Mont Sorcier Optimization Studies Delay Bankable Feasibility Study, Key ESIA Filing Remains on Schedule

Cerrado Gold Inc. has extended the completion date of the Bankable Feasibility Study (BFS) for the Mont Sorcier high-grade iron ore deposit to conduct optimization and trade-off studies. The study’s completion date is now undefined, though the Environmental and Social Impact Assessment (ESIA) filing remains on schedule for Q2 2027, with permits expected by year-end 2028 and construction targeted for Q1 2029.

Optimization efforts are focused on reducing the overall strip ratio, lowering infrastructure costs, and evaluating a shift from a 67% Fe concentrate to a 65% Fe concentrate. Management suggests the 67% premium may not justify the added capital and operating costs. A 65% concentrate receives a 20% premium to the 61-62% index, while the 67% product only garners ~$20/tonne over the 65% index. A 65% product could enable higher weight recovery, a simplified flow sheet, and reduced capex and opex.

A modest drill program is scheduled for Q3 2026 to upgrade inferred resources to measured resources. Globex Mining Enterprises Inc. retains a 1% Gross Metal Royalty (GMR) on iron production from Mont Sorcier.

Globex Mining Enterprises Inc. (GMX) issued a project development update rather than an earnings release, confirming that the delay in its Bankable Feasibility Study (BFS) is a standard step in mining project advancement. The postponement is driven by a deliberate pivot to optimize economics rather than any technical failure.

The company is shifting toward a 65% Fe concentrate target, a move reflecting pragmatic capital expenditure management. Lowering the target grade to improve recovery and simplify the flow sheet could materially enhance the project’s internal rate of return, offsetting the lower per-tonne premium.

For Globex, the delay postpones potential royalty cash flows but does not alter the long-term development thesis. The Environmental and Social Impact Assessment (ESIA) timeline remains the critical next milestone.

Market reaction has seen the stock decline approximately 33% from its January/February highs. The price action suggests the market has already discounted development fatigue and macro headwinds.

Globex Mining Enterprises Inc. (GMX) is a royalty and exploration company with a diversified portfolio of critical metals and precious metals assets across Canada and the US. The company’s strategy involves monetizing early-stage assets through option agreements and royalties, retaining upside while transferring development risk to operating partners.

Key assets include Mont Sorcier (1% GMR, iron ore, Quebec), Bald Hill (antimony, NB), Duquesne West (50% option, gold, QC), Berrigan (2% GMR, Zn-Ag-Au, QC), Kewagama (2% NSR, gold, QC), Eagle Gold (2.5% GMR, QC), Parbec (3% GMR, gold, QC), Nordeau (3% GMR, gold, QC), Carp (3% GMR, fluorspar, NV), Virgin Mountain (REE/Be, AZ), Salt Spring (gold, AZ), Blackcliff (100% gold, QC), Rouyn-Merger (gold, QC), and Lyndhurst (copper, ON).