Total Indicated Resources are 21.6 M tonnes grading 0.87 g/t gold (604.0 K ounces), while total Inferred Resources are 19.8 M tonnes grading 0.84 g/t gold (534.5 K ounces). All Indicated Resources and 84% of the Inferred Resource (ounces) are contained within the MG and Central/CN deposits. Indicated Resources increased by 433 K ounces (253%) from the previous estimate.
Open-pit Indicated Resources amenable to mill processing are 21.6 M tonnes grading 0.87 g/t gold (604.0 K ounces), while open-pit Inferred Resources are 17.2 M tonnes grading 0.68 g/t gold (376.9 K ounces).
Open-pit oxide resources amenable to heap-leach processing are reported for Central/CN, MG, and PDM, comprising Indicated Resources of 9.3 M tonnes grading 0.52 g/t gold (153.7 K ounces), and Inferred Resources of 6.1 M tonnes grading 0.40 g/t gold (79.2 K ounces).
All of the deposits included in the current Mineral Resource Estimate remain open along strike and down dip of the resource estimate wireframes. The deepest drill holes returned positive results and there are no known geological structures that could interrupt, or constrain the mineralization below the current wireframes.
New discoveries at Machichie and MG have not yet been sufficiently drilled for inclusion in a resource estimate.
Alan Carter, President and CEO, commented, “The new resource estimate is a testament to the integrity of the Cuiu Cuiu mineralization, with more than 50% of the total gold ounces in the indicated category. Our geological understanding has improved significantly since Cabral commenced drilling and the company is now able to correlate, interpret and predict gold mineralization down dip and along strike. The definition of the first near-surface heap-leachable oxide Mineral Resource (154 K ounces Indicated and 79 K ounces Inferred) could be a game changer for early low-cost development of a mine at Cuiu Cuiu, supported by our approved Trial Mining Licenses. Future drill programs will focus on step-out drilling aimed at increasing resources at Central and MG and maiden resources for the Machichie and PDM discoveries.”
This is the first resource estimate incorporating Cabral’s drilling data since the company commenced drilling at the Cuiu Cuiu project in 2019. The company had originally planned on issuing an updated Mineral Resource Estimate at the end of 2022 following completion of deeper down-dip and on-strike drilling at known deposits, and completion of drill programs at two exciting new discoveries (PDM and Machichie), all of which was designed to increase the overall resource.
The current Mineral Resource Estimate was, however, completed months earlier than planned, due to a request by the British Columbia Securities Commission to update the existing NI 43-101 technical report (effective date of June 19, 2021) that had been referenced in both the Annual Information Form dated May 5, 2022, and the preliminary short-form prospectus filed on May 25, 2022.
The current Mineral Resource Estimate reflects a significant advancement of the project with drilling undertaken through the effective date (July 31, 2022) which was designed primarily to infill previous drilling at MG and Central, as well as to identify and expand newly discovered gold-in-oxide mineralized zones at MG, PDM and Central, and primary basement mineralization at Machichie and PDM. This drill program was successful in meeting those objectives. Cabral drilling to the effective date also clarified historical work, and significantly improved the degree of confidence and understanding of the mineralized zones at MG and Central as illustrated by the 253% increase in Indicated Resources from previous estimates.
Planned deeper and step-out drilling that had been designed to expand resources at several deposits, was not completed prior to the database cut-off date for the current Mineral Resource Estimate. Similarly, additional drilling will be required at the PDM and Machichie discoveries to enable future inclusion in the current resource.
Cabral Gold now has a firm handle on the geometry and orientation of mineralized zones for future drill hole planning and targeting as a result of the recently completed drill program. Planned deeper and step-out drilling that had been designed to expand resources at several deposits was not completed prior to the database cut-off date for the current Mineral Resource Estimate. Similarly, systematic drilling at several advanced new discoveries had not sufficiently advanced to warrant inclusion in the current Mineral Resource Estimate. This drilling is now expected to be undertaken in the next phase of the drill program.
Future drill programs will focus on increasing resources while improving grade.