Impact: Positive
Cerrado reported the highest-grade intercept encountered to date from an ongoing drill program at its Minera Don Nicolas (MDN) operation in Santa Cruz, Argentina. RC hole PA-RC23-123 returned multiple mineralized intervals, with a highlight of 122.2 g/t Au over 12m, including 429.1 g/t Au over 3m. Cerrado is planning to immediately follow-up on the hole in this area with diamond core drilling. The company also provided a progress update from development-stage projects at MDN. In our opinion, this is a significant positive drilling result for Cerrado. It is one of the best drill intercepts reported at the project to date, and it extends high-grade mineralization well beyond previous drilling. While operational updates at MDN and the feasibility study and development progress at the Monte do Carmo project are likely to be the main drivers of the share price in the near-term, drilling results such as this demonstrate the exploration upside at MDN.
