Cabral Gold - Encouraging Drill Results Expand Oxide Gold Mineralization at Central Deposit in Brazil

Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) recently announced encouraging drill results from 10 additional reverse circulation (RC) holes at its Central gold deposit located within the Cuiú Cuiú gold district in northern Brazil.

Key Highlights:

• 28m @ 1.2 g/t gold from 29m depth in hole RC365 including 2m @ 6.5 g/t gold
• 35m @ 0.8 g/t gold from 35m depth in hole RC367 including 10m @ 1.1 g/t gold
• 30m @ 0.6 g/t gold from 21m depth in hole RC366 including 8m @ 1.4 g/t gold and 8m @ 1.7 g/t gold at depth
• 7m @ 2.3 g/t gold from 32m depth in hole RC359 including 1m @ 12.8 g/t gold

The latest results continue to demonstrate continuity of high-grade near-surface oxide gold mineralization at Central, providing additional confidence in optimizing the resource model ahead of a proposed trial mining operation.

About Cabral Gold

Cabral Gold is a junior gold exploration and development company focused on the Cuiú Cuiú gold district in the Tapajós region of northern Brazil. The district has produced an estimated 2 million ounces of placer gold historically and lies within the larger Tapajós Gold Province, site of the biggest gold rush in Brazil's history.

Cabral’s flagship Cuiú Cuiú project currently hosts National Instrument 43-101 compliant indicated oxide resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and inferred oxide resources of 19.8Mt @ 0.84 g/t gold (534,500 oz). The underlying primary gold mineralization brings total indicated resources across the project to 52.9Mt @ 0.96 g/t gold (1.64M oz) and inferred resources to 9.0Mt @ 1.24 g/t gold (358,300 oz).

Significance of Latest Central Deposit Drill Results

According to Cabral President and CEO Alan Carter, the latest Central drill results provide further confirmation of continuity of high-grade oxide mineralization near surface at Central.

Carter highlighted several key takeaways from the results:

• The holes targeted weathered gold-in-oxide material consisting of a near-surface soil and sand horizon blanket as well as underlying saprolite both amenable to low-cost mining
• Results showcase some impressive high-grade intercepts likely to grow current oxide resources including an exceptional 28m @ 1.2 g/t gold with 2m @ 6.5 g/t gold in hole RC365
• Mineralized zones can be traced from the underlying fresh rock through oxidized saprolite into the overlying oxide blanket
• Cabral can now calculate oxide resources at Central and nearby MG deposit with greater confidence

The Cabral CEO indicated these positive drill results will improve modeling of high-grade areas to prioritize mining, with many pending holes yet to return assays. According to Carter, “getting all of these results back” will provide even better delineation of mineralization for a proposed low cost trial oxide mining and heap leaching operation at Cuiú Cuiú.

Details on Latest Central RC Drill Results

Holes RC358 to RC367

These holes at Central targeted defining and extending known zones of oxide gold mineralization within both the upper oxide blanket horizon and underlying weathered basement saprolite. All holes were drilled to relatively shallow depths of less than 100m vertical.

Section N20995

Hole RC365 returned an impressive 28m @ 1.2 g/t gold from 29m depth including a very high-grade interval of 2m @ 6.5 g/t gold. This intercept is interpreted by Cabral geologists as likely representing the up-dip extension of previous mineralized basement saprolite intercepts in diamond drill holes DDH255 (37m @ 1.3 g/t gold) and historic CC13 (48.1m @ 4.5 g/t gold). The results showcase continuity of high-grade mineralization near surface at Central.

Section N20945

RC366 cut an impressive 30m @ 0.6 g/t gold from 21m depth including a higher grade zone of 8m @ 1.4 g/t gold, as well as a deeper intercept of 8m @ 1.7 g/t gold. Meanwhile, RC367 drilled from the same set-up intersected 35m @ 0.8 g/t gold from 35m depth including 10m @ 1.1 g/t gold. The holes confirm interpreted up-dip extensions of mineralization and validate the oxide blanket / saprolite exploration model.

Section N21243

On an untested section line, RC359 drilled from the SW towards NE intersected 7m @ 2.3 g/t gold from 32m depth including 1m @ 12.8 g/t gold. Meanwhile, RC358 collared 50m to the NE cut 1m @ 4.8 g/t, 3m @ 1.3 g/t and 1m @ 2.0 g/t gold. The holes provide further evidence of extensive near surface high grade oxide mineralization at Central.

Next Steps

According to Carter, the new Central results along with pending assays from 21 additional holes will improve the Company’s understanding of oxide mineralization continuity. The data will support optimization of a new resource model ahead of an upcoming Preliminary Feasibility Study focused on low cost open pit mining of oxide material at both the MG and Central deposits at Cuiú Cuiú.

President and CEO Alan Carter stated, “We continue to hit broad zones of plus one gram gold mineralization starting from surface at both MG and Central. Our vision is to develop a central heap leach processing facility to treat higher grade oxide material from both deposits. We believe a relatively low-cost operation could be brought online exploiting this near-surface mineralization within 12 to 18 months.”

With over $5 million in the treasury, Cabral is well funded to continue aggressively drilling in order to realize this goal. The Company currently has four drill rigs operating non-stop at Cuiú Cuiú. Over the coming months, investors can expect a steady stream of pending and new drill results likely to grow the oxide resource base and further de-risk the project.

Significant Near-Term Resource Expansion & Development Potential

With four drill rigs currently operating at Cuiú Cuiú and extensive results pending from over 50 additional holes, Cabral is poised to significantly expand current oxide resources over the coming months. The higher-density drill data will improve modeling of high-grade zones and support optimization of an updated resource estimate and preliminary economic study focused on low-cost trial mining.

Given shallow mineralization, plus widespread high-grade intercepts close to surface at both Central and MG, Cabral has the potential to delineate an initial oxide resource that could support rapid low-cost mine development on a short timetable.

Conclusion

With approximately $5 million cash on hand, Cabral enjoys a strong financial position to continue aggressively exploring and expanding oxide resources across the broader Cuiú Cuiú district. As the drill bit continues to intersect high-grade gold mineralization starting from surface, investors can expect a steady news flow over coming months likely to provide positive catalysts for Cabral shares.

For investors attracted to new district-scale gold discoveries amenable to low-cost heap leach mining, Cabral warrants consideration as the Company systematically advances Cuiú Cuiú up the value curve towards a potential near-term construction decision.