Cerrado Gold Inc. (CERT-TSXV) is making significant strides regarding the advancement of the Mont Sorcier Iron and Vanadium Project located near Chibougamau, Quebec. The company has outlined plans to utilize funds acquired from the sale of its Monte Do Carmo project in Brazil to complete a feasibility study for Mont Sorcier. This project is noteworthy as it is backed by both Chibougamau Independent Mines and Globex Mining Enterprises, which hold Gross Metal Royalties of 2% (all minerals) and 1% (iron and all minerals excluding vanadium) respectively on the project.
Cerrado holds a 100% interest in the Mont Sorcier project, which is poised to produce a premium iron ore concentrate with low operating costs and capital intensity. The project has an Indicated Resource of approximately 678.5 million tonnes with a grade of 36.4% Fe2O3 and an Inferred Resource of 546.6 million tonnes grading 34.1% Fe2O3, as per the NI 43-101 Technical Report prepared for Voyager Metals Inc. by Mathieu Girard, P. Eng. The high purity of the iron concentrate produced here is particularly relevant as it aligns with the industry’s shift towards electric arc furnaces, which are more environmentally friendly compared to traditional blast furnaces.
The Mont Sorcier project not only presents a lucrative mining opportunity but also plays a crucial role in the decarbonization efforts within the steel industry. Its high-grade product supports the transition from carbon-intensive production methods to more sustainable practices, thereby contributing to global sustainability goals. As noted in Cerrado’s press release, this transition is essential for steel producers aiming to reduce greenhouse gas emissions.
The feasibility study funded by proceeds from the Monte Do Carmo sale is expected to enhance the project’s viability further. With strong market demand for high-purity iron concentrates, especially in light of increasing global interest in green steel production, Mont Sorcier is positioned favorably within this evolving landscape.
Strategically located just 18 kilometers from Chibougamau, Mont Sorcier benefits from excellent infrastructure, including proximity to low-cost provincial hydroelectric power and access to rail networks that connect to deep-water ports. This advantageous location not only reduces operational costs but also enhances logistical efficiency for transporting mined materials.
Cerrado Gold’s commitment to advancing the Mont Sorcier Iron and Vanadium Project signifies a pivotal moment for the company. By focusing on sustainable practices and leveraging high-quality resources, Cerrado is not only positioning itself for success but also contributing to broader environmental goals within the mining sector.
