Cerrado Gold Reports 21% Year-Over-Year Increase in Q3 2026 Production Results at Minera Don Nicolas

Cerrado Gold posts 21% Q3 production growth, targets top end of annual guidance.

What the company is saying

Cerrado Gold highlights a 21% year-over-year increase in Q3 2026 gold equivalent ounce (GEO) production at Minera Don Nicolas (MDN), reaching 16,685 GEO, and a 23% year-to-date increase to 44,942 GEO. The company attributes this growth to operational improvements, including the routing of high-grade Calandrias feed to the Martinetas CIL mill, and the resolution of prior heap leach issues. Management, led by CEO and Chairman Mark Brennan, emphasizes ongoing infrastructure upgrades—specifically, the commissioning of a new crushing plant and the completion of a new tailings dam with five years’ capacity. The narrative is forward-leaning, stressing anticipated benefits from the new heap leach pad (12 million tonnes capacity by late Q1 2027) and a forthcoming Preliminary Economic Assessment (PEA) to consolidate mine planning and extend mine life. The company signals confidence in exceeding 60,000 GEO for the year, aiming for the high end of its 50,000–60,000 GEO guidance. Exploration and drilling at MDN, Falcon, and Calandrias II are positioned as drivers for future resource growth and operational expansion.

What the data suggests

The reported 16,685 GEO Q3 2026 production represents a 21% increase over Q3 2025’s 13,832 GEO, with year-to-date output at 44,942 GEO, up 23% from 36,432 GEO. Heap leach production was steady at 9,649 GEO, while CIL production rose to 7,036 GEO, reflecting the shift of high-grade material to the CIL circuit. The average realized gold price in Q3 2026 was $4,256 per ounce, supporting strong revenue potential. Operational data is granular, detailing mining rates (24,630 tpd for heap leach), strip ratios (0.97 for heap leach, 1.00 for CIL), and recoveries (33% heap leach, 90% CIL). The new tailings dam is operational, and the heap leach pad expansion is on track for late Q1 2027. Laboratory recoveries for selected high-grade CIL material reached up to 95%, versus 60% for heap leach, justifying the routing change. The company is on pace to meet or exceed its 50,000–60,000 GEO annual guidance, with increased underground feed expected in Q4 2026. No cost, margin, or cash flow data is provided, so profitability cannot be independently assessed.

Analysis

The announcement presents a positive tone, highlighting strong year-over-year production growth (21% for Q3, 23% YTD) and operational milestones such as the commissioning of a new crushing plant and the completion of a new tailings dam. These realised achievements are well-supported by detailed numerical data. However, several key claims—including the expected completion of a new heap leach pad by late Q1 2027, the anticipated high end of annual production guidance, and the delivery of a new Preliminary Economic Assessment—are forward-looking and not yet realised. The narrative emphasizes future capacity and mine life extension, but these benefits depend on successful completion of capital-intensive projects and ongoing exploration. No cost, cash flow, or profitability metrics are disclosed, so the sustainability of growth cannot be assessed. The language around 'supporting growth initiatives' and 'anticipated growth in mineral resource base' inflates the signal relative to what is currently achieved.

Risk flags

• ●Execution risk remains around the completion of the new heap leach pad and the commissioning of the new crushing plant, both of which are critical for sustaining and expanding production. Delays or cost overruns could impact the company’s ability to reach the high end of guidance.
• ●The absence of disclosed cost, cash flow, or margin data means investors cannot evaluate whether higher production is translating into improved profitability or free cash flow. This limits visibility into the sustainability of operational gains.
• ●The company’s forward-looking targets, including the PEA and resource expansion through exploration, are dependent on successful drilling and technical studies. If exploration results or the PEA fall short, the anticipated mine life extension and production growth may not materialize.
• ●Operational performance is exposed to gold price volatility, as the incorporation of lower-grade material into the heap leach feed is only economic at higher prices. A decline in gold prices could reduce resource utilization and revenue.

Bottom line

Cerrado Gold delivered strong Q3 2026 production growth at Minera Don Nicolas, with both heap leach and CIL streams contributing to a 21% year-over-year increase and a trajectory toward the high end of annual guidance. Infrastructure projects, including a new tailings dam and an imminent heap leach pad expansion, underpin the company’s plan to sustain and grow output. While operational disclosures are detailed, the lack of cost and profitability data prevents a full assessment of value creation. Near-term catalysts are the completion of the heap leach pad and the release of a new PEA by late Q1 2027, both of which are critical for supporting the company’s growth narrative. Investors should focus on the timely execution of these projects and the eventual release of financial results prior to November 23, 2026. The key takeaway is that operational momentum is strong, but the translation to financial returns remains unproven until full financials are disclosed.

Announcement summary

(TSXV:CERT) Cerrado Gold Inc. reported production results for the third quarter ended September 30, 2026, from the Minera Don Nicolas Mine (MDN) in Santa Cruz Province, Argentina. Q3 2026 gold equivalent ounce (GEO) production was 16,685, representing a 21% increase from 13,832 GEO in Q3 2025. Year-to-date production reached 44,942 GEO, up 23% from 36,432 GEO in the comparable 2025 period. Heap leach production for Q3 2026 was 9,649 GEO, similar to Q2 2026, while CIL production increased to 7,036 GEO, primarily due to routing high-grade Calandrias feed to the Martinetas mill. The new crushing plant is undergoing commissioning and is expected to support increased feed delivery to the heap leach pad. The new tailings dam is operational and provides approximately five years of capacity at planned rates. The new heap leach pad is expected to be completed by late Q1 2027 and will provide 12 million tonnes of additional capacity. Higher gold prices have enabled MDN to incorporate additional low-grade material into the heap leach feed, improving resource utilization. Selected high-grade Calandrias material, generally above 2.5 g/t gold, was processed at the Martinetas CIL mill, achieving laboratory gold recoveries of up to 95%, compared with approximately 60% expected through heap leaching. Underground development continued during the quarter, with more fresh feed available toward quarter-end, and additional underground mineralized material is expected in Q4 2026. Cerrado now expects to be at the high end of its annual guidance range of 50,000 to 60,000 GEO. In Q3 2026, heap leach ore mined was 1,150 ktonnes, waste mined was 1,116 ktonnes, and total mined was 2,266 ktonnes, with a strip ratio of 0.97 and a mining rate of 24,630 tpd. Heap leach ore pad feed was 905 ktonnes, with a head grade of 0.89 g/t Au and 9.01 g/t Ag, and gold recovery of 33%. Heap leach gold ounces produced were 8,453 oz, and gold GEO produced was 9,649 oz. High-grade CIL ore mined was 24 ktonnes, waste mined was 24 ktonnes, and total mined was 48 ktonnes, with a strip ratio of 1.00 and a mining rate of 525 tpd. CIL ore milled was 101 ktonnes, with a head grade of 2.29 g/t Au and 11.63 g/t Ag, and gold recovery of 90%. CIL gold ounces produced were 6,607 oz, and gold GEO produced was 7,036 oz. Consolidated Q3 2026 gold GEO produced was 16,685 oz, and gold GEO sold was 16,187 oz. The average realized price per gold ounce sold in Q3 2026 was $4,256. Mark Brennan, CEO and Chairman, stated that strong operational performance at MDN is supporting growth initiatives to extend mine life and increase production. Cerrado is progressing a new Preliminary Economic Assessment (PEA), expected by late Q1 2027, to deliver a consolidated mine plan with extended mine life and increased production profile. Exploration and drilling continued at MDN and the recently acquired Falcon and Calandrias II properties, with the aim to add mineral resources to support heap leach expansion. The company expects to complete the drill program and associated testing before year-end for inclusion in the PEA. Cerrado Gold is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mines in Argentina, holds an 80% interest in the Lagoa Salgada VMS project in Portugal, and is developing the 100% owned Mont Sorcier Iron project in Quebec, Canada. Andrew Croal, P.Eng., Chief Technical Officer, reviewed and approved the technical information in the release.

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