As the feasibility study nears completion in the second quarter of 2026, the company plans to expand production capacity, optimize capital investment plans, ensure progress, and strengthen the strategic rationale for the development of one of Canada's next critical mineral mines.
Production of 67% premium grade iron concentrate has been confirmed
According to the company's new report, updated metallurgical tests confirm the project's ability to supply high-purity magnetite concentrate with 67 percent iron content and total silica and alumina content below 2.3 percent. This product is classified as an essential mineral according to federal and provincial directives and is suitable for direct reduction or pellet feed, supporting global steel decarbonization efforts.
Increased productivity from 5 million tons to 8 million tons
In response to the strong growth in demand, Cerrado Gold expanded the design of the project from a capacity concept of 5 million tons per year to 8 million tons. Phase 1 will operate with a concentrate capacity of 4 million tons, and Phase 2 in three years will include an additional capacity of 4 million tons.
Cerrado Gold aims to reduce the initial capital intensity, while bringing the issue in line with the needs of the DRI market, following this step-by-step approach.
Capital cost adjustment
Capital expenditures in phase 1 are expected to increase by 30-40 percent compared to the 2022 estimate due to updated flowchart requirements, resizing of the infrastructure for a full capacity of 8 million tons, and industry-wide inflation. It is expected that capital expenditures in the second stage will be much lower, since the main facilities (tailings, railway, offices, utilities) will already be built.
