Cerrado Gold Inc. reported a 21% annual increase in third-quarter output at its Minera Don Nicolas mine in Argentina, while a change in ore processing boosted production from its mill.
The mine produced 16,685 gold equivalent ounces (GEO) in the three months ended Sept. 30, compared with 13,832 GEO a year earlier, Cerrado said in its Oct. 19 update. Output for the first nine months of 2026 reached 44,942 GEO, up 23% from the company’s year-earlier comparison.
Cerrado sent selected high-grade ore from Calandrias to its Martinetas mill instead of the heap-leach pad. Its carbon-in-leach (CIL) stream produced 7,036 GEO, up from 5,434 GEO in the second quarter. Heap-leach output declined to 9,649 GEO from 9,981 GEO over the same period.
The company attributed the CIL increase primarily to that processing decision. It described the mine’s broader performance as reflecting improvements made over the past year, including work on the heap-leach operation.
Laboratory tests of selected Calandrias material, generally grading above 2.5 grams of gold per tonne, showed recoveries of up to 95% through milling, Cerrado said. That compares with about 60% expected through heap leaching. The test results do not establish a recovery rate for the entire mine. Cerrado said the additional gold recovered made milling worthwhile despite higher transport and processing costs.
The release is internally inconsistent about the 2026 outlook. Its operating discussion expects production at the upper end of Cerrado’s 50,000-to-60,000-GEO guidance range, while a forward-looking disclosure says output is expected to exceed 60,000 GEO.
Cerrado is targeting a preliminary economic assessment for late in the first quarter of 2027. Cerrado Gold CEO and Chairman Mark Brennan said its main objective is “delivering a new consolidated mine plan.” The company also expects to complete a new heap-leach pad with 12 million tonnes of additional capacity that quarter.
Cerrado expects to release its full third-quarter financial results before Nov. 23.
