Cerrado Gold Elects to Revise Timing for Completion of the Mont Sorcier Feasibility Study to Undertake Optimization Initiatives
Cerrado advances Mont Sorcier optimization via BFS extension while MDN production proceeds despite permitting delays.
Cerrado Gold Inc. (CERT) has decided to extend the completion date of the Bankable Feasibility Study (BFS) for its Mont Sorcier high-grade iron project to incorporate optimization initiatives. The primary optimization involves converting Inferred Resources to Measured Resources through a targeted drill program scheduled for late Q3 2026, a move intended to reduce strip ratio and tailings management costs.
The company is also evaluating a shift from 67% to 65% iron concentrate to maximize economic value, noting that the approximately $20/t premium for 67% may not justify the added capital and operating costs. Consequently, the Environmental and Social Impact Assessment (ESIA) submission is now expected in Q2 2027. Permitting is anticipated around year-end 2028, with construction commencing around Q1 2029. Management states that the BFS extension will not materially impact the overall project timeline, as the ESIA submission remains the primary driver.
Cerrado Gold Inc. (CERT) described the extension of its baseline feasibility study as a standard optimization delay rather than a fundamental economic setback. Management frames the move as value-accretive, targeting lower strip ratios and simplified flowsheets. The overall project timeline, including environmental and social impact assessment, permitting, and construction, remains unchanged, meaning the catalyst window for the Mont Sorcier project is not materially pushed back.
No new financials, production misses, or cost blowouts were disclosed. The market likely already priced in permitting complexity and study extensions.
Cerrado Gold Inc. (CERT) operates a multi-jurisdictional footprint featuring a single producing asset and two advanced development projects. The company’s Minera Don Nicolas mine in Argentina, a gold and silver operation transitioning to underground mining, targets approximately 55,000 ounces of gold per year through 2028. In Quebec, Canada, the company holds a 100% interest in the Mont Sorcier high-grade magnetite iron project, which is targeting direct reduced iron-grade concentrate, with a preliminary economic assessment currently in progress. Additionally, Cerrado Gold owns 80% of the Lagoa Salgada project in Portugal, a volcanogenic massive sulfide deposit containing zinc, copper, lead, tin, silver, and gold. Despite permitting challenges, an injunction has been granted, with construction targeted for late 2027 or 2028.