Cabral Gold identifies fifth gold-in-oxide blanket at Cuiú Cuiú Gold District, Brazil

Cabral Gold Inc. [TSXV: CBR; OTC Pink: CBGZF] reported trench results from the Jerimum Cima target and the identification of a fifth gold-in-oxide blanket within the Cuiú Cuiú Gold District, Brazil.

Highlights: Surface trench CT050 at the Jerimum Cima target at Cuiú Cuiú returned 18 metres at 1.9 g/t gold, including 1 metre at 22.8 g/t gold in weathered gold-in-oxide blanket material at surface. The trench also returned results of 0.8 metres at 47.6 g/t gold (which remains open), 3 metres at 0.5 g/t gold, 2 metres at 0.3 g/t gold, and 1 metre at 2.4 g/t gold.

These results, together with previous reconnaissance drilling, indicate the presence of a fifth gold-in-oxide blanket at Cuiú Cuiú which appears to extend over an area of 900 x 1,000 metres. The other gold-in-oxide blankets with Inferred and Indicated resources are Central, MG, PDM and Machichie. Only the Indicated resources at Central and MG were included in the recently released pre-feasibility study

Previous reconnaissance drilling at the Jerimum Cima target, to the east of trench CT050 returned gold values of 14m at 1.6 g/t gold, 20m at 1.2 g/t gold, 10m at 1.3 g/t gold and 24m at 0.7 g/t gold in weathered gold-in-oxide blanket and saprolite material.

Alan Carter, President and CEO, commented, “The surface trench results from CT050 at the Jerimum Cima target confirm that we have a fifth gold-in-oxide blanket within the Cuiú Cuiú gold district. The results demonstrate the presence of extensive gold-in-oxide mineralization of excellent grade at Jerimum Cima.

“This is likely to have a very positive impact on the recent PFS study on a starter heap-leach operation which only considered mining gold-in-oxide material from the MG and Central gold deposits. The potential to upgrade Inferred material at both MG and Central and the likelihood of adding additional Indicated material with further material at the PDM and Machichie discoveries and now at Jerimum Cima, bode very well for growing the overall gold-in-oxide resource base.

“Furthermore, the presence of zones of higher-grade gold mineralization in the near surface saprolite to the east of the Jerimum Cima area that was previously targeted by the reconnaissance drilling, suggests that those zones of higher-grade mineralization may be more extensive than previously envisaged, with a high likelihood of extending into the underlying bedrock.”

Brian Arkell, VP Exploration and Technical Services, said: “Jerimum Cima is actually one of four adjacent targets that we are exploring in the area where surface geochemistry and geophysics show high potential for discovery of near-surface gold-in-oxide mineralization. A large magnetic low in the Jerimum Cima area suggests extensive magnetite destruction in the intrusive host rocks which is one of the key indicators of alteration and mineralization at Cuiú Cuiú.

“In addition, much of the earlier scout drilling intercepted substantial zones of gold mineralization in both the weathered oxide layer and the underlying hard rock, including up to 45.6 metres at 4.5 g/t gold in diamond drill hole CC-026 in hard rock east of Jerimum Cima. We are currently in the process of completing further surface exploration, including auger drilling plus additional trenching, and we are very eager to follow up with the next round of drilling.”

Jerimum Cima Trench Results: As part of the current effort to increase the gold-in-oxide resource inventory at Cuiú Cuiú, the company is conducting a program of surface trenching and shallow RC drilling. Whilst this program aims at adding both Inferred and indicated resources of gold-in-oxide material, of particular importance is adding Indicated resources that can be included in the mine plan.

The Jerimum Cima target is located 3km ENE of the Central gold deposit and 3.5km NW of the MG gold deposit. The target is characterized by a very strong gold-in-soil anomaly of +100ppb gold covering an area of 900m x 1,000m and is comparable with the gold-in-soil anomalies above the MG and Central gold deposits and the PDM and Machichie gold discoveries.

Previous reconnaissance drilling at Jerimum Cima returned 39m at 5.1 g/t gold in hard intrusive rock material as well as a number of shallower, lower-grade gold intercepts in gold-in-oxide material which include 14m at 1.6 g/t gold, 20m at 1.2 g/t gold, 10m at 1.3 g/t gold, and 24m at 0.7 g/t gold. Previous drilling was mainly focused on identifying a hard-rock gold deposit.

The recently completed trench CT050 was oriented NW-SE in the western part of the Jerimum Cima target, immediately west of previous reconnaissance drilling. The trench returned several zones of gold-in-oxide mineralization including: 18 metres at 1.9 g/t gold, including 1m at 22.8 g/t gold; 0.8m at 47.6 g/t gold (open); 3m at 0.5 g/t gold; 2m at 0.3 g/t gold and 1m at 2.4 g/t gold.

All of the mineralized zones in CT050 remain open along strike and at depth. It is notable that all of the mineralized zones in CT050 are coincident with a magnetic low. The correlation of gold mineralization with magnetite destruction in the host intrusive rocks is well established and is a feature of all of the known gold deposits at Cuiu Cuiu, as well as the recent discoveries. The magnetic low centered on Jerimum Cima is open to the NNE as well as to the south where exploration is in the early stages. Initial auger soil samples in this southern area are anomalous with gold values up to 100ppb.

A second magnetic low, likely the same alteration system, occurs 100m to 200m east of Jerimum Cima. Earlier scout drilling in this area returned results of 46 metres at 4.5 g/t gold and 33 metres at 0.72 g/t gold in diamond-drill holes.

While additional trenching and drilling is needed at Jerimum Cima in order to define a maiden resource, management is confident that Jerimum Cima represents a fifth zone of substantial gold-in-oxide mineralization within the Cuiu Cuiu district. This is likely to have a number of positive implications, particularly on resource growth, as well as potential additions to the gold-in-oxide starter operation.

The presence of high grades within wider intervals of lower grade mineralization within the oxide material also occurs at MG and Central and the Machichie discovery. The results from Jerimum Cima are very similar and provide clues to the underlying hard rock potential.

The company is focused on gold properties located in Brazil. The company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil.

Three main gold deposits have so far been defined at the Cuiú Cuiú project which contain NI 43-101 compliant Indicated resources of 12.29Mt at 1.14 g/t gold (450,200oz) in fresh basement material and 11.11Mt at 0.48 g/t gold (171,883oz) in oxide material.

The project also contains Inferred resources of 13.63Mt at 1.04 g/t gold (455,100oz) in fresh basement material and 12.22Mt at 0.39 g/t gold (151,608oz) in oxide material.