Cabral Gold - 92% Gold Leach Recoveries from Gold-in-Oxide Material

• Cabral Gold announces outstanding metallurgical test results from MG gold-in-oxide material at Cuiú Cuiú.
• The company's column leach tests show 92-93% gold recovery rates after 68-112 days and indicates high viability of heap-leach processing for the MG gold deposit.
• This recent results show significant improvement from previous tests, which showed 82% recovery.
• The findings could positively impact the ongoing prefeasibility study and project economics for CBR.

Cabral Gold Inc. (TSXV:CBR) is a junior resource company focused on the exploration and development of gold projects in Brazil. The company's flagship asset is the Cuiú Cuiú gold district in northern Brazil, which hosts multiple gold deposits. Cabral Gold is committed to advancing its projects through systematic exploration, resource definition, and economic studies to unlock value for shareholders.

Exceptional Metallurgical Test Results: A Closer Look

In a recent announcement that has caught the attention of investors and industry experts alike, Cabral Gold has revealed exceptionally promising metallurgical test results from its MG gold deposit within the Cuiú Cuiú gold district. These results, which demonstrate gold recovery rates of 92-93%, could potentially transform the economic outlook of the project and position Cabral Gold as a significant player in the Brazilian gold mining sector.

For investors looking at Cabral Gold, these latest results represent a compelling reason to take a closer look at the company. The high recovery rates, combined with the potential for low-cost heap-leach processing, suggest that the Cuiú Cuiú project could offer attractive economics in a future mining scenario. As the company progresses through its prefeasibility study and continues to explore nearby targets, there may be significant upside potential for early investors willing to take on the risks associated with junior mining companies.

The heart of Cabral Gold's recent announcement lies in the results of three column-leach metallurgical tests conducted on gold-bearing oxide material from the MG gold deposit. These tests, performed by Kappes, Cassiday & Associates (KCA) in Reno, Nevada, yielded remarkably consistent and positive outcomes:

• Gold Recovery Rates: All three samples demonstrated gold recoveries ranging from 92% to 93% after leaching periods of 68 to 112 days.
• Sample Diversity: The tests were conducted on three distinct types of material:a) Blanket soil, colluvium, and sedimentsb) Low-grade saprolite materialc) Higher-grade saprolite material
• Rapid Recovery: Over 70% of the gold was recovered in under 20 days, indicating a potentially efficient extraction process.
• Low Reagent Consumption: Sodium cyanide consumption was notably low, ranging from 0.31 kg/t to 0.48 kg/t NaCN.

These results represent a significant improvement over previous tests conducted on a composite sample from MG, which had yielded an 82% gold recovery after 60 days. The consistency across different material types and the high recovery rates suggest that heap-leach processing could be a highly viable and economically attractive option for the MG gold deposit.

Implications for the Cuiú Cuiú Project

The implications of these metallurgical test results extend beyond mere numbers. They have the potential to reshape the economic landscape of the entire Cuiú Cuiú project:

• Processing Method Viability: The high recovery rates strongly indicate that heap-leach processing is not only viable but likely the preferred option for processing oxide material at MG.
• Cost Implications: Heap-leach processing typically requires lower initial capital investment and operational costs compared to other processing methods. This could significantly improve the project's economic profile.
• Resource Expansion Potential: The recent drill results from nearby targets (Machichie Main and Machichie NE) suggest the possibility of additional gold-in-oxide material in close proximity to MG. If these areas yield similar metallurgical characteristics, it could further enhance the project's economics.
• Prefeasibility Study Impact: These results are expected to positively influence the ongoing prefeasibility study, potentially leading to more favorable projections for gold recovery and overall project economics.

Alan Carter, Cabral's President and CEO, emphasized the significance of these results, stating,

"These column leach test results are very encouraging and confirm that the gold-in-oxide material at the MG gold deposit at Cuiú Cuiú is amenable to heap-leach processing. The leach recoveries of 92% to 93% are excellent and significantly better than previous test work which revealed an 82% recovery. They are also significantly higher than most heap leach gold mines that are currently in operation."

Technical Details: Understanding the Tests

To fully appreciate the implications of these results, it's important to understand the testing process and its parameters:

Sample Preparation:

• Three composite samples were created from diamond drill core, representing different material types and grades within the MG deposit.
• Samples were crushed to minus 50mm size and agglomerated with 20 kg/MT of cement.

Testing Procedure:

• Leach tests were conducted in columns eight feet (244cm) tall by eight inches (20cm) in diameter.
• Samples were subjected to leaching with a dilute cyanide solution over periods ranging from 68 to 112 days.

Results Breakdown:

These detailed results demonstrate the consistency of high recovery rates across different material types and grades, reinforcing the potential for heap-leach processing at the MG deposit.

Comparative Advantage in the Gold Mining Sector

The recovery rates achieved in these tests are not just impressive in isolation; they stand out when compared to many operating heap-leach gold mines globally. This comparative advantage could potentially position Cabral Gold's Cuiú Cuiú project as a highly competitive operation in the gold mining sector.

Typical heap-leach operations often see recovery rates in the range of 60-80%, depending on various factors such as ore type, particle size, and leaching conditions. Cabral Gold's 92-93% recovery rates place the MG deposit in the upper echelon of heap-leachable gold projects worldwide.

This high recovery rate, combined with the potential for low-cost processing, could translate into several competitive advantages:

• Higher Profit Margins: With more gold recovered per tonne of ore processed, the project could potentially generate higher profit margins compared to peers with lower recovery rates.
• Lower Cut-off Grades: The high recovery rates might allow for the economic processing of lower-grade material, potentially increasing the overall resource size.
• Attractive to Investors and Partners: Projects with exceptional metallurgical characteristics often attract more interest from investors and potential joint venture partners.
• Resilience to Gold Price Fluctuations: Higher recovery rates can provide a buffer against gold price volatility, potentially making the project more robust in varying market conditions.

Future Outlook & Ongoing Studies

While these results are undoubtedly positive, it's important to note that Cabral Gold's work at Cuiú Cuiú is ongoing. Several key developments and studies are in progress:

• Prefeasibility Study: The company is currently conducting a prefeasibility study, which will incorporate these new metallurgical results. This study will provide a more comprehensive view of the project's economic potential.
• Additional Metallurgical Tests: Results are pending for three column leach tests on material from the Central gold deposit, expected during Q3 2024. These results will provide a more complete picture of the metallurgical characteristics across the Cuiú Cuiú project.
• Exploration of Nearby Targets: Recent drill results from the Machichie Main and Machichie NE targets, located 500m and 650m north of the MG gold deposit respectively, indicate potential for additional gold-in-oxide material. Further exploration of these areas could lead to resource expansion.
• Optimization Studies: With these encouraging results, Cabral Gold may conduct additional studies to optimize the heap-leach process further, potentially improving recovery rates or reducing processing costs.

Risks:

• Early Stage of Development: The project is still in the prefeasibility stage, and many technical and economic parameters need to be confirmed.
• Funding Requirements: Advancing the project through feasibility and potentially to production will require significant capital, which may lead to dilution for early investors.
• Gold Price Sensitivity: Like all gold projects, Cuiú Cuiú's economics will be sensitive to fluctuations in gold prices.
• Jurisdictional Risks: While Brazil is generally mining-friendly, investors should be aware of potential political or regulatory risks.

Key Takeaways

Cabral Gold's announcement of exceptional metallurgical test results from the MG gold deposit at Cuiú Cuiú represents a significant milestone for the company. The 92-93% gold recovery rates demonstrated in these tests are not only a marked improvement over previous results but also place the project among the top tier of heap-leachable gold deposits globally.

These results have the potential to positively impact the ongoing prefeasibility study and could significantly enhance the economic profile of the Cuiú Cuiú project. The possibility of low-cost heap-leach processing, combined with high recovery rates, presents a compelling case for the project's viability and potential profitability.

For investors, Cabral Gold offers exposure to a promising gold project in a favorable mining jurisdiction. The company's continued exploration success in the surrounding area suggests potential for resource growth, which could further enhance the project's value proposition.

However, as with any junior mining investment, investors should carefully consider the balance of potential rewards against the inherent risks. Cabral Gold's progress through the prefeasibility study and beyond will be crucial in determining the ultimate value of the Cuiú Cuiú project.

As the company continues to advance its studies and exploration efforts, investors would be well-advised to closely monitor Cabral Gold's progress. With its high-grade resources, exceptional metallurgical results, and experienced management team, Cabral Gold presents an intriguing opportunity for those looking to invest in the junior gold mining sector.