Cerrado Gold Inc., a prominent mining company trading on the TSX Venture Exchange under the symbol CERT and on the OTCQX as CRDOF, has officially announced its production results for the fourth quarter ending December 2025, as well as the full-year performance from its Minera Don Nicolas Mine located in Santa Cruz Province, Argentina. The company's comprehensive quarterly and year-end financial results are anticipated to be released before April 30, 2026, providing further insights into its operational and financial health.
Q4 2025 Operating Highlights and Production Performance
In the fourth quarter of 2025, Cerrado Gold achieved a production of 13,806 Gold Equivalent Ounces (GEO), which demonstrates stability when compared to the 13,832 GEO produced in the previous quarter. This period saw heap leach production reaching 7,838 GEO, though it was notably impacted by limited water availability that reduced irrigation capacity at the site. To address this challenge, the company has implemented strategic measures, including purchasing water delivered by trucks and drilling additional bore holes to secure new water sources, ensuring ongoing operations are not severely hindered.
Simultaneously, the initial underground production at the Paloma site has been successfully achieved, with ongoing development work aimed at increasing access to new ore zones. The Carbon-in-Leach (CIL) plant benefited from additional ore sourced from underground development, particularly in December, resulting in a total production of 5,968 GEO through the CIL plant during Q4. This shift towards underground mining has introduced higher volumes and higher-grade ores, which have helped sustain overall production rates despite some operational setbacks.
Addressing Operational Challenges and Future Plans
Operational results for Q4 2025 revealed that production rates could have been higher if not for the irrigation limitations on the heap leach pad due to water scarcity. Average recovery rates also experienced a decline, attributed to increased amounts of primary ore being placed on the leach pads as part of the mine sequence. However, this was counterbalanced by the enhanced output from underground mining processed via the CIL plant. The recent expansion of crushing capacity has positively impacted ore crushed and placed on the leach pad, with both tonnage and recoveries improving over the quarter due to more consistent particle sizing.
As water availability for irrigation increases, the gold inventory on the pad that has not been fully irrigated is expected to be recovered over time, optimizing resource utilization. Underground development continued at a steady pace during the quarter, enabling access to more material amounts of ore in December and setting the stage for future development plans. Throughout 2026, underground ore development is projected to follow a cycle of development and ore extraction, as the underground workings extend deeper beneath the current pit, aligning with the ore zone.
2026 Production Guidance and Strategic Capital Expenditures
Looking ahead, Cerrado Gold has provided its 2026 annual production guidance, forecasting a range of 50,000 to 60,000 GEO. It is important to note that production is expected to be disproportionately higher in the second half of 2026, due to the mining of lower-grade heap leach material early in the year, as per the mine plan and the underground development and production cycle. This strategic approach aims to maximize output and efficiency over the course of the year.
In terms of growth capital, the company recently approved its 2026 budget, which includes total Growth Capital expenditures of approximately $45 million across all projects. The majority of these funds, around $35 million, are allocated to the Minera Don Nicolas Mine, supporting a 50,000-meter exploration program and the expansion of the tailing facility and leach pad to ensure continued operations for several years. Additional investments are directed towards equipment upgrades and maintenance, positioning the mine for long-term sustainability.
Exploration funding accounts for approximately $12 million, with the remainder of the funds allocated to the Lagoa Salgada and Mont Sorcier projects as they progress towards development decisions, with the completion of their respective Feasibility Studies expected in the first half of 2026. This comprehensive capital plan underscores Cerrado Gold's commitment to resource growth and operational excellence across its portfolio.
