Cabral Gold (CBR) - New Strategy Focused on Near Term Cash Production

Cabral Gold Inc. is a mineral exploration company focused on gold and copper. The company's key assets include the Cuiú Cuiú Project in Northern Brazil, the Tapajos Region, and the Bom Jardim project. The company was founded in 2016 and is headquartered in Vancouver, Canada.

In a recent interview with Crux Investor, Cabral Gold unveiled its exciting plans for advancing their advanced gold project in Brazil. With a focus on oxide material for near-term revenue, Cabral Gold aims to initiate production and be in operation by mid-next year. This article delves into the key insights gleaned from the interview, shedding light on Cabral Gold's promising prospects in the mineral resource industry.

Oxide Material Production and Simple Processing:

Cabral Gold's strategy revolves around mining oxide material with a low strip ratio and employing a straightforward processing approach. The Hilltop alone boasts 1.2 million ounces of gold in oxide material, presenting a significant opportunity for the company. The mining process entails scooping up the material using excavators, incorporating cement to form pellets, and subsequent leaching. This streamlined approach allows for efficient and cost-effective operations.

Expanding Oxide Material Production:

With an existing resource base of 230,000 ounces of oxide material, Cabral Gold is poised for expansion. The presence of near-surface high-grade material, ranging from 1.5 to 2 grams, further enhances the company's potential for rapid exploitation. As a result, Cabral Gold's oxide material production has significant room to grow, bolstering their revenue prospects.

Robust Trial Mining Operation:

Cabral Gold has conducted internal work indicating a robust trial mining operation. Detailed cost and recovery rate models have been developed for the high-grade oxide material, ensuring efficient operations. By analyzing comparable operations, the company gains valuable insights for cost analysis and optimization.

Low Capex Requirements:

One notable advantage for Cabral Gold is the low capital expenditure (capex) needed for their envisioned operation. Unlike many junior mining companies, Cabral Gold aims to minimize dilution of its capital structure by keeping the capex estimates for a thousand-ton-a-day operation within the range of 10 to 30 million dollars US. This approach allows the company to maintain control while pursuing its near-term revenue objectives.

The Cuiú Cuiú Project and Growth Potential:

Cabral Gold's Cuiú Cuiú project presents compelling targets for growth, showcasing a massive opportunity for hard rock endowment. The project currently holds two deposits with estimated resources of 1.2 million ounces, utilizing conservative estimates. Moreover, further exploration of newly discovered areas, with known continuity, could yield substantial increases in overall resource estimates. Cabral Gold's commitment to expanding its resource base positions the company for long-term success in Brazil's flourishing gold district.

To find out more, go to the Cabral Gold website