Cabral Gold - High-Grade Gold in Step-Out Hole at Machichie, Cuiú Cuiú Project

• Cabral Gold reports high-grade gold intercept of 6m @ 13.3 g/t at Machichie NE target.
• Step-out drilling confirms extension of previously reported 11m @ 33.0 g/t gold zone.
• The company discovered near-surface oxide gold mineralization, enhancing potential for heap-leach processing.
• Results suggest significant potential for resource growth in the Cuiú Cuiú Gold District and the drilling program aims to expand the project's oxide and hard rock resources.

Cabral Gold Inc. (TSXV:CBR) is a junior resource company focused on the identification, exploration, and development of mineral properties, with a primary emphasis on gold projects in Brazil. The company's flagship asset is the Cuiú Cuiú gold district, located in the Tapajós Region of Pará state in northern Brazil. Cuiú Cuiú boasts National Instrument 43-101 compliant Indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and Inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz) across two main gold deposits, as reported in October 2022.

New High-Grade Discovery Expands Potential at Machichie NE

Cabral Gold's latest drill results from the Machichie NE target within the Cuiú Cuiú Gold District have revealed exciting new high-grade gold intercepts, potentially signaling a significant expansion of the project's resource base. The standout result comes from RC hole RC0449, which returned 6m @ 13.3 g/t gold from 79m depth, including a spectacular 1m @ 77.5 g/t gold from 79m.

This high-grade intercept is particularly noteworthy as it represents a 50-meter step-out from the previously reported hole RC421, which intersected 11m @ 33.0 g/t gold, including 4m @ 89.3 g/t gold. The continuity demonstrated between these two holes suggests the presence of a robust, high-grade gold zone that remains open in all directions and at depth.

Near-Surface Oxide Potential Enhances Project Economics

In addition to the high-grade intercepts in fresh rock, the drilling program has unveiled promising near-surface oxide gold mineralization. Several holes drilled to the southeast of RC0449 intersected significant intervals of lower-grade gold mineralization in saprolite and blanket sediments. Notable results include:

1. RC0451: 5m @ 2.2 g/t gold from 19m depth in saprolite and 16m @ 0.36 g/t gold from surface in overlying blanket soils and sediments
2. RC0453: 30m @ 0.55 g/t gold from 15m depth and 18m @ 0.33 g/t gold from 51m depth in saprolite
3. RC0450: 12m @ 0.61 g/t gold from 1m depth and 3m @ 2.4 g/t gold from 25m depth in saprolite

These results highlight the potential for developing a significant near-surface, gold-in-oxide resource at Machichie NE. The presence of such mineralization is particularly advantageous as it could be amenable to low-cost heap-leach processing, potentially improving the overall project economics.

Alan Carter, Cabral's President and CEO, emphasized the significance of these results, stating,

"The latest results continue to suggest that we have made a significant new gold discovery at Machichie NE within the Cuiú Cuiú Gold District. There is excellent potential to add ounces to both the primary hard rock gold resources, as well as the gold-in-oxide resource base."

Expanding the Cuiú Cuiú Resource Base

The Machichie area, located approximately 500m north of the E-W trending MG gold deposit, comprises at least three targets: Machichie West, Machichie Main, and Machichie NE. While these targets currently lack defined resources due to insufficient drilling, the Machichie Main zone has been traced for 1.5km along strike in an E-W direction and remains open in all directions and at depth.

Previous drill results at Machichie Main have been impressive, including intercepts of 34m @ 5.4 g/t, 6.4m @ 11.6 g/t, and 45m @ 1.0 g/t gold. The recent high-grade results from Machichie NE suggest that this area could contribute significantly to the overall resource base at Cuiú Cuiú.

Brian Arkell, Cabral's Vice President Exploration and Technical Services, commented on the ongoing exploration efforts:

"RC0449 establishes good continuity of the high-grade zone from RC0421, some 50 metres down dip and along strike. Two diamond drill holes are in progress now to test this zone further. In addition to this high-grade structure, several other holes returned impressive results in the saprolite, as well as quartz stockwork mineralization in the primary granitic bedrock."

Drilling Strategy and Future Plans

Cabral Gold's current drilling program at Machichie NE is focused on determining the extent and orientation of the newly discovered high-grade gold zone. The company has completed additional drill holes, with results pending from six RC holes and two diamond drill holes. This systematic approach to exploration is designed to build a comprehensive understanding of the mineralization at Machichie NE and its potential impact on the overall Cuiú Cuiú resource.

In parallel with the Machichie NE program, Cabral has also initiated drilling at the Central gold deposit. The objective here is to upgrade Inferred category resources in the saprolite to the Indicated category, further enhancing the project's resource profile and potentially improving its economic fundamentals.

The Tapajós Gold Province: A Historical Goldfield with Modern Potential

The Cuiú Cuiú project is situated within the Tapajós Gold Province, a region with a rich history of gold production. According to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil), the Tapajós was the site of Brazil's largest gold rush, producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995.

Cuiú Cuiú itself was the largest area of placer workings in the Tapajós, historically producing an estimated 2 million ounces of placer gold. This historical production provides strong evidence for the presence of significant gold mineralization in the area and underscores the potential for Cabral Gold to make additional discoveries and expand its resource base.

Implications for Investors

For investors considering Cabral Gold, the latest drill results from Machichie NE present several compelling points:

• High-Grade Potential: The intercept of 6m @ 13.3 g/t gold, including 1m @ 77.5 g/t gold, demonstrates the presence of high-grade gold mineralization that could significantly enhance the overall grade profile of the Cuiú Cuiú project.
• Resource Expansion: The step-out nature of the recent high-grade intercept suggests that the mineralized zone at Machichie NE could be more extensive than initially thought, potentially leading to a substantial increase in the resource base.
• Near-Surface Oxide Opportunity: The identification of significant gold mineralization in near-surface saprolite and blanket sediments opens up the possibility of low-cost, heap-leach processing, which could improve project economics and potentially accelerate the path to production.
• Exploration Upside: With multiple targets within the Machichie area and the broader Cuiú Cuiú district, there remains considerable exploration potential that could lead to further discoveries and resource growth.
• Historical Context: The project's location within the historically productive Tapajós Gold Province provides a favorable geological setting and suggests the potential for additional significant gold discoveries.
• Systematic Approach: Cabral Gold's methodical exploration strategy, combining step-out drilling, infill drilling, and resource upgrade work, demonstrates a comprehensive approach to unlocking the full potential of the Cuiú Cuiú project.
• Management Confidence: The positive statements from Cabral's management team regarding the significance of these results and the potential for resource growth reflect confidence in the project's prospects.

Key Takeways

Cabral Gold's latest drill results at the Machichie NE target within the Cuiú Cuiú Gold District present an intriguing opportunity for investors interested in the junior gold mining sector. The combination of high-grade intercepts in fresh rock and the discovery of near-surface oxide mineralization suggests significant potential for resource expansion and improved project economics.

The company's strategic location in the historically productive Tapajós Gold Province, coupled with its systematic exploration approach, positions Cabral Gold favorably for continued exploration success. The ongoing drilling program, with results pending from multiple holes, could provide further catalysts for the company in the near term.

However, investors should be mindful that junior mining companies carry inherent risks, including exploration uncertainties, potential funding requirements, and exposure to commodity price fluctuations. Due diligence is essential, and investors should carefully consider their risk tolerance and investment objectives before making any investment decisions.

As Cabral Gold continues to advance the Cuiú Cuiú project, the company appears well-positioned to capitalize on its recent discoveries and potentially emerge as a significant player in the Brazilian gold mining sector. For investors seeking exposure to gold exploration in a promising geological setting, Cabral Gold presents an opportunity worth watching closely in the coming months.