Cabral Gold Inc. [CBR-TSXV; CBGZF-OTC] said Thursday February 28 that it has discovered a new high-grade gold system at its 100%-owned Cuiu Cuiu Project, in Para State, northern Brazil.
Cabral shares rallied strongly on the news, rising 24.4% or $0.055 to 28 cents. The shares trade in a 52-week range of 44 cents and 29 cents.
The discovery was made on the Machichie target, an area that has never previously been drill tested. It is located just 500 metres north of the MG deposit, which is estimated to host an inferred resource of 8.6 million tonnes of 1.45 g/t gold.
Cabral Gold is engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties in Brazil.
Its key asset is the Cuiu Cuiu Project, which covers the largest of the historical placer gold camps in the Tapajos Region of northern Brazil, about 20 km west of northwest of Eldorado Gold Corp.’s [ELD-TSX, EGO-NYSE] advanced Tocantinzinho gold project.
The Tapajos region was the site of two major gold rushes and has produced up to 30 million ounces of placer gold.
The company recently released a new NI 43-101 mineral resource estimate for the Cuiu Cuiu property saying indicated and inferred resources stand at approximately one million ounces. That estimate is based on four deposits drilled prior to the cessation of exploration in 2012.
Cabral said it has also identifed a strong gold-in-saprolite anomaly southeast of the Central Deposit at the Cuiu Cuiu Project.
It said auger drilling to the southeast of the Central deposit, which contains 485,000 ounces, has identified a broad gold-in-saprolite anomaly of +100 ppb gold, extending 250 metres across strike in a north-south direction. The anomaly is located 1 km southeast of the Central deposit and 550 metres east southeast of drill hole CC138-11, which intersected 6.9 g/t gold over 27 metres.
The Machichie Phase 1 reconnaissance diamond drill program is part of a larger 20-hole reconnaissance program designed to test nine separate high-grade gold targets. The company released assay results from the initial six holes on Thursday.
Highlights included drill hole CC182-19, which returned 3.4 metres of 36.9 g/t gold, including 0.7 metres of 162.7 g/t gold within a north-east trending structure that remains open along strike and at depth.
Drill hole CC178-19 returned 2.1 metres at 15.3 g/t gold within the main E-W trending Machichie magnetic low target which is also previously undrilled.
Machichie was selected as a priority target for drill testing following the identification of high-grade gold mineralization from shallow artisanal shafts in mid-2018. A composite grab sample returned 336 g/t gold from a 1-metre wide quartz-pyrite vein in the principal shaft in the area.
The high-grade surface mineralization and workings at Machichie extend over at least 750 metres in strike length and are coincident with a strong east-west trending magnetic anomaly, resembling that of the Moreira (MG) deposit, which extends over a strike length of 1,200 metres east-west.
“These initial drill results from the previously untested Machichie target strongly support our belief that numerous high-grade zones of gold mineralization exist at the Cuiu Cuiu Project,” said Cabral President and CEO Alan Carter.
“Clearly we have made a new discovery which has the potential to grow to be a significant high-grade deposit,” he said.