Cerrado receives "unfavourable opinion" re Lagoa EIA

Executive Summary

• Cerrado Gold reports that the Portuguese Environmental Agency (APA) has issued a purported unfavourable opinion on the Environmental Impact Assessment (EIA) for the Lagoa Salgada VMS project, despite the statutory deadline having passed, which under Portuguese law results in tacit approval of the EIA.
• The company asserts that the project’s reformulated design eliminated cyanide, added groundwater protection, and moved to filtered dry‑stack tailings, addressing prior concerns; it is now seeking a constructive dialogue with APA or will pursue legal action to enforce the deemed approval.
• The Lagoa Salgada project remains classified by the Portuguese government as a Project of National Interest (PIN) and aligns with the EU Critical Raw Materials Act, underscoring its strategic importance for European supply of zinc, copper, lead, tin, silver and gold.

Key Details

• Statutory Deadline: The 50‑business‑day deadline for APA to issue an environmental impact declaration (DIA) expired on 22 Jan 2026; no final decision was issued, creating a tacit approval under Portuguese law.
• APA’s Purported Opinion: Despite the lapse, APA allegedly issued an unfavourable opinion based on alleged risks to the deep aquifer system, not chemical contamination.
• Project Improvements Implemented:
• Elimination of cyanide from processing.
• Reinforced protection and isolation of groundwater.
• Transition to filtered (dry‑stack) tailings, reducing environmental footprint.
• Regulatory Context: The company cites Article 19(2) of the DIA regime and Article 16 of the RJAIA, arguing that APA cannot reopen the assessment beyond the scope of the proponent’s submitted changes.
• Prior Favorable Opinions: All 14 entities on the evaluation committee, including the water‑resources authority, previously gave unanimous favourable opinions (May 2025).
• Legal Position: Cerrado Gold reserves the right to seek court enforcement of the RJAIA to confirm tacit approval and proceed to the final execution project and RECAPE phases.
• Strategic Significance: The deposit contains high‑grade zinc, copper, lead, tin, silver and gold; recognized as a Project of National Interest and supportive of EU critical raw materials supply goals.
• CEO Quote: “We are astonished at both receiving a purported unfavourable opinion after DIA approval is deemed granted… From a technical perspective, the project exceeds the most rigorous Portuguese and global environmental standards.”

Notable Quotes

Mark Brennan, Chief Executive Officer: “The Lagoa Salgada EIA process has seen one of the most technically robust environmental assessments undertaken for a mining project in Portugal. The project improvements introduced by the company significantly strengthened its environmental profile.”