Cerrado Gold has elected to extend the completion date of the Bankable Feasibility Study at its Mont Sorcier high-grade iron project to incorporate optimization initiatives identified during the study process. The company aims to enhance the overall value of the project by focusing on areas such as mine planning, tailings dam construction, and cost reviews. The optimization program is not expected to materially impact the overall project timeline, with the Environmental and Social Impact Assessment submission now expected in Q2/27.

The most significant opportunity to enhance the project has emerged from the ongoing mine planning process. The company identified a chance to improve the overall mine plan and lower costs by converting a modest amount of currently Inferred Resources to Measured Resources within a defined area to the east of the current planned pit. This material is expected to be shallower and should materially reduce stripping and tailings management costs over the life of mine. A small, targeted definition drill program is set for late Q3/26 to facilitate this conversion.

Additional areas for detailed review include overall CAPEX and OPEX estimates, which are currently seeing a material impact from rising inflationary pressures. The company plans to focus on life-of-mine tailings dam construction and other project infrastructure needs to reduce the overall size and construction material required. Trade-off studies will also commence to evaluate the operation producing a 65% grade iron concentrate versus the currently planned 67% grade iron concentrate.

The current price premium for 67% concentrate may not be sufficient to justify the additional capital and operating cost requirements to deliver the higher-grade product. However, 65% grade iron concentrates remain a highly desired product, receiving an approximate 20% premium over the more common 61-62% iron concentrate Index. Currently, 67% concentrates garner an approximate $20/t premium to the 65% Index, subject to specific concentrate characteristics. The lower price would be offset by a higher weight recovery in the concentrator plant to deliver higher levels of production with a simplified flow sheet, reducing capital and operating costs.

While the precise impact on the final completion date of the BFS remains uncertain, the company does not expect it to materially affect the timing of the ESIA, which is expected to be filed in Q2/27. The ESIA submission initiates the formal permitting process, with required permits potentially granted around year-end 2028. Construction could commence around the end of Q1/29. The company views this step as a prudent investment to optimize the project for all stakeholders.

Key Optimization Focus Areas

The scientific and technical information in this press release has been reviewed and approved by Andrew Croal, P.Eng., Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined in National Instrument 43-101.

HC Wainwright & Co. analyst Heiko F. Ihle has maintained a Buy rating on Cerrado Gold and increased the price target to C$3.4 from C$3.3. The revised target reflects an updated valuation outlook for the mining company. Cerrado Gold is listed on the TSX under the ticker symbol CERT. The adjustment in the price target suggests a positive near-term trajectory for the stock based on the firm's analysis.