Cabral Gold (CBR) - End of Year Update & Investor Meetings, London

Cabral Gold Inc. is a mineral exploration company focused on gold and copper. The company is listed on the Toronto Stock Exchange (TSX-V: CBR) and the OTC Markets (OTCQX: CBGZF). The company's key assets include the Cuiú Cuiú Project in Northern Brazil, the Tapajos Region, and the Bom Jardim project. 

Matt Gordon caught up with Alan Carter, President, CEO, and Director, Cabral Gold. Dr. Carter is a Co-founder at Peregrine Metals Ltd. and Cuprum Resources Ltd. He currently serves as a Director and Chairman at both Fremont Gold Inc. and Altamira Gold Corp. His educational credentials include a B.Sc. degree in Geology from the University of Nottingham, U.K., and a Ph.D. degree in gold geochemistry and structural geology from the University of Southampton, U.K. He also co-founded Magellan Minerals Inc. which was acquired by Anfield Gold Corp. in 2016. Alan is the largest shareholder in Cabral Gold with a $1.7M investment. 

Company Overview

Cabral Gold is a publicly-traded company focused on advancing its flagship, district-scale Cuiú Cuiú Gold Project in Brazil. The company is looking to grow its existing resource through trenching, sampling and drilling. The company was founded in 2014 and is headquartered in Vancouver, Canada. Magellan Brazil is a subsidiary of the company. The company is listed on the Toronto Stock Exchange (TSX-V: CBR), the OTC Markets (OTCQX: CBGZF), and the Frankfurt Stock Exchange (FRA: C3J). 

Cabral Gold's Cuiú Cuiú Gold Project in Brazil is currently in an advanced exploration phase. The company has 2 gold deposits with a 1Moz resource within an 8km radius. The company has identified 43 targets featuring outcropping veins with high-grade gold reserves. There are 5 rigs currently employed at these targets. The company is looking to drill between 25,000m-30,000m by mid-2022. 

The company's neighboring advanced development project was recently acquired from Eldorado Gold by G Mining for $115M. This project is Brazil's 3rd largest gold mine. This asset is located next door to Cabral Gold's southernmost MG deposits at a 20km distance.

The Gold Market

Gold has seen a strong run in the market in recent weeks. There's a lot of optimism around gold pricing, especially for equities in the exploration sector. This positive outlook towards gold has brought Brazil into the spotlight, as the country houses some of the world's biggest gold projects. 

The Tapajós region within the Pará state is known for the largest recorded Gold Rush in history in the 1980s. Estimates by the Brazilian government indicate that between 20Moz - 30Moz placer gold was extracted from the streams during this time period. 

Cabral Gold's Cuiú Cuiú Project was the largest placer camp during the Gold Rush. The company anticipates that this deposit still features a massive footprint of placer gold. The 2 hard rock deposits identified so far feature only 10% of the entire placer gold reserves. The company is looking to identify additional reserves through an aggressive exploration program. 

Ongoing Operations

Cabral Gold has 2 hard rock gold deposits located 5km apart. These deposits were identified over 3 years ago. In April 2021, the company discovered the presence of an oxide blanket atop 1 of the deposits. This blanket is unconsolidated material that features mineralization. It consists of soil, sand, and mud at a 50m thickness. This oxide blanket is currently 36 hectares in size and continues to grow. 

The oxide blankets are a result of millions of years of erosion of the underlying hard rock deposit in the granite. It features a lot of low-grade material with a high-grade core. 

The second oxide blanket is currently being drilled to gain access to the core of the underlying hard rock deposit. Based on initial observations, the company anticipates that its land package features additional oxide blankets. 

Cabral Gold has drilled over 100 holes within the 2 blankets and is advancing the deposits at a rapid pace. The company has collected 450kg of material from these deposits for metallurgical testing. The results of the metallurgical tests from the first blanket are expected in Q1, 2022. 

Following the test results, the company will be able to identify if the material is amenable for heap leaching or a combination of CIL (Carbon-in-leach) along with a gravity plant. These processing techniques are significantly cheaper as there is no crushing and grinding involved. 

The presence of these oxide blankets is a rare occurrence. The company anticipates that the deposit features a 3rd oxide blanket. It is working towards obtaining permits. It already has trial mining licenses for the 1st blanket. As the company has 100% ownership of the land package, it also has exploration claims. The company is expecting the permits within the next 3 months to commence trial mining on both oxide blankets. 

The metallurgical work is expected to conclude by mid Q1, 2022. Following this, the company plans to carry out a Scoping Study. The Scoping Study will provide an estimate on the operating costs for the project, enabling the company to make a construction decision within the next 12 months for a small-sized plant. This plant would be employed for processing the oxide material. 

Cabral Gold has successfully drilled off the majority of the 2 oxide blankets. Currently, the company has employed a rig to drill the 3rd blanket. The other 4 drill rigs continue to test high-grade targets within the district. The company plans to continue identifying potential oxide blankets. These blankets can be developed at a fraction of the cost compared to a traditional hard rock operation. 

The company anticipates that these oxide blankets would enable it to potentially fund the district exploration program. The 43 targets identified by the company have strong prospects, with several targets featuring high-grade veins sticking out of the ground within an 8km radius, indicating the presence of multiple deposits. 

The company is looking to advance this project while maintaining its capital structure and avoiding over-dilution. The company plans to continue exploration aggressively within the district.

Permitting Timelines

The company anticipates that the metallurgical results and the permits will be acquired by Q1, 2022. The company already has 2 permits on the MG blanket. It is currently looking to obtain a permit for the PDM blanket. It anticipates that permits for all 3 blankets will be obtained by early 2022. 

M&A Considerations

Cabral Gold is open to the possibility of a potential M&A (Merger and Acquisitions) in the future. A major reason behind this consideration is that the Cuiú Cuiú Gold Project has an unusually high number of targets. The company believes that it has the capacity to explore the entire district with 80% certainty. 

The company is currently focused on oxide mineralization blankets. These blankets can lead to a low-cost operation enabling the company to generate revenue and fund the next phase of exploration. The company is looking to raise sufficient capital to drill 6 additional targets over the coming 12 months.

To find out more, go to the Cabral Gold Website