Cabral Gold (CBR) - Higher Grades Will Improve New Resource by Year End

Cabral Gold Inc. is a TSX-V and OTC-listed junior exploration and development company focused on the advancement of its flagship, district-scale Cuiú Cuiú gold project, located in the Tapajós region of Brazil.

Company Overview

The Cuiú Cuiú gold project hosts two primary gold deposits, namely the MG gold deposit as well as the Central gold deposit. The MG deposit is open down-dip and contains 400,000 ounces of gold in the inferred category. The Central Deposit of the Cuiú Cuiú gold project hosts 170,000 ounces of gold in the indicated category and 314,000 ounces of gold in the inferred category.

The company recently reported assay results of four diamond drill holes drilled at the Central gold deposit of the project. The assay results which include mineralisation of up to 14.9 g/t of gold support the company’s theory that a gold-in-oxide mineralisation zone sits above the primary central gold deposit.

Cabral Gold Inc. also recently published the assay results of six diamond-drill holes drilled at the MG deposit. The assay results include highlights such as 17.5 m of mineralisation at a grade of 4.0 g/t gold including an intercept of 10.5 g/t of gold over 5.5 m. The company also announced high-grade gold mineralisation at the PDM and Machichie zones of the project. Cabral Gold Inc. has encountered mineralisation of 9.6 g/t of gold through a surface trenching program conducted at the project’s Machichie zone, and intercepts of up to 10.5 g/t of gold over 3 m at the PDM zone of the project. 

Cabral Gold Inc. recently reported the results of the column leach test work conducted on the gold-bearing oxide material of the MG deposit. The test work has confirmed that heap-leaching is a viable extraction method for the MG deposits mineralisation at the Cuiú Cuiú gold project and has shown a gold recovery of 70% after 15 days, 78% after 30 days and 82% after 70 days.

The company also announced a public offering of 16,130,000 units of the company as well as a best efforts private placement offering of 10 million units of the company for the combined gross proceeds of USD$ 8 million to the company.  

Company Management

Cabral Gold Inc. is led by Alan Carter, who serves as the company’s CEO and Director. Carter has vast amounts of experience in the junior mining sector and was a co-founder of both Peregrine Metals Ltd. and Cuprum Resources Ltd., which were both sold to Stillwater Mining and B&A Mineracao respectively. Carter has been involved in the discovery of 5 gold deposits, 4 of which were in Brazil. He is currently a Director and Chairman of both Fremont Gold Inc. and Altamira Gold Corp. He founded Cabral Gold Inc. in 2016.

Mark Smith serves as the executive chairman of the company’s board and has more than 40 years of experience in the mining industry. He has been involved in various stages of a project including exploration, development, production and financing. He started his career as a geologist in the mining sector, from where he later moved on to being a mining analyst and also investment banker. He has been part of various companies including Cominco, Marleau-Lemire, C.M. Oliver, First Associates and Dundee Securities. He was also the chairman of the Prospectors and Developers Association of Canada (PDAC) convention in 2001 and 2002.

Paul Hansed is the Chief Financial Officer (CFO) and corporate secretary of Cabral Gold Inc. Hansed has more than 25 years of experience in the financial and accounting sector. He has served as CFO for various junior mining companies including ECI Exploration and Mining Inc. as well as Magellan Minerals Ltd., which was acquired by Anfield Gold Corp. in 2016.

Rauri McKnight rounds out the team as the company’s Country Manager of Brazil. McKnight is fluent in both Portuguese as well as Spanish and has been living in South America since 2016. He served as the Chief Operating Officer of Serabi Gold Plc where he was charged with overseeing the management of the Palito gold project including its exploration planning, plant commissioning and project generation.

The management team of the company is tasked with advancing the company’s Cuiú Cuiú gold project.

The Cuiú Cuiú gold project

The Cuiú Cuiú gold project is located in the Tapajós region of northern Brazil, which produced between 20 and 30 million ounces of gold between 1970 and 1990 according to the Brazilian Department of Mineral Production (DNPM). The project has been estimated to have previously produced 1.5 to 2 million ounces of placer gold.

The Cuiú Cuiú gold project is located approximately 25 km northwest of the Tocantinzinho gold project, owned by G Mining Ventures, which has a proven and probable resource of 1.8 million ounces of gold consisting of 39.6 million tons of mineralisation at a grade of 1.4 g/t.

The project consists of two known gold deposits, namely the Central and the Moreira Gomes (MG) deposits. The Central deposit extends over a strike length of 800 m in a northwest-southeast direction, and is 50 m to 70 m wide, with a maximum known vertical depth of 450 m. The Central deposit of the Cuiú Cuiú gold project hosts 170,000 ounces of gold in the indicated category and 314,000 ounces of gold in the inferred category. The MG deposit extends over a strike length of 1,200 m east-west, is 30 to 50 m wide, and has a vertical depth of 400 m. The deposits are both open along strike as well as at depth.

High-grade mineralisation at the project

Cabral Gold Inc. has recently announced various high-grade drill results obtained from exploration drilling initiatives at the Cuiú Cuiú gold project. The company announced at the beginning of March 2022 that it had intercepted Bonanza Grades at the MG deposit of the project which included an intercept of 2.6 m at a grade of 28.9 g/t of gold as well as an intercept of 1.6 m at a grade of 32.8 g/t of gold.

The company also released the assay result of three diamond drill holes at the Central gold deposit, which enabled the company to define a high-grade corridor at the deposit. The assay results include highlights such as an intercept of 9.6 m at a grade of 16.4 g/t of gold which includes a 1.2 m intercept at a grade of 112 g/t of gold. The high-grade intercepts were encountered within un-weathered, highly brecciated and altered basement intrusive rocks.

Alan Carter explains that the company must better understand the mineralisation of the deposits to enable it to define various new zones, he states:

“…the central part of what we’re doing is defining these high-grade zones within the MG and Central gold deposits. We need to get sufficient drill holes within these high-grade zones, which are surrounded by low-grade mineralisation, in order to separately define those high-grade zones so they’re not subject to the punitive top cutting that we had in 2018, and they form distinct, separate zones.”

The company has also encountered high-grade gold mineralisation at the PDM and Machichie zones of the project. Cabral Gold Inc. has encountered mineralisation of 9.6 g/t of gold through a surface trenching program conducted at the project’s Machichie zone, and intercepts of up to 10.5 g/t of gold over 3 m at the PDM zone of the project. Carter explains the discoveries at the PDM and Machichie zones as follows:

“…we’ve got these 2 new discoveries at PDM and Machichie, where we had no resource back in 2018. They’re not part of these oxide blankets, but we drilled, just again in the last 5 weeks, 18 m at 2.5 g at PDM. That’s a step-out hole from the 22.4 m at 4.8 g/t of gold. There was no resource on that zone. There's a lot going on. It’s district-wide, and there is a lot of high-grade material at Cuiú Cuiú.”

Cabral Gold Inc. is underway with further exploration drilling initiatives at the Cuiú Cuiú gold project and currently has 5 drill rigs in operation, carter explains the current and planned drilling initiatives at the project as follows:

“We drilled 25,000 m last year. So, since 2018, I think the 2018 estimate was based on about 27,000 m at Central and MG. We narrowed about an additional 35,000 m. This year, we should drill another 25,000 m, so it will be similar to what we drilled last year. I guess we’re probably drilling about another 15,000 m to 20,000 m to the end of the calendar year.’

Metallurgical testing results

The company also recently reported the results of the column leach test work conducted on the gold-bearing oxide material it sampled from the MG deposit at the Cuiú Cuiú gold project. The test work has confirmed that heap-leaching is a viable extraction method for the MG deposit’s mineralisation. The appeal of heap-leaching at the project is the low capital requirements and low operating costs associated with it.

The column leach test work has shown a gold recovery of 70% after 15 days, 78% after 30 days and 82% after 70 days. The leached gold recoveries were 0.974 g/t of gold, which is higher than the assayed head grade of 0.896 g/t of gold, taken from the composite bulk sample at the project before the test work.

Future initiatives

Cabral Gold Inc. plans to continue with its exploration initiatives at the Cuiú Cuiú gold project in the coming year. Carter explains that the company will be focused on defining its newly encountered high-grade zones at the gold deposits of the project, before moving into updating the mineral resource estimate of the MG deposit, with the company aiming to update the Central deposits’ mineral resource estimate in early 2023.

“…the core focus is to drill off these high-grade zones at both Central and MG, and also hopefully to define high-grade zones within the new discoveries at Machichie and PDM. We expect to update the resource at MG later this year. I think it’ll probably be early next year before we’re in a position to update the resource at Central.”

The company announced on the 15^th of May 2022 that it had entered into an agreement with Paradigm Capital Inc. on behalf of a syndicate of investment dealers for the public offering of 16,130,000 units of the company at a price of USD$ 0.31 per unit for the gross proceeds of USD$ 5 million. A unit of the public offering will consist of one common share of the company as well as one-half of a common share purchase warrant. One purchase warrant of the company will entitle the holder thereof to acquire one common share of the company at a price of USD$ 0.50 for 24 months after the closing of the offering.

Cabral Gold Inc. further announced an additional best efforts private placement offering of 10 million units of the company at a price of USD$ 0.30 per unit for additional gross proceeds of USD$ 3 million. Each unit will consist of one common share in the capital of the company and one common share purchase warrant entitling the holder to acquire one common share of the company at USD$ 0.50 per common share for 24 months after closing the offering.

Carter explains the intent of the offerings as follows:

“We’re going to have to raise a little bit more money, but obviously, the frustrating thing about when you’re in exploration, it’s basically research and development, is you’re dependent on raising money from - you don’t have any cash flow. And so, the identification of these oxide blankets gives us the opportunity to generate some cash flow in fairly quick succession.”

To find out more, go to the Cabral Gold website