High-Grade Gold Results Fuel Expansion Plans at Brazilian Mining District

• Cabral Gold operates the Cuiú Cuiú gold project in northern Brazil with 1.2 million ounces of inferred and indicated resources across an entire district with four new discoveries
• The company has completed a pre-feasibility study for a starter operation requiring less than $40 million capex with a 12-month build timeline and five-month payback period at current gold prices
• All-in sustaining costs projected at $1,200 per ounce generate $2,500 profit per ounce pre-tax at current gold prices, with construction financing discussions at advanced stages
• Three drill rigs are actively exploring to double the current resource base within 12-18 months, with recent high-grade results including 11 meters at 33 g/t and 39 meters at 5.1 g/t
• The project benefits from proximity to Brazil's third-largest gold mine and a much larger historical placer gold footprint, indicating significant district-scale potential

Cabral Gold Corporation stands positioned to capitalise on record gold prices with its advanced Cuiú Cuiú gold project in northern Brazil, as the company nears a final investment decision on a starter operation that promises exceptional returns in the current market environment .

Project Overview and Economics

The Cuiú Cuiú project represents more than a single deposit - it encompasses an entire gold district in northern Brazil with significant exploration upside. This district approach provides multiple development options and substantial growth potential beyond the initial starter operation.

The company controls several gold deposits with four new discoveries identified, plus approximately 50 additional targets within the district that have shown encouraging gold values in trenches and drill holes. This extensive target inventory positions Cabral for sustained resource growth over the coming years .

The project's economics have become exceptionally attractive in the current gold price environment. With all-in sustaining costs projected at $1,200 per ounce, CEO Alan Carter noted:

"With gold at $3,700, pre-tax, you're making $2,500 profit per ounce produced" 

This margin profile translates to a remarkably short payback period of approximately five months on the initial capital investment.

The starter operation requires capital expenditure of just under $40 million US, making it a relatively low-risk entry point into gold production. Carter emphasised the favourable timing, stating "it's nice to have the wind at our back, instead of our face, for a change" when discussing the current gold market sentiment and institutional appetite for gold investments .

Construction Timeline with Financing Progress

Cabral has structured its development approach around a 12-month construction timeline, with financing discussions at advanced stages. The company plans to fund construction principally through debt financing, potentially with an equity component. Carter indicated progress is accelerating: 

"I think our shareholders should expect to see some news regarding the construction financing in the next few weeks" .

Long-lead items have already been ordered, including the processing plant currently under construction in Australia, which will be commissioned in Western Australia before being containerised and shipped to site. This approach demonstrates the company's commitment to maintaining construction schedules and managing build risks.

Interview with Alan Carter, CEO of Cabral Gold

Technical Operations for Risk Management

The project will employ heap leaching technology, a proven and widely-used gold recovery method. Carter explained their risk mitigation strategy: 

"We are employing on-off pads. So we put the material on the pad...We spend 30 days stacking each pad, 60 days leeching each pad and then 30 days removing that material and then we start again" 

This approach, while more expensive than permanent pad systems, provides operational flexibility and reduces technical risks associated with heap permeability issues.

The company will operate four rotating heaps on a 120-day cycle, allowing for process adjustments between cycles. This methodology reflects management's focus on operational certainty and production consistency.

Exploration Growth Through Active Drilling

Active exploration continues with three drill rigs currently operating across the district. The company has delivered impressive high-grade intersections, including 11 meters at 33 grams per tonne and 12 meters at 27 grams per tonne at the Machichie northeast zone, plus 39 meters at 5.1 grams per tonne at the Jerimum Cima area .

Carter outlined ambitious growth targets: 

"we'd like to in 12 to 18 months time, double the current resources that we've got" 

The exploration strategy aims to establish maiden resources on the four new discoveries within 12 months while continuing to expand existing deposits.

Strategic Location Within Proven District

The Cuiú Cuiú project benefits from its location adjacent to GMining Ventures' Tocantinzinho mine, Brazil's third-largest gold producer generating 200,000 ounces annually. Carter, who was involved in the original discovery of that deposit, noted that 

"the Cuiú Cuiú area has a much larger footprint in terms of the amount of gold that was mined by the small miners 40 years ago from the streams. There was 10 times the amount of gold that came out of Cuiú Cuiú" .

This historical context, combined with soil anomalies significantly larger than those at Tocantinzinho, suggests substantial district-scale potential that extends well beyond the current resource base .

Team Execution Capabilities

Cabral has strengthened its team with key additions including Vinicius Domingues, head of regulatory affairs for Vale (Brazil's largest mining company), to the board for permitting expertise. For construction execution, the company has hired Luiz Celaro, a Brazilian mining engineer with experience building similar operations in Brazil .

The construction will be managed through a combination of in-house capabilities and partnership with Ausenco, one of the world's largest engineering firms with significant Brazilian operations, ensuring access to local expertise and international standards .

The Investment Thesis for Cabral Gold

• Exceptional Economics: $2,500 profit per ounce at current gold prices with $1,200 AISC creates industry-leading margins and five-month capital payback
• Low Capital Requirements: Sub-$40 million capex for starter operation provides accessible entry point with manageable construction risk
• Near-Term Production: 12-month build timeline with advanced financing discussions positions company for cash flow generation within 18 months
• District-Scale Potential: 1.2 million ounce resource represents starting point for much larger district with four new discoveries and 50 additional targets
• Proven Location: Adjacent to Brazil's third-largest gold mine with 10x larger historical placer footprint indicating superior geological endowment
• Active Resource Growth: Three drill rigs targeting resource doubling within 12-18 months while maintaining news flow during construction
• Experienced Team: Management with direct experience discovering neighbouring world-class deposit, supported by local construction expertise and international engineering partners

Macro Thematic Analysis

The global gold market continues to reach new all-time highs driven by central bank purchases, currency debasement concerns, and increasing institutional allocation to gold as a portfolio hedge. This environment particularly benefits low-cost, near-production assets like Cuiú Cuiú that can capitalise on elevated gold prices with exceptional profit margins. 

Carter observed that "obviously the gold price...just the general sentiment and the fact that gold keeps hitting all-time highs" has created unprecedented institutional interest, with "generalist funds obviously now moving into the gold space and they're moving down the food chain so to speak" from major producers to smaller market cap development companies . 

The convergence of record gold prices, institutional capital seeking exposure to gold equities, and Cabral's imminent production timeline creates an optimal investment environment. As Carter noted, 

"There are lots of catalysts for the gold price and it continues to move higher but we've got a lot of key catalysts coming up in the next few weeks and months as well" .

TL;DR

Cabral Gold's Cuiú Cuiú project in Brazil offers exceptional economics with $2,500 profit per ounce at current gold prices and a five-month payback on sub-$40 million capex. The company expects construction financing within weeks for a 12-month build timeline while actively drilling to double its 1.2 million ounce resource base. Strategic location adjacent to Brazil's third-largest gold mine and strong exploration results including 11 meters at 33 g/t validate significant district potential.

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