Cabral Gold Fast-Tracks Gold Production to Fuel District Exploration in Brazil

• Cabral Gold is developing an advanced gold project next to a major mine development in Brazil
• Recent drilling has delivered strong results from near-surface oxidized "blanket" zones
• Aiming to update oxide resource and complete pre-feasibility study (PFS) in Q2 2024
• Plan is to fast-track into low-cost production from oxide zone to generate cash flow
• All funding options being considered to minimize dilution for current shareholders

Fast-Tracking Near-Term Cash Flow Potential at Cabral Gold Project

Brazil-focused Cabral Gold is rapidly advancing its Cuiú Cuiú gold project in northern Brazil, located right next to the very large TZ project owned by G Mining Ventures. Recent drilling has delivered impressive high-grade, near-surface results, with the company now working to expand resources and complete a pre-feasibility study by mid-2024. The goal is to capitalize on the project’s unique attributes to expedite low-cost production in the near term.

Interview with President & CEO, Alan Carter

Abundant High-Grade Oxide Targets

As CEO Alan Carter explained, “We've been drilling the oxide blankets. We already have significant resources in the oxide layer. This is the weathered layer that sits above the gold deposits. And at Cuiú Cuiú, it's up to 60 meters thick."

With the saprolite oxidized zone representing easy-to-mine “mud, sand and soil” extending right to to surface, Carter emphasized the enormous economic advantages, stating "It sits on hilltops. It's got gold in it. It should be very, very cheap to mine." No drilling and blasting is required, with minimal crushing likely needed ahead of processing through heap leaching and gold recovery via an ADR plant.

Recent shallow drilling has targeted known high-grade zones within the oxide profile to optimize the starter pit potential. Results have impressed, with notable intercepts including 15m at 1.8 g/t gold from surface and 16m at 5.2 g/t from surface at the MG Central zone.

Rapid Resource Growth Expected

The existing indicated and inferred resources within the key oxide zones already stand at 230,000 oz gold. However, Carter made clear that the recent strong drilling results are likely to drive rapid near-term growth and grade.

"A lot of these recent results were outside that we've been releasing over the last couple of months, were outside the known high-grade portion of the oxide resources," he said. "We think it's going to be very positive."

With around 50 holes still awaiting assay results, Cabral anticipates ample news flow continuing well into 2024 to support an updated oxide resource estimate. No extensive additional drilling is planned, with the focus now on completing the upcoming PFS.

De-Risked Path to First Cash Flow

On progress with the PFS, Carter stated, "We should have those results in the second quarter of next year. So it's coming up pretty quick."

The proposed starter operation is focused on simple open-pit mining without drilling/blasting, trucking to a nearby covered heap leach pad, agglomeration via cement mixing, and gold recovery through established low-cost processing options. Carter added, "I think the technical risk is a lot lower than a lot of much larger operations."

With permitting already secured based on an extensive existing diamond drilling database, Carter reinforced that, "The capital cost doesn't look like it's going to be huge." He suggested a range from $15-25 million would be realistic based on comparable projects.

By targeting high-grade material first, the goal is to establish initial positive cash flow in a relatively short time frame after a potential construction decision late next year, subject to funding. Significantly minimized dilution will be critical.

As Carter asserted, "What we're not going to do is go out and try and raise all this through some sort of equity placement. That's not the objective at all."

While early works focus only on a portion of the expansive Cuiú Cuiú land package, successful heap leach operations would ultimately support extensive exploration across the broader district, where additional deposits have already been identified.

Strong Leverage to Further High-Grade Discoveries

Carter also touched on the sizable exploration upside at Cuiú Cuiú beyond the known oxide resource, commenting that "undoubtedly a lot more gold than the current 1.2 million ounces" will eventually be delineated. The company is also drills-testing new targets like Machichie, located just 500m north of the MG Central zone. Prior results here have revealed the potential for another high-grade oxide blanket close to the surface.

After decades in the industry, Carter expressed his view that traditional approaches to funding juniors simply raise capital to drill without tangible shareholder value growth no longer makes strategic sense, noting periods of "negative market sentiment are getting longer."

The ability to establish self-funded exploration through operational cash flows is now paramount. As a result, fast-tracking initial production at Cuiú Cuiú stands out as a top priority. The expanded oxide mining inventory will feed directly into the PFS analysis on project parameters and economics.

While investors can expect a near-constant stream of exploration updates, realization of first revenues appears to be drawing rapidly closer. The story combines resource expansion potential with a clear line of sight to profitable mine development. With cash flows on the horizon at Cuiú Cuiú, Cabral Gold offers strong leverage to further high-grade oxides discoveries across an exceptional district-scale gold project.

The Investment Case for Cabral Gold

• Fast-tracking simple open-pit/heap-leach production allows self-funding of extensive ongoing exploration across the district
• Near-surface oxide zone offers advantages for expedited low-cost development & superior payback, lower risk
• Clear expansion potential beyond initial ~250,000 oz Au resource base with numerous positive drill results pending
• Recent share price buoyed by strong drill results & advancing production plan; further re-rating likely
• By minimizing dilution, shareholder value will benefit directly from potential positive cash flows within 12-18 months

Cabral Gold aims to buck industry trends by accelerating initial gold production at its Cuiú Cuiú project in Brazil rather than only seeking to expand resources. The goal of establishing operational cash flows to drive further high-impact exploration across the district offsets traditional approaches to funding juniors through periodic equity financings alone. With a robust near-surface oxide resource base demonstrating compelling economics, Cabral offers a genuine potential to realize substantial shareholder value from realistic short-term revenues supplemented by resource expansion.