Canada-based iron ore miner Cerrado Gold has released a detailed progress update for its Mont Sorcier high-purity magnetite iron project in Quebec, confirming major design changes, a strengthened development plan and the ability to produce a premium 67 percent iron concentrate suitable for the fast-growing DRI market.
As the feasibility study advances toward completion in the second quarter of 2026, the company outlines expanded production capacity, optimized capital plans, permitting progress, and a strengthened strategic case for developing one of Canada’s next critical mineral mines.
Premium 67 percent iron concentrate confirmed
According to company’s new report, updated metallurgical testing confirms the project’s ability to deliver a high-purity 67 percent Fe magnetite concentrate with combined silica and alumina levels below 2.3 percent. This product qualifies as a critical mineral under federal and provincial guidelines and is suitable for DRI or pellet feed, supporting global steel decarbonization efforts.
Expanded production rate from 5 million mt to 8 million mt
Responding to strong demand growth, Cerrado Gold has expanded the project design from a 5 million mt per year concept to an 8 million mt operation. Phase 1 will work with 4 million mt concentrate capacity and Phase 2 three years after will include an additional 4 million mt capacity.
Cerrado Gold aims to reduce upfront capital intensity while aligning output with DRI market needs following this phased approach.
Capital cost adjustments
Phase 1 capital costs are now expected to increase by 30-40 percent compared with the 2022 assessment due to updated flowsheet requirements, infrastructure resizing for the full 8 million mt capacity and industry-wide inflation. Phase 2 capex is expected to be much lower, as core facilities (tailings, rail, offices, utilities) will already be in place.