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(Wallace Refiners) – Cerrado Gold (TSX.V: CERT) announced Friday that during Q1 2021, the company’s gold production from its Minera Don Nicolás mine (MDN) in Argentina was 7,485 oz, a 45% increase compared to Q4 2020 gold production of 5,168 oz.
Cerrado said that this increase is attributable to higher gold and silver grades realized over the year as well as the increase in throughput over the previous quarter.
According to the company’s statement, monthly gold production has continuously increased since Cerrado acquired Minera Don Nicolas, highlighted with 3,105 ounces produced in March 2021, an 18% improvement from management expectations.
Heading into 2021, the company anticipates a step up increase in production. First quarter results have exceeded expectations and the mine remains well positioned to deliver strong performance in 2021, the company said.
In Q1 2021, the company generated revenues of $11.16 million as a result of the sale of 6,584 oz of gold. Average realized price per gold ounce sold was $1,639. Revenues in Q1 2021 were up 9% over Q4 2020 as a result of higher ounces sold, partially offset by lower average metal prices.
Net loss and basic and diluted loss per share in Q1 2021 were $5.67 million and $0.10, respectively, compared to net loss and basic and diluted loss per share of $5.17 million and $0.11 in Q4 2020, and $2.78 million and $0.07, respectively in Q1 2020. Loss from mining operations in Q1 2021 was $0.03 million.
The company added that operational results are expected to continue to improve strongly over the course of 2021 as Cerrado reduces low grade feed to the plant and ore grades further improve, leaving MDN well positioned to generate robust operating results and free cash flow for the foreseeable future.
Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil.
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