Cabral Gold Ramps Up Drilling to Upgrade Resources at Cuiú Cuiú Gold Project

About Cabral Gold

Cabral Gold Inc. (TSXV: CBR, OTC: CBGZF) is a Canada-based junior resource company focused on the exploration and development of gold properties in Brazil. Its flagship project is the Cuiú Cuiú gold district located in the Tapajós region in the state of Pará. The project contains National Instrument 43-101 compliant resources of 21.6 million tonnes at 0.87 g/t gold for 604,000 ounces of indicated gold and 19.8 million tonnes at 0.84 g/t gold for 534,500 ounces of inferred gold.

The Tapajós region was the site of one of the largest gold rushes in Brazil's history, producing an estimated 30-50 million ounces of placer gold between 1978 and 1995. Cabral believes there is significant potential to expand the resource base at Cuiú Cuiú through further exploration.

Drilling Program to Upgrade Resources Underway

Cabral has commenced a 25-hole reverse circulation (RC) and 21-hole power auger drilling program at Cuiú Cuiú. The program is focused on expanding and better defining the high-grade portions of the oxide gold resources at the MG and Central deposits.

The current Indicated and Inferred oxide resources at these deposits are 153,700 ounces and 79,200 ounces of gold respectively. However, previous drilling within the oxide zones intersected significant intervals of high-grade mineralization, including 60 meters at 3.5 g/t gold from surface at MG and 20.9 meters at 4.2 g/t gold from surface at Central.

The new drilling will target these high-grade zones with the aim of tightening the resource model and improving confidence in the oxide resources. This will facilitate mine planning and sequencing as Cabral works towards a potential trial mining operation focused on the oxides.

Beyond MG and Central, the drilling program will also look to upgrade portions of the resource at PDM from Inferred to Indicated and explore the potential to expand the recently discovered high-grade oxide mineralization at Machichie.

Advancing Towards Trial Mining

The drill program is part of an ongoing Pre-Feasibility Study examining a potential trial mining operation targeting the higher grade oxide resources within the saprolite and oxide gold blanket deposits.

Previous test work has shown the oxide material is amenable to conventional crushing and heap leaching, allowing for a relatively low-cost operation focused on the near surface, higher grade material. Defining and upgrading these zones through the current drilling will improve the economics.

According to Cabral President and CEO Alan Carter, “We are very pleased to have re-commenced drilling at Cuiú Cuiú. This program will target the higher-grade material within the near surface gold-in-oxide blanket and saprolite resources. It is also aimed at upgrading the Inferred portion of the current oxide resource at Central to Indicated, and will allow for better mine planning and sequencing in the ongoing trial-mining Pre-feasibility Study for the MG and Central deposits."

Upside Beyond Current Resources

In addition to upgrading the existing oxide resources, Cabral believes there is strong potential to expand the higher grade mineralization, particularly at PDM and Machichie. Previous drilling at PDM returned high-grade intercepts including 11 meters at 3.1 g/t gold from surface and 13 meters at 4.6 g/t gold. Meanwhile, trenching at Machichie produced intervals up to 7.7 meters at 5.8 g/t gold.

Both PDM and Machichie will be priority targets for the Company as it looks to continue growing the oxide resource base across the broader Cuiú Cuiú district.

Conclusion

With drilling now underway and a Pre-feasibility Study examining a potential low-cost, near-term trial mining operation targeting high grade oxides, Cabral offers investors an attractive leverage to the gold price in a favorable mining jurisdiction. As results from the drill program are released over the coming months, investors have the opportunity to get in early before the next phase of resource growth and economic studies.