"The initial hole at Gogo confirms our expectations that this target has strong potential to add near mine, near surface ounces to our Monte do Carmo project and demonstrates the potential to continue to grow resources outside of Serra Alta," Cerrado's CEO and co-chairman Mark Brennan said.

The Gogo satellite exploration hole intercepted two shallow relevant intervals: 7.1 metres at 1.16g/t Au from 50.7 metres and 20.4 metres at 0.78g/t Au from 96.2 metres.

"Mineralization is associated with extensional and shear quartz veins hosted by equigranular granite with potassic alteration, geologically very similar to the permissive intrusive phases at Serra Alta," Cerrado said.  

Also, a discrete shear vein was intercepted at 504 metres carrying 1.44g/t Au for 1.4 metres, opening a second trend, the company added.

Toronto-based Red Cloud Securities said: "Overall, these are positive results".

"The initial discovery hole at Gogo is a positive development, showing why this has emerged to become the leading target on the property," it said.

"Meanwhile, the infill drilling is broadly in-line with expectations, with an increase in one high-grade area, and it should help lead to an upgraded resource," it added.

Cerrado listed highlights from the Serra Alta infill drilling including:

• 65.7 metres at 1.71g/t Au from 142.2 metres

▪ Including 3.1 metres at 7.16g/t Au from 179.3 metres, and

▪ Including 3.6 metres at 12.04g/t Au from 191.6m metres

• 29.6 metres at 3.1g/t Au from 34.7 metres

▪ Including 3.9 metres at 16.57g/t Au from 54.9 metres

• 7.8 metres at 8.16g/t Au from 239.9 metres

• 57.5 metres at 1.56g/t Au from 91.9 metres

• 15.5 metres at 6.38g/t Au from 45.0 metres

▪ Including 3.2 metres at 21.18g/t Au from 56.4 metres

• 82.6 metres at 1.48g/t Au from 86.5 metres

• 21.3 metres at 2.84g/t Au from 118.6 metres

Cerrado is planning to update is resource in Q3 and release a feasibility study in Q1 next year.

Cerado's share price was C$1.52 (US$1.18) on June 26, having risen 5% day on day. The company has a market capitalization of C$116.62 million.