Cabral Gold's Reserves Cover 3 of 5 Oxide Blankets: 7 Things to Know

The Oxide Inventory Behind Phase 1

Cabral Gold Inc. (TSXV: CBR | OTCQX: CBGZF) has sold more than 2,400 ounces of doré from its Phase 1 mine at the Cuiú Cuiú Gold District in Pará State, Brazil, at an average net realized price above US$4,200 per ounce. Phase 1's reserve base totals 128,903 ounces of Probable Reserves in 3 of the 5 gold-in-oxide blankets identified in the district. The other 2 were not included due to insufficient drill density, and drilling since then has found more oxide material. Phase 1 expansion details, a 6-deposit resource update, and the declaration of commercial production are targeted for completion by the end of 2026. A Phase 2 hard rock preliminary economic assessment (PEA) follows in 2027.

1. Probable Reserves Cover 3 of the District's 5 Oxide Blankets

Ausenco led the Prefeasibility Study (PFS) published July 29, 2025. Cabral's initial starter operation has 128,903 ounces of Probable Reserves: 82,912 ounces at MG, 29,959 ounces at Central and 16,032 ounces at Machichie. The reserve totals 6,178,000 tonnes at 0.65 grams per tonne (g/t) gold. The district has 5 identified gold-in-oxide blankets at Central, MG, PDM, Machichie and Jerimum Cima.

The PFS projected 113,155 ounces of gold production over a 6.2-year mine life at a strip ratio of 0.78 tonnes of waste per tonne of ore.

2. PDM & Jerimum Cima Were Excluded for Insufficient Drill Density

PDM and Jerimum Cima were not included in the PFS due to insufficient drill density. PDM holds an Inferred oxide resource of 1,600,000 tonnes at 0.43 g/t gold for 22,100 ounces. Jerimum Cima has no resource yet. Weathering there reaches a depth of 70 meters, and trenching and drilling to date suggest a gold-in-oxide blanket.

Drilling at Jerimum Cima is under way to define the size of the mineralized body, with a maiden resource estimate targeted by the end of 2026. The mineralized zone has been traced 900 meters along strike and is open to the east, and drill results at Jerimum Cima include 9.5 meters at 87.4 g/t gold and 39 meters at 5.1 g/t gold. An update to the oxide resource base is targeted for the same date. The comparison to watch is the oxide ounce count at each, set against the 22,100 ounces PDM holds today.

3. Drilling Since the PFS Found More Oxide, & Phase 1 Expansion Guidance Is Targeted Before the End of 2026

The Phase 1 expansion came out of oxide drilling after the PFS. It is separate from Phase 2, the larger hard rock operation that follows Phase 1. President and Chief Executive Officer of Cabral Gold, Alan Carter, said drilling after the PFS found more oxide material:

"We think there's a lot more of this oxide material at Cuiú Cuiú. These gold deposits are weathered down to about 60 or 70 meters on average."

Saprolite is weathered bedrock, and the oxide material is free-digging, needs no drilling or blasting, and requires no crushing or grinding. Carter said he believes Phase 1 throughput can double in about 12 months, possibly sooner, and that Cabral will give the market guidance on how fast that can be done. Cabral is targeting details of the Phase 1 expansion before the end of 2026. Phase 1 is designed around 3,000 tonnes per day and 1,000,000 tonnes per year of heap leach capacity.

4. Machichie Holds Reserves & Is Due an Oxide Update Plus a Maiden Hard Rock Estimate

Machichie holds 16,032 ounces of probable reserves. Its oxide resource stands at 1,334,744 tonnes Indicated at 0.56 g/t gold for 24,123 ounces, plus 714,188 tonnes Inferred at 0.54 g/t gold for 12,403 ounces. Cabral is targeting an updated oxide estimate and a maiden hard rock estimate for Machichie by the end of 2026.

Drilling below the oxide returned 34 meters at 5.4 g/t gold and 6.4 meters at 11.6 g/t gold at Machichie Main. Machichie NE, immediately north of MG, returned 11 meters at 33.0 g/t gold, including 4 meters at 89.3 g/t gold, and 12 meters at 27.7 g/t gold. The update will show whether Machichie's oxide ounces grow beyond the 24,123 Indicated ounces and what grade the hard rock below it returns.

5. The 6-Deposit Update Replaces a 2022 Base

The last primary resource estimate dates to a technical report of October 12, 2022, and modeled 3 deposits. Since then, about 50,000 meters of drilling have been completed, and the next estimate covers 6 deposits. The current oxide inventory is 13.56 million tonnes Indicated at 0.50 g/t gold for 216,182 ounces and 6.4 million tonnes Inferred at 0.34 g/t gold for 70,569 ounces. Cabral is running 6 drill rigs, and Carter said more than 50 targets surround the 6 known gold deposits.

Management is targeting a global resource of more than 2 million ounces across hard rock and oxide, up from about 1.2 million ounces today. Phase 1 mines oxide material, so the oxide lines of the estimate bear most directly on its size.

6. Commercial Production Is Targeted for the Fourth Quarter of 2026

The first sale confirmed the mine-to-market chain from mining and processing through doré shipment to a refinery in Brazil. The dry plant has moved to 24-hour operation on 2 shifts per day, while mining remains primarily a 12-hour operation, with run-of-mine stockpiles feeding the dry plant during the night shift. Cabral intends to declare commercial production once daily rates move toward design capacity. Management is targeting the fourth quarter of 2026. Cabral says the project remains on time and on budget.

No waste has been mined so far, Carter says. Average gold recovery of 87.8% and all-in sustaining costs of US$1,210 per ounce are PFS assumptions. Cabral's stated ramp-up priority is safely increasing throughput and recoveries.

7. The Phase 2 PEA Follows the Year-End Update

Cabral is targeting a PEA of the Phase 2 hard rock operation in 2027. Carter said Phase 2 is likely to add 150,000 to 200,000 ounces per year. The hard rock resource stands at 12.29 million tonnes Indicated at 1.14 g/t gold for 450,200 ounces and 13.63 million tonnes Inferred at 1.04 g/t gold for 455,100 ounces.

Management plans to fund the expansion of Phase 1, the exploration drilling and the PEA from Phase 1 cash flow, and says reliance on dilutive equity is not the optimal way to fund district drilling. The US$45 million gold loan that funded Phase 1 construction begins principal repayments of 39 kilograms of gold per quarter on March 31, 2027, under a 39-month term with 10% interest paid quarterly.

Catalysts to Watch

• Phase 1 expansion details: targeted before the end of 2026.
• 6-deposit resource update, including a maiden estimate for Jerimum Cima, an oxide resource update, and an updated Machichie estimate: targeted by the end of 2026.
• Commercial production at the Phase 1 mine: targeted for the fourth quarter of 2026.
• Phase 2 preliminary economic assessment on the hard rock resource: targeted for 2027.