz veins south of Serra Alta ▪ Applying the Serra Alta model, these sheared veins have the potential to dev
Slide 19: Minera Don Nicolas
Minera Don Nicolas Growing Production in the Deseado Masiff
Slide 20: Extensive and Underexplored Land Package
Minera Don Nicholas Extensive and Underexplored Land Package Over 330,000 ha land package in a Burgeoning New District The Massiff is a relatively new district, historically underexplored Cerro Vanguardia discovered 50 40 30 Deseado Masiff: Cumulative Discoveries (Moz) 20 10 0 70s 80s 90s 2000s 2010
Slide 21: Well Trodden Path to Production Growth and Resource Expansion
Minera Don Nicholas Well Trodden Path to Production Growth and Resource Expansion 23% 9% 6Moz 13% 64% Underground continued to UG & HL grow post acquisition contributed 5.9Moz majority of increase 6.0Moz in Resources 91% 14% 13% 5Moz 5.2Moz 73% 14% ▪ MDN remains in the early stages of discovery Au e
Slide 22: Turnkey Platform to Grow Through Exploration
Minera Don Nicholas Turnkey Platform to Grow Through Exploration Track Record of Growth and Operational Improvement 20,000 2,500 2022: 54koz pa 18,000 Hub and Spoke Production Model 16,000 2,000 2022: 48koz pa Paloma Calandrias (High-grade OP&UG) (HL) 14,000 12,000 1,500 Martinetas Martinetas 10,000
Slide 23: Phase One Growth: Heap Leach
Minera Don Nicholas Phase One Growth: Heap Leach Las Calandrias HL Project ▪ Additional 165koz of lower grade resources added to the mine plan ▪ Adds addition 5 years of low-cost production at ~20- 25 kozpa ▪ First pour May 2023 Martinetas HL Project ▪ Utilization of existing lower grade stockpiles
Slide 24: Phase One Growth: Underground
Minera Don Nicholas Phase One Growth: Underground Preliminary Testing of UG potential at Paloma pit NTD: Slide on the underground projects ▪ Drilling to date only to a vertical depth of 200m directly under the high grade Paloma Pit ▪ Existing Pit provides direct access to the Underground for rapid d
Slide 25: Brownfield / Greenfield Exploration
Minera Don Nicholas Brownfield / Greenfield Exploration Paloma Area Signifigant potential to replicate La Paloma Paloma Area NORTE CENTRO La Palmoa Microndas / Martinetas SUR Microondas Targets La Macarena Torre Trofeo • New property wide predictivity maps complete led • Numerous sizable zone with p
Slide 26: Paloma
Minera Don Nicholas Paloma Central Sector ▪ Foot printing of Sulfuro Vein (> 100 Koz) highlights 2 main controls: ▪ North-South / Northwest structures ▪ Andesitic (possibly causal) stocks ▪ A least twelve prospective targets in the central block follow similar patterns. ▪ Surface mapping/geochemical
Slide 27: Martinetas Greenfield Exploration
Minera Don Nicholas Martinetas Greenfield Exploration ▪ Extensional potential of known deposits: Choique Armadillo Coyoye ▪ Camp optionality of high grade(CIL circuit) or lower grade (Heap leach) ▪ Microndas area represents the largest alteration zone alike to Calandrias in MDN’s whole package 27
Slide 28: Company Overview: Market Statistics and Share Price Performance
Cerrado Gold Company Overview Market Statistics Share Price Performance Share Price – March 1, 2023 C$0.87/s Volume (mm) 2 2 C$/share Outstanding Shares (M) 78.6m Volume CERT GDXJ - Rebased Fully Diluted (M) 92.0m 1.8 1.8 Market Cap (C$M) C$67.m 1.6 1.6 P/NAV 0.17x 1.4 1.4 1.2 1.2 1 1 0.8 0.8 0.6 0.
Slide 29: Relative Valuation
Cerrado Gold Relative Valuation 1.17x Junior Developer & Junior Producer P/NAVs 1.04x 1.00x 0.90x 0.91x Junior Producer Average: 0.68x 0.70x 0.62x 0.66x 0.56x 0.57x 0.60x 0.42x 0.50x 0.53x 0.38x Junior Developer Average: 0.37x 0.34x 0.36x 0.37x 0.22x 0.28x 0.31x 0.32x 0.35x 0.22x 0.16x 0.11x Consens
Slide 30: Appendix
WU] CERRADO GOLD Appendix
Slide 31: Leadership
Leadership Mark Brennan, Chief Executive Officer, Co Chairman & Founder Mark Brennan is Cerrado Gold’s CEO and Co-Chairman. He is a Founding Partner and Executive Chairman of Ascendant Resources Inc. and Executive Chairman of Vanadium One Iron Corp., and has more than 30 years of financial and opera
Slide 32: Leadership
Leadership Jason Brooks, CPA, Chief Financial Officer Mr. Brooks is a Chartered Professional Accountant with over 18 years of experience in finance and accounting at international mining companies. Prior to joining Cerrado Gold, he was Vice President, Finance of Caldas Gold until it was acquired by
Slide 33: Leadership
Leadership Veronica Nohara, President & Country Manager, Argentina Mrs. Veronica Nohara is an international business professional with more than 20 years experience in executive positions across various industries. Prior to joining Cerrado Veronica was Chief Executive Officer for Minera Don Nicolas
Slide 34: Leadership
Leadership Elmer Prata Salomão, Director Elmer Prata Salomão served as General Director of Brazil’s National Department of Mineral Production (DNPM), the federal agency in charge of administration of mineral concessions and the implementation of Brazilian mining policy, from 1990 to 1995. Mr. Salomã
Slide 35: Leadership
Leadership Robert Sellars, Director Mr. Sellars has 40 years experience in capital markets and financial services and has significant experience on investment industry committees within the IIROC. Mr. Sellars previously sat on the board of directors of Android Industries, United Hydrocarbons Interna
Slide 36: Monte Do Carmo – Geological Overview
36 Monte Do Carmo – Geological Overview Structural Model This Geological section is confirmed by the recent Cerrado Discovery at Baru Target. Recent infill drilling With a normal displacement of Água Suja confirmed enrichment of fault gold in regions closer to Baru FBU-004 cupula contact 20.05 m at
Slide 37: Monte Do Carmo – Geological Overview
37 Monte Do Carmo – Geological Overview Historical Workings • The property was extensively mined by the Portuguese in the 17th Serra Alta century and by artisanal miners mainly during the 1980’s when over 2,000 garimpeiros were active (white spots represents the mined areas) Giant Quartz Veins 1985