Cabral Gold: Brazil Development Play at Inflection Point

• Updated Pre-Feasibility Study released July 2025 demonstrates 78% after-tax IRR and $73.9 million NPV5 at $2,500 per ounce gold, with 10-month payback period and $37.7 million initial capital requirement for starter heap leach operation.
• Project sits in Brazil's Tapajós Gold Province along the Tocantinzinho lineament fault structure, with historical placer production of 2 million ounces significantly exceeding neighboring deposits in the district.
• Company holds 450,200 ounces primary Indicated resources plus 216,182 ounces oxide Indicated resources across Central and MG deposits, with four new hard rock discoveries at PDM, Machichie Main, Machichie NE, and J Cima requiring maiden resource estimates.
• Management targets construction decision in Q3 2025 with first production from oxide starter operation planned for second half 2026, producing 25,000 ounces annually during initial two years at all-in sustaining costs of $1,210 per ounce.
• CEO has invested C$1.95 million in the company through various private placement financings including $100,000 in July 2022, $200,000 in July 2020, $300,000 in July 2019, and $200,000 in November 2018, among other investments

With gold prices holding near $4,200 per ounce in early December 2025 and market expectations for interest rate cuts supporting precious metals demand, junior gold developers with near-term production profiles are attracting increased investor attention. Cabral Gold, a Toronto Venture Exchange-listed company advancing the Cuiú Cuiú project in northern Brazil, represents a development-stage opportunity in an emerging gold district with established infrastructure and favorable metallurgy.

The company's updated Pre-Feasibility Study released July 29, 2025, outlines a capital-efficient path to production through a heap leach operation processing near-surface oxide material. The project sits within the Tapajós Gold Province, which contains multiple operating mines and advanced projects. According to the ANM (Mining Agency of Brazil), the Cuiú Cuiú district historically produced 10 times more placer gold than neighboring deposits, suggesting potential for larger-scale mineralization.

The investment case centers on three factors: demonstrated economics at conservative gold price assumptions, proximity to newly commissioned mining infrastructure, and an expanding resource base with four recent hard rock discoveries. Management has set a clear timeline with a construction decision targeted for Q3 2025 and first production in second half 2026.

Company Overview

Cabral Gold controls the Cuiú Cuiú Gold District through a land position spanning multiple deposits and exploration targets in Pará State, northern Brazil. The project area contains two NI 43-101 compliant deposits at Central and MG, located 5 kilometers apart, with combined Indicated resources of 12.29 million tonnes grading 1.14 grams per tonne gold (450,200 ounces) in primary material and 13.56 million tonnes grading 0.50 grams per tonne gold (216,182 ounces) in oxide material.

The company was founded by a management team with an established track record in Brazilian gold exploration. CEO Alan Carter co-discovered a major gold deposit now in production in the Tapajós region and was previously involved with a company sold for $487 million. The current technical team includes Brian Arkell, Vice President Exploration and Technical Services, who spent 23 years with a major gold producer including as Director Exploration South America.

The share structure consists of 273,297,316 basic shares outstanding with a market capitalization of C$118,884,332 at the September 2, 2025 share price of C$0.435. The company held $10.3 million in cash at that date. The CEO remains the largest individual shareholder having personally invested $1.95 million, including $100,000 in July 2022, $200,000 in July 2020, $300,000 in July 2019, and $200,000 in November 2018.

Key Development: Updated Pre-Feasibility Study

The July 2025 Pre-Feasibility Study, prepared by an engineering firm, outlines a 6.2-year mine life producing 113,155 ounces from Probable Reserves of 6,179,379 tonnes grading 0.65 grams per tonne at the MG, Central, and Machichie deposits. The study targets oxide and saprolite material amenable to heap leach processing, with metallurgical column tests returning 72.5% to 96% gold recoveries and an average 87.8% recovery assumed for economic modeling.

Base case economics at $2,500 per ounce gold show an after-tax internal rate of return of 78% and after-tax net present value at 5% discount rate of $73.9 million. Initial capital expenditure totals $37.7 million, with sustaining capital of $8.02 million over the mine life. The payback period is calculated at 10 months. Life of mine EBITDA totals $154.4 million, with average annual production of 18,500 ounces and first 24 months averaging 21,671 ounces per year.

"Focus is on achieving cash flow. Updated PFS on Stage 1 starter (July 2025) operation targeting near surface weathered gold-in-oxide material resulted in After-tax IRR of 78% and NPV5 of $73.9M. Stage 1 should generate cash and allow for self-funded drilling and expansion of the global resource base, which may lead to PEA on much larger hard rock resource (Stage 2)."

At the spot gold price of $3,340 per ounce recorded July 28, 2025, after-tax IRR increases to 139% and after-tax NPV5 rises to $138 million. All-in sustaining costs over the mine life average $1,210 per ounce, with cash costs of $1,000 per ounce life of mine average and lower during the initial 24 months. The project remains economic across a range of capital cost and operating cost scenarios according to sensitivity analysis.

Strategic Significance: Tapajós Gold Province Context

The Cuiú Cuiú project benefits from its location within the Tapajós Gold Province, an emerging district that hosted the world's largest gold rush from 1978 to 1995 when 30 million ounces of placer gold was recovered according to ANM records. The district contains five known deposits controlled by the northwest-trending TZ fault zone.

A major gold mine located immediately adjacent to Cabral's claims along the same structural lineament entered commercial production in September 2024 and will be Brazil's third-largest gold mine. Both projects are intrusive-hosted disseminated gold deposits with the same mineralogy and metallurgy, but key differences exist. While the neighboring deposit is essentially a single deposit, multiple deposits and targets occur within a 10 by 15 kilometer area at Cuiú Cuiú.

The disparity in historical placer production between Cuiú Cuiú (2 million ounces) and the neighboring area (0.2 million ounces) suggests the potential for larger-scale primary mineralization at Cuiú Cuiú, as placer gold typically derives from erosion of bedrock deposits. The known deposits at Central and MG, as well as recent hard rock discoveries, all contain very high-grade zones such as the 11 meters grading 33 grams per tonne gold intercept at Machichie NE.

Current Activities: Exploration & Resource Expansion

Beyond the deposits included in the Pre-Feasibility Study, Cabral Gold is advancing four hard rock discoveries that require additional drilling to define maiden resources. At Machichie NE, located 500 meters north of the MG deposit, recent drilling returned 12 meters grading 27.7 grams per tonne gold including 5 meters at 65.5 grams per tonne, 11 meters at 33.0 grams per tonne including 4 meters at 89.3 grams per tonne, and 6 meters at 13.3 grams per tonne including 1 meter at 77.5 grams per tonne.

At Machichie Main, immediately adjacent to the MG deposit, Inferred oxide resources of 0.7 million tonnes grading 0.54 grams per tonne gold plus Indicated oxide resources of 1.3 million tonnes grading 0.56 grams per tonne were recently calculated. Numerous drill intercepts occur in primary mineralization below the oxide resource and include 34 meters grading 5.4 grams per tonne gold, 6.4 meters at 11.6 grams per tonne, 45 meters at 1.0 grams per tonne, and 62.8 meters at 0.9 grams per tonne gold.

The PDM discovery, located 2.5 kilometers northwest of Central, has led to identification of underlying primary gold mineralization beneath a gold-in-oxide blanket. Recent drill results include 22.4 meters grading 4.8 grams per tonne gold including 1.35 meters at 62.0 grams per tonne, 11.9 meters at 3.3 grams per tonne, 18.0 meters at 2.5 grams per tonne, and 47 meters at 1.8 grams per tonne gold. Three drill rigs were operating as of the October 2025 presentation date.

Financial Structure & Capital Requirements

Initial capital expenditure of $37.7 million breaks down into several categories: heap leach pads ($5.89 million), process equipment ($7.92 million), onsite infrastructure ($5.66 million), offsite infrastructure ($1.58 million), earthworks ($3.46 million), indirect costs ($5.81 million), owners costs ($0.74 million), and project contingency ($6.28 million). Sustaining capital over the mine life totals $8.02 million.

Life of mine average site operating costs are calculated at $18.2 per tonne of ore, or $1,000 per ounce. The low strip ratio of 0.78 waste to ore reflects the near-surface nature of the oxide material, which extends to approximately 60 meters depth. The material is free digging, requiring no drilling and blasting, and does not require crushing or grinding.

The company's treasury position of $10.3 million as of September 2, 2025 will require supplemental financing to reach construction. The project's favorable capital intensity ratio, with NPV to Capex of 2.0 at base case assumptions, positions it competitively for project financing or strategic partnership. Management has stated the objective is to eliminate the need for expensive and dilutive equity financings to fund additional drilling aimed at significantly expanding the global resource base.

Resource Base & Expansion Potential

The existing resource base provides significant optionality beyond the starter operation. Primary Indicated resources total 12.29 million tonnes grading 1.14 grams per tonne gold for 450,200 ounces, with Primary Inferred resources of 13.63 million tonnes at 1.04 grams per tonne for 455,100 ounces. Underground Inferred resources at Central total 1.2 million tonnes grading 1.9 grams per tonne for 74,300 ounces, with additional underground Inferred resources at MG of 1.0 million tonnes at 2.1 grams per tonne for 65,800 ounces.

The company notes excellent potential to expand the current resource base along strike and down-dip at both the Central and MG deposits. The Central deposit is 1.2 kilometers long and up to 100 meters wide, with drilling including 23.8 meters grading 5.5 grams per tonne gold including 0.7 meters at 98.4 grams per tonne and 1.2 meters at 51.0 grams per tonne, plus 9.6 meters at 16.4 grams per tonne including 1.2 meters at 112.0 grams per tonne. Beyond the known deposits, the district contains more than 50 peripheral exploration targets with high-grade intercepts recorded at multiple targets outside existing resources.

The Investment Thesis for Cabral Gold

• Consider junior developers with NPV-to-Capex ratios above 1.5 when precious metal prices trade at historical premiums to 10-year averages.
• Evaluate companies within 18 months of first production for potential re-rating as development risk decreases and revenue visibility increases.
• Weight companies with substantial Inferred resources representing potential to double Measured and Indicated ounces through infill drilling programs.
• Prioritize teams with proven discovery success in the specific geological terrain and jurisdiction where current projects are located.
• At gold prices above $3,000 per ounce, IRR sensitivity analysis becomes critical for projects with sub-$1,500 all-in sustaining costs.

Cabral Gold represents a development-stage gold investment with defined economics, near-term production timeline, and exploration upside in an established mining jurisdiction. The updated Pre-Feasibility Study demonstrates robust returns at conservative gold price assumptions, with sensitivity to higher prices given the low all-in sustaining costs. The 10-month payback period suggests rapid capital recovery, while the adjacent producing mine provides validation of the district's geological potential and access to established infrastructure.

The company's strategy of pursuing initial production from oxide material using simple heap leach processing aims to generate cash flow for self-funded resource expansion. This approach reduces dilution risk compared to purely exploration-focused peers while maintaining optionality on the larger primary resource. Key risks include execution on the construction timeline, achievement of metallurgical recoveries consistent with column test results, and successful project financing. Investors should monitor upcoming construction decision timing, financing terms, and continued drill results from the four discovery areas as catalysts through 2025 and 2026.

TL;DR

Cabral Gold advances Brazilian heap leach gold project with 78% IRR at $2,500 gold price, targeting construction decision Q3 2025 and first production H2 2026. Pre-Feasibility Study outlines $37.7 million capex, 10-month payback, and 113,155-ounce production over 6.2 years at $1,210 AISC. Project located in Tapajós district with historical placer production of 2 million ounces. Four new hard rock discoveries with high-grade intercepts require maiden resource estimates.

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