Cerrado Gold has announced a significant update regarding the development timeline and production strategy for its high-grade Mont Sorcier iron ore project, located in the Eeyou Istchee James Bay territory of Quebec.
Feasibility Study and Production Timeline
The company confirmed that the project is advancing through the later stages of a comprehensive Feasibility Study, which is targeted for completion in the second quarter of 2026. A key development in the project's revised scope is a plan for a two-stage phased approach, which is designed to ramp up production to a target of 8 million tonnes per annum of a premium 67% iron concentrate.
A Premium Product for Green Steel
The Mont Sorcier project is distinguished by its high-purity magnetite iron ore, which allows for the production of a concentrate exceptionally suited for the Direct Reduction Iron (DRI) market. This high-grade, low-impurity product is classified as a Critical Mineral Project by both Canadian and Quebec governments.
This positioning is strategically important, as demand for high-grade DRI material is growing at approximately 10% per year, significantly outpacing the broader iron ore market and commanding substantial price premiums. The product is pivotal for decarbonizing the steel industry, aligning with global sustainable development goals.
Strategic Advantages and Infrastructure
The project's robust economics are bolstered by its favourable location and existing infrastructure. Key advantages include a low strip ratio and direct access to established infrastructure, such as an existing railway and the Port of Saguenay. These factors are expected to contribute to a long mine life characterized by high margins, low operating costs, and low capital intensity.
Mark Brennan, CEO and Co-Chairman of Cerrado Gold, emphasized the project's potential, stating, "We continue to be impressed by the significant potential of this asset to be developed into a long life, robust operation." He further highlighted that the forthcoming Feasibility Study will demonstrate the project's strong value proposition, including its expansion capacity and competitive cost position.
Brennan also noted the project's alignment with government initiatives to develop critical mineral mines and the Northern Corridor of Quebec, suggesting Mont Sorcier is poised to be one of the first projects developed in this strategic corridor.
