Cerrado Gold Inc. (CERT) has announced an extension to the timeline for its bankable feasibility study at the Mont Sorcier iron project in Québec. While a previous update in late 2024 had targeted completion for early 2026, the company has now chosen to pause the study to integrate a series of optimization initiatives aimed at improving project economics and mitigating the impact of recent inflationary pressures on capital and operating costs.

The company is preparing a targeted, modest drill program for the third quarter of 2026. This work aims to convert a portion of the existing Inferred Resources into Measured Resources in a specific area east of the current planned pit. Management anticipates that this material is located at a shallower depth, which could significantly reduce stripping requirements and tailings management costs over the life of the mine.

Beyond resource conversion, the optimization scope includes a comprehensive review of capital and operating expenditures, specifically focusing on tailings dam construction and overall infrastructure design to reduce material requirements. Furthermore, the company is conducting trade-off studies to determine whether the project should initially target a 65% grade iron concentrate rather than the 67% grade previously contemplated. While 67% concentrate remains a focus for the green steel industry, the company notes that current market price premiums may not justify the additional costs compared to the 65% product, which already commands a strong market premium over standard 61-62% iron concentrates.

"We believe that this is the right course of action and are confident that the opportunities identified will have a material impact on the value of the project."

"Furthermore, the optimization program is not expected to materially impact the overall project timeline, which is driven by the Environmental and Social Impact Assessment submission date, which we now expect will be submitted in Q2/27 as a result of these changes."

— Mark Brennan, CEO and Chairman

Despite the shift in the feasibility study schedule, the company maintains that the broader development timeline remains relatively stable. The submission of the Environmental and Social Impact Assessment, a critical milestone to initiate the formal permitting process, is now expected in the second quarter of 2027. Based on this updated schedule, Cerrado Gold anticipates that construction permits could potentially be secured around the end of 2028, positioning the project to commence construction by the end of the first quarter of 2029.

The company underscored that these technical refinements are a prudent approach to ensuring the project delivers an optimal mining operation for all stakeholders. The specific revised completion date for the feasibility study is not yet fixed, as it remains contingent on the results of the upcoming drill program and the outcome of the ongoing trade-off studies. Management continues to monitor industry developments, including potential regulatory efforts to accelerate permitting timelines, though no concrete adjustments to the current outlook have been implemented. The company intends to provide further updates as the optimization work progresses and the technical details are finalized.

Read the full announcement: Cerrado Gold Elects to Revise Timing for Completion of the Mont Sorcier Feasibility Study to Undertake Optimization Initiatives