Cabral Gold Unearths Promising Gold Intercept Results at Machichie West

• Cabral Gold reports new significant gold intersections at Machichie West target within the Cuiú Cuiú gold district.
• Highlight includes 10m @ 3.00 g/t gold from 11m depth in RC439, suggesting potential for additional near-surface oxide material
• Machichie trend now defined over 1.5 kilometers and the findings could enhance ongoing PFS study for trial mining and heap leach processing

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 holds a 100% interest in the Cuiú Cuiú gold district, situated in the Tapajós Region of Pará state in northern Brazil. This project area was the site of the largest gold rush in Brazilian history, with an estimated 30 to 50 million ounces of placer gold produced 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.

New Drill Results Illuminate Machichie West's Potential

Cabral Gold has announced the results of its initial reconnaissance reverse circulation (RC) drilling program at the Machichie West target within the Cuiú Cuiú gold district. The program, consisting of fifteen holes, has yielded several significant gold intersections that suggest the presence of previously unrecognized mineralized structures. These findings could potentially provide additional near-surface oxide material for the company's ongoing prefeasibility study (PFS) focused on trial mining and heap leach processing operations.

Highlight Intersections

The standout result from this round of drilling came from hole RC439, which returned an impressive 10 meters at 3.00 g/t gold from just 11 meters depth in weathered saprolite. This intersection included an even higher-grade zone of 5 meters at 5.37 g/t gold from 13 meters depth. Such near-surface, high-grade intersections are particularly valuable as they can potentially be exploited through low-cost open-pit mining methods.

Other notable results include:

1. RC427: 13 meters at 1.00 g/t gold from 19 meters depth, including 2 meters at 4.80 g/t gold
2. RC430: Multiple zones of mineralization, including 8 meters at 0.36 g/t gold from surface in blanket sediments, followed by 9 meters at 0.27 g/t gold in weathered saprolite, and 8 meters at 0.60 g/t gold from 26 meters depth, including 1 meter at 3.78 g/t gold in hard rock

These results, while varying in grade, consistently demonstrate the presence of gold mineralization across the Machichie West target area, suggesting a potentially extensive mineralized system.

New Piece in the Cuiú Cuiú Puzzle

The Machichie West target is located approximately 500 meters north of the MG gold deposit and immediately west of the Machichie Main zone. This area had never been previously drill-tested, although surface trenching had produced encouraging results, including 96.5 meters at 0.6 g/t gold and 138 meters at 0.5 g/t gold.

The recent drilling program was designed to follow up on these surface trench results and define the near-surface potential for additional oxide resources. The results suggest that Machichie West may represent the westward continuation of a major east-west trending structural zone extending from the Machichie Main zone.

Expanding the Machichie Trend

With these new results, the overall Machichie trend has now been defined over a strike length exceeding 1.5 kilometers. This expansion of the known mineralized area could have significant implications for the project's resource potential. Brian Arkell, Cabral's Vice President of Exploration and Technical Services, noted that mineralization remains open to both the west and east, with a large gap in drilling between Machichie West and Machichie Main yet to be explored.

The proximity of the Machichie trend to the MG gold deposit further enhances its potential significance. As Arkell stated, "Given the proximity to MG, Machichie could provide significant upside to the overall gold-in-oxide development project."

Implications for the Ongoing PFS Study

These new results from Machichie West come at a crucial time for Cabral Gold, as the company is currently conducting a prefeasibility study (PFS) on a trial mining and heap leach processing operation for near-surface oxide material at Cuiú Cuiú. The identification of additional near-surface gold mineralization at Machichie West could potentially enhance the economic viability of this planned operation.

Alan Carter, Cabral's President and CEO, emphasized this point, stating:

"These results indicate the presence of additional near-surface gold-in-oxide mineralization in close proximity to the MG gold deposit."

The ability to potentially incorporate this new mineralization into the PFS could lead to an expansion of the planned operation or an extension of its projected mine life.

Geological Context & Exploration Potential

The Machichie West target is characterized by numerous northeast-trending veins in intrusive rocks, spread across an area measuring approximately 500 by 300 meters. The recent drilling program was designed with north-south to northwest-southeast oriented traverses to maximize the chances of intersecting these interpreted northeast-trending mineralized structures.

The results suggest a complex mineralized system, with gold occurring in various settings:

1. In weathered saprolite (e.g., the high-grade intersection in RC439)
2. In near-surface blanket sediments (e.g., the upper intersection in RC430)
3. In hard rock at depth (e.g., the lower intersection in RC430)

This variety of mineralization styles suggests multiple episodes of gold emplacement and/or remobilization, which could indicate a robust and long-lived mineralizing system. Such systems often have the potential for significant resource expansion with further exploration.

Comparison to Recent Machichie NE Results

It's worth noting that these results from Machichie West follow closely on the heels of exciting findings at the Machichie NE target, where hole RC421 recently returned 11 meters at 33.0 g/t gold. While the grades encountered at Machichie West are not as spectacular, they demonstrate the potential for multiple zones of significant gold mineralization within the broader Machichie area.

The company is currently awaiting results from additional drilling at both Machichie West and Machichie NE. These pending results could provide further insights into the continuity and extent of the mineralization, particularly the high-grade "bonanza" zone intersected at Machichie NE.

Technical Considerations & Future Work

The drill results presented in this release represent only the initial phase of exploration at Machichie West. As with any early-stage exploration program, there are several technical considerations and avenues for future work:

• Infill Drilling: The current drill spacing is relatively wide, leaving significant gaps between holes. Infill drilling will be necessary to better define the continuity and geometry of the mineralized zones.
• Step-Out Drilling: With mineralization remaining open in multiple directions, step-out drilling will be crucial to determine the full extent of the gold-bearing system.
• Deeper Drilling: Most of the reported intersections are relatively shallow. Deeper drilling will be required to test the down-dip extensions of the mineralized zones and to investigate the potential for primary mineralization in the underlying bedrock.
• Structural Analysis: Further work will be needed to fully understand the structural controls on mineralization, which could guide future exploration efforts.
• Metallurgical Testing: As these results potentially represent additional feed for the planned heap leach operation, metallurgical tests on the Machichie West material will be necessary to confirm its amenability to this processing method.
• Resource Modeling: Ultimately, if further drilling continues to yield positive results, the data from Machichie West could be incorporated into an updated resource model for the Cuiú Cuiú project.

The Broader Cuiú Cuiú Project

While the Machichie West results are exciting, it's important to consider them in the context of the broader Cuiú Cuiú project. As of October 2022, the project contained National Instrument 43-101 compliant Indicated resources of 21.6 million tonnes grading 0.87 g/t gold (604,000 ounces) and Inferred resources of 19.8 million tonnes grading 0.84 g/t gold (534,500 ounces).

These resources are primarily contained within two main gold deposits that have been defined to date. The results from Machichie West, along with the recent high-grade intersection at Machichie NE, suggest the potential for significant resource growth beyond these established deposits.

The Tapajós Gold Province: A Prolific Gold District

The Cuiú Cuiú project is situated within the Tapajós Gold Province, an area with a rich history of gold production. According to the Brazilian National Mining Agency (ANM), this region produced an estimated 30 to 50 million ounces of placer gold between 1978 and 1995 during Brazil's largest gold rush.

The Cuiú Cuiú area itself was the largest zone of placer workings within the Tapajós, historically producing an estimated 2 million ounces of placer gold. This extensive history of placer production is often indicative of significant primary gold deposits in the bedrock, lending credence to the potential for major discoveries within Cabral Gold's project area.

Market Implications & Investor Considerations

For investors considering Cabral Gold, these latest results from Machichie West present several points of interest:

• Near-Term Production Potential: The identification of additional near-surface oxide mineralization could enhance the economics of the planned trial mining and heap leach operation, potentially leading to nearer-term cash flow for the company.
• Resource Growth Potential: The expansion of the Machichie trend to over 1.5 kilometers in length, coupled with the recent high-grade results from Machichie NE, suggests significant potential for resource growth at Cuiú Cuiú.
• Exploration Upside: With multiple targets still to be fully tested across the project area, there remains substantial exploration upside that could lead to further discoveries.
• Strategic Location: The project's location in the prolific Tapajós Gold Province, with its history of significant gold production, provides a favorable geological setting for major gold deposits.
• Experienced Management: The company's management team, led by CEO Alan Carter, has a track record of success in the junior mining sector and deep experience in Brazil.

However, potential investors should also consider the risks inherent in junior mining companies:

• Exploration Risk: Not all exploration programs lead to economically viable deposits, and further drilling may not replicate the promising initial results.
• Financing Risk: Junior miners often require multiple rounds of financing to advance their projects, which can lead to dilution for existing shareholders.
• Permitting and Political Risk: While Brazil is generally mining-friendly, changes in regulations or politics could impact project development.
• Gold Price Sensitivity: The economic viability of gold projects is highly dependent on the prevailing gold price, which can be volatile.

Conclusion

Cabral Gold's latest drill results from the Machichie West target at its Cuiú Cuiú project present an intriguing opportunity for investors interested in the junior gold sector. The identification of new zones of near-surface gold mineralization, the expansion of the known mineralized trend, and the potential to enhance the ongoing prefeasibility study all point to a company with significant growth potential.

However, as with any junior mining investment, thorough due diligence is essential. Investors should carefully consider the company's overall resource base, its exploration strategy, management team, financial position, and the broader market conditions for gold before making an investment decision.

For those willing to accept the inherent risks of the junior mining sector, Cabral Gold offers exposure to a promising gold project in a historically productive gold region. With multiple exploration targets still to be tested and the potential for near-term production via the planned heap leach operation, the company presents an interesting blend of near-term catalysts and long-term growth potential.

As always, investors are encouraged to conduct their own research, consider their risk tolerance, and consult with a financial advisor before making any investment decisions. The coming months, with pending drill results and the advancement of the prefeasibility study, should provide further insights into Cabral Gold's potential and could prove to be an exciting time for the company and its shareholders.