Cerrado Gold Inc. Launches Underground Operations at Minera Don Nicolas Mine in Argentina
- Cerrado Gold Inc. has commenced underground operations at its Minera Don Nicolas Mine in Argentina, enhancing production efficiency.
- The company has initiated a 20,000-meter exploration drill program to increase resource output and optimize extraction capabilities.
- Cerrado Gold also holds stakes in the Las Calandrias mine and Lagoa Salgada project, expanding its resource potential.
Cerrado Gold Marks a New Era with Underground Operations at Minera Don Nicolas Mine
Cerrado Gold Inc. has achieved a significant milestone by officially commencing underground operations at its Minera Don Nicolas Mine (MDN) in Argentina. On June 12, 2025, the company completed its initial blast for constructing the underground portal, signaling the start of a new phase in its mining operations. The initial decline will be tunneled through the high-grade Paloma pit ore body, facilitating the extraction of ore to feed the carbon in leach (CIL) plant. As the company ramps up production, it anticipates reaching a steady state by October 2025, which is expected to significantly enhance its operational efficiency and output.
The strategic decision to initiate underground mining at MDN is pivotal for Cerrado Gold as it diversifies its production sources. Executive Chairman Mark Brennan highlights that this move allows the company to incorporate open-pit, heap leach, and underground mining methods, thereby optimizing resource extraction capabilities. Additionally, the company has mobilized its first drill rig to begin a 20,000-meter exploration drill program, focusing on high-grade deposits near the surface. This program aims to bolster the feed for the CIL plant and expand the resource base surrounding the Las Calandrias heap leach project. The underground drilling at Paloma is set to commence once the exploration platforms are established, further enhancing the potential for high-grade material discovery.
Cerrado Gold’s commitment to increasing its resource output is underscored by its strategic exploration initiatives. The scientific and technical information associated with these operations has been thoroughly reviewed and approved by Andrew Croal, P.Eng., the company’s Chief Technical Officer, ensuring adherence to National Instrument 43-101 regulations. This development not only positions Cerrado Gold favorably within the competitive mining landscape but also reflects its dedication to maximizing asset value and exploring largely uncharted areas of the MDN project. Overall, the start of underground operations at MDN represents a significant step in the company’s broader strategy to enhance its mining operations and resource extraction capabilities.
In addition to the advancements at MDN, Cerrado Gold also holds 100% ownership of the Las Calandrias mine and an 80% stake in the Lagoa Salgada VMS project in Portugal, which boasts high-grade polymetallic resources. The Lagoa Salgada project is strategically located near Lisbon, presenting substantial development opportunities. Furthermore, in Canada, the company is progressing with the Mont Sorcier iron project, aiming to produce premium iron ore concentrate with low operational costs. Through these initiatives, Cerrado Gold is poised to capitalize on its substantial resource potential across its diverse portfolio.
