Cabral Gold Files NI 43-101 Technical Report for PFS on Cuiú Cuiú Gold Project Unlocking Significant Value for Investors

• Cabral Gold files NI 43-101 Technical Report for Prefeasibility study demonstrating an impressive after-tax internal rate of return (IRR) of 47.3% and a net present value (NPV) of $25.2 million for the gold-in-oxide starter operation at Cuiú Cuiú.
• The Cuiú Cuiú project boasts significant exploration upside potential, providing opportunities to expand the oxide resource and extend the mine life beyond the current plans.
• The Cuiú Cuiú gold-in-oxide starter operation benefits from a low development capital expenditure of just $37.4 million and a short payback period of only 18 months.
• In the first two years of production, the project is expected to achieve an average annual gold output of 19,700 ounces at an attractive all-in sustaining cost (AISC) of $1,003 per ounce.
• Cabral Gold also announced closing of first tranche of private placement fof $1.5 million for drilling and development activities relating to the starter gold-in-oxide project at the Cuiú Cuiú project, and general working capital purposes.

Cabral Gold Inc. (TSXV:CBR) has filed a positive prefeasibility study (PFS) for developing the gold-in-oxide starter operation at its 100%-owned Cuiú Cuiú gold project in Brazil. The study, led by Ausenco, demonstrates robust economics and unlocks significant value for investors in this emerging gold company.

Cabral Gold is a junior resource company focused on identifying, exploring and developing gold properties in Brazil. Its flagship asset is the Cuiú Cuiú gold project, located in the Tapajós region of Pará State - the largest placer gold producer in Brazil's history.

Cuiú Cuiú Pre-Feasibility Study

The PFS envisions an initial 4.5-year, 720,000 tonne per year open-pit mining and heap leach operation focused on the near-surface oxide gold resource. At a base case gold price of $2,250/oz, the project delivers an after-tax IRR of 47.3% and NPV of $25.2 million, with a short payback period of just 18 months.

The low initial capex of $37.4 million, including contingency, is a key advantage that substantially de-risks the project and makes it highly financeable. At the current spot gold price around $2,710/oz, the economics are even more compelling, with the after-tax IRR increasing to 82.6% and NPV rising to $49.3 million.

Attractive Production & Cost Profile

Over the first two years after commissioning, the project is expected to produce an average of 19,700 ounces of gold annually at an impressively low all-in sustaining cost (AISC) of $1,003/oz. Life-of-mine production totals approximately 72,500 ounces at an average AISC of $1,228/oz.

The PFS leverages the shallow, high-grade nature of the oxide resource to generate strong early cash flows. The starter pit, planned for the first 7 months, contains an estimated 418,000 tonnes grading 1.38 g/t gold with a very low strip ratio. This enables the project to deliver a rapid payback.

Exploration Upside

A key advantage of the Cuiú Cuiú project lies in the substantial exploration upside. The PFS resource includes only a portion of the known oxide targets, providing strong potential to expand both the resource base and mine life.

Recent drilling at Machichie returned 11m grading 33 g/t gold, highlighting the potential for additional high-grade oxide mineralization. A number of other targets across the large district remain untested. Cabral plans an aggressive exploration program aimed at growing the oxide resource and ultimately leveraging the infrastructure to develop the larger underlying primary gold resource.

Private Placement Financing

In addition to the positive PFS results, Cabral also announced the closing of the first tranche of a non-brokered private placement. The company raised $1.52 million by issuing 6.35 million units at $0.24 per unit. Each unit consists of one common share and a half warrant exercisable at $0.36 for two years.

Proceeds will be used to advance exploration and development activities at Cuiú Cuiú as well as for general working capital. This financing tops up Cabral's treasury and ensures the company is well funded to maintain momentum following the PFS.

Conclusion

The positive prefeasibility study is a major milestone for Cabral Gold that clearly demonstrates the economic viability and value opportunity in developing the Cuiú Cuiú oxide resource. With strong project economics, substantial exploration upside, and a healthy balance sheet, Cabral is well positioned to advance the project while continuing to unlock the full potential of this exciting gold district.

For investors, the PFS significantly de-risks the Cuiú Cuiú project and provides a clear path to near-term production and cash flow. As Cabral progresses Cuiú Cuiú through permitting, financing and development, the company appears poised to deliver substantial share price appreciation. With a market cap around C$30 million, Cabral represents a compelling investment opportunity in the junior gold sector.