Cabral Gold posts updated prefeasibility study results for gold-in-oxide starter operation at Cuiú Cuiú Gold Project, Brazil
Cabral Gold Inc. [TSXV: CBR; OTCQB: CBGZF] reported results of an updated Prefeasibility Study on the development of near-surface gold-in-oxide material at the Cuiú Cuiú gold district in Brazil. The Updated PFS, led by Ausenco do Brasil Engenharia Ltda., resulted in significant improvements to the amount of gold produced, mine life, Net Present Value (NPV) and Internal Rate of Return (IRR) These results confirm the Cuiú Cuiú gold-in-oxide starter project provides a high return and a low capital entry point to mine gold, with production possible within 12 months from an investment decision.
Highlights: Financial results from this larger project are a significant improvement on the October 2024 PFS with the Base Case after-tax NPV5, rising by almost 200% from US$25.2 million to US$73.9 million. The after-tax IRR has increased from 47% to 78% using a base case gold price of US$2,500/oz, with payback of the initial capital in under one year.
At the current Spot Gold price – US$3,340/oz, the after-tax IRR increases to 139% and the after-tax NPV5 to US$137 million.
Capital intensity has been reduced with initial capital cost essentially unchanged at US$37.7 million compared with US$37.4 million in the PFS study, including a 10% allowance on most quantities and 20% contingency.
The project has increased the annual processing capacity from 720,000 tonnes/yr to 1,000,000 tonnes/yr.
Mine life has increased from 4.4 to 6.2 years at the higher annual processing rate, with strong cash flows in the early years, resulting in the halving of investment payback from 18 months to 10 months.
Probable Mineral Reserves have increased by 54% relative to the October 2024 PFS from a total 83,762oz to 128,908oz of gold from 6.2Mt at 0.65 g/t gold.
Life-of-mine gold production has increased by 56% from 72,478 ounces to 113,155 ounces at an all-in sustaining cost (AISC) of US$1,210/oz of gold produced.
Strong evidence exists of the potential for near-term growth in the gold-in-oxide resources at Cuiú Cuiú, particularly at the PDM and Jerimum Cima targets.
The Oxide Starter Operation at Cuiú Cuiú is driven by the company’s long-term goal, which is to develop the region’s second major gold mine in the Tapajos district. This Project carries out pre-stripping for the larger hard rock project, exposing the underlying primary gold mineralization, which reduces future waste mining costs. It also creates an initial operating platform that makes it easier to transition into primary ore production, and it generates significant cash flow to accelerate an aggressive and ongoing drilling and evaluation program aimed at finding the best pathway toward the subsequent larger development of the hard rock resources at Cuiú Cuiú.
The company is in advanced negotiations regarding project financing with various parties, targeting a final investment decision (FID) in Q3 2025. Based on this plan, initial gold production is targeted for the second half of 2026.
Alan Carter, the President and CEO of Cabral Gold commented, “We are delighted with the results from the Updated PFS on the Oxide Starter Operation at Cuiú Cuiú, which reflects the dedication of our team and consulting advisors. All key financial metrics have significantly improved since we issued the results of the PFS in October 2024.
“While the required capital expenditures remain effectively unchanged at US$37.7 million, the after-tax NPV has surged by nearly 200% to US$73.9 million, and the after-tax IRR has risen from 47% to 78% over a longer project duration. The main driver behind these higher returns is the increased plant capacity, which reduces unit costs through economies of scale and allows for a lower cut-off grade, which results in higher Reserves. The addition of the Machichie mining area to the production schedule offers a new source of higher grade and near surface material, enabling the project to boost throughput and extend mine life simultaneously.
“Recent drilling and trenching at Cuiú Cuiú has discovered a fifth gold-in-oxide blanket at Jerimum Cima, which currently lacks resources due to limited drilling. This target, along with the known gold-in-oxide resource at PDM, also not included in the Updated PFS, could offer opportunities for future expansion or extension of the mine life for the gold-in-oxide starter operation.
“The Updated PFS has checked all our boxes and delivered a significantly larger starter project with very attractive early financial returns and quick payback, especially during a period of high gold prices.
“In parallel with developing the Oxide Starter Operation at Cuiú Cuiú, the Company is currently undertaking an aggressive exploration drilling program aimed at pursuing the company’s main goal of increasing the primary hard rock resource base, and testing the highest potential targets within the Cuiú Cuiú gold district.”
Cabral owns a 100% stake in the Cuiú Cuiú gold project, located in Pará State in northern Brazil, immediately adjacent to GMining’s major Tocantinzinho gold mine. Cuiú Cuiú was the largest producer of placer gold during the 1980s Tapajós gold rush. The project area covers an entire gold district.
The Cuiú Cuiú processing facility has been designed with a capacity of 3,000 tpd. This is a 50% increase from the 2,000 tpd contemplated in the PFS of October 2024.
The Cuiú Cuiú project is located approximately 195 km southwest of Itaituba, a town on the Tapajós River. The Cuiú Cuiú village lies 60 km north of the regional road BR-163, which is the main supply route for the Tocantinzinho Gold Mine, Brazil’s third-largest open pit gold mine. The Cuiú Cuiú access road will need an upgrade to an all-weather gravel road to support year-round servicing of the mine with 20-25 tonne loads.
The Cuiú Cuiú township is served by a 1,000-metre-long unpaved airstrip maintained by the company. It provides air access to Itaituba, the project’s regional supply and service town.
Power for the project will be supplied by a diesel generator bank. One benefit of a heap leach operation is its relatively low energy consumption and the absence of a need to build grid connection infrastructure at this early stage.
The Project is predicated on the current Trial Mining Licenses, which include a limit in ore processing of 500,000t/year for the project area. The Trial Mining License (GU) for 850.047/2005 (MG deposit) was renewed for 3 years on 30/05/2025 with increase on volume to 300,000t/year. The Trial Mining License (GU) for 850.615/2004 (Central deposit) is in the renewal process for a further 3 years and is currently approved for 200,000 t/year.
ΓüáΓüáThe LI (Installation License for the 2 GUs) was renewed for two years on 13th of June 2025. New ASV (Vegetation Supression) and Rescue of Fauna licenses were received and published July 25, 2025 and are valid for one year.
The company is well advanced in discussions regarding project financing with various parties with the objective of achieving an investment decision by the Cabral Board of directors during the second half of 2025, which would result in initial gold production during the second half of 2026.
The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará, 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 13.56Mt at 0.50 g/t gold (216,182oz) 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 6.4Mt at 0.34 g/t gold (70,569oz) in oxide material.
The resource estimate for the primary material is based on the NI 43-101 technical report dated October 12, 2022. The resource estimate for the oxide material at PDM and MG is based on a NI 43-101 technical report dated October 21, 2024. The resource estimate for the oxide material at Central and Machichie is based on the results of the Updated PFS reported July 29, 2025 with a NI 43-101 technical report expected to be filed within 45 days of this news release.
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