Cerrado States that Mont Sorcier Feasibility Contemplates a Higher Through-put Rate by 60%

The most recent news, dated November 12, 2025, provides an update on the Mont Sorcier iron and vanadium project from the operator, Cerrado Gold Inc. The update states that the ongoing Feasibility Study (FS) for the project is contemplating a significant increase in the potential production throughput rate by approximately 60% compared to the 2022 Preliminary Economic Assessment (PEA). The study is also considering a phased production approach to manage initial capital costs.

This news is an incremental positive development but remains routine in nature. The potential for a 60% larger operation at Mont Sorcier would significantly enhance the long-term value of Chibougamau's 2% Gross Metal Royalty (GMR) if realized. A larger production scale directly translates to higher potential royalty payments over the life of the mine.

However, several critical factors temper the immediate impact: - Speculative Nature: The release states this is a "contemplation" for the FS. It is not a final decision or a completed study. The final scope of the project remains subject to the full FS results. - Increased CAPEX & Financing Risk: A larger plant will invariably come with a substantially higher initial capital expenditure (CAPEX). While a phased approach may mitigate this, it elevates the financing risk for the operator, Cerrado Gold. The ability to secure funding for a larger, more capital-intensive project is a major hurdle that is now even higher. - Timeline: The timeline for the FS completion was previously updated in the October 20, 2025 release to Q2 2026, a slight pushback from the "end of Q1 2026" target stated earlier in the year. This latest news does not provide a new timeline, and evaluating a larger scope could potentially extend it further.

Looking at the historical context, this news builds on a series of positive updates from Cerrado throughout 2025, including the completion of 17,000 metres of infill drilling (Oct 20) and confirmation of the ability to produce a high-purity, greater than 67% iron concentrate suitable for the "green steel" market. These developments have been the primary driver behind the stock's strong performance since early October. The latest release reinforces this positive narrative, but the fundamental risks associated with project development, financing, and timelines remain unchanged. It adds to the project's potential upside but also to its execution risk.

Chibougamau Independent Mines Inc. is a Canadian mineral exploration and royalty company. Its business model focuses on generating projects and retaining royalties.

The company's flagship asset is a 2% Gross Metal Royalty (GMR) on the Mont Sorcier iron and vanadium project located near Chibougamau, Quebec. The project is operated by Cerrado Gold Inc., which is advancing it towards a Bankable Feasibility Study (BFS) targeted for completion in Q2 2026. A 2022 PEA on the project showed a robust after-tax NPV of US$1.6 billion based on a 21-year mine life producing 5 million tonnes per year of high-grade (65% Fe) iron concentrate. The project is also subject to a 1% GMR payable to Globex Mining Enterprises Inc.

Chibougamau also holds other properties in Quebec, including the West Block properties, which are under an amended option agreement with TomaGold Corp.