Cabral Gold Drilling Points to Possible Link Between Central & PDM Deposits

• New drilling found gold in the ground between Cabral Gold's Central and PDM gold deposits, suggesting they may be connected.
• A shallow gold zone near the PDM deposit appears to cover a larger area than previously known.
• Cabral Gold already has substantial estimated gold resources at its project in Brazil, based on past studies.
• Construction of the company's gold processing operation is now roughly 85% complete, with mining and early processing steps already underway.
• The company is still targeting the start of full gold production in late 2026, and these new drilling results have not yet been incorporated into any formal resource estimate.

Cabral Gold (TSXV: CBR | OTCQB: CBGZF) owns a large gold project called Cuiú Cuiú in northern Brazil, home to its Central, PDM, and MG gold deposits. The area has a long history of gold mining, dating back to a major gold rush decades ago. Cabral Gold has already identified substantial gold across the project through past studies, split between gold near the surface and gold in deeper, harder rock.

Key Development

On June 23, 2026, Cabral Gold announced drilling results from an area sitting between its Central and PDM gold deposits. One drill hole in this in-between area returned a long section of rock containing gold, with an even richer gold section within it. This is a new discovery on ground the company had not fully tested before.

President and Chief Executive Officer of Cabral Gold, Alan Carter, said this area sits along a corridor of ground that shows signs of gold mineralisation at surface, and that the new results suggest this corridor could connect Central and PDM. He also said a shallow gold zone near PDM appears to be larger than the company previously understood.

Strategic Significance

Central and PDM sit a short distance apart, and the ground between them had mostly gone untested until now. The new results, combined with earlier drilling in the same area, suggest gold may run continuously between the two deposits rather than sitting in two separate, unconnected pockets.

Separately, some of the same drill holes also intersected gold in the shallow ground near the surface at PDM, expanding the known size of a shallow gold zone that had already been factored into the company's production plans. This zone is now believed to be noticeably larger than what was used in that earlier planning.

Current Activities

The company plans to keep drilling in this area to better understand how far the new gold zone extends between Central and PDM, and how big the shallow gold zone at PDM really is.

Alongside this drilling work, Cabral Gold reported on July 9, 2026, that construction and commissioning of its gold processing operation is now approximately 85% complete. Mining of gold-bearing rock at its MG deposit has begun, and the ore is already moving through the early stages of processing on its way to the leaching area where gold is extracted. The plant's key gold recovery equipment has arrived in Brazil and is expected on site later in July, with full commissioning planned for the third quarter of 2026 and a ramp-up toward full production during the fourth quarter of 2026.

Cabral Gold also completed a detailed drilling program focused on the ore it plans to mine during its first 9 months of production at MG. Results from that program are being used to update the company's mine plan and its estimate of how much gold can be recovered from that ground.

The Investment Thesis for Cabral Gold

• If drilling confirms Central and PDM are connected, Cabral Gold's gold project becomes a single larger opportunity rather than two separate ones.
• A larger, shallower gold zone at PDM could support a longer-running production operation than the company has already planned.
• Construction and commissioning of the company's processing operation are  nearly complete, with mining and early processing already underway, reducing uncertainty about whether the company can reach production on schedule.
• Cabral Gold’s move toward gold production later in 2026 provides investors a near-term catalyst, regardless of whether these new drilling results pan out.
• The company's existing, already studied gold resource at Central and PDM provides a baseline value in Cabral Gold even before these new results are added.

Taken together, these points describe a company executing on two tracks at once: building toward its first gold production on a timeline that appears to be on track, while also working to connect and grow the gold it has already found at Central and PDM. The near-term catalyst is production itself, while the resource story remains an open question pending further drilling.

TL;DR

Cabral Gold's newest drilling suggests its Central and PDM gold deposits in Brazil may be linked underground, and that a shallow gold zone near PDM is bigger than previously mapped. Neither has been confirmed through further drilling or a revised resource estimate. Meanwhile, construction of the company's processing operation is nearly complete, with mining and early ore processing already underway, keeping the company on track for gold production later in 2026.

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