Cerrado Gold to speed up exploration program at MDN

Executive Summary

• Cerrado Gold is accelerating its MDN exploration program from ~20,000 m to an estimated 50,000 m by adding three drill rigs (2 diamond, 1 RC) and certifying its on‑site lab.
• Production at Minera Don Nicolas is being supported by new mining equipment delivering ~300,000 t/month to the leach pad, with underground development progressing (three access portals open).
• The company issued 8,314,997 RSUs and 100,000 share purchase options under its amended omnibus incentive plan.

Key Details

• Exploration Acceleration:
• Additional rigs: 2 diamond drill rigs + 1 reverse‑circulation rig.
• Planned total drilling for 2026: ~50,000 metres (up from the previously announced 20,000 m).

• On‑site laboratory certification being pursued to shorten assay turnaround times; results will be released in batches.

• Operational Performance:

• New trucks and support equipment enable ore haulage of ~300,000 tonnes per month to the leach pad, aligning with planned production rates.
• Underground development: three access portals now open; higher‑grade underground ore already feeding the mill (modest volumes) to blend with lower‑grade stockpiles.

• Majority of high‑grade underground ore for 2025 expected to be mined in Q4 under current mine plan; further underground exploration slated to begin once development is sufficient.

• Incentive Plan Grants:

• Restricted Share Units (RSUs): 8,314,997 units issued, vesting after 12 months, expiring Dec 15 2028.

• Share Purchase Options: 100,000 options granted at an exercise price of $1.27, vesting immediately, expiring Sept 30 2028.

• Management Commentary (CEO Mark Brennan):

• Emphasized the “significant potential” of high‑quality targets and the decision to accelerate drilling and lab certification.
• Highlighted a “solid base for consistent production and mine life” with expectations to deliver a proof‑of‑concept LOM extension by year‑end.

Notable Quotes

• “Following an internal review of the significant potential of high‑quality exploration targets at MDN… we have decided to accelerate and expand the drill program with additional rigs.” – Mark Brennan, CEO & Chairman
• “We are seeing a significant shift in the operations at MDN as we have a solid base for consistent production and mine life… At a minimum, we hope to deliver a proof of concept of significant LOM extension and growth potential by year‑end.” – Mark Brennan, CEO & Chairman