Cerrado Gold has provided a promising update on the potential output of their direct reduction iron (DRI) project in Quebec, Canada.
As the feasibility on the Mont Sorcier site continues, Cerrado has announced a 3Mt per year increase in the projected production of high purity magnetite iron, compared to the initial scope (5Mt to 8Mt).
Mark Brennan, CEO of Cerrado, said: “As we progress through the different elements of the feasibility study, we continue to be impressed by the significant potential of this asset to be developed into a long life, robust operation.
“With the revised scope now being incorporated into the feasibility study, we expect the forthcoming feasibility study to clearly demonstrate the project’s strong value proposition.
“As the results become evident to the market, we believe the inherent value will be recognised — reflecting the project’s exceptional quality, expansion capacity, established infrastructure, competitive cost position, and strategic role in the future of iron ore and green steel production.”
After updated metallurgical tests, it was highlighted that the project can produce 67% iron concentrate over a long mine life. It was also found that the ore has less than 2.3% silica and alumina, making it highly desirable for DRI or pellet feed.
The high grade and purity of the iron concentrates mean the Mont Sorcier site will be deemed a Critical Mineral Project as outlined by the Canadian and Quebec governments.
Brennan added: “There is a strong initiative for the Quebec and Federal governments to develop critical mineral mines in general and the Northern Corridor of Quebec in particular.
“Mont Sorcier has a ready lain railway and port waiting for customers to increase their utilisation.
The ongoing feasibility study is set to be completed by Q2 of 2026.
